Summary

* In the cloud where data is located is not as important as how it is managed
* As people become more dependant on the cloud legal and political issues will arise
* Cloud companies have new revenue streams based on how they manage the cloud and resolve these issues

Analysis

Globetrotting journalist John D. Sutter already takes advantage of the Cloud to manage his business. A professional photographer as well as a technology writer, he stores his work product across Flickr, Gmail, YouTube, Blogger, Word Press, Tumblr, Twitter, and Facebook. This gives him more reason than most to be concerned about the status of his data. To satisfy his professional and personal curiosity, he starts a quixotic quest to track down and visit the physical location of his data. This quest is impractical, extravagant, and doomed from the start.

It is not clear from the article if Mr. Sutter actual able to visit any of his data. He knows Facebook stores some his work in data centers in Virginia, and some in California. His Tumblr data is either in Austin, Texas, upstate New York, or in the E2C Cloud but Microsoft and Google will not share even that much information with him. Since the data stored with even a single company is typically spread across the continent and around the world (to prevent a single natural disaster from destroying it) to complete his quest would involve thousands of miles of largely pointless travel.  

Sutter is allowed to visit an IBM data center and leaves underwhelmed. For those who have never visited a data center it is a lot like taking a tour of a giant walk in closet built in the cave of  the winds. The air, light, and even the floor have an artificiality which can only be found in certain science fiction movies.  Wires coil in all direction like a confederation of snakes.  The only signs of life are small green blinking lights and a heavy, humid, cold flow of air.  Since he has no way of knowing by looking at outside of a device what it actually does everything in a data center has to be accepted on the basis of faith.

The writer leaves IBM a somewhat changed man. He decides that perhaps it doesn't matter where his data is, what is more important is how well it's managed. In this, the article starts to point in the direction the cloud computing (and by extension the entire technology business) must take in the future. This is what makes the article worth reading.  

Sutter concludes where data is located is not as important as who owns it, who has the right access it, who has the right to delete it, and who is responsible for the loss of data. So far, with the possible exception of Microsoft’s appropriately named Danger division’s loss of T-Mobile Sidekick data the issue has hardly come up, but this can not continue. Some day in the future, perhaps sooner rather than later, some vendor is going to delete or more likely lose data that millions of people value highly and now think of as their own. This is likely to create an immense controversy that can be only resolved by the government. Legislators and regulators will have to have to work out on a societal wide basis what the rights and responsibilities people have over data hosted in the cloud.

The article also begins to suggest future revenue streams for companies in the cloud. Right now Mr. Sutter does not pay for any of the services he uses so his rights are very limited.  Would he pay more to own the legal title to the photographs he posts in Flicker? Would he pay Facebook to backup his profile? Would he pay YouTube to permanently delete an embarrassing video? The answer is yes he would and someday he may have to pay for all these services and more.

J. Bruce Daley consults with leading institutions through GLG

J. Bruce Daley, Principal

What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

Principal, Great Divide Research

 
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.