I expect to see some pretty bloody reprisals after the first multi-million dollar loss of data in the 'cloud'.
/johnny
“Why the push to centralize to cloud locations rather than remaining distributed?”
I’ll claim ignorance here, but I thought “the cloud” was the definition of distributed computing and data management.
Various futurists have been arguing that the value of data is rapidly approaching zero during this age of accelerating change and ubiquitous information access. Put another way, the half life of a good idea is getting shorter and shorter. Business models based on husbanding data as if it has value (the crown jewels) are going to fade away and be replaced by business models built on the concept of exploiting new and publicly available data more rapidly than your peers.
I fear that if these predictions are true, the U.S. government and its love of classified data will fail to compete with faster governments not married to protecting mountains of information or data. Many of our larger businesses could follow suit.
We live in interesting times.
Companies increasingly outsource their IT to foreigners so they don't really care. It's all about price. A virtual data center of 100 servers can be created in the cloud in 2 days, while the track record in many IT shops is 2 months to provision a single physical server. The price of cloud computing is amazingly dirt cheap. Eventually companies will move to inhouse or more local cloud infrastructure.
Here's an intro to Amazon web services: http://aws.amazon.com/resources/webinars/
The advantage is that it's cool and trendy - kinda like doing performance-sensitive processing with interpreted languages.