Cloud computing: The sky’s limit
Cloud computing
The sky’s limit
from The Economist
Cloud computing industry is now blooming. Amazon is one of disruptive newcomers. If Amazon’s cloud-computing unit were a stand alone company, it would be worth as much as Dell and EMC combined. Cloud services are more secure than private computers because providers know better how to protect their computing system against hackers.
But there is one problem. Cloud computing tend to “lock-in” customers in one service because once a user starts using the service, from data storage to email, it will be difficult to move data from one service to another.
Being locked in to a provider is risky because…
– firms can start to tighten the screws by increasing prices.
– if a cloud provider goes bust, its customers may have trouble retrieving their data.
Some politicians wants to force cloud providers to ensure that data can be moved between them. But rigid rules will inhibit innovation in what is still a young industry. The history of computing suggests that common standards may well emerge naturally in response to customers’ demands.
Firms that use more than one cloud provider to host their data are less vulnerable. General Electric and Walmart have ability to guard their most valuable data. Google is better than others at enabling users to move data between providers.
