{"id":21711,"date":"2011-06-15T07:30:18","date_gmt":"2011-06-15T11:30:18","guid":{"rendered":"http:\/\/www.investmentu.com\/?p=20238"},"modified":"2011-06-15T07:30:18","modified_gmt":"2011-06-15T11:30:18","slug":"cloud-computing-an-unstoppable-yet-vulnerable-force","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/06\/15\/cloud-computing-an-unstoppable-yet-vulnerable-force\/","title":{"rendered":"Cloud Computing: An Unstoppable Yet Vulnerable Force"},"content":{"rendered":"

Cloud Computing: An Unstoppable Yet Vulnerable Force<\/a><\/p>\n

by Tony D’Altorio<\/a>, Investment U<\/em> Research
\nWednesday, June 15, 2011<\/p>\n

The words “cloud computing” are among the latest technology buzzwords these days.<\/p>\n

But what does it mean?<\/p>\n

People may be asking, “What the heck is the ‘cloud?’” Technically, it simply means storing digital files on someone else’s computer servers and then accessing those files via the internet.<\/p>\n

Many people don’t realize that cloud computing isn’t really new. It’s actually been with us for a while now, through email services like Gmail from Google <\/strong>(Nasdaq: GOOG<\/a>), photo services like Flickr and Picasa, and storing documents with a firms such as Dropbox.<\/p>\n

It’s just that now with the introduction of more consumer resources like music services – Google Music, Cloud Player from Amazon <\/strong>(Nasdaq: AMZN<\/a>) and the iCloud from Apple <\/strong>(Nasdaq: AAPL<\/a>) – the general public is becoming more aware of cloud computing.<\/p>\n

Apple recently announced the biggest push to date by a technology company to bring cloud computing to consumers<\/a>. Its new, free iCloud service, to be launched this fall, will allow users to spread their documents, programs, photos, music, etc. among all their Apple devices seamlessly.<\/p>\n

It’s all part of a generational trend away from owning physical media content and towards renting media content from the computing universal cloud.<\/p>\n

And it’s happening rather quickly. Just look at how quickly people moved away from owning CDs and DVDs and became accustomed to streaming movies from companies like Netflix <\/strong>(Nasdaq: NFLX<\/a>).<\/p>\n

Cloudy <\/strong>Skies for Cloud Computing Industry <\/strong><\/p>\n

Of course, all is not blue skies for cloud computing… there are major concerns about the shift to the cloud.<\/p>\n

One such concern is security. Large internet companies that hold vast quantities of personal data come under constant attack from hackers.<\/p>\n

Sony <\/strong>(NYSE: SNE<\/a>) was recently forced to admit that cyber thieves<\/a> might have taken 100 million of its customers’ records. Google also revealed recently that several Gmail accounts, including some belonging to prominent U.S. politicians, were hacked.<\/p>\n

Internet security experts say, however, that home computers are even more vulnerable. They believe it’s arguably safer to keep files in a data center run by technology professionals.<\/p>\n

Another major concern centers on the ownership of data.<\/p>\n