Search This Blog
Powered by Blogger.

Blog Archive

Labels

Load More
Trendy Right Now

Popular Posts

Showing posts with label Cloud Computing Firm. Show all posts
Technology News
BaseCamp Cloud Computing Cloud Computing Firm Infrastructure Software development Technology Technology News

37signals Boosts Profits by Over $1 Million by Exiting Cloud Computing

 


This year, software company 37signals has made headlines with its decision to leave cloud computing, resulting in a significant profit boost of over $1 million (£790,000). This move highlights a growing trend among businesses reassessing the value of cloud services versus traditional in-house infrastructure. 37signals, known for its project management tool Basecamp and email service decided to transition away from cloud providers to manage its own servers. 

This shift has not only reduced their operating expenses but also provided greater control over their infrastructure. By avoiding the recurring costs associated with cloud services, 37signals has been able to retain more revenue, contributing directly to its increased profitability. The decision to leave the cloud stems from various factors. While cloud computing offers scalability and flexibility, it often comes with high costs that can accumulate over time, especially for companies with predictable workloads. 

By managing their own servers, companies like 37signals can optimize performance and cut costs associated with data transfer and storage. Furthermore, this move has implications for data security and privacy. Controlling their own infrastructure allows companies to implement stricter security measures tailored to their needs, reducing reliance on third-party vendors. This can be particularly important for firms handling sensitive information, as it minimizes potential vulnerabilities associated with shared cloud environments. 37signals’ successful transition away from cloud computing is part of a broader industry trend. Other companies are also evaluating the cost-benefit balance of cloud services. 

For some, the flexibility and ease of scaling offered by cloud solutions remain invaluable, while others, like 37signals, find that in-house infrastructure provides a more cost-effective and secure alternative. As more companies share their experiences and outcomes, it will be interesting to see how the landscape of cloud computing evolves. Businesses must carefully consider their unique needs, workloads, and security requirements when deciding whether to invest in cloud services or return to more traditional infrastructure solutions. 

The decision by 37signals to leave the cloud and the subsequent financial benefits they’ve reaped could encourage other companies to reevaluate their own strategies. By weighing the pros and cons, businesses can make informed decisions that align with their financial and operational goals.
Read more »
User Security
Cloud Computing Firm Cyber Attacks Data Leak Ransomware attack User Security

Rackspace has Spent $11 Million on Ransomware Cleanup So Far

 

Cloud computing behemoth Rackspace reported in an earnings presentation issued earlier this month that it has already spent $10.8 million responding to a Play ransomware group attack that started late last November against its hosted Exchange environment. 30,000 Rackspace customers were impacted by the attack, which was discovered on December 1, 2022, and were unable to access email and related data.  

The San Antonio, Texas-based company's multimillion-dollar expenditures are made up of "costs to investigate and remediate, legal and other professional services, and supplemental staff resources that were deployed to provide support to customers," it stated in a separate filing with U.S. federal regulators. "We anticipate continuing to pay for legal and other professional services in the future, and we will deduct those expenses as they are incurred."

"Costs could rise even further. We have been named in several lawsuits in connection with the December 2022 ransomware incident, which caused service disruptions on our Hosted Exchange email business," Rackspace further said. "The pending lawsuits seek equitable and compensatory relief, among other things. We are strongly defending these issues." 

Rackspace said it has cybersecurity insurance and expects insurance to cover "a significant portion" of the costs associated with the attack and cleanup. The corporation has refused to comment on whether it paid a ransom to Play.  

The company's expense thus far is a fraction of the almost $50 million spent by non-bank lender Latitude Financial to recover from an attack discovered in March. The Australian company anticipates that at least some of these costs will be paid by its insurance plans.  

Latitude estimated that the hackers had taken control of 328,000 client records when it first disclosed the hacking incident in mid-March. The inquiry discovered that the final total was significantly different, as is typical in breach investigations. By the end of March, the business had released an update in which it claimed that hackers had stolen data on roughly 14 million consumers.   

A database with data going back at least to 2005 contained an additional 6.1 million records, which included names, residences, phone numbers, and birth dates. The total comprised around 7.9 million driver's licence numbers from Australia and New Zealand.   

To its credit, Latitude refused to pay the ransom demanded by the attackers in exchange for the assurance that the hackers would delete stolen data. 
Read more »
Subscribe to: Posts (Atom)