Thursday, July 10, 2008

Re: Why won't people use clouds: The grey part of the silver lining

Really?

We put our money in a bank. Our stock certificates are held by a third party. We send our legal documents to Iron Mountain.

The point is, none of these options were popular until the right safeguards were put in place, like the FDIC. Eventually reasonable security will be assured, competition and easy switching will become available, the initial technical kinks will be beat, and people will become comfortable with the choices.

Furthermore, if the economic efficiency of the cloud exceeds the economic efficiency of in-house computing at existing companies they will eventually switch. Almost all companies hit some point in their growth were they scratch for savings. Later it becomes a competitive advantage. Startups will start on the cloud when they can't afford any other way to get going, and again, later that will be a competitive advantage that will force others to adopt the model.

To use a familiar pop culture reference: This line of thinking reminds me of a "Star Trek: The Voyage Home" moment. Remember the scene in the hospital elevator with Doctor McCoy :)

I'm really interested in knowing what you think about this.


Thanks,

/Sal

Sal Magnone

+1 646 269 5648


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