How would Cloud Computing Change the World - Revisited

After I posted my earlier article , a lot of my friends who are in the financial industry are very concerned and they shared their point of views with me. A lot of these concerns are valid. These points have become especially alarming after the recent reveal of allegedly Apple's Worst Security Breach.


How can anyone have any faith in cloud computing after all these episodes of security breach?

Well, in my opinion, cloud computing is still pretty young. As I have mentioned before, there was once upon a time when the Internet was too risky to conduct any business for the Financial Services Industry. However, with the advancement of digital security and the standard for operational risk management such as BASEL II, we have seen the FSI being one of the most progressive sectors in terms of the use of technologies and Internet.

While we are debating the practicality, security and robustness of cloud computing for the FSI industry, there are already plenty of private cloud in Malaysia whose target customers are the FSI alone. CTOS, CCRIS, myEG and FPX are some prime example. Yes, yes, there have been histories where leakage of information took place, but this is not the fault of the technology, but rather the fault of the people managing it.

So the risk is more of operational risk, rather than inherent flaws with the technology itself, no? This is like saying since the bank know our spending pattern, we should not use services from the bank. Very valid concern, but each of us has to decide if the level of services provided by each bank is acceptable to us.

Again, it is not so much of a technology decision, but rather a decision each business has to evaluate for itself. The evaluation process should be not less stringent than how the FSI evaluate all its purchases.

True, there are holes and questions that even experts from within the industry cannot answer. But, is that not true with all other aspect in life? People still get drowned in swimming pool - something that has existed for ages.

Perhaps for now, cloud computing is a great platform for SME because of its accessibility at a lower cost. We now have another alternative; we don't have to invest so much on the infrastructure while we expand on our core businesses and innovations.

Is this a sweet deal? Yes for me, but perhaps no for the others.