Cloud Transparency: A Critical Path To SME Trust And Innovation

By Estelle Azemard, VP Americas, OVHcloud

For years, Canadian small and medium-sized enterprises (SMEs) have faced challenges with cloud adoption, such as hidden costs, restrictive contracts, and a lack of industry regulation. This situation has put SMEs at a disadvantage from the outset, limiting their growth, stifling their innovation, and hindering their long-term success. In recent months, US hyperscalers pressured by European legislators all announced the suppression of (some) egress fees for cloud customers, signaling a step in the right direction for cloud transparency.?

However, these partial measures don’t go far enough in addressing the deeper issues of hidden costs, technological lock-in, and extraterritorial laws. As SMEs increasingly rely on cloud services to drive their growth and competitiveness, it is essential for the cloud industry to commit to greater transparency, ensuring a fair and open digital ecosystem. Here, we’ll look at the important elements to address.

Hidden Costs: The Elephant In The Cloud

One of the most significant challenges Canadian SMEs face with the cloud is unexpected costs. These costs arise from complex pricing structures, unexpected charges for data retrieval, and fees for exceeding usage limits. Egress fees are particularly troublesome and go beyond simple exit fees. Imposed when users want to transfer their data out of a cloud service, these fees can be exorbitant and deter businesses from switching providers or using multi-cloud projects.?

To build trust, cloud providers must simplify their pricing models and provide clear, upfront information about all potential costs. More importantly, they need to eliminate all data transfer fees and extend it to multi-cloud migrations.??

Technological Lock-In: A Barrier To Flexibility

A direct correlation to egress fees is technological lock-in. Many cloud providers use proprietary technologies that make it difficult for users to move their data and applications to other platforms. This restricts business flexibility and innovation and forces companies to either stick with a provider despite potential shortcomings, or incur significant costs to migrate to another service.?

Cloud providers need to adopt open standards and promote interoperability to ensure users can freely choose the best solutions for their needs without being penalized.

Extraterritorial Laws: A Threat To Data Sovereignty

The issue of data sovereignty is increasingly important in the global digital landscape. Laws like the U.S. Cloud Act allow federal agencies to access data stored on American servers, regardless of where the data is physically located. This poses significant risks for businesses operating internationally, as their sensitive data could be subject to foreign government scrutiny.?

Transparency in data handling and clear disclosures about where data is stored and how it is protected are essential. Providers should be guaranteeing immunity from extraterritorial interferences to reassure users that their data is secure and sovereign.

The Need For A Trustworthy Cloud

For SMEs, the cloud should be a place of freedom and trust, where they have control over their data and can make informed choices. To achieve this, cloud providers must:

1. Clarify Pricing Structures: Simplify and make transparent all costs associated with cloud services, including potential hidden fees.

2. Promote Interoperability: Adopt and support open standards to prevent technological lock-in and facilitate seamless data and application portability.

3. Ensure Data Sovereignty: Provide clear information about data storage locations and protections against extraterritorial access.

4. Enhance Transparency: Regularly update users on changes in terms of service, security policies, and data handling practices.

Encouragingly, legislative moves such as the European Data Act, Quebec’s Law 25 and Canada’s Bill C-27 are steps in the right direction, integrating data portability and promoting user control over personal and non-personal data. However, the responsibility also lies on cloud providers to embrace these principles and foster an open and transparent cloud environment, upholding the promise of a secure and open digital future for Canadian SMEs.