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Sidekick Loss Heightens Fears About Cloud Computing By Patricia Resende October 16, 2009 10:29AM     Questions about the safety and reliability of data stored in the cloud have been heightened after T-Mobile Sidekick users faced the permanent loss of their personal data. While much of the Sidekick data has been restored and cloud revenues are projected to reach $44.2 billion, groups like EPIC continue to question the safety of cloud computing.   Related Topics Cloud Computing T-Mobile Sidekick EPIC Latest News Plasma-TV Ban Could Be Costly Barnes & Noble Nook Is Delayed Flat PC Shipments Hurt Dell's Stock Ballmer Says Windows 7 Sales Good New Pogoplug 'Cloud' Gets Social There have always been questions about the reliability of data stored in the cloud , and now the cloud has become darker after the personal data of T-Mobile Sidekick users disappeared last weekend. Much of that data has since been restored. The concept behind cloud computing is to make computer resources scalable with applications and data on third-party servers accessible on the web. In the Sidekick case, Microsoft 's Danger subsidiary hosted the data. Other companies, including Google and IBM , have embraced cloud computing. Worldwide, cloud-computing revenues are expected to total $17.4 billion this year, according to a Sept. 29 report by IDC. By 2013 that number is expected to jump to $44.2 billion. "It's clear that cloud computing is of growing interest, not just to the technologists, but to the money people -- the CFOs, CEOs, procurement VPs, as well as senior IT execs -- who think about the capital and cost implications of IT," IDC analyst Frank Gens said. Questioning Safety But some observers say cloud computing isn't a safe way to store data. The Electronic Privacy Information Center, a Washington, D.C.-based public-interest group, has long questioned cloud computing. "There are many risks for cloud-computing customers that should be explored and new legislative and regulatory frameworks developed to assure the confidentiality and privacy of data," the group's web site says. In May EPIC filed a complaint with the Federal Trade Commission against Google and its cloud-computing services, saying Google had not properly explained the risks involved in storing users' personal information in the cloud. That complaint came after Google announced it had unintentionally disclosed user-generated data. Growing Concern As of September, nearly 70 percent of Americans were using webmail services, storing data online, or using applications whose functionality resides on the web, according to EPIC. Organizations such as the Pew Internet and American Life Project have reported that consumers are concerned about cloud-computing services. At least 90 percent of cloud application users are worried that data stored with one company could be shared or sold to other companies, according to a September report. Another survey of Internet users published in March found that 35 percent of those surveyed believed their privacy had been violated at some point over the previous year.   Advertisement  E-Commerce 1.   Barnes & Noble Nook Is Delayed 2.   AOL Offers Voluntary Resignations 3.   Senators Blast Web Sites for Fraud 4.   Virtual Wallets Enter Money Evolution 5.   Bing's Market Share Nears 10 Percent The 800-Pound Call Center Gorilla Broadsoft innovates, rolls out products. Average Rating: Barnes & Noble Nook Is Delayed Orders will arrive after Christmas. Average Rating: AOL Offers Voluntary Resignations Goal is to eliminate 2,500 positions. Average Rating:

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Network Security Spotlight

House Lawmakers Push Ban on Peer-to-Peer Software Stung by an embarrassing electronic leak revealing ethics investigations into dozens of lawmakers, Congress moved to prohibit federal employees from using the file-sharing software blamed for the disclosure.   GAO: Los Alamos Computer Security Has Weaknesses Security weaknesses uncovered in Los Alamos National Laboratory's computer network increase the risk of a classified-information breach, says the Government Accountability Office.   Computer Security Firm Fortinet Plans IPO This Week Fortinet plans to go public in an initial public offering, giving investors a chance to tap a network security provider with sales that are expected to grow. The IPO could be valued at $137.5 million or more.

Enterprise Hardware Spotlight

Flat Shipments Hurt Dell Despite Increased Earnings Dell's earnings are up and expectations are solid, but the company's stock still took a hit after analysts signaled the company isn't playing a key role in the PC market recovery.   New Pogoplug 'Personal Cloud' Does Social Networking Cloud Engines has released its newest version of the Pogoplug, a small "multimedia sharing device" that connects hard drives to the Internet and allows a user to access the files remotely.   Apple Tablet Rumored Delayed as Publisher Gears Up There have been so many rumors of an Apple tablet that it has taken on legendary status. But now the legend is being revised with reports of a delay and that a major publisher is getting ready.

Enterprise Technology Spotlight

Flat Shipments Hurt Dell Despite Increased Earnings Dell's earnings are up and expectations are solid, but the company's stock still took a hit after analysts signaled the company isn't playing a key role in the PC market recovery.   Smartphones: A Bigger Target for Security Threats Smartphones are increasingly prevalent and adept at handling more tasks, including trading stocks, paying bills, and buying stuff online. That makes them attractive to thieves and hackers.   FBI Says Hackers Targeting Law Firms, PR Companies Hackers are targeting law firms and public relations companies with a sophisticated e-mail scheme that breaks into their computer networks to steal sensitive data, often linked to large corporate clients.

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