Category Archives: Security

Lock-in Fears Delay Cloud

Last night I had a lengthy discussion with an ex-Amazon staff who laughed when I said consumers hate lock-in and high exit barriers. He gave the example of Microsoft Office and asked “you really think people are going to use something else?” That seemed strangely upside-down and backwards as an analogy.

My point was exactly the opposite. A market of new products to be considered for future adoption will factor exit cost. Those who use Microsoft Office are the ones on traditional non-cloud environments. There is no real exit barrier to leaving Microsoft Office other than the cost of learning a new platform since the formats can be exported and imported, or even used as a current standard (e.g. Office 97 or RTF).

A new platform (e.g. Cloud Y applications), by comparison, may come with lock-in to a non-standardized format. That should and will give consumers pause before they convert to it. This was highlighted by the European Network and Information Security Agency (ENISA) as one of the top barriers to new technology adoption in their Cloud Computing Risk Assessment.

CTOEdge now carries this message as well. Their post neither mentions security as the primary barrier nor hides the fact that cloud technology can be hamstrung by (boiled down to?) management of virtualization.

If you get the sense that we’ve entered a period of pregnant pause as it relates to cloud computing in the enterprise, it might have something to do with virtualization standards.

Right now, there are two standards that many cloud computing advocates are tracking with keen interest. The first is the Open Virtual Format, which will make it a whole lot easier for application workloads to dynamically run on top of multiple virtual machines. The second is a set of virtualization management interfaces that is to be shepherded by the Distributed Management Task Force (DMTF)

IID Blasts Rabobank for DDoS Response

A company that sells products to help respond to a distributed denial of service (DOS) has some harsh words for Rabobank:

For the 27th largest worldwide bank (they are larger than Wells Fargo and Royal Bank of Canada by asset size), this was a costly sequence of events that could have been avoided. The lost revenue and increased non-web support costs to both Rabobank and iDEAL are sure to be significant when all the dust settles.

The ripple effect of Rabobank’s reaction spread to other iDEAL partners, further underscoring the interconnected nature of Internet business and the reaches of the Extended Enterprise. Waiting for a partner to fix problems that directly impact your business is simply not a good approach.

Internet Identity (IID), with hindsight on their side, says the solution should have been obvious.

…we know what it takes to properly respond to a situation like this…

Italy Rushes Forward in Clean Energy Race

The new Pew Clean Energy Program report (Who’s Winning the Clean Energy Race?) mentions several times that the U.S. has quickly dropped to third place. The U.S. has more venture capital-backed investments compared to other countries by a large margin. Could that be a factor? I was tempted to focus on the U.S. or China, yet I could not avoid noticing a different and very positive point:

Italy saw 124 percent growth in clean energy investments in 2010, the 3rd highest among G-20 members. With almost $14 billion invested, Italy rose up the ranks of G-20 members to take the 4th position. Sixty-two percent ($8.6 billion) of 2010 clean energy investments were directed toward small scale solar projects. Italy also attracted a healthy $4.5 billion in wind energy investments. With high conventional energy prices and abundant solar resources, Italy is the first country in which solar power has achieved price parity with other electric sources.

Hey, look at Italy. First price parity nation for clean energy.

Italy’s 71% growth rate over five years also helped them jump from 8th position last year to 4th position. They achieved the #2 investment intensity (0.79% per $GDP) behind Germany. What do the Italians have to do to be in position to move ahead of the U.S. in the overall standings next year? Is America even threatened by Italy in the same way as Germany? Instead of emphasizing and exploring the Italian rush, or the German move to second place overall, the report makes the point that the West is losing to the East.

…it is clear that the center of gravity for clean energy investment is shifting from the West (Europe and the United States) to the East (China, India and other Asian nations).

Why go with an East, West theme?

A look at the entire globe shows five-year growth rates for countries in the southern hemisphere are even higher than Italy’s. Pew mentions high growth for Latin America, but the question also could be whether the whole southern hemisphere — Argentina (115%), South Africa (94%), Indonesia (89%), and Brazil (81%) — will see the same success as Italy. High one-year growth numbers in Argentina (568%) and Australia (104%) are likewise not just isolated to Latin America. It is curious to me to see an East, West divide when there is powerful (pun not intended) industry data from other countries to the South.

Another interesting issue is that Spain and the UK dramatically scaled-back clean energy investments, yet Italy did not. It may not be useful to depict the very different individual states into a unified West. Likewise, China alone may not be a good representation of the East.

Perhaps this Pew study is meant really to highlight the policies of China (“continued ability to attract record levels of clean energy investments”) and compare to the U.S. (“disproportionate government supports for century-old fossil fuel sources”). All other data points/countries could be just thrown in for good measure but are not meant to interfere with what seems to be the Pew (named after Sun Oil Company founder Joseph Pew) message to America: when China is winning the clean energy race, America is losing.