Cloud Services: Do Risks Outweigh Benefits?

Adoption of cloud service models by organizations has been met with significant reluctance. Cloud-based services refer to networked delivery of services within organization or from external providers. The services range from data storage, throughout communication and collaboration support tools, to complex service packages supporting business processes within organizations. The primary reluctance is toward employing services of external providers and accessing them over internet. The external provider or other entities may compromise organizational data and services, thus posing significant security risks. Transfer of data and services to external providers results in substantial loss of control over timely management and retention. Cloud adoption and utilization by organizations requires considerable assessments. We elucidate pertinent risks and benefits associated with cloud services and provide actionable knowledge for managers and information technology professionals.