Risks

Cloud computing is a relatively new development and many risks are still being identified and addressed.

In 2008 analyst firm Gartner identified seven “risks” of cloud computing, which are commonly referenced. These are: privileged user access (keeping sensitive information with a third party has inherent risks because you’re bypassing your company’s own IT shop); regulatory compliance (customers are responsible for their own security and data integrity); data location (you don’t know where the information is physically being stored, it could be anywhere in the world); data segregation (your data is stored alongside other people’s data and an encryption failure could make your data completely unusable); recovery (what happens in a disaster? Is the data being replicated?); investigative support (inappropriate or illegal activity might be hard or impossible to investigate); long-term viability (what happens if your provider is bought-out or bankrupted?).

Cloud computing uses technology to break down national borders but unfortunately legal systems cannot be evaded so easily
Cloud computing has many advantages but tax authorities are taking a keen interest in where servers are hosted
Customers who have opted for cloud need to be aware of some of the issues in the small print of the contract
The EU's proposed data protection laws could have major consequences for European businesses, although there's still time to change them
Expectations may have been too high and knowledge scarce, but we have much to learn from the early adopters of cloud computing.
New research urges telcos to use cloud to shore up broadband revenues, differentiate from pure-play cloud providers.
Survey finds most small businesses improve disaster recovery plans using server virtualisation and cloud.
Study finds small companies embracing cloud, security worries overstated.
Firewall management is first of series of applications planned for public provider’s platform
The Government’s G-Cloud project continues to get support from Whitehall, with the Ministry of Justice the latest to endorse.