Privacy and security issues in cloud computing: The role of institutions and institutional evolution

Cloud computing is likened and equated to the Industrial Revolution. Its transformational nature is, however, associated with significant security and privacy risks. This paper investigates how the contexts provided by formal and informal institutions affect the perceptions of privacy and security issues in the cloud. This paper highlights the nature, origin, and implications of institutions and institutional changes in the context of cloud computing. A goal of the present work is also to gain insights into the mechanisms and forces that have brought about institutional changes in the cloud industry. Specifically, they investigate how contradictions generated at various levels by the technology, the formation of dense networks and relationships and the changing power dynamics have triggered institutional changes. Since the current analysis of the causes and consequences of institutions and institutional change is mainly concerned with more established industries and markets, this paper is expected to provide insights into institutions surrounding to this new and emerging technological development.

► The cloud has drawn diverse actors and participants with different perspectives and interests.
► These participants vary in terms of resources, expertise, experience and power.
► The institutional change patterns do not reflect the linearity observed in mature industries.
► National governments' and supra-national agencies' roles are mostly passive and reactive.