I do agree that cloud computing is just another form of outsourcing--the same 
general rules apply to choosing a cloud computing provider as to choosing ANY 
outsourced service.

As to the notion that one data breach affects only one customer, that's not so 
in the information age. At the speed of light, the world can know about that 
breach--and the service provider risks losing any number of current and 
potential customers.



John

-----Original Message-----
From: Ben Scott [mailto:[email protected]] 
Sent: Wednesday, November 18, 2009 10:51 AM
To: NT System Admin Issues
Subject: Re: Cloud computing... your opinions

On Wed, Nov 18, 2009 at 9:55 AM, John Hornbuckle
<[email protected]> wrote:
> There's no reason it has to be undefined and
> unverifiable, though. A good cloud service provider
> can provide this.

  They should be able to; they rarely do, IME.  Most businesses have a
general mentality of not exposing information about their own
operations.  Some of that is fear of making it easier for copy-cats;
some of it is a desire to sweep dirt under the rug.  At the same time,
in order for an outside contractor[1] to be as defined and verifiable
as doing it in-house, they have to be *completely* transparent.  So
there's an inherent conflict.

[1] = In most use cases[2], "cloud computing" is just the latest
euphemism for "outside contractor".  We've also seen this called
"SaaS", "ASP", "outsourcing", etc.

[2] = There are exceptions.  They are a small minority.

> As someone else mentioned, reputable service providers
> are just as concerned about the protection of their
> customers' data as their customers are.

  I highly doubt this.  For a contractor, a single-customer data
breach means you loose a customer.  For the business, that same data
breach can mean anything up to going-out-of-business.  Sure, the
provider has a motivation to do well, but not the same motivation.

  It's like the joke about bacon and eggs.  The chicken is not as
invested as the pig.

-- Ben

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