Is your head in the clouds?
How about your data? Worse yet, is it in his?—>
Software as a Service (SaaS), sometimes referred to as “Cloud Computing”, was the topic of this morning’s Central Valley Software Partnership meeting. The Partnership, launched by the RJI (Regional Jobs Initiative) has been meeting monthly at the Central Valley Business Incubator to discuss software applications in industry in our area.
Ian Duffield, COO of Decipher, Inc. Survey Reporting and Data Collection lead a discussion revolving around the implications of SaaS as well as current applications in the Fresno area. From what I gathered, SaaS is here to stay and is a real success in local industry.

So what is this all about anyway? Many of us are using ”web based” email from Yahoo or Gmail and more and more of us are watching TV on hulu. These are SaaS.![]()
To Rent or to Buy
Beyond the “geeky” technical difference between having your own tech team or having someone else solve all of those problems, there lies two distinct (and competing) business models: To rent or to buy? To illustrate these models in terms of mass market personal use, let’s talk about Rhapsody’s subscription model and Itunes‘ purchasing model. Rhapsody is a service that allows you (for about $14 a month) to listen to all the music you want on a few devices. You can fill up, empty and refill your MP3 player as often as you like. Conversely, with Itunes, you buy one song then another etc.. Although Itunes is far more profitable than Rhapsody at the moment, this “Subscription” model is most likely the wave of the future.
This brings us back to “Skynet” the evil fictional monster in the machine that made the Terminator films such big hits. If we are to embrace “Cloud Computing” more fully, we are going to have to let go of the notion that holding information is safer than allowing others (often machines) to hold it for us.

15 comments
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May 10, 2009 at 3:08 pm
RKroytz
I never really thought about “Cloud Computing”, I guess if I had I would realize that it was not on my server, but somewhere in the great Internet cloud. So now that it is becoming more common I am faced with the reality of it all. Basically it comes down to “rent or buy”, as was mentioned in the article. For a long time now I have been a buy not rent, sort of person. However as computers get more and more complicated and viruses become more prevalent I find myself slowly moving toward the “rent” idea. I can definitely see the advantages of having someone else handle all of the nuances and hassles of the computer age, even if it cost a monthly fee.
What is interesting about this whole debate over “rent or buy” is the idea of watching a society change its buying philosophy based on convince. In some ways this change can give us examples of how a society may have gone from a hunter gather society to an agricultural society. For a long time people hunted and gathered what they needed (rent) and had a good life. As the society grew it was found that it was easier to feed large societies by farming so agriculture societies formed around Cultivating plots of land they lived on. The interesting thing is recent findings have shown that the hunter-gatherer societies were healthier and had more free time then the agricultural society. So maybe we have come full circle and again it is time to sell our property and just use what we need. Rather than have a room full of old technologies that you don’t use any more. So it would it is better to rent than own. Renting may be the new way to get the most for your money along with the best quality of life.
Finally I do want to say that it is a little creepy not knowing where all your files and information are located. There is a certain amount of uncertainty in the whole thing. Finally, it doesn’t help that a new Terminator movie is coming out in a few weeks, to help build the paranoia.
May 10, 2009 at 10:24 pm
SylviaV
“Cloud Computing”, definitely a new term to me. For someone like me that just types in any information I want to learn about into the browser, this term gives me a bit of understanding of how I get the information. It’s very interesting that the information is stored in a completely different server than where someone is actually recieving it from.
As for to rent or buy, I think subscribing to something instead of paying per song is a better deal. I also, see this service being more popular in the near future. Just like renting movies, first there was only a few stores that provided that service per movie. Now, one can go online and subcribe to various providers and pay a monthly fee, which in my opinion is way cheaper than ordering from a cable service or going to an actual store to rent a DVD.
May 12, 2009 at 9:58 pm
kiat
“Cloud Computing” seems like such a wonderful and creative idea. I can really see how it could become the latest fag. I am just concerned that if that is the case then maybe other currently free websites that we have access to might start charging usage fee as well. The internet is currently a free media library available to all.
A good point was made by bring up the fictional character “skynet” from the Trminator. i just fear that something like skynet can happen, although no as dramatic. We humans are our own worst enemies so storing information on the internet would allow hackers access it.
May 13, 2009 at 5:35 pm
CarlinW
“I am just concerned that…currently free websites…might start charging usage fee.”
This is a very good and startling point. It is difficult to imagine the amount of money I would have to spend to use an online search engine. It would be worse than paying the high gas prices. Hopefully it will not be the case and companies such as Google will continue to find revenue via advertisement-hosting that promote other websites/businesses. Currently a business pays Google to have there advertisement hosted on Google and only pays when their ad is clicked. So the method here seems to me that people are renting advertisement space, no one can “buy” ad space in terms of ownership, Google is the one who owns the “property” per say. This web page, http://www.enquiro.com/marketing-monitor/how-Google-makes-money.asp, provides a good explanation about the process. Hopefully as the wave of the future takes it course, Google and the like will not get too greedy in the sense that they start charging users as well.
May 13, 2009 at 12:20 am
SeanC
Servers like Google, Yahoo, and Hulu have made a huge impact on our world. It has made a huge impact on academics as well. When it is time to do research or do a paper, I go straight to Google and type in what I am looking for to help in research. I do not think I would mind if machines held our information because in today’s society, technology is what runs it. I think that it is so interesting to see how authors come up with these ideas for movies and how our world will be ran in the future.
May 13, 2009 at 11:30 pm
JamieA
Everyone is quick to watch and enjoy a movie such as The Terminator, yet when similar issues can be applied in reality I think people start to second guess their trust in technology. It can be agreed that technology has allowed us to be as strong of a country and individuals as we possibly can be. However, using machines to store the importance of everything can have disadvantages just as it has advantages. The power that is invested in the programs and applications that store all of the information cannot be taken likely and one must never forget that it is available in some sense to a certain person somewhere. The fact that we do such things as online banking and shopping leads to identity theft and trust is lost within the system that controls these types of applications. That is why it is important to respect the amount of technology that people tend to just bypass on a day to day basis. Think about how many times you come into contact with a computer device that stores information pertaining to you, for example the store you purchase items from to the computer you use at home or work to the restaurant or movie theater and everywhere in between.
May 13, 2009 at 11:35 pm
JamieA
I think the majority of people have an idea of buying is much more desired than renting. In certain circumstances this is true. It is a better investment to purchase a house than to rent a house. Yet, there are certain circumstances that favor renting over buying. For example, the issue regarding a Rhapsody account over an Itunes account in the above article. A one time payment can acquire a lot more music than an individual payment made on every song that is requested. Another example is renting a movie versus buying a movie. What if you did not like that particular movie, you are stuck with it now and paid more so you didn’t benefit from it. I think the outcomes need to be analyzed and each situation treated accordingly.
August 3, 2009 at 3:26 pm
Megan
Loved this post on Jim’s blog, so I’m glad to see it here as well. I look forward to perusing this blog more extensively, and hope you’ll both return the favor with my blog.
P.S. This is where I name drop Jim:
http://theotherjadedjournalist.blogspot.com/2008/11/what-is-blog.html
September 16, 2009 at 9:52 pm
Leslie C
I never realized so much of my stuff was SaaS. I belong to NetFlix because I don’t want to take the time to go and buy movies. They come right to my door, I watch them and then send them back for another one. No driving, and poluting the environment, and no more money than it takes to go to Blockbuster and walk up and down the isles until you find just the right movie. I hulu, yahoo, and even Itune it sometimes. Wow I spend way to much time on a computer now that I think about it. This items are great for the busy person and I know they make our lives easier but what happen to just getting out of the house once in awhile. Before long we will all be telecommuting, there will be no cars on the road at all, and you will never see anyone except those that actually live in your home.
One of the comments said that the Hunter & Gatherer was like the rent, but I disagree, I believe that is more of the buy. They took what they needed and didn’t return it so it’s more like buying to me. The agriculture was more like the rent because they use the land and then give back what they have grown. Either way it’s a great point.
When I think of Skynet it reminds me of my religious upbringing, that some day we will have scanners implanted into the tops of our hands with all of our personal data and you won’t have to carry a wallet or purse anymore because this implant will have you money, you life, and who knows maybe it will even know your death. Scary stuff. I think I’ll stick to carrying cash.
September 17, 2009 at 1:45 pm
MarcoL
Pretty amazing to learn that many things we do on a day to day basis is related to this type of networking (SaaS). I’m an iTunes fanatic myself: mostly music, but lately, my 10-year old son has enjoyed downloading videos and games on his iPod Touch. Technology has come a long way and will continue to develop into the already existing multi-million dollar industry. Just a brief idea of how advanced technology has come; i.e the iPhone, Blackberry, and whatever else is out there now with email, banking, marketing, and other advanced available applications, all via a cell phone. Just a few years back, (10-15), electronic places still sold them gigantic cell phones that people swung over their shoulder because they were so big and heavy.
In the planet of rent vs. buy, I prefer to buy, but I’m not unfamiliar to renting. Not an avid customer of Hollywood Video, I do occasionally rent a movie or two: and this will usually lead me to buying the movie (if I liked it), or to not recommending it to family and friends. No monthly fees as a member of the rental video franchise, this has ultimately saved me from buying movies that I know will never be pulled out of its case. When it comes to bigger items of “rent vs. buy”; a few factors like the amount of use, cost, reliability and convenience of the item is considered on the decision to buy it, or rent it.
Finally, on the topic of “skynet” or “cloud computing”, we are doing it now. It is a bit scary to think that a lot of personal information, critical, and top secret information is held in such fashion: however, we usually don’t think twice about it and do it anyway. Not only is this technology changing and improving, in some instances, the use of it is mandatory.
November 16, 2009 at 9:56 pm
Patirck M
After reading this article it is amazing to think just how dependent we are on “Cloud Computing”. Everyone that is watching TV clips from hulu or has a Gmail/Yahoo email account are using the SaaS programs which we enter our personal information in that can be tracked. Basically everything can be tracked from your personal computer if it is hooked up to the internet because it can be traced back to the IP address. Many sites have tracking cookies and spam that attack your computer and can even harm it. However, there are ways for surfing the web anonymously buy using false IP addresses or ghost programs.
In the past 20 years look how far we have advanced in computer technology, we can do things now that would not be possible 10 years ago with the new advancement. It seems almost every couple of months some company is coming out with a new electronic device that puts old models to shame. I think it is very likely sometime in the near future that we will develop artificial intelligence that will far surpass humans.
With all the science fiction movies i.e. The Matrix, Terminator, I-Robot, etc. will there be a time when the creation turns on the creator? Nevertheless, “skynet” may be a very real threat in the near future.
I thought this article was very interesting because of the title and the picture also caught my eye.
December 10, 2009 at 12:29 pm
Jose V
To rent or to buy? I personally prefer to rent because once I have seen the movie once I rarely see it again. So to have access to so many differently media libraries like Lime Wire that is free by the way is great. I just hope that they don’t start to charge like rhapsody and ITunes. Another favorite of mine is the Red Box where you can rent movies for a dollar a day, and Netflix. And the convenience to buy or rent with the click of the mouse is wonderful, but there is a more troubling side to the fast moving world of the internet.
I know that it is great having access to Yahoo, Google, and Hulu at our finger tips, but what about our right to privacy. We are begin hacked every day and infected with viruses that take down our computers and steal our identities. I know that the internet has many benefits, but it also has many disadvantages that affect us globally like child pornography, terrorist’s communication, money laundry, fraud, prostitution, and many other illicit activities. Going back to Skynet our information is not safer with them because to think of what happened in the Terminator movie sounds a bit far fetched and fictional, but is fast becoming a reality. To imagine how many people are using the Software as a Service (SaaS) and putting their personal information at risk is of a major concern.
May 19, 2010 at 4:05 pm
Josh Tibbet
I do personally use Itunes for music, google for look ups, yahoo for mail, and I use Hulu for TV. I have found “Cloud Computing” to be extremely accessible and convenient. I don’t have much of a problem with my information being stored in the safe keeping of machines, but at the same time, I have nothing that is of much value to anyone else. I could see that sort of thing being a real issue to those who have millions of dollars or priceless information, material goods, etc. In that case, maybe the problem is not so much who can
May 19, 2010 at 4:15 pm
Josh Tibbet
I do personally use Itunes for music, google for look ups, yahoo for mail, and I use Hulu for TV. I have found “Cloud Computing” to be extremely accessible and convenient. I don’t have much of a problem with my information being stored in the safe keeping of machines, but at the same time, I have nothing that is of much value to anyone else. I could see that sort of thing being a real issue to those who have millions of dollars or priceless information, material goods, etc. In that case, maybe the problem in the future should not be so much of who it is that is able to reach the information of a person, but the means by which they can gain authority to use it. As it is right now, a person can do just about anything under another’s name with a license, Soc. Sec. number, and an address. I’m suggesting that if personal security and protection of valuables is a concern, change these means of obtaining info. Everyone can keep these numbers, and Identifications, but perhaps the finger print route, or eye scan is the future. I agree that the world will probably eventually head towards subscriptions (like the Rhapsody example), but I do not think that Rhapsody is the type of subscription that people will move towards. Songs have the ability to be timeless, and that is what is so precious about being able to own a song, as opposed to leasing it and 1000s others for one month. If there is ever a month that a person couldn’t pay their subscription, that is one month that they can not have that song they want to hear. it isn’t the same with movies, because of the length. The time it takes to watch a movie makes people move their schedule around it, and that is why it is not quite as important to own. We don’t have the ability to say, “I’ll just watch this movie really quick before I come over to your birthday party.” Where as people do say, “Oh, hold on a second, I’ll be over in a few, my song is on!” So subscriptions will be stronger as time goes on, but it depends on the product or service a person is prescribing to. A tax subscription might be good since people only do taxes 1 time or quarterly through out the year.
July 25, 2010 at 11:07 pm
Tigon A.
In today’s world, cloud computing will be the social norm. Just think of Facebook and other websites that gather and hold our data and information (whether useful or useless is a matter of perspective). This data is out there for anyone and everyone to see. Also, we “online everything” from banking to pizza delivery. The world wide web is the wild wild west and unless we tattoo a barcode onto our guarded forehead encoded with our encrypted information and essentially scan it everytime we need to release that information, it’s almost impossible to not have some parts of our “electronic DNA” floating in that vast cloud. Your “virtual self” inside the information cloud will become more important in some ways than your “real self” to those businesses residing out there in the SaaS never-never land. Embrace it, know it, don’t fear it, and most of all, just get used to it…because like it or not, you’re already in it.