Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Heavyweights backing ZARU, a new rand-based stablecoin in South Africa

      Heavyweights backing ZARU, a new rand-based stablecoin

      3 February 2026
      China's Haier takes aim at Samsung, LG and Hisense in South Africa

      China’s Haier takes aim at Samsung, LG and Hisense in South Africa

      3 February 2026
      South African tech start-ups that sold big on the world stage

      South African tech start-ups that sold big on the world stage

      3 February 2026
      Standard Bank branches are going cashless - Kabelo Makeke

      Standard Bank branches are going cashless

      3 February 2026
      Xneelo breaks ground on second Samrand data centre

      Xneelo breaks ground on second Samrand data centre

      3 February 2026
    • World
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Andy Marken » The trouble with cloud computing

    The trouble with cloud computing

    By Andy Marken7 January 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    andy-marken-2-180Tell people there’s been an accident or a train wreck and they rush to the scene to survey the damage. They will watch for hours and say under their breath: “Thank goodness that’s not me.”

    The recent Sony hack has provoked a similar reaction. It’s one of the first major battles in a looming cyberwar.

    Yet it appears that Sony’s travails have done nothing to slow companies’ rush into putting everything in the cloud and online.

    If nothing else good comes from the Sony fiasco, it should reinforce the global recognition among businesses that there is no such thing as security and privacy on the Internet.

    I’m not concerned about the gory details of the Sony hack. But it is messy proof that anyone can be hacked and that business needs more than a little common sense and healthy caution when working in the virtual world.

    Cloud computing is almost irresistible, which is why cloud services are now estimated to hold more than a quarter of the world’s business data, including personal medical records and financial documents.

    According to the International Data Corp (IDC), public cloud spending will reach US$127bn by 2018, growing six times faster than the conventional IT sector over the period.

    Gigaom Research reports that 53% of large enterprises are either already leveraging public cloud resources for enterprise big data or are planning to.

    Only 13% of the Gigaom respondents said they would only use private data centres. Why waste the money?

    The numbers for cloud services and big data are staggering.

    Proponents of the cloud love talking about all of the super-fantastic, productivity-leading savings: $300bn/ year for the US healthcare industry; $250bn for the European public sector; 60% potential increase in retailers’ operating margins; $600bn in economic surplus for services enabled by personal-location data.

    There are savings under every rock, behind every tree.

    Half of the world’s 7,3bn people will be online looking for places to store their stuff — more than 8,6 zettabytes worth. That’s equal to streaming all the movies (about 500 000) and TV shows (3m) ever made over ultra-high-definition channels 250 000 times.

    By 2020, the volume will almost double.

    To meet the demand, IDC senior vice-president Frank Gens suggests the number of new cloud-based solutions will increase 10-fold.

    Almost all of those offering solutions will also be running hell-bent to be the best and cheapest one around so they can get more of your stuff and only lose a little on each transaction.

    Companies that can best afford to play the cheaper card are Amazon, Google, Apple, Microsoft, Facebook and Alibaba.

    They’re not only the biggest clouds around; they have the most personal and company data which they can recycle, reprocess, sell and resell.

    Of course, there are a couple of problems with this rosy picture. Chief among them is that certain people can’t resist tapping into all of that data.

    A BT Group study covering 11 countries found that more than three-quarters of IT decision makers are understandably “extremely anxious” about security when using cloud-based services.

    Yet 70% of enterprise executives are adopting cloud storage and it’s doubtful if even the Sony embarrassment will deter them.

    Harris Interactive found that 39% of US Internet users use the cloud, saying it “improved the lives of Americans who work”. The firm also said the cloud made it easier to share files, users didn’t have to worry about backing up data, and it made their lives more “fun”.

    Appealing to both users and criminals
    Appealing to both users and criminals

    It was so much fun that Juniper Research estimates that 3,6bn people will be using cloud services by 2018.

    But there’s one little problem.

    Penetrating corporate online systems and cloud storage can become the way companies are crippled or even put out of business.
    Knowing their business survival depended on privacy and secrecy, after the hack Sony dusted off its ageing fax machines.

    Guardians of Peace, which has taken credit for the Sony breach, has already cost the company an estimated $100m in lost film revenues.

    The problem is the Internet was never built for security; it was built for information exchange.

    Now companies have found it’s a cheap, easy way to reach their customers and move huge volumes of data around.

    However, the Centre for Strategic and International Studies reported global cybercrime will rack up $575bn this year. And the dollar value of the losses doesn’t even begin to touch the loss of corporate brand equity.

    The Sony hack wasn’t about setting a few movies free or building buzz around an otherwise really stupid film. Rather, it was about tearing at the very fabric of the company.

    Online privacy and security must be every employee’s job, because today’s organisations rely so heavily on their data systems and simply adding more guards and more security personnel won’t be enough.

    Try as the US government has to find a single entity at fault for the Sony breach, it’s difficult to prove when Internet protocol addresses around the globe were used.

    But the attackers have shown they can be cause immense damage without even firing a shot.

    For some unlucky company, it could even prove fatal. Of course, it won’t make for a particularly exciting movie.

    • Andy Marken is head of Marken Communications, a US consultancy


    Andy Marken Frank Gens Gigaom Gigaom Research IDC International Data Corp
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBlackout risk high, Eskom warns
    Next Article Business confidence takes a knock

    Related Posts

    Beyond the hype: trust is the first step to generative AI ROI

    Beyond the hype: trust is the first step to generative AI ROI

    19 January 2026
    Jobs and electric cars: IDC, PIC join forces for clean energy investments

    Jobs and electric cars: IDC, PIC join forces for clean energy investments

    4 November 2025
    Samsung Galaxy Z Fold7

    Apple and Samsung lead smartphone market revival

    14 October 2025
    Company News
    Breaking silos with SAS: Agile insurance in an uncertain world

    Breaking silos with SAS: agile insurance in an uncertain world

    2 February 2026
    Stellar year expected for Digicloud Africa and its reseller partners - Gregory MacLennan

    Stellar year expected for Digicloud Africa and its reseller partners

    2 February 2026
    How to subscribe to South Africa's best tech podcasts - TechCentral

    How to subscribe to South Africa’s best tech podcasts

    2 February 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Heavyweights backing ZARU, a new rand-based stablecoin in South Africa

    Heavyweights backing ZARU, a new rand-based stablecoin

    3 February 2026
    China's Haier takes aim at Samsung, LG and Hisense in South Africa

    China’s Haier takes aim at Samsung, LG and Hisense in South Africa

    3 February 2026
    South African tech start-ups that sold big on the world stage

    South African tech start-ups that sold big on the world stage

    3 February 2026
    Standard Bank branches are going cashless - Kabelo Makeke

    Standard Bank branches are going cashless

    3 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}