Satyam Fraud — Shakes Foundation of Cloud Computing ?

Outsourcing is under threat when one of the big five Indian out­sourcing com­pan­ies is a fraud. And if you think that only the CEO is involved (as he claims) then I have a bridge to sell you. UPDATE: The CFO has gone miss­ing as well as the CEO.

The CEO of Satyam says that the has been fraud­u­lently restat­ing fig­ures for at least seven years, and after admit­ting to the fraud the share price has fallen by 78% in a single day. The Financial Times says that the com­pany is in ser­i­ous trouble.

This also has rami­fic­a­tions for Cloud Computing. If one of the biggest out­sourcers can be fraud­u­lent, what about your so-​​called “Cloud Computing” pro­vider. What hap­pens to your data if they are shuttered due to fraud­u­lent beha­viour and you can’t get your data. Satyam was a huge out­sourcer, and was sup­posed to have been invest­ig­ated by top com­pan­ies who were using them.

Podango goes bust with FIVE days notice

Look at Podango - they were a “cloud com­put­ing pro­vider” for pod­casters. They announced on December 26^th that they would close by December 31^st. If you place your cor­por­ate account­ing sys­tem with a com­pany, no mat­ter how large or small, what is your dis­aster plan if that com­pany goes out of busi­ness on the day after Christmas.

Something to think about.

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