Cloud Computing: Two Dangers To Be Careful Of

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Cloud computing holds a lot of promise for businesses. No servers and powerful computers inside your offices. You can let 3rd party experts handle the storage needs, server load and some aspects of security.

But the Wall Street Journal reports that there are two dangers:

  1. Be careful of vendors wanting to lock you into long term contracts – this is not the promise of cloud computing
  2. The more you use any online application the harder it is to switch.

Writes the Wall Street Journal – Some characteristics of traditional business software contracts have been creeping into cloud service negotiations. Software service providers, analysts say, are bundling together applications, a practice common with traditional packaged software deals, and requiring businesses to agree to a multiyear commitment for using applications and other services.

Those practices can run counter to the cloud’s theoretical promise of flexibility, in which businesses could at will drop one service for another that offers better terms or technology.

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About Ramon Ray

Ramon Ray, Marketing & Technology Evangelist, Smallbiztechnology.com & Infusionsoft. Full bio at http://www.ramonray.com . Check him out on Google Plus, Twitter or Facebook

  • http://debaffle.net Richard Tucker

    I don’t think these dangers are cloud specific, as both arguments can be applied to on-premise software also. Really these are just commercial dangers of using any product or service. That said, they highlight the “lock in” strategies that are commonly used – thanks for highlighting them!

    • http://www.smarthustle.com Ramon Ray

      Hey Richard – thanks for contributing and fair enough re “dangers”

  • OwenMunsey

    I agree with Richard. Ramon identified these dangers and generally business owners tend to convince you to use their services for longer, is the goal of business, we all want stability in life and business. I saw several companies that encourage their clients to use other services and compare offers. This can be a marketing strategy because they are conviced they have the best service.I was approached this way by http://www.computersupport.com and I appreciated this bold way of doing business.