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  • Can Amazon Hang In The Cloud Computing Arena?

    “This is a wake-up call for cloud computing,” said Matthew Eastwood, using the term for accessing services and information in big data centers remotely over the Internet from anywhere, as if the services were in a cloud. “It will force a conversation in the industry.”

    Upstart: Tech/E-Commerce

    As technical problems interrupted computer services provided by Amazon for a second day on Friday, industry analysts said the troubles would prompt many companies to reconsider relying on remote computers beyond their control.

    “This is a wake-up call for cloud computing,” said Matthew Eastwood, an analyst for the research firm IDC, using the term for accessing services and information in big data centers remotely over the Internet from anywhere, as if the services were in a cloud. “It will force a conversation in the industry.”

    That discussion, he said, will most likely center on what data and computer operations to send off to the cloud and what to keep inside the corporate walls.

    But another issue, Mr. Eastwood said, will be a re-examination of the contracts that cover cloud services — how much to pay for backup and recovery services, including paying extra for data centers in different locations. That is because the companies that were apparently hit hardest by the Amazon interruption were start-ups that, analysts said, are focused on moving fast in pursuit of growth, and less apt to pay for extensive backup and recovery services.

    Amazon set up a side business five years ago offering computing resources to businesses from its network of sophisticated data centers. Today, the company is the early leader in the fast-growing business of cloud computing.

    In business, the cloud model is rapidly gaining popularity as a way for companies to outsource computing chores to avoid the costs and headaches of running their own data centers — simply tap in, over the Web, to computer processing and storage without owning the machines or operating software.

    Read More:

    http://www.nytimes.com/2011/04/23/technology/23cloud.html?_r=1&adxnnl=1&ref=global-home&adxnnlx=1303560029-yT7pxLzXbzu2EEbAs3aaVA

    Upstart: Business and Management for 20-40 Year Old Professionals

    Filed Under: Tech/E-Commerce

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