THE PROS AND CONS OF CLOUD COMPUTING

Submitted By: Josephine Cicchetti for Jorden Burt LLP
Not everyone agrees on the definition of cloud computing.  Some believe that the cloud is a revolution in how people will interact and do business, others contend that cloud computing is nothing new, and is merely a marketing term applied to something technology providers have been doing for years.

Cloud computing, in general, provides a means of sharing and accessing computing resources anywhere an Internet device can make a connection, whether by cell phone, tablet, laptop, desktop, or other methods.  This gives people the ability to use their data, applications, software and other technology services from any location, at any time. 

The use of cloud computing has expanded rapidly, with no end in sight.  It is typically less expensive for implementing new computing solutions than traditional methods since a business does not need to invest in purchasing, managing and maintaining its own resources.  The blog, Hacking Alert, aptly frames the cloud’s fundamental concept: “[i]f you only need milk, would you buy a cow?”

One potential drawback, however, is that the cloud provider may have complete control over the user organization’s servers, software applications and data.  In trading control for efficiency, the user organization is faced with a variety of advantages and disadvantages in adopting cloud computing, including:


PROS

Cost savings based on not having to acquire and maintain its own information technology infrastructure (costs are typically categorized as operational expenses, not capital expenses).

Ability to access applications from virtually anywhere and from any device via an Internet connection.

Resources can be increased or decreased based on the user organization’s needs.

Increased system performance and reliable disaster recovery.
CONS

Increased risk of information security and data privacy breaches.

Increased risk that a breach may occur without user organization being aware, or having the ability to assess the precise nature of a breach.

Limitations on ability to ensure compliance with all laws applicable to the user organization’s business.

Risk that the user organization will not have access and control of data at all times.


While this article presents only a treetop view of cloud computing benefits and drawbacks, it gives a glimpse into the myriad issues involved in moving to the cloud.  Moreover, with the trend towards adopting cloud computing, user organizations that already use cloud computing are finding it necessary to review provider contracts to ensure the provisions are appropriate for the user’s business.

For more information, please contact Josephine Cicchetti at jc@jordenusa.com or (305) 347-6829.  Please note that the content of this article is for informational purposes only and is not legal advice or opinion, nor does it create an attorney-client relationship with Jorden Burt LLP or any of its lawyers.


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