I came across this blog entry: Can the Cloud Catalyze Change in International Data Laws? It discussed how International laws can severely limit the flow of data across borders -- based on the type of data. Although this doesn't prevent the use of cloud computing techniques on a local level, it does limit global resource utilization and competition. Some cloud providers like Amazon and Microsoft do have European branches (where the laws seem to be the strictest). To date, large IaaS cloud offerings have mainly been a Northern American phenomenon, although the EU believes there are a few countries that can handle their data.
The article states:
"Microsoft, for example, has been actively lobbying the United States to pass laws protecting sensitive data in the cloud, and lobbying the EU to relax its data transportation laws."
Here is a bit more about what Microsoft has been proposing.
This is definitely an area where we'll see activity in 2010.
