I have a several friends, who have a great product ideas, based on complex scientific algorithms. Each time when I suggest using cloud computing for developing product we go through a round of questions. I will put them down here, so I can reference it.

If you want to make online product in 2010, your solution should be scalable. It should be able to handle 10 users as well as 10000, one million. One of the ways to achieve it for startup is to leverage cloud computing architecture. Other way is to raise a lot of money and put your servers in secure datacenter under nuclear station in Switzerland.

Cloud computing is insecure if you compare it with switch off computer with hard drive locked in the safe. Compared to other solutions it is comparably secure and security risks can be mitigated.

*Q: If we deploy it on somebody else infrastructure, we basically gave them away code with a lot of work behind.*

A: This statement is only partially correct. Yes, member of the staff will theoretically be able to access running virtual appliance from host server, yes, he theoretically can dump memory, then retrieve encryption keys and then debug your code into working algorithm. But, if you application so "interesting", I bet you already have very secure storage - switched off computer and secure safe in some vault (and you work in finance, MOD HQ, MI5 or MI6 etc.), because if you are not, you are making this up and everything else you are doing potentially less secure then submitting job in the cloud.

*Q: Well, in this sense my home server is more secure in then the cloud.*

A: When defending some data against malicious access, the only question matter "How much it costs?" see [this comic](http://xkcd.com/538/ "Security") for a simple example. It is race about how much you are ready to spend and how much your competitor will spend in order to get your data. Depending on security of your house, it may cost hundred of pounds/dollars to get your server (physically). Compare it to hacking into amazon cloud architecture or bribing their sysadmin (which one? in what zone?). I bet odds are not in favour of the home server. I am really against home server as home server doesn't have scalability and have a high latency, which will be crucial for your users.

*Q: Well, if my home server will be stolen, there will be a trace like physical intrusion and then insurance can pay the damage.*

A: Patent your algorithm or application. Provisional patent will cost around 250 pounds (100$ for US) and will protect you for a year. This have a big advantage as you can talk about your application loudly, which may attract investors.

Amazon Elastic cloud pros:

1. Strong firewall by default. Instance is not automatically visible to outside would. You have to configure firewall in order to be able to login to your own box.

2. Instance can be started only using X509 certificates or logging in using [MFA](http://aws.amazon.com/security/#5 "MFA"). MFA is a convenient standard way for online protection (my bank uses it).

3. Proper designed backend servers are invisible to outside world and can be located anywhere (eu or us), making attack difficult.

4. You can scale up and DOWN, which is very important for startup (leverage).

  1. Traffic between nodes can be encrypted using products like VPN Cubed.

I believe if you are paranoid about your application, you can encrypt some part of the virtual machine which contains protected application (cryptfs etc.), and then setup key server with rotating keys which will be used to decrypt "especially secret" part of the code during runtime. Of cause all configuration is secure as long as your key distribution server is secure (somewhere in Switzerland, under nuclear station, you know the drill), thus I think patenting is a better option. The bottom line is that you have product and your customers, or you don't.

Great application, sitting on switched off computer with hard drive doesn't make any money. Cloud computing is a very cheap way to create great scalable architecture and compared to alternatives - home server, co-location, your own laptop, is no less secure.


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