Risks of Cloud Computing explained (Both Sides)

Cloud computing continues to transform the way organization are doing business, proving to be a transformative innovation for many enterprises. It allows employees to work virtually so they can access company files from anywhere they can acquire an Internet connection; it allows businesses to streamline their operations and develop more eco-friendly strategies, and, cloud-based systems have consistently proven to be more reliable and cost-efficient than in-house infrastructures.

By 2015, cloud computing is expected to become a $150 billion industry, and for good reason — whether users are on a desktop computer or mobile device, the cloud provides instant access to data anytime, anywhere there is an Internet connection. For businesses, cloud computing also offers myriad benefits, such as scalable storage for files, applications and other types of data; improved collaboration regardless of team members' locations; and saved time and money by eliminating the need to build a costly data center and hire an IT team to manage it. 

Most businesses, however, have one major concern when it comes to cloud computing: Exactly how safe is the cloud? Although most reputable cloud providers have top-of-the-line security to protect users' data, experts say there is no such thing as a completely safe cloud system.  

Considering how far the cloud has come in recent years spurs questions of what kind of risks facing businesses when using Cloud Computing, the following list can help:

From the prospective of the providers

Security and privacy — data integration and ownership concerns persist. These concerns need to be addressed for the protection of intellectual property, employee, customer, and partner information.

Governance — without oversight business leaders will be able to create shadow IT components or entire organizations. And within IT there are fewer barriers to creating unapproved environments.

Competition — enables start-ups to avoid most of the hazards of building a technology foundation accelerating the rise from start-up to stalwart.

Regulatory — ensuring compliance with the myriad of rules including SOX, HIPAA, PCI and others while taking advantage of the economic model.

Bandwidth — network bandwidth is the most important component of the model without which the model is an illiquid asset.

Staff — cloud expertise will be difficult to keep as more companies jump on the bandwagon and want to profit from the price paid by early adopters.

From the prospective of the customers

Multitenancy (Shared Access): The problem with shared access is that there is a risk that your company’s sensitive data could accidentally show up in someone else’s space.

Network Availability: When you work from the cloud, you are at the mercy of its availability. This means that if your provider’s systems go down, so does your access and productivity.

Ownership of Data: Before you upload any files to the cloud, double check your contract to make sure your property remains your property.

Data Integrity: If you think that your data security is questionable when you store it on-site, imagine the risk when your data is being stored at a location you don’t even know.

Virtualization: Practically every cloud service provider uses virtualization. As a result, users don’t only have to worry about the risks associated with physical machines but also with the unique risks associated with virtual server hosts and the guests that access them.

Authentication, authorization, and access control: Your cloud vendor's choice of authentication, authorization, and access control mechanisms is crucial, but a lot depends on process as well.

Cyberattacks : Any time you store data on the Internet, you are at risk for a cyberattack. This is particularly problematic on the cloud, where volumes of data are stored by all types of users on the same cloud system.

Insider threats: Just as cyberattacks are on the rise, so are security breaches from the inside. Once an employee gains or gives others access to your cloud, everything from customer data to confidential information and intellectual property are up for grabs. 

Government intrusion: With the recent NSA leaks and the ensuing reports on government surveillance programs, competitors aren't the only ones who may want to take a peek at your data.

Legal liability: Risks associated with the cloud are not limited to security breaches. They also include its aftermath, such as lawsuits filed by or against you. "The latest risks to using cloud for business are compliance, legal liability and business continuity," said Robert J. Scott, managing partner of Scott & Scott LLP, an intellectual property and technology law firm. "Data breach incidences are on the rise, and so are lawsuits."

Lack of standardization: A provider could have the latest security features, but due to the general lack of cloud standardization, there are no clear-cut guidelines unifying cloud providers.

The risks will never diminish

The biggest risk when it comes to cloud computing is that you never know what is up ahead. Hackers have been around from the start and they are not going anywhere any time soon. And as technology advances, so do the risks that come with adopting them.

For business using or considering migrating to the cloud, all you can do is be as prepared as you can possibly be. The key is getting to know providers as much as you can, both as a company and from an end-user perspective. 

References

http://www.businessnewsdaily.com/5215-dangers-cloud-computing.htmlhttp://www.liquidtechnology.net/blog/cloud-computing-security-risks/http://www.pwc.com/us/en/issues/cloud-computing/risks.jhtmlhttp://www.networkworld.com/article/2226230/cisco-subnet/security-professionals-identify-it-risks-associated-with-cloud-computing.htmlhttp://www.infoworld.com/d/security/the-5-cloud-risks-you-have-stop-ignoring-214696?page=0,1http://corporatelaw.jdsupra.com/wp-content/uploads/2012/08/iStock_000016803579XSmall.jpghttp://img.deusm.com/internetevolution/tutorials/cloudcomputing_Slide2.GIF