Cloud404 :: Cloud Computing, Risk Management, Security, Compliance

MIT Technology review recently posted a interview with crypto-hero Whitfield Diffie.

Although the entire interview is great, one stands out…

Technology Review: What are the security implications of the growing move toward cloud computing?

Whitfield Diffie: The effect of the growing dependence on cloud computing is similar to that of our dependence on public transportation, particularly air transportation, which forces us to trust organizations over which we have no control, limits what we can transport, and subjects us to rules and schedules that wouldn’t apply if we were flying our own planes. On the other hand, it is so much more economical that we don’t realistically have any alternative.

There’s another dimension to his analogy that we need to consider.  When airplanes fail (i.e. hijacked), human lives may be lost and panic ensues.   We haven’t yet, to my knowledge, have had a visible electronic attack that has such significant consequence (albiet the “Cyberterror” concern has been felt by Estonia).   We’ve seen a few headaches, but nothing life theatening.Clearly, given the amount of control computers have over our lives, it’s only a matter of time.  When that unfortunate time comes, what will occur?  New laws and regulations?  Direct government oversight? Will the industry police itself into innovating new technologies as a competitive advantage?

Let’s hope the latter.  One of the key differences is that it’s hard to sell airline security.  Would a consumer fly on Airline A rather then Airline B, knowing that the pilot of airline A could carry a gun, or had a more secure cockpit door?  Do these things even really make us more secure?

The other difference is that air travel is a commodity and there’s not that much growth left.  In fact, most businesses (the sweet spot customer of the airline industry) are cutting back travel.  The airline industry is focused on taking share from each other, and the primary factor is “who can supply at the lowest price.” It’s hard for the airline business to change,  since profits are scarce and growth is inhibited (new continents don’t seem to be popping up on the planet earth anymore).

In the IT/Internet/technology arena, there’s a few big differences:

• First, the computer security industry has proven that you can sell security to the end user — and you can certainly sell it to the business market.  If I were building a company on a cloud platform, I’d pay a premium for the provider who could offer better security features.
• Second,  with the cloud movement, the “right things” (storage, compute, network) are reverting to a commodity posture, which will lower the barriers for new, higher level,  services to be built at scale.  Lowing the barriers will ignite opportunity, and a rush to use cloud-based applications.  Putting it another way, a few entrepreneurs can build a company on a cloud provider without buying datacenters, servers, power, gigantic network connections, and even hiring IT staff to build the servers out.  In the cloud, all of this is done with a credit card and a few clicks of the mouse.  If security issues emerge, the profit-motive will drive the cloud provider to quickly retool an offering to respond to a threat, or, they’ll be passed by.

However, in the meantime (and with the constant media attention focused on “cloud failures”)  it will be a turbulent ride.

- Craig