Today, server and storage systems “in the cloud” can be accessed by anyone in the world connected to the internet. That’s a completely different risk level than before.

Many of the SaaS vendors are not experts at computer or network security and when they are breached, all customer data is accessible.

Many of the storage vendors don’t really provide bulletproof data encryption for both storage and network access.

Many of the server renting vendors leave security at the host level without any network security. As a customer, you are responsible for providing any software firewall rules or VPN requirement to the system(s). What happens when you get a rule wrong and can no longer access your rented server? Or worse, you don’t bother with this and get hacked for months before you (or anyone else) notices.

Cloud computing is the next big thing yes. Is it going to take over the way we operate businesses? Until the legalities surrounding the “controversial” bits are sorted out, I highly doubt it. It is however a great alternative to small and mid size businesses who cannot afford the capEx required to build their own in house system.

Hamad Subani: Correction noted in main article regarding Eli Lily information consultant, not executive.

I remember what we called ‘computers’ were just a terminal, (screen & keyboard), and all of these computers connected to a real computer(s) somewhere else. The data wasn’t yours you just interacted with it from a distance. That was a cloud.
If I remember correctly there was a big rush to get away from that kind of yoking, wasn’t there? …Enter the PC. Networking yes, cloud no!

In fact, what you are saying was characteristic of IBM during that period. At a time when other giants were moving towards personal computing, IBM stuck to mainframes with the “terminals” you described. IBM then disappeared from the race. Its currently owned by Chinese interests.

I have read over a 100 different articles in the past 5-6 days, both from business perspective and deep-down technical perspective about Cloud Computing, and unfortunately the only thing that most are mentioning is its great ‘advantages’, and the only disadvantage being ’security’. Yet much of the other issues are completely ignored, such as these just mentioned above. Adopting the Public Cloud model may eventually create

It is interesting to observe that lots of small/medium/large enterprises are suddenly starting to discuss more about Private Clouds, which basically means, keep your Data Center and run it, just convert it into a Private Cloud to make it far more efficient and scalable, and there are now many competing companies in the US that are developing just the software technologies (both proprietary and non-proprietary) to make it happen. Its just that small businesses are yet to realize this, especially when they realize that Google Apps will lock them in over time into a very tight cage from which it will be tough to get out of.