Free essay on risks and benefits of cloud computing

Benefits of Cloud Computing

Lower Upfront costs — Enterprises can use unique services with the help from large-scale computing resources provided by the cloud service providers paying only for actual usage. No software or hardware installation done or the need for maintenance. The low barrier of entry and the pay-as-you-use model offered by cloud computing makes it very versatile (Merrill & Kang, 2014).
Lower IT operational costs — Server space can be rented out during peak hours without the need to maintain extra servers or human resources to maintain it. There is also the flexibility to host virtual IT infrastructure offering the lowest cost.
Independence of employees – In a cloud environment employees can work out of office and can be more capable and productive than before. Employees can access data from servers outside the office and not via in-house servers that create more flexible and open work culture.
Flexibility in dealing with change –Installation of new feature can be done with ease, without high risk and cost. In this case there is a room to experiment with and change things. In the case new things do not work as expected it is easy to revert to the original system.

Risks of Cloud Computing

Environmental security — Cloud environments are huge and of prime significance thus they are susceptible to bot malware and other attacks. Before starting to use users must ask cloud provider for access controls and vulnerability assessment practices (CliftonLarsonAllen (CLA) LLP, 2014).
Data security and privacy — it is dangerous to host confidential data over the cloud. The data transfer involves the transfer of sensitive to the provider. If the cloud provider does not understand the criticality of data privacy and security rules, it can harm the organizations. Cloud provider is must be aware of privacy rules and regulations, such as HIPAA, the Federal Information Security Management Act of 2002 (FISMA), the Data Security Standard of Payment Card Industry (DCI DSS), or the privacy considerations of Gramm-Leach-Bliley Act (CliftonLarsonAllen (CLA) LLP, 2014).
Retention of Record— if a business is subject to retaining records the cloud provider needs to understand them well in order to abide by it.
Disaster recovery — the disaster recovery capability of the cloud provider is very vital of the user organization. The capability should be tested before starting to deal with the provider.
Dependency on Network – Cloud computing is completely dependent on the internet. The basic problem of cloud computing is that it needs internet access that means the system is prone to outages and interruptions in service at a time when there is no internet service. If this occurs in the middle of a task or transaction the action can be delayed or lost (Blogs. sap. com, 2014).


CliftonLarsonAllen (CLA) LLP,. (2014). The Benefits and Risks of Cloud Computing: CliftonLarsonAllen LLP. Retrieved 17 October 2014, from http://www. claconnect. com/Risk-Management/The-Benefits-and-Risks-of-Cloud-Computing. aspx
Blogs. sap. com,. (2014). The Risks And Benefits Of Cloud Computing. Retrieved 17 October 2014, from http://blogs. sap. com/innovation/cloud-computing/risks-and-benefits-of-cloud-computing-020025
Merrill, T., & Kang, T. (2014). CLOUD COMPUTING: IS YOUR COMPANY WEIGHING BOTH BENEFITS & RISKS? (1st ed.). Retrieved from http://www. acegroup. com/us-en/assets/privacy-network-security-cloud-computing-is-your-company-weighing-both-benefits-risks. pdf