It is only appropriate that I begin this blog as I leave the first hosting industry convention almost completely dedicated to “the cloud”. For me, I have in the past attended this convention as a hosting company executive–I co founded LayeredTech , a really superior dedicated host which innovated “on demand scalable resources” positioning among hosters in 2005. That is what cloud computing is all about, and today I was here mainly to be on a panel talking about the practical issues around buying and selling hosting and web infrastructure companies.
That said, here are a few observations fresh from the meetings and exhibits:
1. People who should know better are using cloud to describe just about anything to do with getting resources from the internet. I am convinced that AOL was the first cloud service by these definitions.Unfortunately, that means “cloud” is in danger of not really describing anything except the current state of mind and vocabulary around the provision of anything touching the internet. I have been using the Domino’s pizza cloud ordering system for a couple of years by this definition–again, pretty dilutive of the definition. [Note--I have better taste in pizza , but that's for another blog, Domino's seems to be the most reliable when we need the babysitter fed ].
2.Cloud seems to be describing a movement, not just a technology, at this point. I can relate to that–the idea of reducing hardware costs and labor costs on site and pulling what you need over the internet from a more centralized resource is very appealing. It can be liberating, eliminating redundant efforts to run computers and applications at the user site as well as at the vendor site.
3. However confused and over used the term has become, cloud computing seems to make it easier for users to get what they need and have it work–I will gladly trade local control for remote configuration by experts any day. That may not seem great for local network hardware jockeys in IS departments–but I believe the opposite is true. Having local IT more focused on user application needs than running hardware infrastructures in companies is a good thing.
So the hosting industry is working hard to align itself around this purpose–enabling the right work to be done at the right place, better connecting us all and improving the ability to be less likely to be interrupted in our work, or internet play, by suboptimal local technology approaches.
From this lawyer’s perspective, the question is , how does this change the duties of the players providing IT to those using IT, and what are the ramifications for risk management, contract management, security, and value. One could also ask about competitive advantages of businesses more reliant on the cloud. In short, how does cloud computing impact business risk and value, and how might it change the way we contract, develop intellectual property, share information, and adjust the way we and our clients do business .
This blog hopes to explore those issues , and solicit comments as well.
Michael Platner
http://www.lbbslaw.com/attorneybio.aspx?id=5478