right? these are truly information- power businesses. at the end of the day, my opinion -- lots of people may share this -- is all companies and that being information companies. all companies and of being software companies. i just did he know speech for a large german car company that you may know, that is clearly when you start realizing what they are trying to do, right -- it is really can we use all this cloud technology to takeoff structures down and across this down so now, i can change and 8% spent on a bunch of stuff that other people can go due to 80% i get to build applications, which power a very different experience. you think about what the car of the future might look like, it is a computer with four wheels, right? that is what it is. what they start to do with it, etc., is completely different. i'm talking about what we all 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]

>> this is one of the museum's longest art interest groups. it was founded by art lovers who wanted the museum to reflect new directions in contemporary art. it has been focused on artists in this region with an eye toward emerging artists. ♪ it is often at the early stage

of their career, often the first major presentation of their work in a museum. it is very competitive. only a few artists per year receive the award. it is to showcase their work to have a gallery and publication dedicated to their work. ♪ i have been working with them on the last two years on the award and the exhibitions. the book looks at the full scope of the awards they have sponsored. ♪ it has been important to understand the different shifts within the award program and how that is nearing what else is

going on in the bay area. -- how that is mirror beiing wht else is going on in the bay area. ♪ there are artists from different generations sometimes approaching the same theme or subject matter in different ways. they're artists looking at the history of landscape and later artists that are unsettling the history and looking at the history of conquests of nature. ♪ artists speak of what it means to have their work scene. often you are in the studio and do not have a sense of who is really seeing your work. seeing your own work at the institution have gone to for many years and has an international audience is getting the word out to a much

larger community. ♪ >> good evening. we are officially going to get started. if you want to take a seat -- good evening and welcome to tenderloin elementary school, district 6. my name is jane kim. i have the honor of serving as the representative for this district. thank you so much for being here today. this is our second year doing this and i've seen many familiar faces from last year as well. how wanted knowledge this was initiated last year by our mayor

ed lee, who wanted to make sure we were engaging in a much more transparent process around the budget where we were able to hear from stakeholders in terms of what you want to see it in terms of priorities of city dollars. as many of you know, the city budget is the most important policy document that we, on the board of supervisors, work and every year. over last couple of years, we have generated less revenue in our city, and therefore, have had the unfortunate task of making cuts that have hurt our communities and neighborhoods. this is often a time to hear directly from you in terms of what you would like to see. i do want to thank the mayor's office of neighborhood services organizing this. [applause] of course, to the lovely staff

of district 5 and district 6, who are also here today. [applause] this year, we changed the format a little bit in the sense that we have combined districts. i have the honor of co-host in this town hall meeting with our newest appointed supervisor to district 5, christine al-awlaki -- olague. >> thank you all for being here. i want to thank the mayor and mayor's office stop organizing this together us and the district offices. i am good to participate in my first budget process as a supervisor and am glad to see some of the concerned residents from districts 5 and 6. last year, i was on that side organizing, so it is different to be on the side of the spectrum. this is your are to be to let the mayor and the border

supervisors know what is important to you. it is a chance to tell us how you want us to spend the city's money. i want to encourage everyone to share your thoughts and concerns. please understand everyone may not get a chance to speak tonight but there will be other opportunities to voice your opinion. you can always feel free to keep me and my staff busy by calling or visiting our office, or any of the other 11 supervisors' offices to let them know your priorities for this year's budget. there has been a lot of effort into producing this event. thank you to my staff, the staff of supervisor kim, and the mayor's office. before they take over, i want to introduce mayor edwin lee, to give his remarks, and to let us know why we are all here. [applause] >> thank you, good evening.

thank you, everybody, for coming tonight. i want to express my appreciation to supervisor kim and supervisor olague. tonight is your night, your town hall meeting. there are some rules that we have laid out so that we can hear everybody. i want to thank carmen chu who is the head of our budget committee this year for the board of supervisors. [applause] she and other supervisors will be paying a lot of close attention to this year's budget with me, working closely because we are challenged this year, again, but maybe not as challenging as a year or two years ago, but still facing serious challenges. we have to have a two-year budget this year. so it is not just what will happen in 12-13. we have to balance 13-14 as

well. i want to engage you and listen to what your lives will be like, not just for this next year, but two, five years. i would be interested in doing that. i have a theme that i want to lay out tonight, something that supervisor olague, alluded to as a philosophy. we have not made any decisions on the budget yet about what we have to do to balance it. so i wanted to know that from the start. you have a fresh canvas to tell us what you think is important and what we need to pay attention to. that is what i call involvement in our budget. i want to involve you. i did my best last year where we tried to listen to everybody, every representative, to find out what you thought was important, and try best in the negotiations with supervisors about what we heard and what we

could do to protect the things that you represented. so i invite you and i want you to be involved in this. the second is i would like you to know that it is not just a dependence on government, whether it is the state or federal or local government, that should be the answer to everything. i would like you to signal to us what innovative ideas you have that we should and could consider. so, involvement and innovation are couple of things. finally, i would like to make sure that our budget, in collaboration with the board, and all of these wonderful, hardworking department heads, and elected officials, at the end of with a two-year budget that signals a spirit of

investing in our city. by that i mean, those of you in the room, did you know you are an investor in our city? you might be investing your own willingness to live here. you may be investing your family because you want to create a family. you might be invested in your home, or do could be investing in other people's business. the fact is, all of us work together to make sure that this city is worth investing in. without that investor confidence, we do not have confidence in our city, it is not worth investing anything in, whether our time, willingness to live in the city, take on the challenges of a big, urban city. i wanted to be involved, innovate with us, and make sure that we all end up feeling better about our investment in the city. this is what i would like to

accomplish in the budget. i hope that is an open door for you to signal to date -- tonight what you think is important and what you think we should do for you and for the other people you care about in this city. this budget should be reflective of the us caring about our city in every possible way. so i welcome you in doing this, the first of six budget hearing that we will hold throughout the city. you are welcome not only to be part of this one, but you can be a part of the other five as well. we want to give every district diversity to participate. thank you very much and i want to signal my appreciation for the departments with us today. [applause] >> thank you, mr. mayor. i just want to recognize, this had never happened before mayor lee, and i want to recognize how important it is for a leader in our city to do this.

so thank you. [applause] if you are wondering who these folks sitting with us are, these are city department heads who serve with us. we wanted to have the opportunity to hear from you in terms of your needs and priorities. we are going to do as little talking as possible. the want to respectfully hear from you as the put the budget together. i have the pleasure of introducing you to them today. we have trent from the human resources agency. ed sweeney. bob palacio, rec and parks. chief jewett hayes white, our fire department chief. greg sur of sfpd. lisa hoffman, department of emergency management. karen roy. maria suh, dcyf.

greg wagoner, public health. mohammed nuru, our new director of public works. and luis hererra. let's give a round of applause. [applause] in many ways, you get a sense of the brent our taxpayer dollars go to, just seeing each department represented. i will now hand things over to our town hall and see. the shed did such a wonderful job last year, we asked her to come back to do it again. thank you for being here. >> i just want to thank everyone for being here tonight. i am the director of programs with united players.

we are a youth-service organization in district 6. before i go on, i want to thank the office of civic engagement and immigrant affairs and let everyone know there are interpreter services available to my right, if anyone needs them. let's get started. our agenda for tonight, we are going to go over the agenda and ground rules. we will have a budget overview from the mayor's office, and then we will have some constituent presented speakers, people chosen ahead of time to give short comments about how the budget will affect their constituency. then we will have a community open mike. we have a short amount of time, so i want to remind everyone to be respectful. everyone has written comments or placed their name in a bowl, and we will draw from them and

alternate between districts 6 and district 5. has supervisor olague said, it will be hard to hear from everybody today, but the fact that you are here shows that you care, and we appreciate that. the comments that are in the bowl will also be compiled so that information gets to the people it needs to get to. after open mike, we will have a closing, and then the budget begins. , to remind everyone, this is the beginning of the budget process. for today, we want to make sure we get the most out of it, so we would appreciate if you could stay on a subject and be respectful of one another. let us remember that we all chose to come today. that shows that we care about our city and this place that we choose to live in and call home. let's move forward in that spirit.