Looks like Amazon may have an answer to the biggest problem I see in cloud computing. The issue of security. Amazon is trying out something new called the Virtual Private Cloud (VPC) that in summary allows the Amazon Web Service to have a secure VPN bridge to the customer's enterprise architecture.
In short, that means the core enterprise data can still reside with the customer, but the application and presentation layers will be handled by the cloud. This makes sense to me because very often, it's the application and presentation layer that handles much of the load. The cloud will enable the customer to use the cloud and yet keep the core data under their control.
However, this may bring about a problem for the cloud computing vendors. How do you ensure you meet the performance KPI if you have a portion of the architecture that is not under your control? If there is a performance degrade, how would the vendor know if its a problem with the capacity of the cloud, or the customer's own data center that the cloud application is extracting information from?
A simple solution to this problem will be that there's no such performance KPI for this particular setup. But still... This Amazon service is currently a limited beta. Who knows. They might think of a way to measure such a KPI.
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