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E-residency, data 
embassy and the Cloud 
Andres Kütt 
Estonian Information System Authority / Architect 
20.11.2014
Estonia in perspective 
Population1 Labor force PPP gross national 
income per capita 
Estonia 1 690 391 23.280 
Latvia 2 1 046 220 21.820 
Russian 
Federation 144 76 872 229 22.800 
Singapore 5 3 021 715 71.900 
United States 314 158 666 072 52.610 
1 - In millions, rounded to 1 
Estonia is so tiny a quarter of our population can become a rounding error.
GNI per capita 
80 000 
60 000 
40 000 
20 000 
0 
Estonia Singapore USA Latvia 
Russian Federation 
1995 1998 2001 2004 2007 2010 
The graph shows that no only is our GNI considerably smaller than that of more advanced countries, it is also growing at the same pace. Ergo, we shall be 
relatively cash-strapped for the foreseeable future.
The solution? Go paperless. Replace the expensive paper-based services with electronic government services that are easier to scale and do not create 
the feedback loop of bureaucracy creating more bureaucracy.
690 391 
Our prime-minister-to-citizen ratio is too high.
GAAS 
Government as a service. We are already building these web services, why not provide them to others?
10 000 000 
This is radical. Illustrates the lengths to which this country is willing to go. Because we have very few other options.
Digital continuity becomes a problem 
! We cannot switch back to paper 
! For the reasons we went digital in the first place 
! Also because we no longer know how 
! Digital is built deep into all aspects of Estonia 
! Business processes shaped around requesting data, not 
delivering documents 
! This does not scale without digital 
In the digital world, this is certainly the case. The more digitized one is, the more dangerous digital risks become. Estonia can not go back to paperless 
simply because we no longer know how. This has been the case for so long, our business processes have adapted. 
For example, a common practice has companies supplying a certificate of tax status as part of public tender processes to make sure they do not owe 
taxes to the state. In Estonia one would execute a query against the tax board information system instead asking for the status of a particular company. 
Issuing a certificate would also be meaningless as companies can go and change their tax declarations at will altering their financial standing with the 
state.
One solution to this would be to move all the services to the Cloud by using Microsoft, Amazon, Google or other cloud service providers. I’ll talk a bit 
about the challenges and learnings we have had
Citizens/Officials/Enterprises 
Electronic identity 
Delivery channels 
Integration 
Infrastructure 
Agency Agency Agency Agency 
Finance and portfolio management 
Information security 
Information System Registry 
Architecture of Estonian information system
Citizens/Officials/Enterprises 
Electronic identity 
Delivery channels 
Integration 
Infrastructure 
Agency Agency Agency Agency 
Finance and portfolio management 
Information security 
Information System Registry
Cloud is not simply an 
infrastructure problem 
It immediately becomes a business problem, 
if not sooner then when assessing risks
Whom can you trust? 
We make a lot of implicit and explicit decisions on trust, cloud 
introduces a lot of complexities to these decisions
Small players are too small 
What is their actual ability to honour the collateral?
Big players are too big 
Appi
What about democratic change? 
A nation democratically decides it is OK to look into 
files they consider to be under their jurisdiction
“Lady, I never walk into a place I 
don't know how to walk out of.”
In the end, nobody can be trusted 
Not with really important things 
Cryptography to the rescue!
Secure multi-party computation 
Ability to share data and computation between untrusted parties 
Cryptography to the rescue!
X1 X2 AVG(X1,X2) 
Original 12 8 10 
Node 1 1 3 2 
Node 2 4 2 3 
Node 3 7 3 5
Browser-based cryptography 
Since the server cannot be trusted, 
the client must encrypt everything
Challenges with the browser 
! Related to encryption itself 
! WebCryptoAPI coming to age but clearly inadequate 
! Big players reluctant to cooperate on Browser/OS issues 
! Related to handling of encrypted data 
! How to execute server-based tasks like search on encrypted 
data? 
! Key management issues
Conclusions 
What can we make of it all? 
Cryptography to the rescue!
Moving to cloud assumes a high level of 
maturity from the entire organisation 
More so than being either in our out of the cloud
Trust decisions need to get explicit 
Questions of trust have profound business implications and 
must thus be made explicitly
Cryptography seems to be a solution 
Although it is not entirely clear, how exactly
Thank you! 
Andres Kütt 
andres.kutt@ria.ee

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E-residency, data embassy and the Cloud

  • 1. E-residency, data embassy and the Cloud Andres Kütt Estonian Information System Authority / Architect 20.11.2014
  • 2. Estonia in perspective Population1 Labor force PPP gross national income per capita Estonia 1 690 391 23.280 Latvia 2 1 046 220 21.820 Russian Federation 144 76 872 229 22.800 Singapore 5 3 021 715 71.900 United States 314 158 666 072 52.610 1 - In millions, rounded to 1 Estonia is so tiny a quarter of our population can become a rounding error.
  • 3. GNI per capita 80 000 60 000 40 000 20 000 0 Estonia Singapore USA Latvia Russian Federation 1995 1998 2001 2004 2007 2010 The graph shows that no only is our GNI considerably smaller than that of more advanced countries, it is also growing at the same pace. Ergo, we shall be relatively cash-strapped for the foreseeable future.
  • 4. The solution? Go paperless. Replace the expensive paper-based services with electronic government services that are easier to scale and do not create the feedback loop of bureaucracy creating more bureaucracy.
  • 5. 690 391 Our prime-minister-to-citizen ratio is too high.
  • 6. GAAS Government as a service. We are already building these web services, why not provide them to others?
  • 7. 10 000 000 This is radical. Illustrates the lengths to which this country is willing to go. Because we have very few other options.
  • 8. Digital continuity becomes a problem ! We cannot switch back to paper ! For the reasons we went digital in the first place ! Also because we no longer know how ! Digital is built deep into all aspects of Estonia ! Business processes shaped around requesting data, not delivering documents ! This does not scale without digital In the digital world, this is certainly the case. The more digitized one is, the more dangerous digital risks become. Estonia can not go back to paperless simply because we no longer know how. This has been the case for so long, our business processes have adapted. For example, a common practice has companies supplying a certificate of tax status as part of public tender processes to make sure they do not owe taxes to the state. In Estonia one would execute a query against the tax board information system instead asking for the status of a particular company. Issuing a certificate would also be meaningless as companies can go and change their tax declarations at will altering their financial standing with the state.
  • 9. One solution to this would be to move all the services to the Cloud by using Microsoft, Amazon, Google or other cloud service providers. I’ll talk a bit about the challenges and learnings we have had
  • 10. Citizens/Officials/Enterprises Electronic identity Delivery channels Integration Infrastructure Agency Agency Agency Agency Finance and portfolio management Information security Information System Registry Architecture of Estonian information system
  • 11. Citizens/Officials/Enterprises Electronic identity Delivery channels Integration Infrastructure Agency Agency Agency Agency Finance and portfolio management Information security Information System Registry
  • 12. Cloud is not simply an infrastructure problem It immediately becomes a business problem, if not sooner then when assessing risks
  • 13. Whom can you trust? We make a lot of implicit and explicit decisions on trust, cloud introduces a lot of complexities to these decisions
  • 14. Small players are too small What is their actual ability to honour the collateral?
  • 15. Big players are too big Appi
  • 16. What about democratic change? A nation democratically decides it is OK to look into files they consider to be under their jurisdiction
  • 17. “Lady, I never walk into a place I don't know how to walk out of.”
  • 18. In the end, nobody can be trusted Not with really important things Cryptography to the rescue!
  • 19. Secure multi-party computation Ability to share data and computation between untrusted parties Cryptography to the rescue!
  • 20. X1 X2 AVG(X1,X2) Original 12 8 10 Node 1 1 3 2 Node 2 4 2 3 Node 3 7 3 5
  • 21. Browser-based cryptography Since the server cannot be trusted, the client must encrypt everything
  • 22. Challenges with the browser ! Related to encryption itself ! WebCryptoAPI coming to age but clearly inadequate ! Big players reluctant to cooperate on Browser/OS issues ! Related to handling of encrypted data ! How to execute server-based tasks like search on encrypted data? ! Key management issues
  • 23. Conclusions What can we make of it all? Cryptography to the rescue!
  • 24. Moving to cloud assumes a high level of maturity from the entire organisation More so than being either in our out of the cloud
  • 25. Trust decisions need to get explicit Questions of trust have profound business implications and must thus be made explicitly
  • 26. Cryptography seems to be a solution Although it is not entirely clear, how exactly
  • 27. Thank you! Andres Kütt andres.kutt@ria.ee