gE Blog Series: Cloud Computing Part 2 - Risks and Benefits

Now that you know more about the basics of cloud computing, we can begin to take a look at some of the risks and benefits businesses encounter when using the cloud. As cloud based applications grow, businesses have numerous opportunities to take advantage of this new technology. With smartphones, tablets, and personal computers, businesses can easily access their cloud storage data from virtually anywhere. The benefits might seem undeniable at first—decreased data storage costs and integration across all areas of a business. However, some may wonder whether the benefits of cloud computing outweigh the risks.

The number one concern with cloud computing is the level of security offered by cloud storage systems. No business would want its private information and data accessed by individuals not authorized to do so. Although, cloud services are said to be safe and secure there have been recent hacking incidents that raise major security concerns. Other risks and challenges also exist such as compatibility issues with a company’s current information technology and integration between cloud service providers.

Another risk with cloud computing is the guarantee of accessibility. If there is a technical problem at the cloud storage facility, businesses might not be able to access all of their data and files for a certain period of time until the problem is corrected. This would be a major issue for companies that rely on data access at all times. This means that businesses using cloud storage may have to develop a fail-safe option and use a backup data storage system which would definitely increase information storage costs. These risks will undoubtedly cause some apprehensions regarding cloud usage but let’s now take a closer look at the benefits of cloud computing.

By providing off-site data storage options, many businesses can cut costs as cloud services replace the large amount of investment needed to establish servers and equipment to privately store company data. This would also save offices a tremendous amount of space and provide unlimited data storage. Saving money is not the only benefit of the cloud. When using cloud services, workers can access their data anywhere. Whether employees are in a taxi, at the airport, or in countries overseas, cloud computing allows data access and collaboration across a workforce at all times. With reduced cost and easy data access businesses can save time and money, dramatically increasing productivity.

The benefits of cloud computing seem innumerable: increased data access flexibility, reduced information storage costs, enhanced productivity, and decreased power costs just to name a few.  These benefits have many people believing that cloud based services will have a large impact on future business models. Cloud computing is a relatively new technology meaning the full scope of its impacts have yet to be determined. Only time will tell the major effects of cloud computing, but as of now it remains a key business trend to keep a close eye on.