Posts Tagged ‘cloud hosting problems’

Eli Lilly Cloud Hosting Problems

Friday, August 6th, 2010

Last week reports surfaced indicating that Eli Lilly, a marquee customer of Amazon’s Web Services, had decided against expanding its use of the hosted services after the companies failed to agree on liability terms. Some analysts have concluded that Amazon is essentially unwilling to negotiate contract terms and may not be serious about targeting enterprise customers.

Amazon cloud hosting services (AWS) has declined to comment on the specifics of its contract with Eli Lilly, but said that the pharmaceutical company continues to be a customer of Amazon’s Web Services and that both companies are pleased with their current relationship. Eli Lilly also confirmed that it continues to employ a variety of Amazon Web Services.

In an interview, the head of Amazon’s Web Services said that the company does negotiate contract terms with enterprises and is interested in attracting customers of all sizes. He also said that large companies may need to adjust their expectations when starting to use the cloud.

“We absolutely negotiate enterprise agreements with enterprises who want something more tailored” than the stock customer agreement that Amazon offers on its Web Services sites, said Adam Selipsky, vice president of Amazon Web Services.

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Cloud Security Problems

Friday, July 9th, 2010

Cloud Security is one element that perhaps “clouds” the outlook for cloud computing more than any other.  “That’s one of the major issues holding back adoption of shared public clouds by enterprises and by the federal government,” said Jonathan Nguyen-Duy, director of security product management at Verizon Business, which provides cloud computing services.

Even private clouds requires extra security, says Christofer Hoff, director of cloud and virtualization solutions at Cisco Systems (CSCO).

“But in a public cloud, the challenges are a little more interesting,” he said, since customers have to rely on the security provided by the public cloud providers. “You’re talking about a multitenant environment with the potential to be co-located next to a competitor or attacker.”

He says while large companies are putting some nonregulated and less sensitive parts of their business into public clouds, many are not turning to the public cloud “for mission-critical or heavily regulated data.”

27% Annual Growth Forecast

  • The global public cloud market will be worth $55.5 billion in 2014, research firm IDC says.
  • It’s seen rising at a compound annual growth rate of 27% from 2009 till then.
  • But 40% to half of large companies “are first building their own private clouds,” said Gartner analyst John Pescatore, an analyst with research firm Gartner.
  • He says fewer than 10% are using full public cloud services.
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