Why you should still trust the Cloud

by Rafi Kronzon on September 4, 2014

tornado forming from wall cloud in central floridaThe recent celebrity nude pics are being used by the media to expose (yes, pun intended) the cloud as “fundamentally insecure.

These types of sweeping generalizations show a lack of understanding of what the cloud is, what it is not, and most importantly, good old statistical logic.

To illustrate the problem here, I’ll compare storing data in the cloud to flying.

Let’s say you want to travel from your home in Cleveland to Boston. You can drive your car, or you can take a commercial jet. You’re about to order plane tickets, and then hear that a terrorist blew up a plane in Indonesia. You read an article that calls flying “fundamentally unsafe”, and so you choose to get into your car and drive all the way to Cleveland, whistling happily in your safe, controlled vehicle.

As most of you know, this is a bad decision. While you may feel like you can control your car and are an above-average driver*, the driving environment is significantly more dangerous than the flying environment.

In your driving environment you have thousands of cars, unlicensed drivers, drunk drivers, sleepy drivers, poorly maintained cars, and bad road conditions, just to name a few of the dangers. The plane, on the other hand, has an open highway, maintains its engines, performs security checks, has backup systems, has professional pilots and navigators, performs drug testing, etc.

Storing documents in the cloud is similar to flying in a plane. The well-known cloud providers do a much better job of protecting your data than you can by storing it on your own PC and backing it up to a hard drive. Do they get hacked sometimes? Yes. Should you be smart about using all the proper security features? Of course. But that doesn’t mean you should stop using the cloud. You’re better off letting experts secure your information than trying to do it yourself.

Unless of course, you want to stay in Cleveland forever.

*Coincidentally, this is another statistical boo-boo. Because of the way we’re wired, most of us think of ourselves as “above-average” drivers. In a famous 1981 study,  93% of us consider ourselves above-average drivers. This is known as Illusory Superiority.



Pop Goes the Kozmo

by Rafi Kronzon on September 3, 2014

bubblepop1What really pushed me over the edge was the recent news about yet another food delivery service launching in San Francisco. My favorite quote from the article reads like a satire of venture capital funding; “…with competitors like Sprig taking on funding alongside competitors like Chefler and Munchery….” Munchery? Really?

These businesses all run food delivery services. They pick up someone’s food and deliver it to you. Some even prepare gourmet meals for you. By any measure, these are poor business models from an investment point of view. First of all, they don’t provide a service anyone really needs. Second, there’s a lot of competition from existing companies and very little differentiation between them. Third, margins are very low. Fourth, they’re not scalable. I could go on and on, but the point is that the investment IQ of the VC/Private Equity/Angel community is dropping to mind-boggling lows. And that can’t be good.

In my eyes, there is no question that this current investment bubble will burst. Nobody can predict when, nor what effect it will have in our economy. Some argue that the impending pop won’t be as bad as the one in 2000 because fewer silly companies have gone public. Who knows?

More than anything, I’m fascinated by the fact that we, as investors, as people, make the same mistakes over and over again. I’ll just sit back and try to enjoy the pop.



The End of The Password?

by Louise Pope July 23, 2014 Alerts

Ask anyone what their biggest fear about using their computer is, and the most common answer you are likely to get is being hacked.  With reports of viruses that target passwords impacting industry big shots like eBay and Amazon, it’s easy to see why people may be nervous.  Like many, much of my identity is now […]

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Yay or Nay: Wearable Tech in Business

by Rachel Racanelli May 14, 2014 Articles

I’ve done posts on wearable tech before, but never about its future integration within businesses.  While we are still on the forefront of wearable tech for personal use, it’s looking likely that businesses both big and small may be adopting it sooner than we think.  I’m curious as to what growing pains may come out […]

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Ask an IT Guy: Failover

by Rachel Racanelli May 13, 2014 Articles

While I’m not the most technically inclined person in the world, I’m no slouch.  However, because I have a group of technical geniuses around me, there’s no reason for me to ever ponder how our technology runs so smoothly in the office.  After a quick discussion with one of the guys, I realized it makes […]

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Internet Security: A Perspective

by Rafi Kronzon May 13, 2014 Alerts

Over the past few months, there has been a rash of Internet security alerts (e.g. Heartbleed, IE exploit, Dropbox vulnerability).  Most media outlets covered some of these stories. Even the government has jumped on the bandwagon. While these stories make excellent headlines, they seem to be lacking in both historical perspective and in threat accuracy. […]

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