Many entrepreneurs have shown great interest in cloud computing and virtualisation services in India. However, a dedicated cloud computing legal framework is missing in India and it is governed by provisions scattered under numerous legislations. Another related problem that both cloud computing and virtualisation businesses must tackle pertains to respecting privacy rights in India in the information age. The dedicated privacy laws in India and data protection laws in India (PDF) are also missing. This has complicated the cloud computing and virtualisation business scenario in India.
Virtualisation, cloud solutions and encryption are three issues that are interrelated. These aspects are interrelated through various applicable laws in India that all virtualisation and cloud computing companies must follow to avoid legal liabilities. Cloud computing and virtualisation service providers in India are required to comply with Internet Intermediary liability prescribed under the Information Technology Act, 2000.
The present trend in India in this regard is not very encouraging. Virtualisation and cloud computing service providers are either not aware of applicable Indian laws or they are working in gross regard of the same. Even requirements of Indian laws pertaining to encryption usage in India are not followed in proper manner.
Virtualisation and cloud computing service providers in India must not only follow the encryption laws of India but they must also ensure cyber law due diligence in India (PDF). This is more so when the cyber law due diligence for companies in India has become very stringent and foreign companies and websites are frequently prosecuted in India for non exercise of cyber due diligence. The cyber litigations against foreign websites would increase in India. The Google’s Online Defamation Case is the contemporary example n this regard.
Perry4Law and Perry4Law Techno Legal Base (PTLB) have provided the Cyber Law Trends and Developments of India 2013 (PDF), Cyber Security Trends and Developments in India 2013 (PDF) and Cyber Forensics Trends and Developments in India 2013 (PDF). According to these trends cyber due diligence for cloud computing, social media, virtualisation services, etc would be required to be exercised frequently in India by various technology players.
Further, although we have no dedicated legal framework for cloud computing in India as on date yet legal and regulatory issues of cloud computing in India would arise in future. In fact, cloud computing in India is legally risky. Further, e-discovery for cloud computing in India would also bring its own share of techno legal issues. Companies dealing in virtualisation and cloud computing services must ensure that they are complying with various techno legal requirements in India.