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Cloud Computing: Junk Bond of Computing?

By: Stefan Topfer
Posted: 4/5/2013 5:10:00 AM
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Recently I joined a new group on LinkedIn (Cloud Computing) and one of the topics was cloud pricing and how low it will go. I think we can all agree that the pricing model for most cloud vendors is unrealistic for various reasons. But then one comment caught my eye, someone had said: 'The cloud is the junk bond of computing.' 

I had heard that some people believe cloud technology will turn the shares of many software vendors into junk bonds, but never this. 

What followed was, in my opinion, a barrage of hype and plain and simple uneducated, generalised accusations about what cloud computing is and will do to its clients. 

The sad thing is, I have heard all of these emotional and factually incorrect accusations before. In the '70s & '80s when the PCs came out and again in the late '80s & '90s, when the Internet started to impact our lives. These people never change and are often driven by the desire for a less changeable work environment. 

The fact is that the world is still here and the world of business, our health and our tech industries have all been immeasurably improved by these technologies and it has connected the human race like never before. 

Is it all good? Certainly not, but it certainly is not all bad either. On balance, I believe cloud computing will be the future for almost all aspects of computing and it will be of benefit to you, me, businesses and society at large. 

It is an unfortunate side-effect of the Internet that everyone can voice their opinion about everything, and package it as expertise in the eyes of the unsuspecting reader, even subject matters they do not understand. 

What can be even more surprising is when industry insiders spread hype, i.e. about their data centre security, SLAs, etc.. Again, let us be clear - nobody can guarantee zero downtime. 

We need to learn to recognise hype - positive or negative - when we see it and we need to call it. Only then can we have a much needed serious debate about cloud. 

Disclosure: The author Stefan Töpfer, is the CEO of WinWeb.com - a leading business cloud infrastructure provider. The views and opinions expressed are his and are based on over three decades of personal experience in the PC / Internet industry as a serial entrepreneur, editor of The Small Business Blog, mentor and angel investor.