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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read "Dr. Death" Jack Kevorkian dies 11:11am EDT Employment growth slows sharply in May 11:21am EDT Moody's sounds alarm over U.S. debt limit and deficits | 10:10am EDT China meets Libya rebels in latest blow to Gaddafi | 10:59am EDT Analysis: Bond market rally may signal dark times to come 02 Jun 2011 Discussed 76 150 economists back U.S. Republicans in debt fight 44 Romney charges that Obama has ”failed America” 40 Debt-limit hike fails in House in symbolic vote Watched Scientists revive ancient spider in stunning 3D detail Tue, May 24 2011 Massive Australian waterspout caught on film Mon, May 30 2011 Facing a cyber threat 1:03am EDT Hacker attacks threaten to dampen cloud computing's prospects Tweet Share this Email Print Related News U.S. weighs security after "serious" Google allegation Thu, Jun 2 2011 Microsoft shows off Windows 8 operating system Thu, Jun 2 2011 Google reveals Gmail hacking, says likely from China Thu, Jun 2 2011 Special report: If Monterrey falls, Mexico falls Wed, Jun 1 2011 UPDATE 6-Jobs to headline Apple launch, unveil iCloud Tue, May 31 2011 Analysis & Opinion Tech wrap: Groupon offers itself to the public Tech wrap: Steve Jobs is back, maybe Related Topics Technology » Media » Google Inc's logo is seen at an office in Seoul in this May 3, 2011 file photograph. Credit: Reuters/Truth Leem/Files By Clare Jim and Lee Chyen Yee TAIPEI | Fri Jun 3, 2011 5:42am EDT TAIPEI (Reuters) - The recent high-profile hacking of Google's Gmail service and Sony's Playstation gaming network is threatening to slow the take-off of the next big thing in the computing space - the cloud. Computer companies will need to collaborate to work on addressing security issues to boost confidence in cloud computing, where data and software is stored on servers and accessed via the Internet, especially in the corporate space where the potential market size is much larger than the retail space. "Many enterprises have reservations about the security of cloud computing because of the multi-tenant architecture and the fact that cloud providers are 'big targets'," said Steve Hodgkinson, IT research director at UK-based research firm Ovum. "The reality, however, is that the leading cloud providers have a very strong incentive to invest in the latest security technologies and processes -- and will arguably be more secure than most enterprises themselves." Security is a hot issue in the computing world. Hackers broke into Sony's networks and accessed the information of more than 1 million customers, the latest of several security breaches. The breaches were the latest attacks on high-profile firms, including defense contractor Lockheed Martin and Google, which pointed the blame at China. Concerns over security could slow the growth of the market for cloud computing, which is expected to reach $3.2 billion this year in Asia alone from $1.87 billion last year, while the global market could reach $55 billion in 2014, according to estimates by technology research firm IDC. FRAGMENTED MARKET Analysts and industry experts believe hardware-based security provides a higher level of protection than software with encryption added to data in the servers. Chipmakers are working to build more authentication into the silicon. "We have to do a combination of mitigating things like building more and more security in the infrastructure," said Boyd Davis, a vice president at chipmaker Intel Corp, speaking at the Computex computer show in Taipei this week. Intel has been working since the end of last year with software and computer vendors including Fujitsu, Huawei, Cisco, Dell, IBM and Hewlett Packard on a cross-industry initiative aimed at making cloud infrastructure more simplified, secure and efficient. But one of the problems cloud faces is that it is a fragmented market where many vendors provide different security solutions based on their own standards. Intel's rival ARM and Advanced Micro Devices are also in the process of embedding higher security in their chips and processors, but working with different partners. If there was an open standard to follow, it would help the industry to build a much secure cloud system, according to AMD. "Because if you don't have an open standard, you might do security in a certain way and I might do something that's not compatible, and the applications can't talk to each other," said Manju Hegde, AMD's corporate vice president. He noted that Apple, set to unveil next week a cloud-based service called iCloud, has its own security because it is a vertical company, but the rest the industry should have an open standard. Intel's Davis agreed that the lack of an open standard and interoperability are limits to the cloud, but added that the industry would have to strike a balance in an open standard with security or else it would make hackers' work easier. "Because the definition of secure is tightly held. That's one of the dilemmas we'll face. We'd like to provide more capability to control the workload running on our processors, but the more we do that the more we invite malicious codes in." (Editing by Jonathan Standing and Muralikumar Anantharaman) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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