The Internet started it all off--the (theoretical) creation of a world without borders. There's a problem, however: borders still remain. And those borders are inhabited by sovereign entities that dictate the rules for their respective domains. This creates another problem, for both consumers and producers: what rules are in force over a technology that has no regard for arbitrary geographic boundaries? Microsoft, in a move that protects it and the consumers it serves, has asked that current federal technology laws be updated, new ones implemented, and that international standards be devised, so that border-oblivious technologies will be protected.

Microsoft’s push for change is motivated by the advent and expansion of cloud computing. Brad Smith, General Counsel for Microsoft, in a keynote address delivered at the Brookings Institution in Washington, D.C., stated: “The PC revolution empowered individuals and democratized technology in new and profoundly important ways. As we move to embrace the cloud, we should build on that success and preserve the personalization of technology by making sure privacy rights are preserved, data security is strengthened and an international understanding is developed about the governance of data when it crosses national borders.”

The big concern for Microsoft is how clouds will be regulated and protected. Cloud computing won’t take-off unless consumers believe it secure, so consumer privacy is a must. To protect that privacy there needs to be rules that make punishing transgressors more certain. And all parties, including governments, need to be on board (as cloud computing transcends political boundaries). The benefits for providers and consumers are self-evident: consumers get the security they want, while producers have a stable environment within which to offer their product.

While it may seem odd to find Microsoft on the side of the angels, Smith makes a good point: there are no rules at present that govern cloud computing. Users have no protection from hackers, from providers, or from governments. Smith rightly notes: “The rise of cloud computing should not lead to the demise of the privacy safeguards in the Bill of Rights. The public needs prompt and thoughtful action to ensure that the rights of citizens and government are fairly balanced so that these rights remain protected.”