However, right now, in 2008, I think it’s a very brave person who would entrust their business data to one of the thousands of micro-businesses offering ‘cloud computing’ services.

Why?

‘The cloud’ is actually just a server in someone’s building at another location. There are new, small businesses coming up every day offering us a cloud computing facility – may of whom will not even be trading in 12 months. Remember, over 50% of new businesses cease trading within the initial 12 months!

What happens to our data if they go broke and their servers are snatched back by their creditors? What about the security of your data – when the cloud provider no longer owns the servers?

Another common problem with the initial raft of cloud server services is scaling. New 2.0 businesses tend to grow too fast. They quickly get too many people storing too much data – which is being uploaded and downloaded too frequently and BOOM – it all grinds to a halt. So, there you are about to give a presentation to a major client, when you log on to download your snazzy presentation from ‘the cloud’ and nothing happens! Even Twitter, with all its millions of VC funding find itself ‘broken’ at some point most days!

I think cloud computing WILL be totally dominant by 2009, but I think it’s best to wait until the market is better established before storing anything mission-critical on ‘the cloud.’

What do you think?