Monthly Archives: March 2014

tech comics, funny tech terms

Choosing Cloud computing?

You’d better count the cost before and not after!

We are being approached by at least 3 companies a day that are pushing us to sell their clod facilities to our clients and they say  we will get rich out of doing this.

Unlike most companies we are interested in the long term relationship and not the quick kill. We don’t employ and have a high turnover of high commission salesman.

Say “cloud” to anyone at cmx business computing and we all get the same thoughts, “Double glazing, PPI, Endowment mortgages, extended warranties” all get rich quick schemes for the dodgy seller wheeler-dealer spiv salesman”

So by now you think cmx is anti-cloud – WRONG.
There are many reasons the cloud can be the right answer but you have to look at the question first. So many cloud consultants are like the cartoon. “The answer is yes, now what’s the question?”

Talk about cart and horse. Before you decide to use the cloud you need to know why you haven’t used it before and why you want to use it now.

Lets do the consultancy bit first and ask questions. That’s what a consultant does.

What is the cloud? Really!
Do you have good fantastic broadband No? – forget it
Are you replacing a server and frightened by the cost?
Are you trying to save money?
Do you want Data Backup
Do you want to share data
Do you have a cashflow restriction?
The downside

What is the cloud? Really!
The cloud is storage or programs that you access using the Internet. The trouble is the company supplying the Cloud service could be as big as Apple or Microsoft or as small as Phoenix – who are they you ask? 10 years ago my son had some friends, they borrowed a garage from one of their number, set up a server, setup a company and offered on-line storage. They were ahead of their time and the problem? They were sixteen and the dad wanted his garage back after six months so they closed it all down. They did it ethically but how do you know if your cloud storage company isn’t small and in a mates garage – You don’t, unless its a big company

Do you have good fantastic broadband No? – forget it
If the answer is no then don’t even think about it. Broadband comes in two flavours, what you get down to your site and what you send up. The up is always faster than the down unless you have a balanced service which to most people is unaffordable. The reason is quite simple what you send up is simple, like asking Google about ” who is the Queen” what you get back is millions of characters of information called search results, you press one click on an entry and you get a whole lot more. Up does not usually need to be fast.

When you use the cloud for email, data or anything the UP has to be at least a useful speed. Anything slow is useless and lets face it most of North Essex and Suffolk is slow on broadband, so forget the cloud.

To see how fast your broadband is go to

Are you replacing a server and frightened by the cost?
Several years ago Microsoft had a low cost server package for small business. This had everything and by the time it was installed the cost of the server was between £2k and £8K. Microsoft have removed this and replaced it with the full package which costs £8k to £15k. Big companies will pay this as it hasn’t changed for them but small companies cant afford it. So they are offered the cloud. We can supply a Server for small business with Exchange like email for £2k-£8k but not everyone can, so you can keep it in house.

Are you trying to save money?
If you go to the cloud you won’t, it will cost you three times as much. Microsoft make their money by pushing you on to the cloud. If you buy Microsoft Office on a PC you will pay around £200. Most people keep a computer for five years, we have some running and 11 year old version of office. If you go on the cloud, that will cost you £10 a month, over five years that’s £600. Five users = £3,000. See the plan? Save yourself and buy a replacement server and we can supply one with an email system that’s a fraction of the cost, by avoiding Exchange.

Do you want Data Backup
If you are a sensible one man band you will want data backed up somewhere else apart from your place of work. If your backup is within 100 metres of your system, you don’t really have a backup.

So the cloud, send it up overnight, job done, It will cost you a lot and it will be single generation, for more information on what this means ask us. If your broadband is slow the initial backup will be slow. The questions to ask your self is who owns the data and how safe is it? 12p/Gb/month at Rackspace. That’s £216 = VAT a year for the average 150Gb data storage of most companies or over £1,000 for five years.

It’s the ideal answer for  a small single premises business, but a  better answer is Macrium, its free, and a small GOOD QUALITY USB disk unit for £100, make a full backup once a month / week make a full backup and take it to your mothers, a friend, a relative anyone that you don’t mind seeing once a week. I had a client who gave it to their cleaner, she was 60 and it was secure.

Do you want to share data
This is the best reason for the cloud, collaborative sharing for small companies. Things like email, diaries, forms, photos data. Well I have news for you. If you are a big company then do it yourself. If you are small then use the cloud but use the free services that are available. Use ActiveSync with your Google mail, iPhone or iPad.

Do you have a cashflow restriction?
The biggest reason for using the cloud is spreading the cost. You wouldn’t go to a loan shark to borrow money so why not lease the equipment? It spreads the cost over five years and is a low fixed amount, usually around 6%. The best news is that you can claim this 100% against tax. So you get maximum tax efficiency, spread the cost and save money by buying your own server.

The downside of the cloud.
Apart from the cost which is a big consideration what about reliability and there is a big debate about who owns your data. If you use online CRM there is no export facility so you cannot move onto something like ACT! without re-entering the data.

What happens if there is a fire on a local exchange or in the datacentre. If they are a big concern then your data will be replicated elsewhere. But even the big guys have problems. This is a Telstra Exchange and data facility which was down for months and affected 65,000 subscribers. The cost was in the tens of millions in lost business and now the lawyers are involved it will be sorted out eventually but what happens in the meantime?

So if you live in a big city, have fast broadband, need to share your data and have plenty of money then the cloud is maybe a good idea. However if you have 2Mb broadband, 150Gb of data five exchange email accounts and use Sage and ACT! then forget it and I think that’s most of the SME’s in North Essex and Suffolk. We can advices who to go with and we can be independent because we don’t make a penny setting the cloud up for you like those wonderful knowledgeable pressure sellers I talked about earlier.

This is it, in just over a fortnight you will be a target, Its open season on XP users

Its true, you share the same operating system as the banks, NHS and over a third of computer users but what does it all mean.

As far as us IT people are concerned your computer and this car have a lot in common. First off all please understand you are using an old banger, its a 12 year old computer operating system, now look at your car, is it younger than that? Obvious really, wasn’t it?

OK so you have XP whats all the fuss?
Here is Microsoft’s take on this

Basically it means that every XP computer system is fair game for every hacker aged two years or over. They now have something to do that’s easy and no one is going to stop them. If you think it hasn’t been a problem why should you bother then I can remind you that XP has had 361 known vulnerabilities, of which about 40 have never been fixed.

Whats a vulnerability?
One persons vulnerability is another persons ease of use, there are 65,500 holes in Windows which are there to be useful. Also the code can be broken like a moneybox can be opened. The idea is that someone can get into your computer and exploit its weaknesses.

What can they do?
Run some code that will make your machine part of a botnet (Think of the “borg” from Star Trek. The can install some searching software and key logging software. If I tell you that we can access any computer that comes in and we don’t need a password, you should be worried, its easy. So when someone gets in they can mess about with whats stored in there or any keystrokes you make.

I would know wouldn’t 1?
Yes like you know when you are infected with a cold or after you have been robbed, yes you will know but its usually too late, these guys don’t want to be detected or their software found and they are very good at it. OK there are obvious things  like blackmail / ransomware but they get you to load that. You machine has slowed down since the day you bought it but have you really noticed and how would you really know anyway.

What are they after?
3 numbers, sixteen numbers and four numbers. That’s your security code on the back of your card, your card number and the expiry date. This will be stored on your computer somewhere if you have ever typed them in to buy something. Remember the VeriSign, that says your safe? Well it doesn’t apply to your computer only theirs. Bear in mind that in most countries chip and ppin doesn’t exist, even in the United States its signatures and card holder not present checking.

Most people don’t check their credit cards, surprising but true and would you notice £9 or £10 here or there occasionally? One of our clients didn’t we took them on and found the code in a couple of hours, they had been milked for £8,279 over the last three years in little amounts

I have anti virus installed
Well done, but how do you know its working? also we are not talking about viruses, just malicious code, your computer runs all sorts of programs with a problem, whats one small new one that tell the AV to ignore it? Did you know that in 2006 Norton had all their program code stolen by hackers, guess why they wanted it?

So your AV might miss it. How many of you run malware searches, thought not, I advise you start now.

I sit behind a firewall.
You mean the thing in your £39 BT router? well they are cheap for a reason. If you had a Jupiter firewall it would cost you over £9,000. Would you trust a cheap liferaft or the best you can get? By the way there are some wireless routers that send out their password when reset. Its an un-fixed fault.

Both cheap firewalls and free Anti Virus are like using a condom with a hole it it, sorry to be crude but you might find out when its too late.

OK but should I worry
Not on April the 8th but when the first system is cracked which could be a bank, or similar the word will spread and then they will start falling like dominoes. Its easy money.

Generally I wouldn’t bother, if the system is doing what it should then there is no valid reason to upgrade it, but if you don’t like the reliability and security of old bangers than yes. The problem is to leap from XP to Windows8 which I would recommend you will need some nifty transfer programs, which we have, to avoid all that setting up again.

If you have updated your car because you fancied it then you obviously can afford to lose some money. Whats a few thousand here or there? If you haven’t or had to then this is another thing thats vulnerable.

Did I tell you that this doesn’t just happen to other people, my daughter suffered Identity theft, affected the whole family but at least when my Debit card was cloned online because of a security breach at RBS NatWest picked it up and blocked it. New card arrived in 2 days. Did you know theres no protection on most debit cards? Now there is a thought.

My Tablet observations and why I wont be carrying on with one.

imageI wrote about tablets and my opinion in October last year but I have given up avoiding them and went with a tablet last December,

I decided that if I am going to comment then at least I should try one. After all they are not new technology, Kirk used one, so did Ford Prefect and Arthur Dent and who can forget 2001 a space odyssey? Besides I used to have a Psion which was useful.

I was given one by a supplier as a recognition of purchasing copious amounts of IT equipment. I tried to sell it before Christmas for the stupid price of £59. I took it to network meetings, lent it out and overall about 80 people knew it was a available – It didn’t sell so after Christmas I decided this was the time for me to abandon the netbook and try the flow.

The model was  £200 7″ model and this is why I am going back to my netbook and using my smartphone.


  • The keyboard was a bad experience. I have fingers the size of sausages and I kept missing the keys.
  • I cant run any meaningful Microsoft software on it
  • The battery life is half a day or one evening – just
  • Its awkward to hold in front of you, so you buy a case with a lid acting as an angled holder
  • I cant run any interactive networking tasks with any of our five servers in the three locations
  • It is great fro using on the internet but so is my phone 
  • Its impractical to keep with me all the time unlike my phone
  • I charge my phone last thing at night, I kept forgetting the tablet
So on balance they are great to watch films on if you in a village Post Office (Thanks Diane for pointing that out) or if you have to view information which could be visual such as a doctor, estate agent. Otherwise I will be sticking with my phone which is more tablet like and compact anyway. I have even started using it to read books as the real thing is never with me when I have time.

My phone is my mobile email, SatNav, MP3 player, video player, notebook, dictating machine, to do list, camera (great for visual things like licence numbers), phone and texting device. Why do I need to duplicate it?

There was a recent article questioning the actual productivity in business, it came to the conclusion that I have, its great as an entry level PC for the internet or to take somewhere for film watching but apart from that it’s productivity is questionable and cmx is all about business computing.

So the solution for me and I suspect others is a desktop computer, a phone and a netbook, all integrated and synced up. Anyone want a tablet?


I have given this talk about slow machines a number of times and I have been asked to write down what people need to know. It’s taken time to put this all together and there are still some areas I would not recommend the “timid” user to attempt but here we go!

It’s not as fast as it used to be when I bought it!

One of the biggest computer annoyances is when your machine gets slow over time.
This is in two parts, firstly the reasons it’s slow and then what can you do about it?

Part 1 Why is my computer system slow?

When you first get a new computer and boot it up it works lightning fast. That’s because it doesn’t have anything on it and its the fastest its ever going to be. Then it starts slowing down this can start to happen years after you get a PC, but sometimes it happens in just a few short months.

Some computers are never going to stay fast, its the way they are designed and usually reflect the price you paid. The cheaper the machine the slower all the internal bits.

Now just a small technical bit, every computer has an FSB speed, you wont see it in the headline specs as only techies are interested. It’s the common denominator, its the speed that everything works at, forget processor speed this is the important one. If you have a slow FSB then you have a machine that will quickly start to slow down.

Now the other reasons, You update the computer with your data, you install software and the operating system gets updates, best of all it will slow down with age. Typically a five year old computer will be running around 20% slower due to the ageing of the components.

So there isn’t one single reason that pinpoints why this happens. Regardless of whether you have a PC or Mac, over time as you download files, install software, and surf the Internet, your computer gets bloated with files that hog system resources.

We have to face the fact that as time goes on, our computers will get slow. It’s a natural progression. The Internet and software capabilities evolve by the minute. These new innovations require more power and space to keep up with the pace. Sometimes it might not even be your fault that your once zippy computer is now crawling but its just a sign of the times.

In addition, there are many other things that contribute to a slowdown, these are

As your hard disk fills up it takes longer to store and retrieve data. This is because of the design of the hard disk and its quality but its also because of the way data is stored. If you have a spinning hard drive, once they get older they simply start to slow down as they reach the end of life. Lower cost drives store and retrieve the information more slowly.

It’s important to note that all spinning hard drives will die eventually, it could be tomorrow but it could also happen 10 years from now. It’s just the nature of their design.

A hard disk doesn’t store data in a sequential order, it puts it where it can and then when you want it the computer looks at where all the bits are stored and reassembles it. The file that hold this is known as the FAT – File Allocation Table.

All programs are loaded in to an area to be worked on called the RAM, these come at varying speeds too but the more programs you have the more RAM you will use. If there isn’t enough the computer starts moving things around and uses the hard disk as extra space, this is really slow when this starts happening.

TSR, Leftover, prefetch, resmon
Some programs load, run and then finish, but these still hog some RAM, these are known as Terminate but Stay Resident programs. Prefetch is another area where Windows remembers what you have used, it holds this in an area called PREFETCH. If you want to see what’s going on just go to start and type in RESMON.

Malware Spyware Virii, Netbots
These are programs that someone else wants to run on your computer. This would be an article on it’s own but these are all the “nastiness” that slow down computers.

Anti-virus packages
Many programs come with an anti-virus package but people forget to remove the old one before the new one is installed. It’s like leaving your old car in your garage and then trying to drive your new car into the same place, not ideal.

Plug ins
Everyone wants you to install their toolbar or addin, don’t, and if you have then remove them. All these plug ins take up RAM and some of them divert your Internet searches so that other people can see what you are looking for and may copy your credit card details when you buy something online.

This is often the sort of free software that will sort out your registry and clean up everything, if its free its probably malware and how do you speed things up by adding more? It’s all unnecessary software. This will fill up your hard drive and RAM, causing you to run out of space at the price of speed.

Cookies are generally good but like everything you can have too many. A cookie is a small piece of data that a web site you are visiting downloads to your machine.

Data/os corruption
A corruption is simple, its when there is extra, missing or jumbled words. “the quoik briwn FFox umps ova the lzay dgo” You know what I said but it took longer to read! Software and hard drive corruption are two reasons why your computer may slow down over time.

Corruption can be caused by a host of things but it’s mostly bugs in the operating system, corrupted RAM data, static electricity (from carpet or other fabrics), power surges, failing hardware, and normal decomposition with age.

Windows update missing & old drivers
Adding in updates makes Windows bigger but not making them could add to security problems. If you add new devices or throw some away you could have old or unused drivers.

If you computer sits on the floor it is taking in cooling air with dust and fluff, this builds up and stops the air circulating properly. If your computer has an Intel processor then it will gradually slow down as it warms up. If it is an AMD then its just a fire hazard. AMD are used in low cost hardware.

Part 2 What can I do?
You can always wipe it and start again but assuming that’s not practical lets go through a step by step clean down. It will involve loading programs and going through lists.

First backup your computer. Don’t do anything unless you have, if you want to risk it, just stop and think that’s it has vanished into thin air and you have to start from scratch, now make a backup.

Step 1: Check for Malware – most anti-virus programs will try to protect you from getting a virus. But MalwareBytes is the most effective software for getting rid of them once you have them. For a belt and braces approach, I would recommend starting Windows in safe mode, then run MalwareBytes. To do this, switch on or restart your computer, then keep pressing F8 – this will then give you a list of options – choose Safe Mode with Networking. Then run MalwareBytes and restart your computer once its finished.

Step 2: Load and run Hijackthis. Once you have run this it will display a list in notepad. copy this using Ctrl-C and go to click on the empty area and press Ctrl-V, then click on analyze. Have a look down the list, any red crosses “nasty” then call us as Malware bytes has missed something.

Step 3: Run an online virus check such as Trust HouseCall or Eset. Go to Google and type Housecall in the search box, make sure its a Trendmicro web site and then follow the instructions. For ESET go to and follow the instructions.

Step 4: If you are running anything apart from ESET anti virus them remove it and ask us about a trial ESET licence. if you have Norton or McAfee installed, then get rid of them – they will slow your computer down. Other programs are large and bloated and some don’t work. Only have ONE anti-virus program installed. Having 2 or more anti-virus programs installed will dramatically slow your computer down because they are competing with each other.

Step 5: Go to Start, Control Panel and find programs. Have a good look down the list, some programs you will know and some you will not. Uninstall those you know you don’t need including all the toolbars, especially Ask!, Google toolbars etc.

if you have installed programs they not only take up storage space but also increase the size of the registry. The registry is like an index which is scanned by the computer for program options. The bigger the index, the longer it takes to scan.

Step 6: Reboot your machine.

Step 7: Update windows – ensure your windows is as up to date as possible. This is mostly for security flaws that Microsoft has identified but also bug fixes etc. Windows has a “windows update” option but in my experience, its sometimes not up to date. So check here first – there may also be optional updates, for example the latest versions of Internet Explorer or Windows Media Player. They are optional but I would recommend installing these anyway.

Step 8: Delete temporary files, fix the registry, stop start-up programs – this might be a bit techy though, if you don’t know what a program does then have a Google for it – start up programs run when your computer starts and can take up valuable memory. Really this is best done by a technician.

Step 9: Defragment your hard drive. Imagine a cassette tape which your favourite songs. Now imagine you delete a couple of songs and want to add a new song – there isn’t enough room for the song in either of the deleted spaces but it can be split across them. Eventually, after deleting and adding new songs, the songs are all over the tape. This is called fragmentation. The hard disk in your computer works in the same way. But we can use a program to move the files around to make them more efficient – this is defragmentation!

If your computer is still slow after all the above, then you might need to increase the memory. Unfortunately there are many different types of memory.

If you want us to do all this then it will take between one to two hours, but we might just make your machine work for another year or two.

How scientific thinking is all about making connections

When it comes to the field of science, making connections between those dots of knowledge seems to be just as important. In The Art of Scientific Investigation, Cambridge University professor W. I. B. Beveridge wrote that successful scientists “have often been people with wide interests,” which led to their originality:

Originality often consists in linking up ideas whose connection was not previously suspected.

He also suggested that scientists should expand their reading outside of their own field, in order to add to their knowledge (so they would have more dots when it came time to connect them, later):

Most scientists consider that it is a more serious handicap to investigate a problem in ignorance of what is already known about it.

Lastly, science writer Dorian Sagan agrees that science is about connections:

Nature no more obeys the territorial divisions of scientific academic disciplines than do continents appear from space to be colored to reflect the national divisions of their human inhabitants. For me, the great scientific satoris, epiphanies, eurekas, and aha! moments are characterized by their ability to connect.

Start making connections and getting creative

I’ll leave you with some suggestions for improving your own ability to make connections.

1. Add to your knowledge – the power of brand new experiences

After all, the more knowledge you have, the more connections you can make. Start by reading more, reading more widely, and exploring new opportunities for gathering knowledge (for instance, try some new experiences—travel, go to meetups or take up a new hobby).
As researcher Dr.Duezel explained when it comes to experiencing new things:

“Only completely new things cause strong activity in the midbrain area.”

So trying something new and forcing a gentle brain overload can make a dramatic improvement for your brain activity.

2. Keep track of everything – especially in the shower

As Austin Kleon suggests, take a notebook (or your phone) with you everywhere and take notes. Don’t expect your brain to remember everything—give it a hand by noting down important concepts or ideas you come across. As you do this, you may remember previous notes that relate (hey, you’re making connections already!)—make a note of those as well.

3. Review your notes daily – the Benjamin Franklin method

Going over your notes often can help you to more easily recall them when you need to. Read through what you’ve made notes of before, and you might find that in the time that’s passed, you’ve added more knowledge to your repertoire that you can now connect to your old notes!
In fact, this used to be one of Benjamin Franklin’s best kept secrets. Every morning and every evening he would review his day answering 1 simple question:

“What good have I done today?”

Here is his original daily routine.

Intelligence and connections: why your brain needs to communicate well with itself

Research from the California Institute of Technology showed that intelligence is something found all across the brain, rather than in one specific region:

The researchers found that, rather than residing in a single structure, general intelligence is determined by a network of regions across both sides of the brain.

One of the researchers explained that the study showed the brain working as a distributed system:

“Several brain regions, and the connections between them, were what was most important to general intelligence,” explains Gläscher.

The study also supported an existing theory about intelligence that says general intelligence is based on the brain’s ability to pull together and integrate various kinds of processing, such as working memory.

At Washington University, a research study found that connectivity with a particular area of the prefrontal cortex has a correlation with a person’s general intelligence.

This study showed that intelligence relied partly on high functioning brain areas, and partly on their ability to communicate with other areas in the brain.

Aside from physical connectivity in the brain, being able to make connections between ideas and knowledge we hold in our memories can help us to think more creatively and produce higher quality work.

Connections fuel creativity: nothing is original

stevejobsSteve Jobs is an obvious person to reference whenever you’re talking about creativity or innovation, so I wasn’t surprised to find that he has spoken about making connections before. This great quote is from a Wired interview in 1996:

Creativity is just connecting things. When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something.

Jobs went on to explain that experience (as we saw in the image at the top of this post) is the secret to being able to make connections so readily:

That’s because they were able to connect experiences they’ve had and synthesize new things. And the reason they were able to do that was that they’ve had more experiences or they have thought more about their experiences than other people.

Maria Popova is arguably one of the best examples (and proponents) of what she calls “combinatorial creativity.” That is, connecting things to create new ideas:
in order for us to truly create and contribute to the world, we have to be able to connect countless dots, to cross-pollinate ideas from a wealth of disciplines, to combine and recombine these pieces and build new castles.
She’s given a talk on this at a Creative Mornings event before, and made some great points. Being able to read about a wide range of topics is often one of of the most important elements. I really liked how she pointed out the way our egos affect our willingness to build on what others have done before:

… something we all understand on a deep intuitive level, but our creative egos sort of don’t really want to accept: And that is the idea that creativity is combinatorial, that nothing is entirely original, that everything builds on what came before…

My favorite part of this talk is Popova’s LEGO analogy, where she likens the dots of knowledge we have to LEGO building blocks:

The more of these building blocks we have, and the more diverse their shapes and colors, the more interesting our castles will become.

Author Austin Kleon is someone who immediately comes to mind whenever the topic of connections and remixing art comes up. Kleon is the author of Steal Like An Artist, a book about using the work of others to inspire and inform your own.
It starts off like this:
Every artist gets asked the question, “Where do you get your ideas?”
The honest artist answers, “I steal them.”

Kleon is inspiring because he’s so upfront about how the work of other people has become part of his own work. He’s also keen on the phrase I quoted from Maria Popova above, that “nothing is original”:

Every new idea is just a mashup or a remix of one or more previous ideas.

If you’re looking for advice on creating more connections between the knowledge you have (and collecting even more knowledge), Kleon’s book is a great place to start. He offers suggests like:

  • carry a notebook everywhere
  • read a lot
  • keep a scratch file

Which is better Knowledge or Experience?

Its a simple answer really, if you have knowledge it is of no use if you don’t have the experience to know what to apply, how and when.

Its a concept that I have understood but I have had great difficulty explaining it. When I talk publicly and use our full tagline “Because 30 years experience really counts” I get loads of nods of understanding but how do you explain the difference to make it really hit home. Well I have found an easy way, I would like to take the credit because its so blindingly obvious but I can’t.

There’s a key difference between knowledge and experience and it’s best described like this:

The original is from cartoonist Hugh MacLeod who came up with such a brilliant way to express a concept that’s often not that easy to grasp.

The image makes a clear point—that knowledge alone is not useful unless we can make connections between what we know. Whether you use the terms “knowledge” and “experience” to explain the difference or not, the concept itself is sound.

Oh dear the cloud chickens are coming home to roost, but what about all the small guys who are using it?

Or why I think there is a similarity between Cloud suppliers, PPI, Endowment and extended warranties. They are all Ponzi schemes designed  to make someone richer or better off but not you.

Enterprises want governance in the cloud in order to maintain control and assure stakeholders and regulators they can manage mission-critical systems that have grown increasingly complex and integrated.

This means having secure communications with trusted suppliers, and being able to sleep at night because you know your intellectual property is in a safe place.

In banking this means that monetary, reconciliations and reports for regulators are dependably processed by the cloud provider. In healthcare, governance means HIPAA compliance and the ability to secure and protect patient information.
But then there is the other end of the cloud spectrum; that presents cloud as a commodity service that can be subscribed to and de-subscribed at will, and that carries bargain-level pricing that make it difficult for business users to say “no” to the service.

The tradeoff in many cases is that you get the service inexpensively, but you shouldn’t necessarily depend upon it to meet your needs.

Examples of cloud services that are decidedly more casual in governance include those that crash or “go down” without much explanation. (Read: Microsoft’s Windows Azure Compute cloud suffers global crash, Google Drive Crashes for “Significant Subset”of Users, and Verizon Launches Broken, ‘Me Too’ Cloud Storage Platform) If these failures occurred on premise in enterprises, CIOs would face numerous questions from board members and stakeholders, and might even be in danger of losing their jobs.

Lax governance practices and a seemingly casual attitude toward public cloud providers have caused many enterprise CEOs to opt for their own private cloud solutions instead.

Nevertheless, there is also a strong enterprise argument for less expensive cloud solutions that are inexpensive because they don’t have to invest so much in governance. After all, don’t worldwide enterprises collectively have millions of business users who are already accustomed to routine crashes of their word processing software? To these users, the comfort level with the software and its relative inexpensiveness is enough to convince them to simply get a cup of coffee and wait while the system reboots.

This dichotomy on how business feels (or doesn’t feel) about governance presents an interesting question to cloud providers, which must now decide for the present and the foreseeable future what “kind” of providers that they want to be. Do they want to be the platinum-grade, full-strength enterprise solutions, with a price tag for services and diligence in governance that reflects the effort? Or, do they want to be more of the “discount store” variety of service that everybody can afford and get value from, at the sacrifice of enterprise-strength governance?

There’s room for both. And the sooner cloud providers decide which type of cloud provider they want to be, the sooner it gets easier for enterprises and SMBs to differentiate them from others and to understand the specifics of the value propositions they offer.

The reason for comparing Ponzi schemes to Cloud providers is simple. We are being offered allegedly 100% secure services which we can resell for a lot of money but the provider could be in a shed with a ADSL line. The client believe they are getting a cast iron guarantee of safety, we would make a fortune out of commission and the original supplier can supply a dream for peanuts. see the similarity?