Cloud Business News Roundup April 11 – April 17, 2011: The Cloud Computing Dark Side

cloud computing warningThe hype surrounding cloud computing – mainly on the benefit of cloud computing, such as the increased productivity and lowered IT costs – often causes IT decision makers to make wrong decisions. While it’s true that cloud computing integration done right will bring businesses competitive advantages, you need to consider the dark side of cloud computing to help you make a well-informed decision.

This week’s highlight is on the cloud computing’s dark side. Roughly 90 percent of news on cloud business and cloud computing these days are buzzing about all the positives of cloud computing adoption. Cloud Business Review decides to feature articles that will help you understand that cloud computing does have glitches and whatnot.

Our featured article this week is this article from, written by Rob Lemos, CIO.

Rob warns that while some companies understand how to really benefit from the cloud, a lot of businesses don’t have any idea on how to implement cloud apps and infrastructure, in such a way that they actually don’t really understand about the cloud service contract they sign.

Rob further explains that CIOs need to understand the risks of taking business functions to the cloud; CIOs need to do their due diligence, including measuring the Return on Investment of their decision in going cloud.

We do have a free tool to measure the ROI of cloud integration – Cloud migration ROI Calculator.

Some other interesting “dark” stories on the Net on cloud computing woes:

Cloud computing adoption wars: Business unit managers vs. IT managers

Business unit managers complain about the slow deliveries from IT managers. IT managers do understand that cloud computing adoption risks pose serious problems in data security, privacy and lock-in costs.

Accenture has commissioned a survey on the issue, and draw a conclusion that cloud computing integration requires fundamental changes in how business run, including the requirements for successful cloud computing deployment and the relationships between IT team and business unit team; a tough job ahead for businesses keen on adopting the cloud.

Iron Mountain closed down its cloud storage service: What gives?

Iron Mountain is a respectable company tried to jump into the cloud bandwagon – but failed. The culprit might be due to the fact that they are simply not ready to offer cloud services. This fact is surprising because other cloud storage providers enjoy strong business growth.

The cloud is threatening software business?

The cloud drives interests among businesses. Is cloud software a threat to the “traditional” software business? The answer is: Not really. Why? Here’s the “dark” part: Big software businesses, such as IBM, Microsoft and Oracle, are offering cloud solutions, which are acting as their “safe bridge” to the uncertain, continuously evolving world of cloud computing. So yes, they don’t need cloud computing to take over their “traditional” software business – at least not now and in the near future.

And – as many experts suspect – cloud computing is good for rebranding purpose (a.k.a. yet-another-IT-buzz-word-that-bring-in-sales.) The much-hyped private clouds are actually manage services offered by established companies for years.

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