The Journal of China

Universities of Posts and

Telecommunications
December 2013, 20(Suppl. 2): 105112
www.sciencedirect.com/science/journal/10058885 http://jcupt.xsw.bupt.cn

Analysis on the risk of personal cloud computing based on

the cloud industry chain
XIE Xue-mei (), ZHAO Yu-xi

School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China

Abstract
This paper reviews the literature about cloud computing, and establishes a framework for industry chain of personal cloud
computing which is based on the current cloud industry chain in China. Then it summarizes the potential risks of personal
cloud from the angle of user perception, including risk identification, qualitative evaluation, and risk handling strategy. Finally,
according to the existing related policy or regulation scheme, this paper proposes some suggestions and optimization strategies
about the personal cloud computing.

Keywords personal cloud computing, industry chain of personal cloud computing, risk management, regulation

1 Introduction improved, which would increase the risks of personal data

Development of cloud computing can be traced back to
sixties of last century, but until the 21st century, cloud
computing is widely regarded important, and gradually
become the mainstream of the future development
direction. Personal cloud computing is an extension of
cloud computing in the personal domain, based on
Internet-centric handling of personal information. That is
to say, personal cloud computing organizes, stores,
distributes and reprocesses a variety of personal
information via the Internet [1]. As all of the clouds,
Personal cloud computing is composed by the server,
terminals, applications and personal information. Due to
the service principle and characteristics of personal cloud
computing, personal data has to be stored in a common
server in order to be calculated by running Web
applications, provided to the services terminal through a
network. Then those data will be available to the users by a
web browser or client software [2].
With the development of personal cloud computing, the
convenience of accessing information will be highly
Received date: 29-06-2013
Corresponding author: XIE Xue-mei, E-mail: xxuem@bupt.edu.cn
DOI: 10.1016/S1005-8885(13)60211-3
security undoubtedly. Relevant literature show that there is
only a few researches or professional literature about
personal cloud computing currently in China, especially on
security issues or risk analysis, and there are still lack of
relevant laws and regulations [3]. Therefore, on the basis
of previous studies, this paper analyzes the characteristics
of personal cloud computing; using existing related
research and analysis about cloud computing industry
chain and building an industry chain framework of
personal cloud computing. And it provides services like a
risk factors identification, analysis and monitoring from
the angle of users. Finally, combined with the existing
regulatory policies, this paper puts forward some
suggestions and optimization strategies about the personal
cloud computing. These results of research would be
helpful to related departments in the future.
2 Cloud industry chain establishment
2.1 Analysis of cloud industry chain in China
Industry chain is a concept in industrial economics. It is
a chain of objects in various industrial sectors based on
specific technical and economic relevance, and according
106 The Journal of China Universities of Posts and Telecommunications
to specific logical relationship between objective and
spatiotemporal structure formed by chain-type relationship
patterns.
At present, types of cloud computing industry chain are
Fig. 1 Cloud industry chain structure
The chain above consists of three major components.
From the bottom to the top are: auxiliary chain, main chain
and the functions of the main chain. From this figure it can
be summarized that cloud computing is made of by
applications, platforms and infrastructure. From a relevant
literature, the current cloud computing industry chain
mainly includes 10 key components [5]:
Hardware equipment supplier: is an active participant in
the cloud computing market and infrastructure equipment
provider. It mainly includes: the server manufacturers,
storage equipment manufacturers, chip makers and
embedded equipment manufacturers.
Cloud platform developers: provide related technologies
and software to build and develope cloud computing
platform.
System integrators: connect the hardware and software
facilities and provide solutions of cloud computing
platform. This is to help users to build cloud computing
software and hardware platform, especially the private
computing cloud of enterprise.
Cloud application developers: these parts provide
applications of software and solutions of cloud computing
to the cloud application service provider.
Cloud resources service provider: access to hardware
resources from the equipment provider, and support
software to generate resource pool by cloud computing,
and achieve dynamic resource allocation. Also, it provides
cloud platform service providers, application service
providers and cloud users with timely, stable, safe and
smooth basic resources services.
Cloud platform services provider: provide flexible,
general-purpose, scalable cloud computing platform
services to meet the users individual needs, but also
2013
relatively abundant in China. Almost all the kinds of
industry chains are basically similar, although there is no
single concept yet. One of the simple chains [4] is shown
below as Fig. 1:
provide cloud application service.
Cloud application service provider: cooperates with the
cloud application developers to provide users with a rich,
personalized and various applications. This is the top level
of cloud computing services, and also is the most
profitable provider. Cloud resources service providers,
cloud platform providers and cloud application service
providers can be called cloud service providers
collectively.
Network operators: provide ways access to the final
users for cloud computing service. The major network
operators are: telecom operators and mobile operators.
Terminal vendors: according to the business needs of
cloud computing service providers, they provides
customized or non-customized mobile or PC and many
other types of terminals to meet the needs of users and the
business development needs of cloud computing service
providers.
End user: is the ultimate attribution of cloud services,
the final part of the value chain. This mainly includes:
business users, individual users and government users.
Combining the above ten key aspects and the three main
parts of cloud computing, this paper builds a relatively
clearer and more complete industrial chain of cloud
computing based on the original theory, as shown in Fig. 2
as below.
In order to adapt to the current social information
security issues, the modified cloud industry chain is under
the supervision of government or regulatory agency. And
in order to promote the development of related industries,
this chain increases a test bed link [6]. Development of
test bed is to eliminate the financial and logistical barriers,
promote open collaboration among industry, research
Supplement 2 XIE Xue-mei, et al. / Analysis on the risk of personal cloud computing based on the cloud industry chain
institutions and government departments and also carry out
the research about the scope of Internet data-intensive
computing.
Fig. 2 Modified structure of cloud computing industry chain
This chain is mainly composed of SaaS (SaaS: software
as a service), Paas (PaaS: platform-as-a-service), IaaS
(IaaS: Infrastructure as a service). The corresponding
upstream are cloud application developers, cloud platform
developers and hardware equipment providers. In
particular, the cloud platform developers need the help of
system integrators to make users to build a cloud
computing software and hardware platform. About the
downstream part of the industry chain, cloud service
providers access terminal vendors and then access to
end-user by the support of network operators. All the links
above should be under the supervision of government or
regulatory agency in order to ensure the security and
privacy of the entire flow of information. Meanwhile, the
test bed also covers this industrial chain to research the
scope of the Internet data-intensive computing to eliminate
the financial and logistical barriers, and promotes the open
collaboration among industry, research institutions and
government departments.
2.2 Construction of personal cloud computing industry
chain
2.2.1 Characteristics of personal cloud computing
Personal cloud computing has some general
characteristics as cloud computing, such as sharing,
random access, and scalability. Personal information is not
only for their own use, but also for relatives, friends or
public in order to achieve its social value. Also, people can
get access to personal information at anytime, anywhere
by any form of network terminals.
107
There are some different characteristics of personal
cloud computing to ordinary cloud computing. Taking into
account that main users of cloud computing is a company
or enterprise, this paper here takes enterprise as a general
user of cloud computing. The comparative analysis is
shown as below:
1) Characteristics
Personal users: individuals, families, vulnerable to
emotional stimuli.
Company or enterprise users: groups, more rational,
consideration of costs and benefits.
2) Motivation
Personal users: to work, entertainment, social sharing;
Company or enterprise users: for business.
3) Requirement
Personal users: to store, backup, synchronize and
manage personal information at anytime or anywhere.
Company or enterprise users: to reduce the costs of IT
equipment construction, operation and maintenance,
rational use resources and for the pursuit of commercial
interests.
4) Points of concern
Personal users: word of mouth, the number of users,
consistent experience, service availability, privacy
protection, price, ease of use.
Company or enterprise users: security, the operating
experience of cloud service providers, the existing success
stories, cloud portability, data integration, and migration
costs.
5) Main functions
Personal users: cloud storage, cloud notes.
Company or enterprise users: basic services, such as
development and testing services; common process
services, such as human resource (HR) and customer
relationship management (CRM) services; industry
services, such as industry process services, hospital
information system (HIS) of medical industry, picture
archiving and communication systems (PACS); enterprise
specific services, like personalized services within the
enterprise.
6) When
Personal users: any time, more fragmentation.
Company or enterprise users: working hours.
7) Where
Personal users: home, companies, journey and any other
location.
Company or enterprise users: company.
108 The Journal of China Universities of Posts and Telecommunications
As we can see, this paper carries out a comparison
between two kinds of users in 7 aspects. From above it
shows that the difference between personal cloud
computing and ordinary cloud computing is obvious. The
most important one is about the functions or services
which are mainly used by the users. In personal cloud
computing, users will not have or have little contact to
PaaS or IaaS. PaaS and IaaS are the support link to SaaS.
2.2.2 Analysis of personal cloud computing chain
According to the above analysis, this paper builds a
structure of personal cloud industry chain on the basis of
modified cloud computing industry chain as shown in
Fig. 3:
Fig. 3 Structure of personal cloud computing industry chain
The key of personal cloud computing industry chain is
the midstream industry areas, which is the personal cloud
computing service providers. To be specific, it is the SaaS
providers. The part linked to the downstream is also SaaS.
The main responsibility of PaaS and IaaS is to support
SaaS. And they would not contact the individual users
directly. There are two types for SaaS service, personal
storage services and personal information management
service.
3 Risk management based on personal cloud
industry chain
3.1 Risk identification and analysis
3.1.1 Method for risk identification and results
Risk identified refers to understanding the various risks
faced and analyze their underlying causes by various
methods before an accident occurs.
As the limited resources of the investigation, this paper
2013
does a preliminary risk perception base on the personal
cloud industry chain firstly. It makes a brainstorming
among the most promising college students and also gains
the broad mass acceptance by the personal computing
cloud users, which is based on initially proposed risk
factors of personal cloud computing. Based on the
potential risk factors identified above, this paper classifies
those risk factors into three categories according to their
natures, which are policy and organizational risk,
technological risk and legal risk. Finally we make the
related survey questions according to these different risks.
Due to personal cloud industry chain contains many
links and has a wide span, this paper focuses on the impact
study of the risk of personal cloud computing to the end
users. Thus the risk analysis is mainly about the
downstream industry chain, which mainly points to the end
user of cloud computing. And this paper summarizes the
important risk factors which affect the development of
personal cloud computing by the survey of individual users
risk perception [7], in order to make a risk response plan
and policy recommendations to promote the popularity of
personal cloud computing and support its development.
By sorting the results of risk perception from the
downstream individual users to the middle personal
cloud computing service providers, all kinds of potential
risk [8] factors are shown in below:
1) The risks among individual users, such as: users are
lack of information security awareness, lose control of
physical security in personal cloud.
2) The risks among network carriers, such as: hardware
and software of the network system, and data in the system,
large-scale botnet denial of service attack distributed
denial of service (DDOS), vulnerabilities, Trojans and
other malicious program intrusions.
3) The risks among terminal vendors, such as: attacks by
the Trojan, virus, resulting in the loss and disclosure of
user information.
4) The risks among personal cloud computing service
providers, such as: equipment safety risks, malicious
internal staff risks, internal staff risks without malice [9],
data residual risks [10], security vulnerabilities of cloud
application.
The survey takes online and offline two methods. The
main respondent is Beijing college student. There are 120
valid questionnaires in total. The survey is made from the
perspective of individual users of cloud computing to
measure the degree of risk factors in the individual
Supplement 2 XIE Xue-mei, et al. / Analysis on the risk of personal cloud computing based on the cloud industry chain 109

perception aspect. risk and catastrophic risk. The number means how many
The design ideas of questionnaire is identifying the risks people choose this level in the persons being investigated,
and measuring the degree. Thus the risk factors option and the one in the bracket means the percentage. The result
from low to high is divided into six levels, they are on-risk is shown in Tables 13:
factors, slight risk, ordinary risk, serious risk, significant
Table 1 Results of personal cloud computing potential risk factors-part 1
Risk level
Topic Non-risk Slight risk Ordinary Serious Significant Catastrophic
(0) (1) risk (2) risk (3) risk (4) risk (5)
1. Cloud service providers do not
have a good adherence to various
3(2.5%) 15(12.5%) 24(20%) 39(32.5%) 30(25%) 9(7.5%)
terms of service, such as privacy
protection terms.
2. When you replace the personal
cloud service provider, your
3(2.5%) 12(10%) 42(35%) 33(27.5%) 18(15%) 12(10%)
personal data may not be migrated
to the new one completely.
I policy and 3. It is inevitable that the providers
organizational would have the rights to manage
3(2.5%) 6(5%) 36(30%) 33(27.5%) 36(30%) 6(5%)
aspect your personal data, which may
cause some security problems.
4. There is no clear institutions to
supervise cloud service providers,
3(2.5%) 6(5%) 42(35%) 27(22.5%) 30(25%) 12(10%)
thus there is a certain risk in using
personal cloud computing.
5. Nonstandard operation of
personal cloud computing service 0(0%) 27(22.5%) 24(20%) 42(35%) 21(17.5%) 6(5%)
providers may have risks.
6. The relevant management staff
of personal cloud service providers
0(0%) 3(2.5%) 27(22.5%) 33(27.5%) 42(35%) 15(12.5%)
may carry out malicious actions of
personal data.

Table 2 Results of personal cloud computing potential risk factors-part 2

Risk level
Topic Slight Ordinary Serious Significant Catastrophic
Non-risk (0)
risk (1) risk (2) risk (3) risk (4) risk (5)
1. A lot of personal data storing in
the same public cloud could bring 9(7.5%) 18(15%) 39(32.5%) 27(22.5%) 24(20%) 3(2.5%)
confusion or read errors.
2. Insecurity such as viruses or
hacker attacks, causing public 6(5%) 21(17.5%) 33(27.5%) 15(12.5%) 27(22.5%) 18(15%)
service stops or data loss.
3. You do not know the effective
save time of information when your
personal data is uploaded to a 0(0%) 24(20%) 42(35%) 30(25%) 21(17.5%) 3(2.5%)
public server, which may cause data
loss.
4. There may be a risk of data
II leakage when personal data is 0(0%) 15(12.5%) 30(25%) 30(25%) 42(35%) 3(2.5%)
technology uploaded to a public server.
aspect 5. The information may be
transferred unknowingly when
0(0%) 3(2.5%) 27(22.5%) 57(47.5%) 30(25%) 3(2.5%)
personal data is uploaded to a
public server.
6. Personal data cannot be
completely removed from a public
0(0%) 3(2.5%) 24(20%) 45(37.5%) 42(35%) 6(5%)
server timely in accordance with
your wishes.
7. In the use of personal cloud
services, you cannot get the
relevant notifications timely when 0(0%) 12(10%) 9(7.5%) 45(37.5%) 42(35%) 12(10%)
suffered invasion of privacy or data
leaks.
8. Once the data center failure will
cause the service to stop or data loss 3(2.5%) 15(12.5%) 21(17.5%) 36(30%) 24(20%) 21(17.5%)
and other risks.
110 The Journal of China Universities of Posts and Telecommunications 2013

Table 3 Results of personal cloud computing potential risk factors-part 3

Risk level
Topic Non-risk Slight ordinary Serious Significant Catastrophic
(0) risk (1) risk (2) risk (3) risk (4) risk (5)
1. You do not know if it is legal
about the behavior of cloud service 0(0%) 6(5%) 42(35%) 27(22.5%) 30(25%) 15(12.5%)
providers data processing.
2. There are no targeted agencies to
III Legal help you solve the problems
aspect quickly and effectively when you 0(0%) 12(10%) 15(12.5%) 30(25%) 39(32.5%) 24(20%)
use personal cloud computing
(such as tort issues).
3. Current regulations of personal
cloud computing is not perfect,
which may cause risks in 0(0%) 12(10%) 12(10%) 30(25%) 33(27.5%) 33(27.5%)
supervision or restraint cloud
service providers behavior.

3.1.2 Risk analysis point 0 to 5 to get an weighted average scores. The

severity of risk factors is shown in descending order in
Risk analysis is the evaluation and measurement of the Table 4:
impact of the risks. This paper measures risk degree by
qualitative analysis method. The risk level is assigned by
Table 4 Results of personal cloud computing risk identification (descending)
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Category           
Topic 3 2 6 7 6 8 1 5 3 4 4 1 2 2 5 3 1
Average 3.53 3.4 3.33 3.28 3.2 3.05 3.05 3.03 2.93 2.93 2.9 2.88 2.75 2.73 2.63 2.48 2.4
Note: Category / Topic in Table 4 corresponds to Tables 13

The result shows that the average scores of risk factors
investigated are 2 points or more. It can explain the 17
identified risk factors are potential risks for personal cloud
computing users, and they all belong to the level of
ordinary risks and above. Some of them, eight risk factors
scores are 3 points or more, which belong to the level of
significant risks and above.
According to the risk category, the risks related to legal
aspects are ranked in the front in Table 4, which means the
users pay more attention to this aspect. In conclusion, legal
aspect is the key for the development of personal cloud
computing in China. In the aspect of policy and
organizational risk and technical risk, it shows that the
risks of these two types are intertwined in the sort and
there is no obvious distinction of severities in them.
3.2 Risk monitoring and response
Risk response plan is for the identified risks. The
purpose of the plan is to develop and make a risk response
plan according to the project risk. The purpose is to control
the potential risk factors and improves the achievement
objectives of project. Risk control strategies are accepting,
avoiding, and mitigating and transferring the risks.
This paper develops a risk response plan based on the
above formulation of ideas. According to risk
identification and analysis, the response plan is shown as
below and category/topic from following item 1) to 17) are
corresponds to Tables 13:
1) As for category topic 3, about the link of
government or regulatory agency, the response plan is:
strengthen the construction of laws and regulations,
especially for personal cloud computing, while focusing on
the popularity after completion.
2) As for category topic 2, about the link of
government or regulatory agency, the response plan is:
establish the appropriate third-party agency or organization
for potential privacy and security issues of personal cloud
computing.
3) As for category topic 6, about the link of personal
cloud computing providers, the response plan is: related
services organization has to develop some industry
regulations to control the behavior of employees, but also
the government needs to increase the binding strength by
building related laws.
4) As for category topic 8, about the link of personal
cloud computing providers, the response plan is: any
personal cloud service providers ensure that privacy
Supplement 2 XIE Xue-mei, et al. / Analysis on the risk of personal cloud computing based on the cloud industry chain
protection and remedies in the development of their own
products, otherwise they will not be granted operating
privileges.
5) As for category topic 7, about the link of personal
cloud computing providers, the response plan is: related
services organization has to develop some industry
regulations to control the behavior of cloud computing
providers, but also the government needs to increase the
binding strength by building related laws.
6) As for category topic 9, about the link of cloud
infrastructure providers and network operators, the
response plan is: enhance cloud infrastructure, including
building the servers and network security.
7) As for category topic 1 about the link of personal
cloud computing providers, the response plan is:
strengthen the industry laws and service regulations
building.
8) As for category topic 5 about the link of personal
cloud computing providers and network operators, the
response plan is: related services organization has to
develop some industry regulations to control the behavior
of cloud computing providers and network operators, but
also the government needs to increase the binding strength
by building related laws.
9) As for category topic 3, about the link of personal
cloud computing providers, the response plan is: related
services organization has to develop some industry
regulations to control the behavior of cloud computing
providers, but also the government needs to increase the
binding strength by building related laws.
10) As for category topic 3, about the link of
government or regulatory agency, the response plan is: set
up a professional monitoring organization for personal
cloud industry chain.
11) As for category topic 4, about the link of
personal cloud computing providers and network operators,
the response plan is: related services organization has to
develop some industry regulations to control each link of
the industry chain, but also the government needs to
increase the binding strength by building related laws.
12) As for category topic 1, about the link of
personal cloud computing providers, the response plan is:
related services organization has to develop some industry
regulations to control the behavior of cloud computing
providers, but also the government needs to increase the
binding strength by building related laws.
13) As for category topic 2, about the link of network
111
operators, the response plan is: enhance network security
building, and also the government needs to building
related laws to protect the security of personal information.
14) As for category topic 2, about the link of
personal cloud computing providers, the response plan is:
cloud service providers need to strengthen the construction
of the data migration, and build bridges of cooperation to
facilitate data transmission integrity between different
cloud services providers can build.
15) As for category topic 5, about the link of
personal cloud computing providers, the response plan is:
related services organization has to develop some industry
regulations to control the behavior of cloud computing
providers, but also the government needs to increase the
binding strength by building related laws.
16) As for category topic 3, about the link of
personal cloud computing providers and end users, the
response plan is: cloud service providers need to explain
more about the instructions details, and data need the
user's confirmation before being cleared. While users also
need to read related regulations carefully before using.
17) As for category topic 1, about the link of cloud
infrastructure providers and personal cloud computing
providers, the response plan is: strengthen public cloud
infrastructure while other various cloud service providers
need to enhance their own data processing and service
levels.
4 Suggestions and regulatory strategy
Since we have identified the above risk factors of cloud
computing, in order to further promote the implementation
of risk response plans, the most urgent thing currently is to
improve the existing regulatory system. This paper
suggests the following recommendations to cope with the
most serious ten identified risks:
1) Make clear the regulatory authorities of cloud
computing industry, and strengthen the coordination of
regulatory agencies.
At present, a number of departments have been take part
in the regulation of network information security. The
administrative supervision system has been basically
formed. To implement monitoring effectively, there are
two conditions: first is to set the monitoring points and the
second is using the reasonable administrative methods.
Either of them can supervise, but take both of them to
attain the effective supervision.
112 The Journal of China Universities of Posts and Telecommunications
Explosive growth of cloud computing currently prompts
us that cloud security is a monitoring point, should
undoubtedly establish targeted agencies or departments.
Especially when personal cloud is developing so fast day
by day, the security issues of personal information will be
increased correspondingly. Only when the regulatory
authorities cooperate with each other and give full play to
their respective regulatory roles, personal cloud industry
would get a healthy development. Due to complexity and
extensiveness of supervision, any of the regulatory
resources or the departments is limited. Therefore, in the
transverse direction for cloud security should establish and
build the information communication mechanism in
different aspects. And in the longitudinal direction, it is
necessary to build information circulation system among
various government departments to achieve the regional
cooperation and coordination.
2) Strengthen legislation direction to improve the
enforcement of laws
Cloud security needs complete, operable, external policy
and legal environment, but also needs the existing legal
regulation as a precondition to restrict it. Adjustments and
addition of the existing legislation and laws to cloud
security are very important. Cloud security legislation in
China is applicable in criminal, civil and administrative
fields, covering national security, personal privacy,
cross-border services, law enforcement forensics and also
the domains of intellectual property legal risk. Although
legislative level is clear and specific but the provision in
security areas is not perfect. In different risk domains, the
legislation should be focused differently according to
objectives of cloud computing security.
According to the investigation, it is necessary to
strengthen legislation to control cloud service providers, to
prevent irregularities or malicious behavior. And because
of the intellectual property and monitoring legislation is
relatively weak in China, with the development of cloud
computing and kinds of terminal access, the quick spread
of personal information is ineluctable. The government
must make it clear to the service providers that relevant
providers should take responsibility for their action once
the information disclosure happened of the cloud users and
might even face tougher legal sanctions [11].
3) Build relevant industry standards, give full play to the
part of social institutions
After uploading personal data, the data control right
transferred to cloud service providers from users. The
2013
cloud service providers have priority access to the data
rather than the users. Such situation brings a great threat to
privacy and security and becomes the biggest obstacle for
development of cloud computing. When the government is
committed to improve the relevant laws and regulations,
cloud service providers also need to optimize solutions to
weaken this risk by establishing a credible processing
environment though the data lifecycle. In other words, the
terms of service for personal cloud computing should be as
detailed as possible and to be more specifically. It is better
to conclude every link of the information flowing, such as
the privacy data creation, storage, use and destruction. In
particular, it is necessary to ensure avoiding of a
non-normal transmission and total destruction of the
information.
4) Make relevant policies to promote the development
of personal cloud computing effectively
This is an initial and critical period for the development
of personal cloud computing. From the national strategic
level, it is an important time to build the personal cloud
computing development plan, to define the development
models and technical standards of personal cloud
computing, to determine the development route, and also
effectively promote the development of personal cloud
computing [12].
At the same time, the government can take this
opportunity to encourage the various cloud providers to
strengthen infrastructure and process specifications. In
particular, the government needs to clearly point out that
the providers must inform users as soon as possible once
the information is leaked. No concealment or deception
phenomenon should be allowed in case it may bring users
greater harm.
Acknowledgements
This work was supported by the Communication Soft Science
Projects of MIIT in 2012, Research on Information Security
Supervision Policy of Personal Cloud Computing Services.
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