The silver lining: cloud computing and small and medium enterprises

This paper shows how Australian businesses can get the most out of one of the biggest global innovations: information communications technology. Overview: Innovation – the successful application of new ideas – drives Australia’s productivity. Australia’s biggest innovation opportunity lies in creatively exploiting global innovations. One of the biggest of these is information and communications technology. Small and medium enterprises (SMEs) are an engine of the Australian economy. They employ two-thirds of Australian private sector workers and contribute half of Australia’s private sector GDP. Yet many SMEs have low productivity. Innovations may spread slowly to many smaller firms because they lack the capital or market intelligence that large firms can access. Online innovations – including mobile devices, e-commerce, and cloud computing – offer opportunities for firms of all sizes to become far more productive. This paper explores issues raised at a workshop run by Grattan Institute and Google on how policymakers and business can accelerate the spread of cloud computing among SMEs. It uses cloud computing – the delivery of on-demand information technology services over the Internet – as a case study for how online technologies can benefit smaller firms. Cloud computing can help level the playing field for smaller firms. It allows them to access sophisticated IT services that were previously out of reach. For example, it can allow them to manage and monitor their sales, operations and finances in real time. The cloud also offers capabilities that were previously unavailable to firms of any scale. For example, it allows multiple users to access applications or update documents at the same time from mobile devices. Cloud computing makes it easier for small firms to take new ideas to market. Firms that use cloud computing report more growth in revenue and profit than others do. But many Australian SMEs say they do not use cloud services. Many are not aware of the benefits or believe they do not have skills to capture them. Some are concerned about transition costs, data security and privacy. Networks are too slow or unreliable for cloud services in some areas of the country. Workshop participants agreed that government and industry can remove obstacles to the use of cloud computing and help SMEs capture its benefits. The industry itself should lead the education of SMEs on the case for cloud computing. Yet government can:  Choose policy settings that promote broader productivity growth and innovation;  Ensure interaction with government over the internet is the default for all businesses;  Provide an appropriate policy environment for investment in broadband networks that meet the needs of small business. Information technology’s contribution to productivity is just getting started. Small and medium enterprises should get on board

A Critical Look at Decentralized Personal Data Architectures

While the Internet was conceived as a decentralized network, the most widely used web applications today tend toward centralization. Control increasingly rests with centralized service providers who, as a consequence, have also amassed unprecedented amounts of data about the behaviors and personalities of individuals. Developers, regulators, and consumer advocates have looked to alternative decentralized architectures as the natural response to threats posed by these centralized services. The result has been a great variety of solutions that include personal data stores (PDS), infomediaries, Vendor Relationship Management (VRM) systems, and federated and distributed social networks. And yet, for all these efforts, decentralized personal data architectures have seen little adoption. This position paper attempts to account for these failures, challenging the accepted wisdom in the web community on the feasibility and desirability of these approaches. We start with a historical discussion of the development of various categories of decentralized personal data architectures. Then we survey the main ideas to illustrate the common themes among these efforts. We tease apart the design characteristics of these systems from the social values that they (are intended to) promote. We use this understanding to point out numerous drawbacks of the decentralization paradigm, some inherent and others incidental. We end with recommendations for designers of these systems for working towards goals that are achievable, but perhaps more limited in scope and ambition

TOWARDS SUSTAINABLE QUALITY OF SERVICE IN INTERCONNECTION

This paper analyses the structure of the Internet marketplace and the business relationships of key players involved in network services provision. A brief overview of existing pricing policies and research work in this area is presented and some new issues are introduced. We believe that the role of information asymmetry is critical when considering agreements for Internet access and interconnection. In negotiation and contract preparation, information asymmetry gives rise to adverse selection. The current structure of connectivity agreements does not address information asymmetries thus allowing the possibility of opportunistic behaviour in the form of moral hazard. Inasmuch as interconnection agreements involve sharing and/or exchanging network resources, either party will tend to exploit the agreement to its own advantage (i.e. conserving its own resources) and, possibly, to the detriment of the other (i.e. overutilising the other’s resources). The discussion focuses on interconnection agreements between Internet Service Providers, namely peering and transit. The paper concludes with an outline of an incentive compatible mechanism that can sustain quality of service requirements in interconnection agreements.interconnection information asymmetry