Dark side of Cloud Computing

Cloud computing is the latest trend when it comes to data storage that is easily accessible and that has real time data handling capability. The business model is highly appealing and advantageous for small and medium sized companies. However, there are various risk factors associated with cloud computing which we will explore in this post. As you know, clouds are dark quite often.

Some of the critical challenges to cloud technology as of today are,

1. Security and Privacy: How safe is the data and the business assets accessed through the cloud servers? Since data transfer is mainly through internet and a number of users around the world are accessing cloud servers, security and privacy of data is at high risk. To make cloud servers more secure, cloud service vendors developed password protected accounts and data encryption techniques. Yet, these safety measures have not been enough. For instance, in Aug 2012, DropBox reported that several of its user accounts were hacked (To know more click here).

2. Dependency (loss of control): The moment you upload your data to a cloud server, you not only lose control over the data but also become dependent on that server. You might not have much insight on what is going on with your data. Is your data backed up? Are there enough recovery mechanisms to restore and recover the data in case of any mishaps?

3. Cost and decreased flexibility: Becoming accustomed to proprietary applications or formats of one cloud vendor might make it difficult to adapt to similar applications from other vendors, thereby decreasing flexibility. Thus one has to ensure that as the company grows, adding users or changing formats and scalability is not an issue. Also one must realize that the financial health of the cloud vendor will have direct impact on the company.

4. Knowledge and Integration: Knowledge about the internal architecture of the cloud (eg. software, hardware, deployment, etc.) would be limited only to the cloud service provider (CSP). Thus integration of peripherals such as printers, security equipment, and smart phones might be problematic.

Besides these major challenges, cloud computing also needs to address issues regarding the business performance monitoring, legal and contractual issues, data ownership issues, compliance with the regulations, technology stability and maintaining industry accepted standards. Cloud computing has still not fully evolved and matured. It needs to grow from merely a technological solution to a broader business solution.

Despite the above listed inadequacies, which should be addressed in the near future, cloud computing is becoming wide spread and many companies are deploying it as quickly as possible. Not just the companies in developed nations, but also companies in developing nations are entering the cloud market.

According to market researcher IDC, cloud services exceeded $40 billion last year and are set to approach $100 billion in 2016 (click here to know more).

Also research firm Zinnov stated that cloud computing market in India is expected to reach $1.08 billion by 2015 from $110 million in 2010.

This blog aimed to highlight the disadvantages of cloud computing as a follow up to the previous blog. In my upcoming posts, I will talk about the cloud computing updates and trends in various industries. Stay tuned...