That said, it’s unfortunate that [software vendor pretending to be a cloud service provider] isn’t more distinguishable from someone who’s doing it right. [cloud service provider]‘s product is simply a hosted application that is housed in a single data center on a single rack of application servers.

WE know that’s not “true cloud” where you have distributed storage and power a la s3 or even a distributed application like the 10,000 e-commerce sites that can withstand a data center outage.

Problem is, the average business owner trusts the [software vendor who wants to be a cloud service provider] name and figures, “if THEY can’t do it right, who can?”

Even Microsoft had some serious issues with their Office Live Small Business service…made us ask, “Would Microsoft do something this stupid?”

Maybe that’s part of the business model. Undermine trust in the hosted app to make people still buy the desktop product.