In-the-cloud storage got a setback last week when both HP’s and Yahoo’s online storage services were shut down for good. HP’s Upline has had a rocky past, with the young service having experienced numerous problems and delays, and reports of malfunction and inappropriate access. Of course, there is no shortage of other cloud vendors taking their place–and the ads are full of “Do you need an alternative to Upline” come-ons.

We’re still hearing rumors, and most recently, “confirmed rumors”, that Google’s Gdrive is ready to roll. Gdrive sounds revolutionary in design. It wil supposedly offer unlimited storage–allowing you to actually store the entire contents of your hard drive in the cloud. Local and online files are synchronized through a web interface so for example, you could start working on a project at the office, and then later on pick it up at an Internet cafe–or even on your smartphone. Gdrive will also be integrated with other Google applications and services. The security ramifications are immense though, and there’s as of yet no word as to how security would be provided. I’m not so sure I would want my entire hard drive replicated in the cloud. Also, it would seem doubtful that users who have to comply with various regulations regarding storage and backup would be able to take advantage of it, but we’ll wait to see on that one.

Before moving to an online backup environment, it would be important for a corporate user to review their data retention policy and any compliance requirements they face, and make a judgment as to whether in-the-cloud backup could adequately meet those policies and requirements.