R_gardner

Verizon Unveils 'Cloud-Based' Computing-as-a-Service

Tier 1 providers like Verizon and NTT could crush AMZN and RAX on pricing in the same way they Rhythms and almost took Covad out of the game supplying DSL. Cloud computing favors the large, established Telcos if they get their act together... hardly a sure thing.

Frank Gillett: The Future of Cloud Computing

Cloud computing is a pure cross-elasticity play.

Its less secure, less portable, often slower and less reliable than running applications in-house. So why do people choose it and why is it growing? Simple, its cheap. For AMZN, RAX, MSFT and FFIV to offer cloud solutions, great. But consider the risks for the myriad of smaller players:

Security: A breach of a vendor's cloud could lead to penetration across hundreds or thousands of virtual systems. What happens if your a company who competes with IBM, and IBM suddenly acquires your cloud provider?

Portability: How do you combat lock-in from data-transfer costs if your vendor raises prices, has an extended outage or goes out of business?

Speed: How will you combat bandwidth leeching as cloud traffic and data requirements grow?

I think cloud computing and storage is here to stay. But its applications are far more limited than the hype.