Fear in the cloud – the loss of trust in online business

A few weeks ago I spoke to the Australian Seniors’ Computer Clubs Association about staying safe online.

(One of my previous blog posts, Security in the Age of Connected Kettles, covers many of the issues raised by the Internet of Things and cloud computing facing businesses as well as homes.)

The ASCCA members are a computer savvy bunch – anyone who disparages the technology nous of older people would be quickly put in their place by these folk – but it was notable just how concerned they are about online privacy. They are not happy.

Another troubling aspect were my answers to the questions. Invariably I had to fall back on the lines “only do what you’re comfortable with” and “it all comes down to a question of trust”.

The problem with the latter line is that it’s difficult to trust many online companies, particularly when their business models rely upon trading users’ data.

Resolving this trust issue is going to be difficult and it’s hard to see how some social media platforms and online businesses can survive should users flee or governments enact stringent privacy laws.

It may well be we’re seeing another transition effect happening in the online economy.

Can customers trust your business?

Paul Wallbank is the publisher of Networked Globe, his personal blog Decoding The New Economy charts how our society is changing in the connected century.