8 Common Risks of Cloud Computing
Cloud computing is most certainly revolutionizing the way small-medium businesses (SMBs), and corporations generally, use IT. Cloud computing has actually allowed businesses to access high-end technology and knowledge at a reasonable cost. In most cases, SMBs are ready to access new technology and more resources without the premium price it might have cost within the past. This is obviously a benefit for the business’ operations and bottom line. Prior to cloud computing, companies had to allow buying hardware (servers and network just to say some) and software (operating systems, security suites, productivity programs).
With the arrival of cloud computing, they now can tap into shared resources without even wanting to sacrifice office space! Cloud computing is that the right choice for several SMBs that are okay with outsourcing and cozy with using another party’s facilities to store their data, software and devices. Providers are paid a subscription cost and offer a pool of services including updates, IT assistance and training, if needed. If so wished, companies are free of the necessity to possess their own IT department, IT server rooms, etc? Of course, cloud computing can’t be for everybody.
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Companies that have specific privacy concerns, however, still have the choice to subscribe for hybrid systems. They will maintain control over their data, for instance, while still using shared resources to chop costs. Cloud computing is additionally essential when a business has employees in satellite offices or that employment remotely while on the road or visiting a client through laptops or tablets. The cloud makes it much easier for them to access needed information and resources. So why isn’t cloud computing the selection for all companies? The solution is obvious: the inevitable risks of cloud computing. Switching to the present new way of defining IT requires an in-depth evaluation of the business’ needs and an analysis of what proportion risk are often tolerated.
- The impact on a business return on investment (ROI)
Migration to the cloud might sound just like the most cost effective option, but businesses should carefully compare the prices of owning software and equipment with the value of “leasing” IT technologies. Parameters like speed, security, usage, quality of service, scalability and support must be considered.
- Compatibility
Migration to the cloud might pose problems of compatibility with an existing IT infrastructure, or with a corporation security requirements and organizational policies. Pre-planning is once more crucial in considering of these aspects before committing to the change.
- Trust
Not all providers are equal. Services through cloud computing could also be interrupted by unforeseen events. Outages from a service provider, for instance, can happen. Since providers are unable to ensure no service disruptions will occur, data might not be available 24/7.In a disaster situation, communications could also be slow or pack up for a period of your time. Once more, a careful assessment of the cloud service provider is paramount. Businesses got to consider the risks related to trusting all their operations to an external party and what would happen just in case of default and interruption of service. What guarantees the cloud service provider offers if disaster strikes is what a business must consider.
- Confidentiality
Probably the most concern, confidentiality is usually mentioned because the reason for not embracing cloud computing. If a company’s operations require the handling of sensitive data, the protection of those data becomes a priority and a priority. A business won’t feel confident in sharing with an external party their vital information. Responsibility for a knowledge leak might be hard to assign when data are handled and transmitted between two parties.
- Compliance
There are risks involving non-compliance with existing policies and contractual obligations associated with the handled data or the business operations. The legal implication of using an external IT provider should be carefully reviewed.
- Security
Not just confidentiality, but the whole structure should be evaluated. Where’s your data getting to be stored? Who will have access to the information? What security measures and protection does the cloud provider offer? Is all information (even when non-sensitive) transmitted in unsecured plaintext or is it encrypted in the least times?
- Lack of control over performance
There is usually the danger that the system quality could also be inadequate or that a cloud service provider is unable to supply quality services in the least times. It should be clear what guarantees the provider offers in terms of systems performance and, especially, how prompt is its corrective action just in case of an interruption of service. Not having direct access to the infrastructure means a business must believe the prompt action of the provider when something goes wrong.
- Lack of control over quality
A business must trust the standard standards that a provider offers over time. How easy wouldn’t it be to modify providers just in case of a clear degradation of quality
Many of those risks are often mitigated by careful planning and a spotlight to details when drafting service contracts with cloud providers. For instance, risks associated with privacy and data confidentiality are often reduced by using hybrid cloud computing. Sharing just some resources but not relinquishing data control. Even Steve Wozniak, the co-founder of Apple, has expressed his not-so-flattering opinion, on the rising and widespread adoption of cloud computing. Wozniak forecasts many “horrible problems” which will derive from the utilization of cloud computing. He too points out the difficulty of lack of ownership of knowledge and resources. He sees the shortage of knowledge control as a real concern and believes the matter will only spiral towards the worst as more and more resources are shared.
Regardless of the risks and adverse opinions, however, it seems cloud computing will continue its growth. Only time will tell if the advantages of this IT revolution will outweigh permanently the risks involved.
