conceptualize as a manufacturer. when you ask the question what will happen in the future? it is harnessing this technology to really deliver a service economy, and the companies that do this, the guys that figure this out are going to be big winners, and they are going to change the way we think of them, the way we relate to them, the way we buy from them, all of that. that is what the future holds. i see the floor. >> thank you. i think the best questions are yet to come, and we are going to turn it over to the audience. >> we would like to remind our listening and viewing audience that this is a program with the commonwealth club of california on the future of cloud computing. our thanks to our distinguished panel for their comments here today. now, we open the floor for a q&a session. we will be passing around a microphone, so if you have

questions, please raise your hand and speak into the microphone. >> i have a key question about the backup plan. you mentioned the super bowl earlier. what is the backup plan in the unlikely catastrophic event of the disabling of the system? solar storm or whatever. >> there are lots of things that can go wrong. the rights can hit the planet, and the things go dark, and then we fix it. in general, the technology you are talking about is something which is broadly called cloud bursting, where essentially, is used by google and other folks, there's not one computer called google.com. there's a basilian sitting behind a thing. there is a concept called load balancing, and it has been augmented of late with the ability to dynamically spinoff new instances of server applications in response to spikes in demand. the general concept called cloud

bursting allows you to do that across multiple cloud vendors, so you could do it across amazon and various other people say you could get geographic diversity and so on. people doing this extremely well, for example, would be netflix. many of you in this room i'm sure use the netflix. what they did is dynamically throw what is this is as more and more people click on movies that they want to watch. so then what they are doing is as the need scales, they then have the ability -- they pay them, and, of course, it drops off as soon as the need drops off as well. so they end up essentially paying for average demand. the technology is widely deployed around the world. >> as kind of a follow-up, individuals often use cloud services for backing up their computers. are we about to see people using their computers to back up their clout services to guarantee that

they hold on to their data? >> you are at the tip of a very interesting iceberg. go 100,000 miles in space and look down at the earth. we are still driving more wavelength down. there is no problem distributing content out to users. what we have a fundamental problem with is distribution of power. power is dominating in terms of distribution networks q one of the reasons why it does not make sense is because you are at the end of the tree, a long way from distribution, a lot of transmission loss. the data centers move to where power gets generated. what is the next hardest thing to move? big data. did it is still really hard to move, even though we have lots of wavelets. that says that the application moves to the data is. if you think about facebook and google and all those folks, they build data center's right were the power is generated. typically near hydro plants and

so on. what you find is that more and more applications will move to where the data is. moving those big chunks of data is very difficult. in terms of enterprises in the cloud, there is certainly no reason to suspect that the systems used by cloud vendors like amazon are not capable of geographic replication and redundancy. it is absolutely the case that someone like netflix, for example, could survive an outage of two simultaneous amazon did a centers through geographic redundancy and so on. this stuff exists, and the technology exists within the cloud providers to make sure that once your data gets there, it is not going away. it is just not a cloud provider solution. most enterprises will have things called disaster recovery, where they will keep all their critical data completely synchronized so that if one

coast gets hit by an earthquake or terrorist attack, you have the other coast where you can get your data. it is completely synchronized, always available, on demand. geographically diverse disaster recovery solutions have been in place for some time, and they actually do allow for secure data storage. >> i think that for the individual consumer and home user, this storage in the cloud and backing up your personal computer in the cloud has been burgeoning of late because people want to have the ability to store their files securely, but the reason why, to answer your question, is why do they continue to still backed up their clout back of solution onto a usb stick or on to their own pc is people still have to get comfortable with the idea of clout security, that the data

truly is secure and they're comfortable with letting go. people still not quite comfortable with that concept yet. as people become more and more confident and more and more comfortable with the concept of data being safe, we will still have people, and we will still have instances where people want their data next to them, where they feel comfortable, where they feel safe and confident that their data is secure. >> if i were purchasing services from a cloud vendor, i would mandate that all data at risk is encrypted using keys that i own, that i provide when it is processed for me, and there is no excuse for anybody not doing this. the technology exists. so it comes down to the probability that a bad guy could go and guess relocation. in amazon web services, you have more than 3.5 billion objects. they have to know which one to go for it here that have to break your access. then they have to break the

description on the of jets. the probability of stealing your data and getting away with an attack is vanishingly small. >> i think you address one of my concerns, which was the security of my data out on the cloud, but you raised a new question -- who owns my data? what if i do want it to go away? >> there are very challenging concerns. certainly, governed by state boundaries. for example, numerous canadians do not want their data in american dissenters. under a land the vessels, that can be subject to inspection and seizure. all the regulations relate to national boundaries there as well. a cloud providers actually end up having to meet numerous diverse regulatory requirements related to where data may resign and how it may be encrypted. there are different purchase centers for different christian center's and countries -- there are different encryption centers

for different regions and countries. i think amazon wishes they could make it go away the same way they imagine the sales tax would go away sunday. [laughter] >> but is it clear that i own my data? >> it is clear that you own your data, but it is not clear that somebody with the opprobrious search and seizure warrants cannot just make off with it, too. and, of course, you know, here is the scary one. the fbi says there is an attack coming out of those few racks over there, and they walked out with several companies entire computer set up just because some guy in one of those was doing a bad thing. that is scary. >> unfortunately, we have time for only one last question. weber has the microphone, please. then maybe it is a mistake, but

i have the microphone. i came to this lecture trying to find a definition of what cloud computing is. maybe i understand a little better, but i still do not have its in the simple terminology that i understand. my other question is from my point of view as a user of computing services, i have recently had the experience with a couple of banks going through a total change of their website, which caused me no end of aggravation to try to continue my accessing of my data, and i had the feeling, and i think you kind of touched on this, that for maybe financial reasons or because you technology people are so influential in the world you convinced these banks they had to do this, it just really made my life miserable for a

couple of weeks trying to figure out how to use their new system. i mean, it seems to me that -- you know, i had the impression that technology people are sort of making work for themselves by influencing institutions that they need to change what they have already in place. i still go by the old model -- if it is not broken, do not fix it. so i am opposing these questions to the senate panel. >> those are great observations. i am in my mid-40's by now, and there are programming languages used regularly that just did not exist five years ago. when you hear these guys talk, it is like gobbledygook to me. you get old with your music. you get old with your skills sets. it is just the way it is.

because we are a technology- driven society, and we have completely inverted the traditional way back societies were built when -- where when you were older, what you learned was survival skill, and you were right. that is the problem. the young guys are right, and the old guys take it in the net. cloud computing -- let me try a simple one for you. used to be in the old days that everybody had their own electricity generating plant. people would generate electricity locally for their own production means for their own factory. that got turned into a utility. the economics and study of that is very interesting. there's a fabulous book called "the big switch" which basically tracks that history. think of what clout is doing to computing is being analogous. instead of having to own and run your own software and hardware and computer systems, these things simply become services

that you acquired by some horribly complicated plug. so it becomes viable economically -- the economics are compelling. you can consume by plugging in. you have to plug, yes, it is still the case that you know too much, but it is really that, that turning computation into a utility that can be consumed as opposed to requiring human to surround previous manifestations of the technology. >> i thank the panel for coming here today. we also thank our audience here for those listening and viewing. now, this meeting of the commonwealth club of california commemorating its 108th year of discussion is adjourned.

[applause] >> good morning. good afternoon. i think some of those of you who are standing could take a seat over in a chair if you would like to. welcome. my name is ann warner cribs. i'm a 1960 olympian, but i as swimming, not in ping-pong. i am the president and ceo of

the san francisco bay organizing committee. we are so honored to be part of this 40th anniversary celebration of ping-pong diplomacy, and we are honored to welcome the delegation from china. welcome. the promotion of peace and good sports is one of our missions. ping-pong diplomacy is what i love about the will of the games because it brings the world together through sport. ping-pong diplomacy is probably the best demonstration of the power of sport in diplomacy over the past 50 years, so i congratulate all of you. i should say it is important for all of us to remember the past. we had a wonderful party last night watching the fireworks, and i got a fortune cookie, and my fortune said this -- "good

fortune will come to those who treasure items from the past." that is what we are doing here today with the celebration of ping-pong diplomacy. i would like to introduce some of the guests who are in the audience who will not speak but be introduced. the president of united states table tennis association. the ceo of usa table tennis, a director from the state department. welcome. how what took table tennis club, and the united states olympic committee coach of the year. rose, where are you? what a wonderful party you put on last night. it was absolutely outstanding. thank you. [applause] bruce pickering, executive director of the asia society of northern california, who has helped us with the forum. the executive director of the chinese historical society. and then the libyans in the

audience. if i could ask you to stand -- then, the olympians in the audience. if i could ask you to stand. [applause] thank you. willie is the president of the united states olympic alumni association, and our future olympian, who was just out here. where are you? wait to everybody -- waived everybody. [applause] we have watched her grow up, and we are so proud of her. representative of the international table tennis federation and headed junior development. now, it is my great honor to introduce our mayor, mayor lee. we are so grateful for his support. when we found out the delegation was coming, asked for his help,

and what a big help he has been. we also found out that he plays a big pingpong himself, so we look forward to seeing that. mayor lee, the show is all yours. [applause] mayor lee: thank you, everyone. welcome to city hall, and welcome to our celebration of the 40th anniversary of ping- pong diplomacy. i also want to welcome supervisor eric mar. thank you for being here. i know he has a wealth of chinese residents and residents in the whole district that want to play ping-pong this year. i want to welcome everyone here. our counsel general in china, the head of the table tennis association in china. thank you very much for being here. the wonderful guest from our bay area sports organizing committee and the united states table tennis association. thank you for being here as well. 40 years ago, i was studying really hard in college.

i was actually studying about china and wondering where my parents came from and what they were doing in those years and what caused them to come to america and give birth to six kids and start us on our journeys in our own education. now, 40 years later, i find myself year as the leftist mayor of any great city in the whole united states, being the mayor of san francisco, and to be part of this really wonderful historic connection between our country and the people's republic of china and to be, of course, celebrating with our citizens here to be the first asian american mayor in the city. this all comes together the same year. we were talking about is so many times the past few weeks as we were getting excited about this visit, to really have the athletes that were here and perhaps some of the athletes and

representatives that were here 40 years ago. or looking at each other, wondering what history would be, what relations they would be. two of the most important countries of the world and finding out what we can do to open a relationship and a dialogue, and it took this for of being wrong. today, we were thinking it could be anything -- baseball, track and field, golf, for that matter. if you have heard about golf in china, you know that is going extremely fast. 40 years ago, it took a couple of players. eventually allowing the president of people between them to open up a dialogue in this relationship. that is historic. that is what caused me to not only steady china, to study my own roots, my family, but to make a commitment as i can do my

best here as one in in added states and being an american, what could i do to contribute to our country's understanding of foreign relations. fast forward 40 years, i did not expect that i would be the head of an international city, a city known for its relations not just as an american city but a city that offers relationships between the people's republic of china and the people of the united states and offering cultural exchanges as well as sports exchanges, and i am constantly reminded of that because we have a chief of protocol. charlotte schulz has been such a wonderful participant in our government here, and to make sure that we keep attention as an international city, so i find myself as part of history, being very lucky to be the mayor of the city at this time and also finding ourselves to be so fortunate that we remember 40

years of history, 40 years of building relationships between our two countries, and i continue to feel that i am is a student of this activity because there's so much in our futures in our country working with china to understand how we could help in that relationship, help people to people, culture to culture, and then realize that we are as a city, a gateway to so much of this activity, making sure that we can celebrate this but also helping to continue improving relationships, improving dialogue between your two countries. we understand that that is important. if through programs like china sf and what we do here in our great city to welcome businesses, both american as well as businesses out of china, to come here to this city and establish offices, create relationships, create communications and information so that we can, as a country,

sell the product that we create here -- whether it is technology, clean-cut, biotech, but also welcomed chinese businesses, help them establish their markets here as well as they continue to contribute dramatically to the economy of the world. we will continue to do that and to build our city the way we can do it as an international city. so i want to welcome all of you here to this historic occasion to one where we know san francisco can really be very proud of, and that is hosting the 40th celebration of international diplomacy up ping- pong diplomacy, and i want to give this proclamation.

i'm not going to shake your hand too hard, but i'm also going to take this privilege and honor on behalf of san francisco to provide you -- please come up to the table as well. you with this proclamation. it has a lot of the whereases that depicts our history year, but i would like to, as the mayor of san francisco, on behalf of the people of this great city and county, in celebration and recognition of the official 40th anniversary, commemorating ping-pong diplomacy, we do provide proclaim july 5, 2011, as ping- pong diplomacy day in san francisco. [applause]

>> please welcome representative -- the chinese table tennis president of the table tennis association and vice president of the chinese olympic committee. welcome. [applause]

>> [speaking chinese] >> friends from the media, good afternoon. this afternoon is a very special moment. i took the chinese olympic committee to make a very special trip here to join you today for the very special celebration of ping-pong diplomacy. >> [speaking chinese]

>> 40 years ago, the tenant -- table tennis players from both the u.s. and china, played during the u.s. -- the 31st world championship. it is because of that money assets between the players, we certainly opened the door. this door opens something remarkable for our future in terms of our relationship between u.s. and china. this afternoon, players come together to celebrate this remarkable moment. i feel very honored and very pleased and just feel a kind of family bond.

thank you. [applause] >> [speaking chinese]

>> let me say something about our delegation. this delegation is consisting of three generations. you might notice that we have the first generation to participate in ping-pong diplomacy 40 years ago. also, we have the leader generation, who are also our national players. she studied at the university of wisconsin, madison, right now, and also a player just finished his study in the u.s., now in china. a third-generation of the delegation is two young ladies representing the future of the friendship and the relationship, so this is a very good combination of our delegation, and it symbolizes the deep relationship and tradition of friendship between the two

countries, especially in a circle of table tennis. >> [speaking chinese] >>