Benefits and Risks of Cloud Computing

Cloud computing is the use of leased computer resources owned by another organization and accessed via the internet.

Most of the benefits of cloud computing come from greater accessibility and shared maintenance costs. Cloud service generally speaking can be accessed from anywhere in the world as long as you have an internet connection.

Companies who use cloud services no longer need to employ or contract with trained individuals to maintain servers. Also the need to purchase and maintain server equipment is no-longer required.

Another benefit is increased flexibility. The infrastructure of cloud services allow more computing resources to be acquired and released based on demand.

Conversely, one of the risks that stem from cloud computing come from the service contracts with provider themselves where the cloud service provider limits their liability in the event of a data breach.

Also when cloud providers are used, companies no longer have complete control over the data that is stored by that service.

If a data breach were to occur to while using a cloud provider, it is also likely that there would be difficulty gaining the level of access needed to forensically determine how the breach occurred.

Cloud services are also more likely to be the targets of cyber attacks. Cloud services store data for many different organizations, thus making the successful data breaches against cloud services more profitable.

Organizations, businesses, and individuals should consider both the risks and benefits of using cloud services, and take the proper steps to mitigate risks.

We also recommend that as part of your risk management strategy that you purchase cyber liability coverage for your business.

Call us today at 877-506-5061, to obtain a quote on cyber liability coverage.

We have also now compiled a risk management checklist to assist business avoid costly data breach and security losses. The checklist may be found here ยป

Sources:

Cloud Computing: Is Your Organization Weighing Both Benefits and Risks? By Toby Merrill & Thomas King