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Data Memo

BY:     Associate Director John B. Horrigan (202-419-4500)
RE:     USE OF CLOUD COMPUTING APPLICATIONS AND SERVICES
        September 2008


   “Cloud computing” takes hold as 69% of all internet users have either stored data
                  online or used a web-based software application

Some 69% of online Americans use webmail services, store data online, or use software programs
such as word processing applications whose functionality is located on the web. In doing so, these
users are making use of “cloud computing,” an emerging architecture by which data and
applications reside in cyberspace, allowing users to access them through any web-connected
device.
Most internet users are unlikely to be aware of the term “cloud computing.” But online
Americans who use webmail services such as Hotmail or Gmail are taking advantage of data
storage capabilities managed by a network of computers, which in turn permits access to a user’s
email through whatever device he has at hand.
Below is a rundown of the share of internet users who have done a select set of online activities
that involve storing data online or accessing applications in cyberspace.



                                  Cloud Computing Activities
                 Internet users who do the following online activities (%)
                 Use webmail services such as Hotmail, Gmail, or Yahoo! mail                   56%
                 Store personal photos online                                                   34
                 Use online applications such as Google Documents or Adobe
                                                                                               29
                 Photoshop Express
                 Store personal videos online                                                   7
                 Pay to store computer files online                                             5
                 Back up hard drive to an online site                                           5
                 Source: Pew Internet & American Life Project April-May 2008 Survey. N=1,553
                 Internet users. Margin of error is ±3%.


Overall, 69% of online users have done at least one of these six activities, with 40% of internet
users having done at least two of them. This list is not meant to include all cloud computing
activities. Rather, it is meant to measure a set of common activities associated with cloud
computing. Some other online acts associated with cloud computing include storing browser
bookmarks online, storing presentations on a website and showing them through a browser, and
using social networking sites.



The Pew Internet & American Life Project is an initiative of the Pew Research Center.                1
Convenience and flexibility are the watchwords for those who engage in cloud computing
activities:
                 51% of internet users who have done a cloud computing activity say a major reason
                 they do this is that it is easy and convenient.
                 41% of cloud users say a major reason they use these applications is that they like
                 being able to access their data from whatever computer they are using.
                 39% cite the ease of sharing information as a major reason they use applications in
                 cyberspace or store data there.
At the same time, users report high levels of concern when presented with scenarios in which
companies may put their data to uses of which they may not be aware.
                 90% of cloud application users say they would be very concerned if the company at
                 which their data were stored sold it to another party.
                 80% say they would be very concerned if companies used their photos or other data
                 in marketing campaigns.
                 68% of users of at least one of the six cloud applications say they would be very
                 concerned if companies who provided these services analyzed their information and
                 then displayed ads to them based on their actions.
This data memo is based on a survey of 2,251 adults between April 8, 2008 and May 11, 2008.
Some 1,553 respondents in the survey were internet users and the margin of error is plus or minus
3 percentage points for results based on internet users.




The Pew Internet & American Life Project is an initiative of the Pew Research Center.             2
Background
The term “cloud computing” has gained currency in the information technology world in the past
18 months as a way to describe the ongoing evolution in how people access and manage digital
information.
Years ago, computing was largely centralized. Users accessed information on mainframe
computers from terminals that had very little computing power. With the advent of the personal
computer in the 1980s, processing power came to the individual’s desktop with basic applications
such as spreadsheets and word processing. Although some of these machines, such as those in
large organizations, might have been networked through a mainframe, a good bit of data transfer
took place on foot, as people carried floppy disks from computer to computer.
As internet adoption became mainstream in the 1990s, the network of networks increased the
power of decentralized computing. Personal computers not only stored data locally, but could
also download and exchange data found far and wide on the world wide web. The growth in
broadband access to the desktop at home and work has been a force multiplier to this model of
computing.
Recent evolutions in information technology have led to a more distributed computing
environment, while also reviving the utility of centralized storage. The growth in high-speed data
lines, the falling cost of storage, the advent of wireless high-speed networks, the proliferation of
handheld devices that can access the web – together, these factors mean that users now can store
data on a server that likely resides in a remote data center. Users can then access the data from
their own computer, someone else’s desktop computer, a laptop that wirelessly connects to the
internet, or a handheld device.
Users face new challenges as they try to manage their data that might be stored in a variety of
devices. This is where cloud computing enters the picture, a term often used in the same context
as grid computing or utility computing. Still, there are distinctions. Whereas utility computing is
seen as a business model, such as Amazon.com’s “Amazon Web Service” (AWS) that rents
storage space and access to companies, cloud computing refers more broadly to a computing
architecture. This architecture links computers in a grid and allows users to buy access to data and
software stored on the grid or processing power that is harnessed for specific purposes by the grid
of computers.1
Cloud computing is often seen as particularly useful to large corporations. A company may have
employees in numerous locations running specialized software to carry out data-intensive tasks.
Accessing data and software might be practically impossible without a grid of networked
computers. These computing resources are drawn from someplace beyond the user’s location, and
the fact that they exist at an ill-defined elsewhere is the source of the image that they come from a
cloud.

The Cloud and Online Activities
For everyday users of the internet and computers, cloud computing is any online activity, such as
accessing data or using a software program, which can be done from different devices regardless
of the on-ramp to the internet. Someone might use the same device but different network access
points – think of the laptop user logging on via a WiFi network at a train station or at the office

1
 Geva Perry, “How Cloud & Utility Computing Are Different, at GigaOm.” February 28, 2008. Available
online at: http://gigaom.com/2008/02/28/how-cloud-utility-computing-are-different/. Accessed on July 21,
2008.


The Pew Internet & American Life Project is an initiative of the Pew Research Center.                  3
on a wired network. Or it may mean using a terminal at a business center at a hotel or a friend’s
computer to check email or view photos. Most ambitiously, as Microsoft’s Ray Ozzie has said,
cloud computing would enable “a personal mesh of devices – a means by which all of your
devices are brought together, managed through the web as a seamless whole.”2
In this vision, the data or software applications are not stored on the user’s computer, but rather
are accessed through the web from any device at any location a person can get web access. This
raises issues for users which they may or may not fully appreciate. Trust comes to the fore; if one
is to rely on the cloud, one has to trust that data and services will be there when called upon.
Control is another issue, closely related to trust. A user trusting the cloud faces loss of control
over personal information stored on a disembodied network. Reliability and security thus become
important values in making the cloud functional for users.

Using the Cloud: WiFi connectors are enthusiastic and younger users are the most
avid adopters.
This data memo takes a snapshot at the prevalence of the use of online services to store personal
information or access software. Our May 2008 survey asked about six different online behaviors
that would qualify as using cloud computing resources. This is not intended to be a
comprehensive portrait of cloud usage, but rather – for a select set of activities – an overview of
how many internet users let the network be the steward of data and applications that have
typically been on the personal computer.

                                         Cloud Computing Activities
                                   (% in each group who do the following activities)
                                                                                                           Those who use a
                                                                                                        laptop to connect with
                                                                               All internet users
                                                                                                         WiFi away from home
                                                                                                                or work
Use webmail services such as Hotmail, Gmail, or Yahoo! mail                            56%                       64%
Store personal photos online                                                            34                        44
Use online applications such as Google Documents or Adobe
                                                                                        29                            38
Photoshop Express
Store personal videos online                                                             7                            13
Pay to store computer files online                                                       5                            10
Back up hard drive to an online site                                                     5                            9
Source: Pew Internet & American Life Project April-May 2008 Survey. N=1,553 Internet users. Margin of error is ±3%.



Overall, 69% of internet users have done at least one of the six activities listed above and 40%
have done at least two.
Those with mobile computer access “on the go”, that is, those who use a laptop to go online away
from home or work using a WiFi connection, are more likely to have done these activities.
Among the 34% of online users who have used a WiFi connection on their laptop to go online,
79% have done one of the six activities listed above, and 52% have done at least two.
Although cloud computing may connote the notion of mobile wireless use, the concepts are
related only in that wireless networks and devices permit another on-ramp to cyberspace.
Wireless access gives users greater incentive to take advantage of cloud computing, but it is not
something that, in itself, is a cloud computing activity.

2
    “After Bill.” The Economist, June 28, 2008, p. 77.


The Pew Internet & American Life Project is an initiative of the Pew Research Center.                                       4
Younger internet users are more inclined than older ones to use services or applications that
require personal data be stored online.



               Cloud Computing Activities by Different Age Cohorts
         Internet users in each age group who do the following online activities (%)
                                                      18-29      30-49       50-64                       65+
         Use webmail services such as Hotmail,                   77%           58%          44%          27%
         Gmail, or Yahoo! mail
         Store personal photos                                    50            34           26           19
         Use online applications such as Google                   39            28           25           19
         Documents or Adobe Photoshop Express
         Store personal videos                                    14            6             5            2
         Pay to store computer files online                        9            4             5            3
         Back up hard drive to an online site                      7            5             5            4

         Have done at least one activity                         87%           71%          59%          46%
         Have done at least two activities                        59            39           31           21
         Source: Pew Internet & American Life Project April-May 2008 Survey. N=1,553 Internet users. Margin of
         error is ±3%.



The ease and flexibility of cloud applications draw users to them.
When asked why they use the different services that store personal information on the web, users
cite a range of reasons that have mostly to do with ease and flexibility. They like how such
services enable them to share data with others and let them easily access their data from any
computer.
Roughly half (51%) of those who have done at least one of the listed cloud applications say that
ease and convenience are a major reason why they use an application that has them storing
personal data on the web. Some 41% say a major reason they use such applications is that they
want to access information no matter what computer they are using.



                            Why people use “cloud” applications
   % of those who use online applications and services to store data
                                           Major          Minor         Not a                           Don’t know
                                          reason         reason      reason at all                       / refused
   It is just easy and convenient.                  51%                23%               23%                   3%
   I can access this information from                41                 25                32                     2
   whatever computer I am using.
   I can easily share information                    39                 28                29                     2
   with others.
   I won’t lose this information if my               34                 23                23                     3
   computer fails.
   Source: Pew Internet & American Life Project April-May 2008 Survey. N=999 for those who have used online
   applications and services to store data. Margin of error is ±3.5%.




The Pew Internet & American Life Project is an initiative of the Pew Research Center.                                5
Younger users of cloud applications are more likely to herald the benefits of storing information
or accessing software applications online.



             Younger users particularly appreciate the benefits of
                                 the “cloud”
            % of those using online applications and services to store data who cite
            “major reason” for using them
                                          18-29       30-49         50-64        65+
            It is just easy and                   56%            52%            50%            37%
            convenient.
            I can access this
            information from
            whatever computer I am                 51             42             34             19
            using.
            I can easily share                     45             38             39             27
            information with others.
            I won’t lose this
            information if my                      35             35             34             18
            computer fails.
            Source: Pew Internet & American Life Project April-May 2008 Survey. N=999 for those who have
            used online applications and services to store data. Margin of error is ±3.5%.



Cloud users to providers: let’s keep the data between us.
Against people’s appreciation of the ease and flexibility of cloud applications is concern about
control of the information they store on the web. Online Americans who have used at least one of
the listed services or applications were further queried about their views on data policies that
providers of such services might have in effect. For example, targeted online advertising – the
practice by which users’ online behavior is analyzed so that ads relevant to their apparent
interests can be served to them – is common in cyberspace. However, as the Federal Trade
Commission has noted, “while behavioral advertising provides benefits to consumers in the form
of free web content and personalized ads that many consumers value, the practice itself is largely
invisible and unknown to consumers.”3

As the figures show, cloud users show high levels of concern when presented with scenarios in
which companies might use their data for purposes users may or may not fully understand ahead
of time. This suggests user worry over control of the information they store online. For nearly all
of the scenarios shown, most users of cloud applications say they would be very concerned if
their data were sold, used in marketing campaigns, not deleted as requested, or used for targeted
ads.




3
 Federal Trade Commission, “Online Behavioral Advertising: Moving the Discussion Forward to Possible
Self-Regulatory Principles,” December 20, 2007. Available online at:
http://www.ftc.gov/os/2007/12/P859900stmt.pdf. Accessed on July 30, 2008.


The Pew Internet & American Life Project is an initiative of the Pew Research Center.                      6
Attitudes about possible data policies of “cloud” services
                  % of those who use online applications and services to store data

    Thinking about your data, such as email, photos, and other files that you put on these online
    services, how concerned, if at all, would you be if companies that provide these services . . .
                                                        Very     Somewhat        Not too      Not at all
    Sold your files to others                           90%          5%            2%               3%
    Used your photos and other information in
                                                         80          10             3                6
    marketing campaigns
    Analyzed your information and then
    displayed ads to you that are based on               68          19             6                7
    what you have in the those files
    Kept a copy of your files even if you try to
                                                         63          20             8                8
    delete them
    Gave law enforcement agencies your files
                                                         49          15            11               22
    when asked to do so
    Source: Pew Internet & American Life Project April-May 2008 Survey. N=999 for those who have used online services to store
    personal information. Margin of error is ±3.5%.



It is worth noting that this survey’s finding that 68% of cloud users are very concerned about
targeted ads based on online behavior is not too dissimilar from a March 2008 Harris
Interactive/Alan F. Westin survey. That study found that 59% of adults were not comfortable with
ads targeted to them based on their online activity; the Harris question noted that these ads help
enable free services such as webmail.4 A recent report by TRUSTe, an organization that provides
a seal to identify trustworthy online organizations, found that most (71%) online users are aware
that third parties may collect information about them for advertising purposes, but that 57% were
not comfortable with advertisers using such information to serve ads to them.5
These studies focus on internet users as consumers, but cloud applications extend beyond
people’s consumer behavior to activities oriented toward socializing, as well as gathering and
sharing information. This information may be as basic as checking news headlines, or more
sensitive in nature, such as searches for health or medical information. People’s perspectives on
secondary use of personal information stored in the cloud or third-party analysis of data may vary
widely across the great range of things people do online. This leaves fruitful avenues for
researchers as more people begin to use cloud computing applications. And it suggests there is a
wide scope for public education on the details of these emerging applications.
About the Pew Research Center’s Internet & American Life Project
The Pew Research Center’s Internet Project is an initiative of the Pew Research Center, a
nonprofit “fact tank” that provides information on the issues, attitudes and trends shaping
America and the world. Pew Internet explores the impact of the internet on children, families,
communities, the work place, schools, health care and civic/political life. The Project is
nonpartisan and takes no position on policy issues. Support for the project is provided by The
Pew Charitable Trusts.

4
  See “Majority Uncomfortable with Websites Customizing Content Based on Visitors’ Personal Profiles.”
April 10, 2008. Available online at: http://www.harrisinteractive.com/harris_poll/index.asp?PID=894.
Accessed on July 22, 2008.
5
  “TRUSTe Report Reveals Consumer Awareness and Attitudes About Behavioral Targeting.” March 26,
2008. Available online at: http://www.truste.org/about/press_release/03_26_08.php. Accessed on July 22,
2008.


The Pew Internet & American Life Project is an initiative of the Pew Research Center.                                            7
Survey questions



Spring Tracking Survey 2008                           Final Topline            5/19/08
Data for April 8 – May 11, 2008

Princeton Survey Research Associates International
for the Pew Internet & American Life Project

Sample: n = 2,251 adults, age 18 and older
Interviewing dates: 04.08.08 – 05.11.08

Margin of error is plus or minus 2 percentage points for results based on total sample [n=2,251]
Margin of error is plus or minus 3 percentage points for results based on internet users [n=1,553]




CLOUD COMPUTING QUESTIONS

Q24   Here’s another list of activities people sometimes do online. Please tell me
whether you ever do each one, or not. Do you ever... [INSERT – ASK IN ORDER]?

Based on internet users [N=1,553]
                                                          YES, DO THIS    NO, DO NOT     DON’T KNOW       REFUSED

        a. Store your personal photos online                   34              66            *               *
        b. Store your personal videos online                    7              93            *               *
        c. Use online application programs such as
        Google Documents or Adobe Photoshop Express            29              71            *               *
        d. Use webmail services, such as Hotmail,
        Gmail or Yahoo Mail                                    56              44            *               *
        e. Pay to store your computer files online              5              94            *               *
        f. Back up your computer’s hard drive to an
        online site                                             5              93            2               *



Q25    Thinking about these various services you have used to store personal
information, photos or other data online, please tell me if each of the following is a
MAJOR reason you use these services, a MINOR reason, or not a reason at all for you.
(RANDOMIZE)




The Pew Internet & American Life Project is an initiative of the Pew Research Center.                 8
Based on those who use online services to store personal information [N=999]
                                                                                         NOT A REASON       DON’T KNOW/
                                                          MAJOR REASON    MINOR REASON      AT ALL            REFUSED

        a. I can easily share information with others.            39           29               29               2
        b. I can access this information from whatever
        computer I happen to be using.                            41           25               32               2
        c. I won’t lose this information if my computer
        fails.                                                    34           24               39               4
        d. It is just easy and convenient.                        51           23               23               3


Q26    Thinking about your data, such as email, photos and other files that you put on
these online services… How concerned, if at all, would you be if companies that provide
these services [INSERT ITEM IN ORDER]...very concerned, somewhat concerned, not
too concerned, or not at all concerned?

Based on those who use online services to store personal information [N=999]
                                                                       SOME-             NOT AT      DON’T
                                                           VERY        WHAT    NOT TOO    ALL        KNOW       REFUSED

        a. Kept a copy of your files even if you try to
        delete them                                          63          20         8       8           *            *
        b. Used your photos and other information in
        marketing campaigns                                  80          10         3       6           *            *
        c. Analyzed your information and then
        displayed ads to you that are based on what you
        have in those files                                  68          19         6       7           1            *
        d. Sold your files to others                         90          5          2       3           *            *
        e. Gave law enforcement agencies your files
        when asked to do so                                  49          15         11     22           1            *




The Pew Internet & American Life Project is an initiative of the Pew Research Center.                       9

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Internet Security

  • 1. Data Memo BY: Associate Director John B. Horrigan (202-419-4500) RE: USE OF CLOUD COMPUTING APPLICATIONS AND SERVICES September 2008 “Cloud computing” takes hold as 69% of all internet users have either stored data online or used a web-based software application Some 69% of online Americans use webmail services, store data online, or use software programs such as word processing applications whose functionality is located on the web. In doing so, these users are making use of “cloud computing,” an emerging architecture by which data and applications reside in cyberspace, allowing users to access them through any web-connected device. Most internet users are unlikely to be aware of the term “cloud computing.” But online Americans who use webmail services such as Hotmail or Gmail are taking advantage of data storage capabilities managed by a network of computers, which in turn permits access to a user’s email through whatever device he has at hand. Below is a rundown of the share of internet users who have done a select set of online activities that involve storing data online or accessing applications in cyberspace. Cloud Computing Activities Internet users who do the following online activities (%) Use webmail services such as Hotmail, Gmail, or Yahoo! mail 56% Store personal photos online 34 Use online applications such as Google Documents or Adobe 29 Photoshop Express Store personal videos online 7 Pay to store computer files online 5 Back up hard drive to an online site 5 Source: Pew Internet & American Life Project April-May 2008 Survey. N=1,553 Internet users. Margin of error is ±3%. Overall, 69% of online users have done at least one of these six activities, with 40% of internet users having done at least two of them. This list is not meant to include all cloud computing activities. Rather, it is meant to measure a set of common activities associated with cloud computing. Some other online acts associated with cloud computing include storing browser bookmarks online, storing presentations on a website and showing them through a browser, and using social networking sites. The Pew Internet & American Life Project is an initiative of the Pew Research Center. 1
  • 2. Convenience and flexibility are the watchwords for those who engage in cloud computing activities: 51% of internet users who have done a cloud computing activity say a major reason they do this is that it is easy and convenient. 41% of cloud users say a major reason they use these applications is that they like being able to access their data from whatever computer they are using. 39% cite the ease of sharing information as a major reason they use applications in cyberspace or store data there. At the same time, users report high levels of concern when presented with scenarios in which companies may put their data to uses of which they may not be aware. 90% of cloud application users say they would be very concerned if the company at which their data were stored sold it to another party. 80% say they would be very concerned if companies used their photos or other data in marketing campaigns. 68% of users of at least one of the six cloud applications say they would be very concerned if companies who provided these services analyzed their information and then displayed ads to them based on their actions. This data memo is based on a survey of 2,251 adults between April 8, 2008 and May 11, 2008. Some 1,553 respondents in the survey were internet users and the margin of error is plus or minus 3 percentage points for results based on internet users. The Pew Internet & American Life Project is an initiative of the Pew Research Center. 2
  • 3. Background The term “cloud computing” has gained currency in the information technology world in the past 18 months as a way to describe the ongoing evolution in how people access and manage digital information. Years ago, computing was largely centralized. Users accessed information on mainframe computers from terminals that had very little computing power. With the advent of the personal computer in the 1980s, processing power came to the individual’s desktop with basic applications such as spreadsheets and word processing. Although some of these machines, such as those in large organizations, might have been networked through a mainframe, a good bit of data transfer took place on foot, as people carried floppy disks from computer to computer. As internet adoption became mainstream in the 1990s, the network of networks increased the power of decentralized computing. Personal computers not only stored data locally, but could also download and exchange data found far and wide on the world wide web. The growth in broadband access to the desktop at home and work has been a force multiplier to this model of computing. Recent evolutions in information technology have led to a more distributed computing environment, while also reviving the utility of centralized storage. The growth in high-speed data lines, the falling cost of storage, the advent of wireless high-speed networks, the proliferation of handheld devices that can access the web – together, these factors mean that users now can store data on a server that likely resides in a remote data center. Users can then access the data from their own computer, someone else’s desktop computer, a laptop that wirelessly connects to the internet, or a handheld device. Users face new challenges as they try to manage their data that might be stored in a variety of devices. This is where cloud computing enters the picture, a term often used in the same context as grid computing or utility computing. Still, there are distinctions. Whereas utility computing is seen as a business model, such as Amazon.com’s “Amazon Web Service” (AWS) that rents storage space and access to companies, cloud computing refers more broadly to a computing architecture. This architecture links computers in a grid and allows users to buy access to data and software stored on the grid or processing power that is harnessed for specific purposes by the grid of computers.1 Cloud computing is often seen as particularly useful to large corporations. A company may have employees in numerous locations running specialized software to carry out data-intensive tasks. Accessing data and software might be practically impossible without a grid of networked computers. These computing resources are drawn from someplace beyond the user’s location, and the fact that they exist at an ill-defined elsewhere is the source of the image that they come from a cloud. The Cloud and Online Activities For everyday users of the internet and computers, cloud computing is any online activity, such as accessing data or using a software program, which can be done from different devices regardless of the on-ramp to the internet. Someone might use the same device but different network access points – think of the laptop user logging on via a WiFi network at a train station or at the office 1 Geva Perry, “How Cloud & Utility Computing Are Different, at GigaOm.” February 28, 2008. Available online at: http://gigaom.com/2008/02/28/how-cloud-utility-computing-are-different/. Accessed on July 21, 2008. The Pew Internet & American Life Project is an initiative of the Pew Research Center. 3
  • 4. on a wired network. Or it may mean using a terminal at a business center at a hotel or a friend’s computer to check email or view photos. Most ambitiously, as Microsoft’s Ray Ozzie has said, cloud computing would enable “a personal mesh of devices – a means by which all of your devices are brought together, managed through the web as a seamless whole.”2 In this vision, the data or software applications are not stored on the user’s computer, but rather are accessed through the web from any device at any location a person can get web access. This raises issues for users which they may or may not fully appreciate. Trust comes to the fore; if one is to rely on the cloud, one has to trust that data and services will be there when called upon. Control is another issue, closely related to trust. A user trusting the cloud faces loss of control over personal information stored on a disembodied network. Reliability and security thus become important values in making the cloud functional for users. Using the Cloud: WiFi connectors are enthusiastic and younger users are the most avid adopters. This data memo takes a snapshot at the prevalence of the use of online services to store personal information or access software. Our May 2008 survey asked about six different online behaviors that would qualify as using cloud computing resources. This is not intended to be a comprehensive portrait of cloud usage, but rather – for a select set of activities – an overview of how many internet users let the network be the steward of data and applications that have typically been on the personal computer. Cloud Computing Activities (% in each group who do the following activities) Those who use a laptop to connect with All internet users WiFi away from home or work Use webmail services such as Hotmail, Gmail, or Yahoo! mail 56% 64% Store personal photos online 34 44 Use online applications such as Google Documents or Adobe 29 38 Photoshop Express Store personal videos online 7 13 Pay to store computer files online 5 10 Back up hard drive to an online site 5 9 Source: Pew Internet & American Life Project April-May 2008 Survey. N=1,553 Internet users. Margin of error is ±3%. Overall, 69% of internet users have done at least one of the six activities listed above and 40% have done at least two. Those with mobile computer access “on the go”, that is, those who use a laptop to go online away from home or work using a WiFi connection, are more likely to have done these activities. Among the 34% of online users who have used a WiFi connection on their laptop to go online, 79% have done one of the six activities listed above, and 52% have done at least two. Although cloud computing may connote the notion of mobile wireless use, the concepts are related only in that wireless networks and devices permit another on-ramp to cyberspace. Wireless access gives users greater incentive to take advantage of cloud computing, but it is not something that, in itself, is a cloud computing activity. 2 “After Bill.” The Economist, June 28, 2008, p. 77. The Pew Internet & American Life Project is an initiative of the Pew Research Center. 4
  • 5. Younger internet users are more inclined than older ones to use services or applications that require personal data be stored online. Cloud Computing Activities by Different Age Cohorts Internet users in each age group who do the following online activities (%) 18-29 30-49 50-64 65+ Use webmail services such as Hotmail, 77% 58% 44% 27% Gmail, or Yahoo! mail Store personal photos 50 34 26 19 Use online applications such as Google 39 28 25 19 Documents or Adobe Photoshop Express Store personal videos 14 6 5 2 Pay to store computer files online 9 4 5 3 Back up hard drive to an online site 7 5 5 4 Have done at least one activity 87% 71% 59% 46% Have done at least two activities 59 39 31 21 Source: Pew Internet & American Life Project April-May 2008 Survey. N=1,553 Internet users. Margin of error is ±3%. The ease and flexibility of cloud applications draw users to them. When asked why they use the different services that store personal information on the web, users cite a range of reasons that have mostly to do with ease and flexibility. They like how such services enable them to share data with others and let them easily access their data from any computer. Roughly half (51%) of those who have done at least one of the listed cloud applications say that ease and convenience are a major reason why they use an application that has them storing personal data on the web. Some 41% say a major reason they use such applications is that they want to access information no matter what computer they are using. Why people use “cloud” applications % of those who use online applications and services to store data Major Minor Not a Don’t know reason reason reason at all / refused It is just easy and convenient. 51% 23% 23% 3% I can access this information from 41 25 32 2 whatever computer I am using. I can easily share information 39 28 29 2 with others. I won’t lose this information if my 34 23 23 3 computer fails. Source: Pew Internet & American Life Project April-May 2008 Survey. N=999 for those who have used online applications and services to store data. Margin of error is ±3.5%. The Pew Internet & American Life Project is an initiative of the Pew Research Center. 5
  • 6. Younger users of cloud applications are more likely to herald the benefits of storing information or accessing software applications online. Younger users particularly appreciate the benefits of the “cloud” % of those using online applications and services to store data who cite “major reason” for using them 18-29 30-49 50-64 65+ It is just easy and 56% 52% 50% 37% convenient. I can access this information from whatever computer I am 51 42 34 19 using. I can easily share 45 38 39 27 information with others. I won’t lose this information if my 35 35 34 18 computer fails. Source: Pew Internet & American Life Project April-May 2008 Survey. N=999 for those who have used online applications and services to store data. Margin of error is ±3.5%. Cloud users to providers: let’s keep the data between us. Against people’s appreciation of the ease and flexibility of cloud applications is concern about control of the information they store on the web. Online Americans who have used at least one of the listed services or applications were further queried about their views on data policies that providers of such services might have in effect. For example, targeted online advertising – the practice by which users’ online behavior is analyzed so that ads relevant to their apparent interests can be served to them – is common in cyberspace. However, as the Federal Trade Commission has noted, “while behavioral advertising provides benefits to consumers in the form of free web content and personalized ads that many consumers value, the practice itself is largely invisible and unknown to consumers.”3 As the figures show, cloud users show high levels of concern when presented with scenarios in which companies might use their data for purposes users may or may not fully understand ahead of time. This suggests user worry over control of the information they store online. For nearly all of the scenarios shown, most users of cloud applications say they would be very concerned if their data were sold, used in marketing campaigns, not deleted as requested, or used for targeted ads. 3 Federal Trade Commission, “Online Behavioral Advertising: Moving the Discussion Forward to Possible Self-Regulatory Principles,” December 20, 2007. Available online at: http://www.ftc.gov/os/2007/12/P859900stmt.pdf. Accessed on July 30, 2008. The Pew Internet & American Life Project is an initiative of the Pew Research Center. 6
  • 7. Attitudes about possible data policies of “cloud” services % of those who use online applications and services to store data Thinking about your data, such as email, photos, and other files that you put on these online services, how concerned, if at all, would you be if companies that provide these services . . . Very Somewhat Not too Not at all Sold your files to others 90% 5% 2% 3% Used your photos and other information in 80 10 3 6 marketing campaigns Analyzed your information and then displayed ads to you that are based on 68 19 6 7 what you have in the those files Kept a copy of your files even if you try to 63 20 8 8 delete them Gave law enforcement agencies your files 49 15 11 22 when asked to do so Source: Pew Internet & American Life Project April-May 2008 Survey. N=999 for those who have used online services to store personal information. Margin of error is ±3.5%. It is worth noting that this survey’s finding that 68% of cloud users are very concerned about targeted ads based on online behavior is not too dissimilar from a March 2008 Harris Interactive/Alan F. Westin survey. That study found that 59% of adults were not comfortable with ads targeted to them based on their online activity; the Harris question noted that these ads help enable free services such as webmail.4 A recent report by TRUSTe, an organization that provides a seal to identify trustworthy online organizations, found that most (71%) online users are aware that third parties may collect information about them for advertising purposes, but that 57% were not comfortable with advertisers using such information to serve ads to them.5 These studies focus on internet users as consumers, but cloud applications extend beyond people’s consumer behavior to activities oriented toward socializing, as well as gathering and sharing information. This information may be as basic as checking news headlines, or more sensitive in nature, such as searches for health or medical information. People’s perspectives on secondary use of personal information stored in the cloud or third-party analysis of data may vary widely across the great range of things people do online. This leaves fruitful avenues for researchers as more people begin to use cloud computing applications. And it suggests there is a wide scope for public education on the details of these emerging applications. About the Pew Research Center’s Internet & American Life Project The Pew Research Center’s Internet Project is an initiative of the Pew Research Center, a nonprofit “fact tank” that provides information on the issues, attitudes and trends shaping America and the world. Pew Internet explores the impact of the internet on children, families, communities, the work place, schools, health care and civic/political life. The Project is nonpartisan and takes no position on policy issues. Support for the project is provided by The Pew Charitable Trusts. 4 See “Majority Uncomfortable with Websites Customizing Content Based on Visitors’ Personal Profiles.” April 10, 2008. Available online at: http://www.harrisinteractive.com/harris_poll/index.asp?PID=894. Accessed on July 22, 2008. 5 “TRUSTe Report Reveals Consumer Awareness and Attitudes About Behavioral Targeting.” March 26, 2008. Available online at: http://www.truste.org/about/press_release/03_26_08.php. Accessed on July 22, 2008. The Pew Internet & American Life Project is an initiative of the Pew Research Center. 7
  • 8. Survey questions Spring Tracking Survey 2008 Final Topline 5/19/08 Data for April 8 – May 11, 2008 Princeton Survey Research Associates International for the Pew Internet & American Life Project Sample: n = 2,251 adults, age 18 and older Interviewing dates: 04.08.08 – 05.11.08 Margin of error is plus or minus 2 percentage points for results based on total sample [n=2,251] Margin of error is plus or minus 3 percentage points for results based on internet users [n=1,553] CLOUD COMPUTING QUESTIONS Q24 Here’s another list of activities people sometimes do online. Please tell me whether you ever do each one, or not. Do you ever... [INSERT – ASK IN ORDER]? Based on internet users [N=1,553] YES, DO THIS NO, DO NOT DON’T KNOW REFUSED a. Store your personal photos online 34 66 * * b. Store your personal videos online 7 93 * * c. Use online application programs such as Google Documents or Adobe Photoshop Express 29 71 * * d. Use webmail services, such as Hotmail, Gmail or Yahoo Mail 56 44 * * e. Pay to store your computer files online 5 94 * * f. Back up your computer’s hard drive to an online site 5 93 2 * Q25 Thinking about these various services you have used to store personal information, photos or other data online, please tell me if each of the following is a MAJOR reason you use these services, a MINOR reason, or not a reason at all for you. (RANDOMIZE) The Pew Internet & American Life Project is an initiative of the Pew Research Center. 8
  • 9. Based on those who use online services to store personal information [N=999] NOT A REASON DON’T KNOW/ MAJOR REASON MINOR REASON AT ALL REFUSED a. I can easily share information with others. 39 29 29 2 b. I can access this information from whatever computer I happen to be using. 41 25 32 2 c. I won’t lose this information if my computer fails. 34 24 39 4 d. It is just easy and convenient. 51 23 23 3 Q26 Thinking about your data, such as email, photos and other files that you put on these online services… How concerned, if at all, would you be if companies that provide these services [INSERT ITEM IN ORDER]...very concerned, somewhat concerned, not too concerned, or not at all concerned? Based on those who use online services to store personal information [N=999] SOME- NOT AT DON’T VERY WHAT NOT TOO ALL KNOW REFUSED a. Kept a copy of your files even if you try to delete them 63 20 8 8 * * b. Used your photos and other information in marketing campaigns 80 10 3 6 * * c. Analyzed your information and then displayed ads to you that are based on what you have in those files 68 19 6 7 1 * d. Sold your files to others 90 5 2 3 * * e. Gave law enforcement agencies your files when asked to do so 49 15 11 22 1 * The Pew Internet & American Life Project is an initiative of the Pew Research Center. 9