Cloud Computing: What is It and How Safe?

Cloud computing courtesy of NetSuite

In Manila, the past few weeks  I have noticed Net Suite touting the advantages of Cloud Computing as allowing one to lower its computing costs and more recently, Net Suite One World which would allow a company operating in different countries to pool all their data into one file using one currency rate.

Microsoft Live Platform Cloud Service  (courtesy of Microsoft)

Wikipedia explains this as such:

Cloud computing refers to the use and access of multiple server-based computational resources via a digital network ( WAN, Internet connection using the World Wide Web, etc.). Cloud users may access the server resources using a computer, netbook, pad computer, smart phone, or other device. In cloud computing, applications are provided and managed by the cloud server and data is also stored remotely in the cloud configuration. Users do not download and install applications on their own device or computer; all processing and storage is maintained by the cloud server. The on-line services may be offered from a cloud provider or by a private organization.
 
My comments on cloud computing:

If you would purchase a traditional ERP Solution (Enterprise Resource Planning), you would have to

1.  Pay an Upfront fee (which can run from P5 Million up)

2.  A Licensing Fee per workstation

3.  An Annual Fee for  Usage

In the case of a Cloud-based ERP, you would pay

1.  An Installation Fee (to be done by the software implementor) which is about P500,0000

2.  Annual Usage much lower than traditional ERP providers as the ERP software is not stored in your server.

Note the devices that can access your database (courtesy of Microsoft)

From a layman's point of view, I am concerned of the following:

1.  Since both my data and software application is stored in a server in another country (worse if that same software provider is just leasing storage space from another party like Amazon.com which leases out its excess memory storage capacity, what happens if a terrorist (like Osama Jr) decides to Nuke Amazon's server farm?

2.  What if my internet connection goes down as in the case of the time when an earthquake hit Taiwan and damaged the submarine cable connecting the Philippines with the International gateway of say MCI-Sprint in the USA thereby severing all internet connections to the Philippines?  Also, if my Internet Service Provider, my link to the International Gateway, suffers a stoppage in their operation, I also might not have access and I do not think you can easily switch ISPs at that instant.  With all my data stored in another country and with no access to it, my business could stop.


3.  Also stated on Wikipedia is that Cloud computing will allow me or my staff access to our data by using any device (Ipad, smartphone, netbook or laptop) that can connect to any web browser.  Unlike being hard-wired to a network protected by an industrial strength Security software, these mobile devices are not as secure.  Is it possible that a hacker can get my passwords from my smartphone and access all my data himself? Wow nightmare!!!!

INTERNET DOWN. How can I type 1,000 sales invoices? Where is the stock? Which one? (courtesy of creativekinesiology.com)

Imagine if my company's whole Warehouse Management System is Cloudbased and for some reason, the PLDT DSL or T1 line went down or slowed down to a crawl (which is a fairly common occurrence in the Philippines), then these might happen:

1.  Cannot nvoice our customers' sales orders;

2.  Cannot locate the stock in our 3-hectare 10-meter high 7-level Racking system with 9,000 pallet locations;

3.  If we can find the stock, my warehouseman will not know what lot number/production date to issue;

4.  Or, My boss loses his Nokia while entertaining a client in a restaurant and there is now a risk of unauthorized access to our entire database.


I will appreciate if somebody out there is more knowledgeable about cloud computing and offer to comment or correct my perceptions.

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