Lawmaker seeks probe of offshore cloud-computing services deal

March 7, 2012 Off By David
Object Storage
Grazed from Business Mirror.  Author: Fernan Marasigan.

A LEGISLATOR has asked the House of Representatives’ Committee on Information and Communications Technology to conduct an inquiry into the use of offshore cloud-computing services for government data and networks.

This after the Department of Budget and Management (DBM) sealed a partnership with IP Converge Data Center Inc. (PSE ‘CLOUD’), the local re-seller of Google Apps and other cloud-based office productivity tools in January 2012…

In seeking the congressional investigation through House Resolution 2141, Party-list Rep. Teodoro Casiño of Bayan Muna underscored the need to study the repercussions of allowing off-shore facilities to have access to data that should otherwise be secured because of its private and sovereign nature.

He said that while the DBM should be lauded for paving the way for government utilization of cloud services, Congress should consider the implications of using a cloud service based in another country.

“DBM had the option but decided not to tap Philippine-based cloud infrastructure service providers during the bidding for their ‘Web-based enterprise e-mail application’.  The agency, apparently, did not consider the problem of having sensitive data, especially private exchanges through e-mail, accessible to foreign governments,” Casiño said.

Cloud computing is the practice of providing applications not as products but as a service wherein shared resources and software are made available to multiple computers through a network.

“Instead of purchasing and installing office applications for each and every computer used by an organization or business, cloud users can easily access the applications through a Web browser or a light weight desktop program,” Casiño said.

“This makes software updating and file sharing faster and easier.  It also keeps computers from being bogged down with applications and files.  Because of its efficiency and practicality, there is no need to buy expensive application installers or hire technicians,” he added.

The legislator noted that cloud computing is now considered as one of the most viable information and technology (IT) services in the market today.  In fact, the United States Federal Government had already instituted a “Cloud First policy,” prioritizing cloud alternatives to various desktop-based applications.

He said having data with US-based providers or even subsidiaries of any US-based company is especially risky since the USA Patriot Act, otherwise known as the “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,” gives the US government power to access private data from American companies, including IT service providers, some of which are handling outsourced data from various countries.