Guest Blog by: Andrew L. Rossow, Esq.
One of the distinct takeaways from this year’s SXSW Conference was that “Blockchains Are Building the Web 3.0,”
a notion compounded by the advancing narratives towards
decentralization, privacy, and security among an increasingly
much of the focus revolves around DeFi, blockchains have a unique place
amongst emerging technologies as an infrastructure tool that translates
across industries. Decentralization is not always necessary or prudent,
but it can complement, and in many instances improve, existing areas
where inefficiencies are becoming apparent.
of those areas is cloud computing, where centralization, sustained
outages, high barriers (e.g., costs) to access, data security/privacy,
and edge device inefficiency are all revealing themselves as points of
friction in a market dominated by big tech.
in the projections of the Web 3.0 is the notion of a multi-cloud
computing landscape, replete with numerous boutique cloud providers and
fluid marketplaces of computational resources — supplemented by
blockchains are poised to play an important role in multi-cloud
computing, the next iteration of cloud computing appears to occupy the
convergence of multiple technologies.
Surveying the Principal Advantages & Benefits of Centralized Cloud Computing
cloud providers like Amazon AWS, Microsoft Azure, and Google Cloud have
had a profound impact on the current mold of the Internet. They have
empowered digital businesses to flourish by offloading in-house IT
costs, consequently enabling them to operate with the advantages born
from economies of scale on razor-thin budgets.
the redundancy of data storage in centralized servers makes accessing
data convenient anywhere at any time. Lost passwords can be recovered,
and businesses can work on other aspects of their operation while web
hosting, computation, and other IT services are handled by the cloud
cloud service providers hold vast cash reserves and generate billions in
revenue annually, which they pour into operational costs and
maintenance of their networks. These networks are even integrated with
leading business products like CRM software (e.g., Salesforce), IoT
devices, and other business processes like document management.
The current cloud computing market is enormous and is expected to reach $411 billion by 2020.
However, that doesn’t mean it comes with its deficiencies, as increasing centralization of size can lead to concavity, and subsequently, veiled risks beneath the surface.
risks concerning cloud computing primarily come in the form of higher
costs, reduced efficiency in connectivity, lack of privacy, and
susceptibility to large-scale outages of the black swan variety.
Finally, the current centralization of the cloud provider ecosystem
furnishes little optionality to the users (i.e., enterprises), who for
the most part, are stuck between a few similar services and virtually no
A Decentralized Alternative — Multi-Cloud Computing
promise of multi-cloud computing is not to outright replace the current
paradigm; simply, it is to complement and enhance it via several
methods. Namely, decentralization and optionality, both of which have
positive downstream consequences in areas ranging from connectivity in
remote regions of the world to resilience to large-scale networking
For example, businesses lose a reported $700 billion per year due to IT downtime, with the vast majority of that infrastructure for larger enterprises coming from cloud service providers.
Relevant examples include CloudFlare’s recent outage, a premier CDN provider, where Internet service across the globe went down due to a poor software update delivery.
“With a multi-cloud computing landscape, comprised of decentralized networks, the robustness of connectivity is vastly improved,” shared DeepCloud AI CEO, Max Rye. “Not
only are networks more resilient to outages, but connectivity can
extend to more remote regions, with resources providers (i.e.,
bandwidth, computation, storage, etc.) providing the necessary
components for developers or enterprises in areas with poor Internet
infrastructure to remain online.”
has proposed an intriguing concept for a better model of cloud
computing, using a blend of a blockchain and an AI-driven
infrastructure. For example, DeepCloud AI cites how the AI in their
platform can help adjust in real-time to demands for resources, whether
that be computational or bandwidth requirements.
only does this have an impact on reducing costs and improving
efficiency in marketplaces for resource providers, but it is especially
relevant at the edge of networks — like IoT devices and remote regions.
collateral bonus of distributing the cloud computing landscape is
reduced barriers to accessing digital services — such as DeFi — and
local processing of data, rather than on centralized servers — a huge
boon for privacy.
when it comes to resource allocation, economics proves that the
centralized “command-control” model simply does not work, as Adam Smith
highlights with his analogy of the “Invisible Hand,”
where self-interests among localized, independent individuals drive
prices in the market — with prices serving as information to market
to cloud computing, the centralized paradigm of providers like Amazon
and Microsoft manifests itself with both unique advantages and
platforms are enabling complex business models and orchestration of
larger globally integrated networks surpassing all prior predictions by
analysts,” Rye stated. “However,
as we progress towards a much more sophisticated Web 3.0, complete with
microservices, micropayments, and decentralized applications,
centralized infrastructure is not suitable for efficient resource
The solution is to distribute resources throughout global markets, where everything from bandwidth to Internet transit technology can be bought and sold in a fluid market that adjusts in real-time.
among cloud resources then becomes a natural insurance for users,
puncturing narratives of big tech dominance in the process.
question of whether multi-cloud computing can compete with tech giants
is a double-edged sword. The short-term trade-offs will be convenience
(i.e., central cloud computing) for better efficiency and resource
allocation. However, that does not necessarily mean the two are mutually
the sheer size, power, and popularity of current cloud services, amid
the backdrop of innovation with multi-cloud computing, the two appear
positioned to complement each other rather than duke it out for
supremacy in a high-level polarization of centralization vs.
L. Rossow is a millennial attorney, law professor, entrepreneur,
writer, and speaker on privacy, cybersecurity, A.I., AR/VR, blockchain,
and digital monies. He has written for many outlets, most notably Forbes
Connect with Andrew on LinkedIn