Keep aside the national security & individual privacy angle for a moment because that makes people angry (Rightly So..) what with many of the ill-informed, hasty, ambigous, non-uniform policy directives in recent times regarding Blackberry, Nokia, Internet, Telephone interception etc. from the govt. (Not TRAI)
But isn't the other points for discussing regulation are far more important when Cloud Computing is going to be/already is billions of dollar industry. The point of discussion is more from the angle of Consumer. Question is if there is a wide spread service which will be availed by millions, can all the rules of the game be decided by the Service Providers themselves keeping only their interest in mind or should there is a broad policy framework which protects the interest of all and allows the sector to be run in an organised manner. If one just looks at the following areas listed in the discussion paper, the need is imperative.
Imagine a hypothetical scenario. I am an SME operating in India. There are millions. Now because of Cost Effectiveness, Clould Computing is an attractive proposition for me. I consider 2-3 different service providers. Each one has its own terms & conditions for the above points. And as usual all the terms are always structured according to the convenience of the service provider. I don't have any say in that. What do i do? I may select the least bothersome among them but does that fulfill my needs, data security & privacy, availability levels, jurisdiction issues, QOS, inter-operability etc? Probably not and absence of any regulation (which is the case presently) leaves a large industry to function pretty much in the wild and run amock as they like it ignoring all this legitimate issues.
If we don't associate this proposed regulations as a curb for Individual Freedom (I don't think that looks like the intention of the Regulator based on areas listed), there is an undeniable need for it. Let's hope TRAI comes out with progressive, growth oriented and well thought out regulatory framework. I am hopeful because their starting point is gathering papers/point of view of all stakeholders, discuss and then evolve the framework.