Click here to close now.

Welcome!

Search Authors: Carmen Gonzalez, Elizabeth White, David Sprott, Vormetric Blog, Trevor Parsons

Related Topics: Cloud Expo

Cloud Expo: Opinion

Can Cloud Computing Save Us from the Fed?

Our Leaders Don't Know Jack about IT; Apparently Not About Economics, Either

As I wrote recently, our political and entertainment leaders have, in essence, no clue about technology. They'll know what a Blackberry is and what iApple devices are, and one or two of them may have even successfully set up an email account on their laptop. But it's not their core competency; I've always imagined that the late Sen. Ted Stevens was among the more savvy members of Congress, and I continue to view Larry Ellison's appearance on Oprah as the strangest pairing since Richard Nixon and Elvis.

Oh, it's neat that the federal government has an official CIO, Vivek Kundra, and that he has been tasked with spending at least a little money on Cloud experimentation.

Another point of light was provided by a recent CTO Forum held in Washington that featured Sens. Mark Warner and Susan Collins, two of the more enlightened members of the august body. But even they felt compelled to focus on cybersecurity, cybersecurity, and cybersecurity--in other words, on what people can do to Cloud Computing rather than what Cloud Computing can do for people.

A Little Help!
But generally speaking, we need to help these folks see the light when it comes to IT.

And apparently, we also need to help them see the light when it comes to economics.

I am speaking here of "QE2," or quantitative easing, a recent effort by the Federal Reserve Bank to, in essence, print up $600 billion in new money, apparently just because it can. (Print that out in $100 bills, lay them end-to-end, and they would stretch to the moon and back, then take four laps around the Earth for good measure.)

The Fed already did this sort of thing last year (thus, the "2" in QE2). The idea is to drive interest rates down so that folks can just borrow all sorts of money to buy things (like houses and cars) again, and so companies can borrow all sorts of money to invest in all the stuff that folks will buy.

Crock is the Nicest Word I Can Find
This idea is, simply, a crock.

Americans are now "deleveraging," ie, trying to get rid of their credit card debt, as fast as they can. The last thing they want is more debt. And even if they wanted to buy a new house, banks won't lend to most of them. The banks do have millions of foreclosed properties on their hands, but clearly don't want to sell those houses until the cavalry (the Feds) comes riding in again and take all of those crappy, toxic home loans off their hands. No fault of theirs, in their opinion, that they've been supremely hurried, arrogant, and incompetent in amassing said foreclosures.

Meanwhile, businesses are sitting on an estimated $1 trillion in cash, not wishing to invest to produce something that they know they can't sell.

This is what will transpire: the increased, unwanted cash will just weaken the dollar further and give no one an incentive to invest in the American economy. Oh sure, there will always be currency speculators around the edges who will try to make a quick buck by buying up weak dollars when they things have bottomed out, but this is a fool's game.

History will probably prove the Fed right about its first round of QE. Credit markets were iced over, frozen solid. But no more. The second round is a big, big mistake. Nobody's going to invest seriously in the US economy until its leaders show some confidence. Raising rates would be the precise type of chutzpah that's needed. Traveling to India to beg for business would not be what's needed.

Should the Fed suddenly decide to do what appears to it as the contrary thing, ie, start to raise interest rates, it will signal a stronger and more confident America. This is what the world needs. It is pathetic now that the Obama administration is counting on a weak dollar to make American products and services cheaper, so that people in places like China, India, Brazil, and Indonesia will buy them.

Well, It Didn't Happen Overnight
But what does the US export? Not much, despite protestations that's it's still a leading producer of valued goods and services. Get away from planes and weapons, food, entertainment, and travel, and what do you have?

Software and iPads, to be sure, but how price-sensitive are they? How can software that's stolen be price-sensitive anyway? And trust me, from what I've seen in the developing world, people are forgoing food and clothes to get their hands on the latest Apple gadgets. I'm not commenting on whether this is a good thing or a bad thing, but price is not the main issue.

So, what is price sensitive? Boeing 747s? Missiles and satellites? List price isn't the key part of the deal with these things.

Will people from Europe or Asia put off that vacation to the US if it suddenly becomes a little more expensive? I don't think so. Will they stop watching the latest Hollywood chick flicks and action adventures because the price goes up 25 cents? (Note: you can buy a ticket to see an American for $2 to $3 in many developing countries.)

Will a stronger dollar hurt food exports, another big area for the US? Hmm, since price subsidies already make this a problematic issue, I'm going to say no.

Time to Wake Up!
In addition to believing in the fantasy that a weaker dollar will spur an increase in US exports and restore the US economy to its glory days, the Obama administration is also seemingly unaware of the tremendous ill will it is generating worldwide. It can blame China's tradition of currency manipulation all it wants; what people see, from the street-level view to the highest levels of government, are alarming increases in the value of their local currencies.

This trend that does, in fact, have the potential of killing off economic progress in developing nations. Leaders from South Africa, Brazil, and throughout Southeast Asia are very, very concerned about this. The potential damage is also of high concern to resource-rich nations such as Australia, Canada, South Africa (again), and Russia.

Cloud Computing productivity is, as I've written many times before and will write again, the key to restoring the global economy on a sound footing. But even its wonders will not be able to trump disastrous moves like the one the Fed, with the full support of the Obama administration, is making now.

The Fed, by adding even more cash into an economy that doesn't want it in this form, is doing the exact opposite of what it should be doing. Its leaders are acting like confused pilots who pull on the yoke when the plane stalls, instead of pushing it so that the plane picks up speed and regains power. Stop pulling on that lever, Ben!

More Stories By Roger Strukhoff

Roger Strukhoff (@IoT2040) is Executive Director of the Tau Institute for Global ICT Research, with offices in Illinois and Manila. He is Conference Chair of @CloudExpo & @ThingsExpo, and Editor of SYS-CON Media's CloudComputing BigData & IoT Journals. He holds a BA from Knox College & conducted MBA studies at CSU-East Bay.

@ThingsExpo Stories
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dr...
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...