Privacy in the Cloud Computing Era: A Microsoft Perspective
Brendon Lynch  here.  
Today we  released a new position paper, Privacy in the Cloud Computing Era: A Microsoft  Perspective.  
This new paper  discusses how Microsoft is approaching privacy as it relates to cloud  computing.   We wrote this paper based on our experience over the past  decade examining and addressing privacy challenges in the evolving online  services realm.  We are also releasing guidance to enterprises and  consumers to help them navigate the privacy issues to consider when thinking  about cloud-based services. 
Cloud-based  services are rapidly emerging to complement the traditional client-based model  of running software on PCs and servers at home and within the organization.  Simply put, "cloud computing" refers to computing capabilities that are provided  to organizations that operate over the Internet.  Businesses  and governments are using "the cloud" to provide more and more services as it  allows for greater flexibility, efficiency and lower costs.   This next generation of computing has significant potential to create new  jobs, business opportunities and economic growth.
From a privacy  perspective, a key aspect of cloud computing is the remote storage and  processing of personal information with a service provider. Consumers, and more  recently organizations, have for some time been using online services that store  personal information remotely (for example, Microsoft's Windows Live Hotmail was  introduced in the mid-90s).  Therefore, with regard to most  data privacy questions as well as the perspective of typical users, cloud  computing reflects the evolution of the Internet computing experiences we have  long enjoyed, rather than a revolution.   
While we  recognize that privacy in the cloud will evolve over time; the paper describes  how our underlying privacy principles provide a solid  foundation for addressing privacy issues. 
However,  particularly given the global nature of the data flows inherent in cloud  computing, there are a number of policy questions concerning how people,  organizations and governments handle information and interactions in this  environment.  As Peter Cullen's post last week noted:
With the  evolution  of cloud computing, in particular, global data flows have  changed to become continuous and multi-point rather than linear and  point-to-point.  Chances are that data will flow differently in ten years  than it does today, and privacy rules will need to anticipate these inevitable  changes. At the same time, privacy laws, by their very nature, are local.   This dynamic creates inherent tension.  As such, new privacy paradigms and  governance models, such as one governed by accountability need to be considered  in the context of global such frameworks.
Microsoft looks  forward to a continuing engagement with government, industry, advocates, and our  customers on these vital topics.
Brendon Lynch,  senior director of privacy strategy, Microsoft Trustworthy  Computing
