Is Cloud Computing Security the Next Y2K Opportunity?

Cloud computing is often hyped as a cool new technology and a near-cure-all; move all that complicated IT infrastructure to the cloud so your company can be more efficient and save money and space in the process.

Deloitte venture capitalist Mark Jensen strongly believes in cloud computing’s value proposition, but with some important caveats.

“The problem we’ve had with the cloud is that a lot of fundamental technologies related to security and privacy don’t exist yet; making sure you’re not compromising someone’s personal information,” Jensen, managing partner for Deloitte’s National Venture Capital Services group, told InternetNews.com. “All that’s still be developed. It’s not here now, but it’s coming and it’s going to be about as important to business as Y2K was.”

The infamous Y2K panic in the late 1990s because computer systems weren’t designed to process the year 2000 and beyond would crash during the date change. It led to a massive IT reinvestment in software and hardware. Jensen thinks cloud computing will benefit for far less disastrous reasons.

“Looking at Y2K from the positive side, it forced companies that had deferred investment to become more efficient by buying new systems,” he said. “With cloud computing, I think companies will be motivated purely for competitive reasons, because the efficiencies you’re going to see in the supply chain and the ability to more easily surface customer information are going to be huge opportunities. The companies that don’t get on board will be left behind.”

Jensen said he believes it will take three to five years for cloud services to emerge that are truly enterprise-ready from a security and privacy standpoint, but he hedges even that prediction.

“The one thing that could set all the progress back is a massive security breach or a situation where some company lost significant IP [intellectual property] and their competitive advantage. Also, looking globally, different countries have different privacy standards, so it’s all going to be a huge challenge,” he said.

“We have to solve these problems, because until you do you’ll never see mission critical software in the cloud, just the little stuff. But it’s coming. We’re working with companies every day on this stuff.”

While a number of cloud providers have already staked out significant positions (e.g. Amazon, Salesforce), Jensen there is plenty of opportunity for upstart firms to provide further value. He sees Amazon (NASDAQ: AMZN) as one of the companies that is setting the foundation for new cloud services.

“The cloud is many things: it’s Software as a Service (Salesforce, etc.); it’s Platform as a Service (PaaS); Storage as a Service and Infrastructure as a Service (LaaS) from big providers like Amazon,’ he said. “That foundation enables a lot of startups and smaller companies to build new services. What we’re seeing is a tremendous rise in software companies that take IT to a whole new level by letting companies buy computing services by the drink rather than having to buy the whole enchilada.”

Continue Reading at: ITDataManagement

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

9 Responses to Is Cloud Computing Security the Next Y2K Opportunity?

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

What is the 12/12 Program?

This program is designed to better handle the thousands of requests we receive from people looking to submit articles. The 12/12 program is the commitment of 12 articles delivered over a 12-month period.  

Wait! What if I just want to submit one article?

Our popular pay as you go sponsorship program provides the flexibility to submit as you wish and is designed for all budgets.

Contributors

Ten Tips For Successful Business Intelligence Implementation

Ten Tips For Successful Business Intelligence Implementation

Ten Tips for Successful Business Intelligence Implementation The cost of Business Intelligence (BI) software goes far beyond the purchase price. Time spent researching, implementing, and maintaining your BI investment can snowball quickly and mistakes are often expensive. Your time is valuable – save it by learning from other businesses’ experiences. We’ve compiled the top ten

Knots And Cloud Service Providers

Knots And Cloud Service Providers

How Do These Two Compare? In Boy Scouts, I learned how to tie knots. The quickest knot you can tie is the slipknot. It’s very effective for connecting one thing to another via the rope you have. It was used in setting up tents, mooring boats to docks temporarily and lifting your food up into

What Ever Happened To Google Glass?

What Ever Happened To Google Glass?

What Ever Happened to Google Glass? It was supposed to be the next big thing in tech so where did it go? Last year you could not go anywhere without hearing about some insane new use for the product and now it seems to have vanished in a plume of smoke. A Lackluster Rollout Back

Posted on by

Big Data

To Have and Have Not: Big Data Initiatives In Developing Countries

To Have and Have Not: Big Data Initiatives In Developing Countries

Big Data Initiatives In Developing Countries The poor of the developing countries are becoming increasingly connected, to the point where they too are part of the Big Data revolution that’s happening across the globe. It didn’t come with laptops, though, as some supposed it would. Whereas it costs a fortune to connect broadband to a

Big Data In Your Garden: Initiatives For Better Understanding Nature

Big Data In Your Garden: Initiatives For Better Understanding Nature

Big Data in Your Garden Big Data and IoT initiatives are springing up all across the globe, making cities, protesters–and just about everything else–smarter. However, thus far there’s been little attention paid to the interactions between these bizarre technologies and living things other than humans. Biology, that is, human biology is one field where Big

Who Holds the Key to the City: Big Data and City Management

Who Holds the Key to the City: Big Data and City Management

Big Data and City Management Cities like New York, Madrid, and especially Rio de Janeiro are augmented with Big Data-powered initiatives that range from combating crime with predictive analytics (New York & Madrid) to providing real-time data for improved management. Although Big Data is no panacea and is mainly used in conjunction with a greater

Internet of Things

Where’s the Capital of the Internet of Things?

Where’s the Capital of the Internet of Things?

Where’s the Capital? We all know the capitals of fashion are London, New York and Paris, while the capital of film is Hollywood (or Bollywood!) – but what’s the new capital of the internet? Specifically, the internet of things? The answer – according to new research by Ozy – might surprise you. It’s not Tokyo, Seoul,

Smart Cities – How Big Data Is Changing The Power Grid

Smart Cities – How Big Data Is Changing The Power Grid

Smart Cities And Big Data As Anthony Townsend argues in his SMART CITIES, even though the communications industry has changed beyond recognition since its inception, the way we consume power has remained stubbornly anachronistic. The rules of physics are, of course, partially to blame, for making grid networks harder to decentralize, as opposed to communication

Aggregated News

Popular News Sources

Q&A: Intel’s Take on Chinese Startups, Innovation

Q&A: Intel’s Take on Chinese Startups, Innovation

Intel’s venture-capital arm on Tuesday said it would be investing $28 million in five Chinese startups that work on new technologies ranging from wearable devices to iris detection. It is Intel Capital’s first infusion from a $100 million China fund launched in April … Read the source article at WSJ Blogs About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized

Smart glasses: Prototypes ‘look to rival Google Glass’

Smart glasses: Prototypes ‘look to rival Google Glass’

With an increasing number of firms looking to enter the wearable technology market, smart glasses were in abundance at this year’s Ceatec electronics show in Japan. New designs featured fitness trackers and technology that could act as a speedometer … Read the source article at BBC – Homepage About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as

Microsoft to enter the STRUGGLE of the Human Wrist

Microsoft to enter the STRUGGLE of the Human Wrist

It’s not just a thumb war, it’s total digit war The battle for the future of the human wrist entered a new phase on Monday after it was claimed that tech goliath Microsoft is planning to release its own wearable computer in the coming weeks.…Read the source article at The Register About Latest Posts Follow