Cloud Computing: Washington vs. Washington
And while cloud computing is all the rage in Washington, D.C., it seems Washington State doesn't much care for cloud computing. Instead of buying cloud computing services from homegrown cloud computing giant Amazon.com (AMZN) (or newly emergent cloud player, Microsoft), the state has opted to build a brand-new, $180 million data center, despite reservations from some state representatives.
Microsoft (MSFT) is moving the data center that houses its Azure cloud services to San Antonio, from Quincy, Wash.—mostly because of unfavorable tax policies. The data centers are no longer covered by sales tax rebates—a costly proposition for Microsoft, which plans to spend many millions on new hardware for the Azure-focused data center.
Washington is the second state that has decided to build its own data center. In June, Massachusetts decided that it was going to build a $100 million data center. The state is also home to Nick Carr, author of The Big Switch, arguably the most influential book on cloud computing and its revolutionary capabilities.
Large Organizations Are Hesitant Washington and Massachusetts are examples of a bigger trend: Most large organizations are still hesitant to go all in when it comes to cloud computing. That's partly because the cloud revolution still has a long way to go. But much of it is fear of the unknown. In a blog post on the Web site of the Los Angeles Police Protective League, a group representing L.A. police officers, its members raise doubts about the city's decision to use Google's (GOOG) cloud-based services.
"The League is very concerned about records being housed on computer networks outside of the city…given that government and corporate computer network breaches have become more prevalent over the past several years.…Before the city introduces an outside entity into the chain of custody, sufficient safeguards need to be in place to secure confidential information."
They are being reasonable in their protest, especially when it comes to sensitive information. Like many technologies before it, cloud computing will have to overcome doubts and challenges before becoming business as usual.