**The Requirements for the Legal Regulation of Commercial Relations in Cloud Computing**

160 Security Enhanced Applications for Information Systems

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Ivan Pogarcic1, Marko Pogarcic2 and Matej Pogarcic3 *1Polytechnic of Rijeka, 2Faculty of Law, University of Rijeka, 3Faculty of Civil and Geodetic, Engineering, University of Ljubljana, 1,2Croatia 3Slovenia* 

#### **1. Introduction: Users and IT (His highness the user and his court jester)**

Definitions of Information System are numerous, as well are the seriously written textbooks that consider that subject. In most cases a pragmatic side of Information System is being emphasized. From the pragmatic aspect, Information System is connected to its users since it is made to match their needs. Nevertheless, a definition rarely explicitly addresses user, tough he is indirectly implied. If Information Systems are defined through users' relationships in usage of technical and technological systems, one usually applies to ICT or Information-Communication Technologies. (Kroenke, 2008) It is essential, out of numerous reasons, to differentiate Information Systems from computer solutions and backup to Information Systems and associated business systems. (O'Brien, 2003). Regardless to definition, business system and Information System are determined by user and his needs. Business processes realize those needs and materialize certain benefits, while effective performance of business processes requires timely information. Simultaneously, business activities are followed by routines and repetitions in usage and acquisition of needed information. Computer is an instrument that man releases primarily from wearisome activities that can be figured in automatic sequence of computer orders or complex calculations that would otherwise require much more time. Development of computer sciences has been followed by a constant need for Information Science education of all users. However, velocity of development of technical instruments and technological applicative solutions has frequently increased to higher levels than the educational level of users. Historically observed, Information Science hasn't necessarily separated term user into two basic groups: "material" or real user who applied services of computer applicative solutions and user who applied potentials of technique and technology in order to provide essential benefits and possibilities to a previous group. The latter group is made of experts and Information Scientists. ICT development has blurred border between these two groups. Out of user-user perspective, as time passed the Information Science education moved closer user-user to user-Information Scientist. Their relationship has during that time period been specific to service industry, respectively service, provider and user occurred. Information Sciences have therefore, been wrongly placed within "service industry sciences".

The Requirements for the Legal Regulation of Commercial Relations in Cloud Computing 163

technique and technology have been created in order to easier and more qualitatively satisfy users' needs. Pragmatic side of this relationship is realised through implementation of applicative solutions in users' environment. However, pragmatism is accompanied by relationships applicable in commerce, since all applicative solution is considered to be a product that requires promotion, marketing and treatment of users, usually as buyers of these products. To satisfy customers'-users' needs within such circumstances implies to

Through period of information sciences' development, approaches and generally paradigms of approaching the users have been frequently modified. Basically from monolithic to applicative solutions, specialised only to certain task so to free user from concern and engagements that additionally burden him through grid and cluster architecture of information systems of

If simplification is understood as certain form of abstracting the volume of user's tasks, then the process hides other traps that can become brakes to performing business. The truth is that relationship between users, architecture and structure of information system, that is professional personnel, can be redefined so to maximally free user of tasks that belongs to information scientists. At the same time, the more precise raster of user's needs has been developed. The usual applicative coverage of users' daily needs has been broadened by

Cloud computing has supplemented paradigm that accompanied object oriented approach with paradigm of weak binding or binding software components according to task's needs. Legal aspect of such relationship has been, during the history of Information Sciences, frequently neglected or observed to belong to someone else who regulates such relationships. Today, when most of human needs have been, one way or another, supported by computers, relationship between users and service providers necessarily demands legal

Meaningful usage of computers requires certain programme backup that considers existence of data. Data is being processed according to these programmes respectively algorithms applied in the programmes. Besides programme solutions one requires appropriate communication between user and computer. Realisation of monolith application assumes that programmes and data are physically at the same place – computer, accompanied by user. Although this shape of application is considered to be a beginning of computer backup, the monolith applications are not purely historic since even today specific systems can request such a solution. Specific system has specific users so their position is bonded to special characteristics of system's functions. Legal regulations in such environment are

strongly defined since those needs are monolithically connected to such relationship.

Usually, though wrongly, monolithic organisation of application is considered a historical form of organising the information systems (fig 1). Though the majority of monolithic organised systems are historically basic form, that form of organisation exists even today, if system and user are organised in that manner, out of any reason possible. Monolithic assumes coexistence of systems and users in same environment, without more significant

paradigms that have been changed from recent form known as cloud computing.

covering more demanding exceptions that can emerge among those needs.

regulation in combination with legal regulation of computer products' usage.

**2. Overview: From the monolith to the clouds (Le roi s'amuse)** 

make a product more simple, easier and closer to user.

Term "service science" should in this paper be understood as working name, since, naturally classification of science doesn't recognize that term. Why working name? Information science, formed as science, can be considered as relatively young science with strong trend of development and formation. If information systems are put in the centre of information science, that is, on a position of subject of prevailing research, then even the former claim can be put in question. However, the area of information systems is relatively scientifically unfinished, according to its definition of establishment. Incompleteness is obvious, especially in the area of precise definitions of complex terms and frequent identifying with different terms such as: information systems, management information systems, information management, business information systems, business information technologies and alike. Naturally, each of the mentioned terms has indirectly a pragmatic side of definition within. For instance, (Rose, 2000) information systems can be observed as field of computers and communications, but within social context, so they can be placed in class of social and humanistic sciences. However, if area is anticipated as technical, then it is close to natural sciences. In both cases, development of information systems should be connected to humanistic sciences, such as sociology, psychology, but even the newer ones, as telematics or cognitonics. Naturally, this sort of thinking was a subject to criticism. For instance, (Chekland and Holwell, 1998) this area can be classified as "crucial, but confusing", (Banwille and Landry, 1992) as "fragmented adhocracy", or (Whitley, 1984) as area that "produces diffusive, discursive knowledge of commonsense objects". Most critics (King, 1993) of this area's status as scientific entirety usually claim that it misses "intellectual basis", that is actually, borrowed by other "referential field of sciences".

The fact is processes of information systems have numerous ad hoc situations, so the attitude of "adhocracy" of this area can be accepted and characterised if wanted to be projected as level. Appropriate is missing or low level of obstruction to entering the area, weak coordination of research activities, unidentified tasks as reason of "floating" reputation, lack of standards or possibility of their change, even by unprofessional persons, and finally, confusingly defined terminology with many wrong synonyms based more on commonsense then precise definition. Since this area has neither completely, nor precisely, defined subject of research, it should be considered, at least temporarily, independently from other sciences. Still, using it doesn't imply one-way communication with other sciences. Involvement of computers as technique and programme solutions derived by same platforms is unquestionable in all sciences, so it is manifested as service information science.

Each scientific area should have "intellectual basis" to provide ground for defining scientific settings of area, theories, methodologies, research modes, and finally, control of all mentioned through practical realisations and concrete situations.

Precisely in that relationship between science and theory, according to practice, lies one of the basic reasons of unidentified area of information systems. Accelerated development and improvement of technical basis – hardware, demanded an answer in technology and methodology of development. When user is put in the centre of situation, it becomes complicated, but consequences are considerably clearer. Usage of information technologies demands knowledge, skills and competitions by users. It can be achieved by appropriate education and training of users. Traditional systems of education are inert, and so are modifications and adjustments of education. It is controversial that education is one of the latest areas that have introduced computers. That way, user has, according to his level of education, been late in area of development of hardware and software. Still, the complete

Term "service science" should in this paper be understood as working name, since, naturally classification of science doesn't recognize that term. Why working name? Information science, formed as science, can be considered as relatively young science with strong trend of development and formation. If information systems are put in the centre of information science, that is, on a position of subject of prevailing research, then even the former claim can be put in question. However, the area of information systems is relatively scientifically unfinished, according to its definition of establishment. Incompleteness is obvious, especially in the area of precise definitions of complex terms and frequent identifying with different terms such as: information systems, management information systems, information management, business information systems, business information technologies and alike. Naturally, each of the mentioned terms has indirectly a pragmatic side of definition within. For instance, (Rose, 2000) information systems can be observed as field of computers and communications, but within social context, so they can be placed in class of social and humanistic sciences. However, if area is anticipated as technical, then it is close to natural sciences. In both cases, development of information systems should be connected to humanistic sciences, such as sociology, psychology, but even the newer ones, as telematics or cognitonics. Naturally, this sort of thinking was a subject to criticism. For instance, (Chekland and Holwell, 1998) this area can be classified as "crucial, but confusing", (Banwille and Landry, 1992) as "fragmented adhocracy", or (Whitley, 1984) as area that "produces diffusive, discursive knowledge of commonsense objects". Most critics (King, 1993) of this area's status as scientific entirety usually claim that it misses "intellectual

basis", that is actually, borrowed by other "referential field of sciences".

mentioned through practical realisations and concrete situations.

The fact is processes of information systems have numerous ad hoc situations, so the attitude of "adhocracy" of this area can be accepted and characterised if wanted to be projected as level. Appropriate is missing or low level of obstruction to entering the area, weak coordination of research activities, unidentified tasks as reason of "floating" reputation, lack of standards or possibility of their change, even by unprofessional persons, and finally, confusingly defined terminology with many wrong synonyms based more on commonsense then precise definition. Since this area has neither completely, nor precisely, defined subject of research, it should be considered, at least temporarily, independently from other sciences. Still, using it doesn't imply one-way communication with other sciences. Involvement of computers as technique and programme solutions derived by same platforms is unquestionable in all sciences, so it is manifested as service information science. Each scientific area should have "intellectual basis" to provide ground for defining scientific settings of area, theories, methodologies, research modes, and finally, control of all

Precisely in that relationship between science and theory, according to practice, lies one of the basic reasons of unidentified area of information systems. Accelerated development and improvement of technical basis – hardware, demanded an answer in technology and methodology of development. When user is put in the centre of situation, it becomes complicated, but consequences are considerably clearer. Usage of information technologies demands knowledge, skills and competitions by users. It can be achieved by appropriate education and training of users. Traditional systems of education are inert, and so are modifications and adjustments of education. It is controversial that education is one of the latest areas that have introduced computers. That way, user has, according to his level of education, been late in area of development of hardware and software. Still, the complete technique and technology have been created in order to easier and more qualitatively satisfy users' needs. Pragmatic side of this relationship is realised through implementation of applicative solutions in users' environment. However, pragmatism is accompanied by relationships applicable in commerce, since all applicative solution is considered to be a product that requires promotion, marketing and treatment of users, usually as buyers of these products. To satisfy customers'-users' needs within such circumstances implies to make a product more simple, easier and closer to user.

Through period of information sciences' development, approaches and generally paradigms of approaching the users have been frequently modified. Basically from monolithic to applicative solutions, specialised only to certain task so to free user from concern and engagements that additionally burden him through grid and cluster architecture of information systems of paradigms that have been changed from recent form known as cloud computing.

If simplification is understood as certain form of abstracting the volume of user's tasks, then the process hides other traps that can become brakes to performing business. The truth is that relationship between users, architecture and structure of information system, that is professional personnel, can be redefined so to maximally free user of tasks that belongs to information scientists. At the same time, the more precise raster of user's needs has been developed. The usual applicative coverage of users' daily needs has been broadened by covering more demanding exceptions that can emerge among those needs.

Cloud computing has supplemented paradigm that accompanied object oriented approach with paradigm of weak binding or binding software components according to task's needs.

Legal aspect of such relationship has been, during the history of Information Sciences, frequently neglected or observed to belong to someone else who regulates such relationships. Today, when most of human needs have been, one way or another, supported by computers, relationship between users and service providers necessarily demands legal regulation in combination with legal regulation of computer products' usage.
