Cloud service providers’ key compliance issues

From both commercial and technological standpoints, cloud-based computing services (commonly referred to as cloud services) are often seen to be comprised of public cloud and private cloud services. Public cloud services can be further divided into three categories: Software-as-a-Service (SaaS); Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS). As cloud service businesses continue to rapidly develop, related service providers are also growing. This article provides a brief analysis of compliance issues affecting cloud service providers.

OPERATING PERMITS

According to the Circular on Regulating the Market Operations of Cloud Services (Draft for Public Comment) issued by the Ministry of Industry and Information Technology (MIIT) in November 2016, “cloud service” refers to the internet resources collaboration services (IRCS) business, which falls under the scope of the Internet Data Centre (IDC) business.

In the 2015 Classification Catalogue of Telecommunications Services, the IRCS business refers to services that utilize equipment and resources dependent upon data centres to provide users with services such as data storage, internet application development environments, internet application deployment, and operation management.

Ben Chai and Cloud Li are associates at DaHui Lawyers