Are You Living In The Cloud?

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>I was recently invited as a speaker in the Google customer event in Paris. The discussion was all about cloud computing.<br><br>Speaker after speaker, both from Google and other enterprises, extolled the virtues of cloud computing. It was argued that the time for cloud computing has come. The Internet has matured to a point that connectivity in technology and business processes has become natural and easy to do. The digital generation has arrived in the workplace and are demanding the same friendly communication and coordination tools at work as what they have got used to in their private life. Small businesses in particular do not have the capabilities to nurture in-house IT departments - for them cloud computing represents the best hope of leveraging technology for efficiency and business innovation.<br><br>To make things more challenging, we are in the midst of a data explosion that shows no signs of slowing. Google's experts estimate that every two days we are generating as much data as what created in the world till 2003 since the start of recorded history. How else can companies continue their investments in the hardware and computing power to store and process all this data, without resorting to cloud computing for help?<br><br>Then there was a show of hands. Less than a third of the assembled group of more than 300 CIOs and technology leaders from across the world gave a positive answer. Why is this the case?<br><br>For one, there are serious concerns about security. Most firms are still very cautious about the security of their data and applications when they are moved on the cloud. Legal issues, especially in Europe and Asia complicate the storage and transfer of many data types across national boundaries. The response? Google and other cloud experts acknowledged this concern but highlighted the tremendous investments they are making into building sophisticated security processes into their cloud solutions. The point was argued that being open in the cloud architecture may actually lead to a more secure computing environment for firms.<br><br>Also, most firms are reluctant to move their core business applications onto the cloud. In many cases, such as for ERP systems, they are tied to the cloud transition plans of the software vendors. Google and other experts acknowledged that firms need not move their core applications onto the cloud now. This could progress in phases over the years as the software packages themselves became cloud friendly. However, the major source of productivity improvements in firms today comes from improving the way people communicate and collaborate. Cloud computing is difficult to beat on these dimensions and should not be ignored.<br><br>After a day of debates and discussions, I came away convinced that cloud computing is here to stay. However, I could also see that many CIOs are not yet convinced. It is time to change. It is time to start living in the cloud!<br><br>The author is the Roland Berger Chaired Professor of Business and Technology at INSEAD, France.&nbsp; He has authored&nbsp; several books on technology, policy and innovation. He can be reached at: soumitra dot dutta at insead dot edu<br><br>Comments on this note can be sent to: mail at soumitradutta dot com</p>