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Cloud Computing: Architectural and Policy Implications

30 Pages Posted: 30 Apr 2011 Last revised: 31 Jan 2014

Christopher S. Yoo

University of Pennsylvania Law School; University of Pennsylvania - Annenberg School for Communication; University of Pennsylvania - School of Engineering and Applied Science

Abstract

Cloud computing has emerged as perhaps the hottest development in information technology. Despite all of the attention that it has garnered, existing analyses focus almost exclusively on the issues that surround data privacy without exploring cloud computing’s architectural and policy implications. This article offers an initial exploratory analysis in that direction. It begins by introducing key cloud computing concepts, such as service-oriented architectures, thin clients, and virtualization, and discusses the leading delivery models and deployment strategies that are being pursued by cloud computing providers. It next analyzes the economics of cloud computing in terms of reducing costs, transforming capital expenditures into operating expenditures, aggregating demand, increasing reliability, and reducing latency. It then discusses the architectural implications of cloud computing for access networking (focusing on bandwidth, reliability, quality of service, and ubiquity) and data center interconnectivity (focusing on bandwidth, reliability, security and privacy, control over routing policies, standardization, and metering and payment). It closes by offering a few observations on the impact of cloud computing on the industry structure for data centers, server-related technologies, router-based technologies, and access networks, as well as its implications for regulation.

Keywords: Service oriented architecture, thin clients, grid computing, virtualization, SaaS, PaaS, IaaS, private clouds, public clouds, disaster recovery, cloud bursting, reliability, latency, bandwidth, quality of service, reliability, privacy, security

JEL Classification: K23, L86, L96

Suggested Citation

Yoo, Christopher S., Cloud Computing: Architectural and Policy Implications. Review of Industrial Organization, Forthcoming; U of Penn, Inst for Law & Econ Research Paper No. 11-15; U of Penn Law School, Public Law Research Paper No. 11-15. Available at SSRN: https://ssrn.com/abstract=1824580

Christopher S. Yoo (Contact Author)

University of Pennsylvania Law School ( email )

3501 Sansom St.
Philadelphia, PA 19104-6204
United States
(215) 746-8772 (Phone)

HOME PAGE: http://www.law.upenn.edu/faculty/csyoo/

University of Pennsylvania - Annenberg School for Communication ( email )

3620 Walnut St.
Philadelphia, PA 19104-6220
United States
(215) 746-8772 (Phone)

University of Pennsylvania - School of Engineering and Applied Science ( email )

3330 Walnut St.
Philadelphia, PA 19104-6309
United States
(215) 746-8772 (Phone)

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