Cloud Computing: Revolutionary or Just Plain Risky?

Last summer, Apple introduced the iCloud, an intriguing method of saving data on a remote server-as distant and nebulous as a cloud itself-rather than on a local hard drive. The cloud allows users to store and remove data from a remote server through a network, but the cloud isn't new and it isn't limited to Apple's iCloud; the concept has been around for a while, and has existed in one form or another for years. According to industry journal InfoWorld, "[c]loud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities."

Benefits

Cloud computing is viewed by many as advantageous because it allows instant, on-demand access to information via computers, tablets, smartphones, and other gadgets. Companies like Google, Amazon, and IBM are offering cloud services tailored to the needs of businesses; such services will offer businesses new capabilities while saving them money.

Businesses spend billions of dollars annually to cover the costs of data storage, as well as the installation of new applications on all computers. The cloud can, in effect, eliminate those expenses. And for businesses that maintain and store large quantities of data, the cloud can seem like an ideal way to avoid hacking-related disasters and legal snafus.

Everything, it appears, will be safely stored, untouchable as the clouds themselves. These and other perceived advantages will help to make cloud computing a $150 billion business by 2013, according to the Gartner Group, a technology consultancy. And, according to a survey conducted by The Open Group, an IT consortium, cost efficiency is the number one factor driving the move to the cloud; the number one concern, however, is security.

Risks

Some technology experts are skeptical of the cloud. They view the cloud as nothing but a pie-in-the-sky dream, one that is bound to go from white and fluffy to dark and stormy any minute. They assert that it is vulnerable to crashes and attacks, and could potentially unleash a slew of new legal issues.

A cloud hack is a possibility, according to Eugene Spafford, a computer science professor specializing in cybersecurity at Purdue University. "[The cloud] is going to have to evolve," Spafford says, "or we're going to see some really big disasters," he said.

In the Future: A Cloud to Call Your Own

One way the concept-and practice-of cloud computing may evolve is through hybridization. Companies will utilize public clouds to store some of their information. But for the most private, sensitive data, each company will have its own private cloud.

In the meantime, business owners must use their own judgment in determining whether or not cloud computing is right for them. Weigh the benefits and the risks, and make sure you're protected by a good insurance policy in the event that your cloud is punctured, and those risks become a reality.

Call or contact Linville Insurance Agency today for more information about up-to-date business insurance plans.