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Conclusion: Cloud computing is not a new environment, merely the extension of a number of technologies that support IT outsourcing (bureaux, ASPs, SaaS, IaaS, PaaS). Cloud computing is technology-driven but will be and is likely to become “the next disruptive technology” in sourcing. Rightly or wrongly, many have been jumping on the cloud bandwagon because they’ve been driven to reduce costs. However, many potentially significant legal problems and their consequences have yet to be addressed. These legal issues extend beyond, and can be more complex than those that apply in traditional outsourcing agreements. Organisations considering outsourcing business applications to cloud computing must consider all relevant legal challenges at the same time as they explore the technologies.

Conclusion:Organisations are drowning in complexity and information overload. At the same time, saving costs is at the top of the agenda. The only realistic path forward lies in tackling complexity head-on by deploying analytical techniques that help identify spurious complexity and confirm intrinsic complexity. Subsequently spurious complexity can be removed by surgical intervention, one step at a time.

Recently Wired magazine featured an interview with the CEO of Facebook where Mark Zuckerberg claims that Facebook does not regard other online networking platforms as competition, but that Google is the real competitor.

Conclusion:The Web, and social networks, as virtual places of conversation, challenge the role and effectiveness of an organisation’s communication management.

Traditional management and censorship in the unfettered communications world of the Web may only be effective to a limited degree. In this new communications landscape, organisations will have to train staff, and modify their traditional attitudes, to deal with the varied and complex online channels.

Conclusion:Software as a service seems suspiciously familiar, bringing up old memories of time share mainframe computing systems in a different era, and more recent memories of application service provider based software offerings. Repackaging of old concepts in new terminology is a technique commonly used by software vendors. However, don’t dismiss software as a service due to a lack of technical innovation. The current attraction of SaaS is a result of changes in the economics of IT infrastructure.

Conclusion:Privacy and data protection laws in Australia and NZ hold organisations, rather than their subcontractors, responsible for the activities of their subcontractors. Before committing to outsourcing any corporate data to a cloud computing vendor any organisation must ensure that all relevant legal constraints are agreed and in place so as to avoid any subsequent litigation. Ensuring and monitoring this may not be easy.

Conclusion: Before any organisation outsources any of its operations to a cloud computing provider it must be fully cognizant of, and have addressed to its satisfaction, the many potential legal problems and their consequences. These extend beyond, and can be more complex, than those that apply in traditional outsourcing agreements. Organisation must ensure that all legal issues have been addressed before committing any core systems to a cloud environment.

Conclusion: Proprietary web services are raising concerns about strong lock-in. Those raising the alarm bells paint a simplistic picture based on the assumption that services such as Facebook are representative of the web service landscape. Upon closer examination it appears that the doomsday prophets have a vested interest in prolonging the use of localised IT infrastructure. In reality the concept of web services opens new possibilities to unbundle and mitigate lock-in, allowing internal IT to focus on the core business and to outsource the operation of non-core functionality.

Conclusion: There is still more hype in the media about cloud computing than uptake. Advocates promise dramatically improved ease of use, lowered costs driven by economies of scale, and much greater flexibility in sourcing and adapting to change. Nicholas Carr in his latest book2, predicts that cloud computing will put most IT departments out of business. "IT departments will have little left to do once the bulk of business computing shifts out of private data centres and into the cloud," Such arguments make it likely that organisations will increasingly place some or all of their IT supported services in “the cloud”. This makes these organisations dependent on the reliability of the vendor’s cloud offerings. If an organisation moves all or part of its IT services to a cloud environment it must first identify and understand the new risks it may be exposed to.

Conclusion: Building valuable software solutions increasingly means building solutions that run on the web, and that are not dependent on any particular operating system. Pervasive web connectivity leads to a new paradigm for building software architectures that is based around the availability of high quality web services and around the conscious use of Open Source software in selected areas to reduce vendor lock-in.

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