Monday, June 27, 2011

New Cloud Problem: Botched Fed Raids

Bookmarketing site Instapaper had a surprise yesterday: the FBI mistakenly took a server that helped run the site during a raid to find a malware distributor. Apparently agents went into a data center of hosting service DigitalOne with a warrant to seize equipment a client used to distribute malware, but took servers that ran sites for dozens of other companies. Oops.

Instapaper had the misfortune of hosting its data in the wrong place at the wrong time. Bad luck, clearly, but something that could more easily happen in a world of outsourced hosting and cloud computing. Legal action to seize data from one company can easily spill over to innocent businesses, and, as in the case of Instapaper, they might only learn about the problem when reading a news report because the hosting or cloud provider doesn’t say anything.

The more typical problems you see in cloud computing are technical outages often associated with scaling problems or security issues. But the potential business issues will be just as much of a problem. Confused operations, bad communications, inaccurate billing — all can have a negative impact on customers, and all can offer reasons to people and companies not to use cloud services.

In the DigitalOne incident, a lot of businesses suddenly felt the impact because an FBI team didn’t understand some basics about technology, as the New York Times reported:

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Source: bnet.com
By: Erik Sherman

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