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Google (GOOG), Microsoft (MSFT) Agree On Cloud Safety

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Google (GOOG), Microsoft (MSFT) Agree On Cloud Safety

Google GOOG Microsoft MSFT Agree On Cloud SafetyMicrosoft Corporation (NASDAQ:MSFT) [stockdata ticker=”MSFT”] and Google Inc (NASDAQ:GOOG) [stockdata ticker=”GOOG”]’s rivalry is well-known. The software giant is trying to eat into Google Inc (NASDAQ:GOOG)’s search business, while the latter is rapidly eating into Microsoft’s stronghold Office and Windows businesses with Google Apps and Chrome OS. They two are fierce rivals in the promising cloud business, however, the two Internet juggernauts agreed at the annual RSA conference that it’s time to put an end to cloud security fears and embrace the evolving technology.

Google Inc (NASDAQ:GOOG) [stockdata ticker=”GOOG”] Director of Security for Google Apps, Eran Feigenbaum, and Microsoft Corporation (NASDAQ:MSFT) [stockdata ticker=”MSFT”] Chief Information Security Officer Bret Arsenault discussed the issue at the RSA conference in San Francisco earlier this week. According to CNET, Verizon Communications Inc.’s data breach risk team chief Wade Baker and independent security analyst Bruce Schneier were also parts of the panel.

Bruce Schneier said that the only way to make cloud storage more reliable and secure is to build a strong bond of trust between the companies. Cloud means putting your data on someone else’s hard drive. Can you trust another company with your crucial, and sometimes confidential, data? Do you fear that cloud vendors may lie to you, screw your security, or make bad decisions, added Schneier.

Schneier’s statement raised some important questions. Will Microsoft Corporation (NASDAQ:MSFT) [stockdata ticker=”MSFT”] ever trust Google Inc (NASDAQ:GOOG) enough to host its data on the Mountain View-based company’s servers? And will Google Inc trust the Redmond-based company?

Microsoft Corporation’s Bret Arsenault politely said that the software giant’s decision to use the search engine company’s cloud services will depend on “business factors.” The Satya Nadella-led company does outsource many business components, but it encourages vendors to use its own software first. Google Inc’s Eran Feigenbaum seemed to be more forthcoming. He said that the company uses many of its competitors’ cloud systems today.

Feigenbaum emphasized Schneier’s view on trust. He said that businesses small and large can trust cloud technology only after getting contractual and technical explanations on privacy and security commitments. Schneier says that as the certification process gets more rigid, these commitments are likely to become more formalized. As more large corporations adopt cloud services and trust their security, smaller ones will follow suit.

Google Inc (NASDAQ:GOOG) [stockdata ticker=”GOOG”] shares ticked up 0.12% to $1,221.65 in pre-market trading Thursday.

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Vikas is a professional financial journalist and value investor with more than four years of investing experience. He contributes breaking news and Op-Ed columns about business, finance, investment, forex, hedge funds, equities, bonds, depository receipts, economics and politics on US Finance Post. Vikas spends most of his time reading investment books, writing about finance and looking for stocks that have significant growth potential.

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