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:
- Be careful of vendors wanting to lock you into long term contracts – this is not the promise of cloud computing
- 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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