Intuit: How To Improve Cloud-Computing Safety

Intuit (INTU), the parent company of financial software products such as Quickbooks and Turbo Tax, has jumped deeper into the world of cloud computing with an announcement of its “Connected Services” strategy. The idea here is to expand its offerings for the more than 4 million small businesses who already use the Quickbooks desktop software to manage their finances. Earlier this year, the company said it would open its QuickBase platform to third party developers with the aim of creating a software as a service business. The idea stems from a new wave of small businesses that are increasingly mobile and interested in using desktops, laptops and even handheld devices to manage their finances.

There are a number of companies that have jumped feet-first into cloud computing - Google (GOOG), Amazon (AMZN) and others. But in recent weeks, there’s been a bit of a dark cloud around the push into Web-based applications. Amazon’s S3 service had an extended outage and, more recently, Google’s Gmail got some bad press for its own problems. That, in turn, has raised some concerns about the safety and stability about doing business in the cloud.

I spoke with Rick Jensen, senior vice president and general manager of Intuit’s Small Business Group, and asked him about the perception that the cloud still is not quite stable.  Jensen immediately responded by pointing to the company’s track record of managing on the Web the most important and sensitive data we have: our tax information. Ten years ago, Intuit launched TurboTax online for users who choose to calculate their returns on the Web instead of through desktop software. Last year, the company processed 10 million online tax returns and not one, he said, was compromised. The company has taken extra efforts, he said, to ensure that the servers are capable of handling the crunch of users who log on - even in the days leading to the April 15 tax filing deadline. And it’s all done without compromising security or privacy, he said.

A ten-year track record goes a long way, and if anyone can help bring a silver lining to the dark cloud of recent weeks, it’s Intuit. It has a lot to risk because of the type of data its customers are putting in its online hands. There’s no question that losing access to files or emails is a major inconvenience. But messing with the money is a whole different story. If the financial cloud were, at some point, compromised, it could deliver a critical blow to Intuit and efforts to advance cloud computing. Intuit is definitely aware of that.

Comments

[captainccs:]

I don't see what the big ado is all about except maybe assigning insufficient resources to these "clouds." I've used online stock brokers for over 20 years (starting with E-Trade on CompuServe) with hardly a problem. How is cloud computing different from what these online brokers do? Cloud is just a fancy name for client-server architecture on the web.

One thing these cloud people should remember is that their pipes have to be as large as storm sewer pipes, they must be able to take the largest surge which also means a lot of idle time most of the time. Lots of resources is the solution which also means that it's not as cheap as you think it might be.

2008 Aug 14 10:27 AM

[bonae:]

Users should wait to move significant amounts of information into the Cloud Computing world until privacy regulation is established and a government firewall to hostile espinage (cyber attack) and corporate espionage (Cyber Burning) by competitors. The public is unaware of the dangers in cloud computing and until privacy is protected, significant amounts of data or operations in the cloud cause a Severe Security Risk to the Small Business and expose your data to (Data Farming) by Advertising (and Competitors) who use the advertising relationship to gather Competitive Intelligence.

2008 Aug 15 03:20 PM

[bonae:]

The similarity between an online broker who operates in a highly visible sharing of market information and cloud computing is pretty accurate, except that Stock Brokerages and Banks are highly regulated, cloud computing companies and their use of information are not.

2008 Aug 15 03:36 PM

[MikeBlockQu...:]

CPAs and computer security experts have long known that the Cloud is usually the safest place for accounting records, especially with a partner like Intuit. The worst place for them is most small business offices. People can easily break in. Small business computerrs are all but guaranteed to fail at the worst possible time, with little or no backup (though QuickBooks made that almost automatic years ago). Many users know little about bookkeeping and much less about computers or security. Our government security experts recently showed they could not come close to keeping up with the Intuit security experts. They reported a supposed QuickBooks online vulnerability and suggested an upgrade. However, that was 6 months after Intuit found the problem itself, fixed it and made access impossible without the upgrade that eliminated it. ZDNet never reported this little detail in a sensationalized report, though the original government document and miniscule research made it clear. They also did not change, retract or delete the story when it was brought to their attention. You can read of many cases where the government was unable to protect its secret records, but none I know where Intuit did not completely protect millions of customers for many years. It is really too bad companies like Intuit cannot take over running our government, especially in view of current and prospective leaders.

2008 Aug 20 06:42 PM