How Security Rescues Cloud Computing From Intense Competition

by admin on April 1, 2011

I recently came across this blog that offers a new perspective to the intense competition that abounds in the cloud computing industry. Andreas M. Antonopoulos from NetworkWorld begins his blog called Security Will Rescue Cloud Computing with an argument that is quite different from how most people view security in the cloud:

“Whenever the topic of security is mentioned in the context of cloud computing, it is usually discussed as the “big barrier” to adoption. The perceived or actual lack of security in the cloud makes it impossible for businesses to make the leap into this new computing paradigm. I propose a different perspective: Security will rescue cloud computing.”

These days, most cloud providers offer virtually all sorts of products and add-ons just to outsell their competition. This can be quite confusing for their customers, especially those who are just starting to venture into the cloud. Most users would recognize a good deal when they see one; but what about those who are as yet unfamiliar with cloud computing and other managed hosting services.
Mr. Antonopoulos asks a valid question in his blog. And he does a great job of answering his own question.

‘So what is the role of security in all this? Security is like a liquor license to a restaurant — an opportunity to up-sell each customer with a high-profit margin product to balance out the dismal or loss-leading margins of the core product. Security is the single most profitable differentiator that a service provider can add to IaaS to have any hope of making money. Security is brand-sensitive, labor-intensive, infinitely customizable and difficult to scale. That makes security the perfect differentiator that can add value to a bland IaaS offering. Service providers can either roll their own or resell third-party services taking a cut or even charging “portal fees” for access to their customers. To extend the liquor license metaphor, the service providers can pick the “house wine and beer” approach or the full sommelier and wine cellar service.’

I especially like his parting shot:

‘It’s either that, or the competitive wastelands of mega-scale at pico-profits. “For an extra $1 you can get double the GB for your GHZ, should I super-size it, sir?”’

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