The Megaupload case highlights a key area more and more CIOs are getting involved in – risk management, says Steven Hedge, CEO of systems integrator ISI. Hedge says businesses could not access their data they lodged at the Megaupload site founded by Kim Dotcom.
“I had data regardless of where the source was, sitting on a third party storage infrastructure. I had a cloud provider storing my information. All of a sudden, I had no access,” he says on the fate of these businesses.
“Who assessed that risk when they were uploading the data? How are they going to get the data back after the FBI shut it down?
“Instead of being intoxicated by the idea of, ‘Wow, this is a neat way to buy storage, it is highly scalable, it is inexpensive, I am ready and I can deploy it quickly,’ there are some other questions to ask.”
Hedge says the Dotcom case has had a dual impact on emerging business technologies.
“Bad publicity is never going to be good for an emerging market like online storage and the cloud,” he says. “At the same time, bad publicity is also good because it focuses people’s minds on the real issue: ‘If there was a problem can I get to my data? What security do I have in my data if my supplier were to go bankrupt, if my supplier were to be involved in some legal [incident]? What will be the impact to other parts of the business?”
The CIO role, he concludes, “is a job for a true manager, it needs to be multifactor".
While many CIOs come from a technology background, more CIOs are coming from the business. “More and more of them are looking at supply contract service providers.”
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