Cloud computing was created to outsource companies’ data centers to internet vendors such as Amazon, Google, EMC, Facebook, Twitter, UploadingIt, and other private firms. After experiencing a bunch of security and reliability issues, today, I am announcing that Cloud Computing is just a nice dream. It does not meet the bottom line of businesses.
The bottom line of businesses is to maintain IT service around the clock. It becomes much more important, if the IT service supports day-to-day transactions of businesses.
If we look at recent incidents of cloud computing, Amazon had its east coast cloud crash for a week, Google had its office suite down for a few days and some users’ emails wiped off, and Facebook accidentally leaked user data to applications. All were due to incorrect codes being deployed to production without proper testing. When these cloud computing vendors miss their contractual service levels, what they can offer to businesses is only refund of service fee or cash compensation. Cash compensation is never acceptable to the sustainability of IT service to businesses. What businesses want is the assurance of their IT service running around the clock. So, cloud computing fails the bottom line badly. If the cloud computing vendors are not able to guarantee around-the-clock service level, cloud computing can never replace the need of private data centers.
In addition, cloud computing remains a major security concern to businesses. It appears that keeping critical systems within a firewall is still safer than moving them to the cloud. It just becomes too venerable when running a system in the cloud, because it adds too much external exposure to the cloud system and, therefore, making its security much more difficult to maintain. Cloud computing is just unable to deal with security well, when there are too many security variables to consider.
Lastly, cloud systems are still not reliable and efficient. The internet can not provide the same reliability and performance as the private network of a company. There is always delay to get emails over the internet. Netflix movies do not run continuously from time to time. Cellular phones get disconnected sometimes. So, putting a transactional system in the cloud, such as Point-Of-Sale (POS), warehousing, or logistics systems, simply does not work. Those systems require a very reliable network with extremely high throughput, which is not what the internet provides today.
However, cloud computing still has its value for supporting non-critical IT service such as the support of collaboration, storage, and social networking. So, the cloud computing could still stay but it will never replace the need of maintaining traditional in-house data centers.