As a follow-up to Part I, there are a lot of actual or perceived issues with the cloud computing concept. You need to work your way through them to answer the main question .... is cloud computing really economically viable in the long-term?
Repeating the questions from Part I:
* With so many companies rushing to announce their development in cloud computing /SaaS/PaaS in 2009, is cloud computing really economically viable in the long-term?
* Will large enterprises and Small and medium businesses actually go in for cloud computing and virtualization?
* What will be the benefits and problems associated with the same?
* Which industries are more likely to be the front-runners in cloud implementation?
I have my issues with the cloud concept. For starters, there are huge security concerns that too many companies are trying to "market" away as if they can't happen. That's only the security aspect though. So let me give you a real world instance - not marketing - about something a colleague experienced.
Currently my friend provides ITSP (VoIP) services to thousands of customers. They have redundant providers coming into a DS3 for SIP termination. On an average, they push out about 1.5million minutes in voice traffic per day. Last Friday, one of their carriers went down momentarily. No sweat, they had redundancy.
That was until their other carrier went down as well. There was nothing they could do as they cannot route telephone numbers inbound through another carrier .... it just doesn't work that way. Long story short, 10 hours later, they were back up and running. 10 HOURS later! Now imagine that if you will, you're running your business without any telephones for 10 hours and you're Disaster Recovery was a disaster in itself. Imagine this if you were a day trader or a telemarketing firm. Their clients had looked to them to save by ridding themselves of costly PBX's and circuits. While they personally try to make it known that the Internet is unstable and will be what it will be, most customers shake it off until something catastrophic occurs.
This happens to the best of them including Google who had six outages in eight months. But hey - "poop happens" - accidents will occur, you will lose money. At the end of the day make sure your risk metrics in your analysis show you how much money you can LOSE as well as SAVE using the clouds.
Is it worth saving a couple of dollars at the end of the day? Sure it is you'd say ... and this is because you're not likely to get the statistics from companies who've lost money by doing business in the clouds. I mean think about it, if it means kissing your data goodbye because a provider went under is it worth it to you?
"The Linkup's failure was the most serious of the three. Although its scale was probably the smallest-the company had about 20,000 paying customers-the impact was far and away the greatest; no temporary software glitch here, but a permanent loss of data"
There are plenty of horrible things with cloud computing that are common sense. Yet money will cloud the judgments of those in positions to make decisions. Personally, I would not trust anything to the cloud. At least not yet. It's Russian Roulette period.