According to Goldman Sachs & Co., an investment agency. A recent survey of CIOs, cloud computing the list of priorities for what they are doing is the last. One analyst points out that cloud computing is behind the line because managed services need technical understanding to understand their importance. He thinks the C-level officials and managers don't have that understanding. But judging from the obvious benefits of cloud computing, measuring the benefits of cloud computing does not actually require a lot of technical understanding. Corporate officials and managers avoid using cloud computing precisely because of their understanding of the implications of cloud computing and the logical decisions they make to protect their business data.
Recently, media coverage of cloud computing is growing, as it offers tempting solutions to many business problems. Cloud computing can be interpreted as a managed application. A hosted company lets you build and deploy applications on its servers, provide these applications through the user's browser, and guarantee 24 hours of work a day, 7 days a week, and no restrictions on scalability. For businesses, this is the cost of hard money: The company does not need to buy and maintain servers, the company does not need to purchase licenses for the database, free storage, backup and disaster recovery services. All this means that the company does not need to hire IT personnel, and does not need to pay the salaries and medical expenses of such personnel.
Most hosting companies also provide infrastructure for development. Common applications can be developed faster, deployed faster, and upgraded immediately. This is a tempting condition. However, there are some negative aspects.
First question. Despite promises, usability has been volatile. Many of the major hosting companies have recently been interrupted by service outages, such as Google's Gmail service, Amazon's S3 and Salesforce.com. Web outages are generally not important for businesses because most Web sites do not host applications that are dependent on the enterprise. But when businesses start to host mission-critical applications in cloud computing, such as email, customer/sales data, and financial services, businesses need and expect near-perfect service levels.
A second question. Because hosting companies have hardware, it is not clear how difficult or expensive it is to use all of the data generated by these cloud applications. However, in the current world, these applications and data are very important to the enterprise. What happens if a service outage is not quickly fixed? What happens if a hosting company goes bankrupt? If the hosting company does not back up their data or loses data, what does the enterprise rely on? The custodian company actually takes the enterprise as a hostage to its own data.
A third question. So far, each system is unique. It is not possible to transfer an application from one hosting company to another if the application is not rewritten and re tested. Indeed, organizations can write applications to copy these data to internal servers. However, as a result, businesses need to maintain their own servers, losing the main benefits of cloud computing.
The final question is how the hosting company handles the data collected by their servers. Hosting companies are clearly able to access this data and must allow hosting companies to manipulate the data, such as encrypting and decrypting, backing up data, copying data to improve throughput, moving between servers, and so on. This raises the question of the exact rights of the hosting company. What is the penalty if a custodian company's employees peek at your data? What happens if a hosting company sells data from a company to a competitor's company? What if the hosting company outsourced the data-hosting part of the enterprise? What if the hosting company decides on the e-mail addresses and user-critical information in the mining data? Who does the ownership of this data belong to?
Unfortunately, the answers to these questions in real life are disappointing. The court has so far tended to support the owner of the hardware that stores the data, or the enterprise that generated the data, regardless of who generated the data. For example, many employees accidentally find that whatever they write using a company computer, such as e-mails, files, or Internet access records, is their employer. The employer has the right to analyze and use that data. A recent case in the British court showed that it was illegal for an employee to send his list of Outlook contacts to the LinkedIn site, although the employee said that his list of contacts was for personal use, but that the data was owned by his employer.