Risks Of Cloud Computing – Part II

While the cloud model for obtaining computing resources offers many benefits —  including its relatively low price compared to other models — it doesn't come without a range of risks to manage. The following issues should be taken into consideration when negotiating an agreement with a cloud service provider.

Where Is Your Data?

A fundamental premise of the Cloud Model is that your data will be stored across several of the cloud service provider's data centres. This raises a threshold question:  At any given point in time, will it be possible for you to know where your data actually resides?

This is not a trivial, or unimportant, question. If your organization is part of a regulated industry or if your organization, like a bank or hospital, handles personal information from consumer clients, not only will your CEO and Board of Directors likely want to know where your data is stored, but your government/public regulator will require that information as well.