Report: Cloud Computing Holds Benefits, Risks

LOS ANGELES — Cloud computing may be the next big paradigm shift in online computing, but is it too risky?

The European Network and Information Security Agency (ENISA). The agency just released a 123-page report titled “Cloud Computing: Benefits, Risks and Recommendations for Information Security.”

Cloud computing refers to any online tech solution that involves multiple computers and servers working in concert to provide users with easy access to multiple services. Many of Google's online applications, such as Gmail, employ cloud computing principals.

Major tech companies from both mainstream and adult have been turning to cloud computing in recent months. Apple bought massive amounts of office space in North Carolina, sparking rumors that Steve Jobs wants to establish a cloud-based server center. In October, OC3Networks tapped ParaScale Software to handle its cloud storage needs.

According to the ENISA report, companies that opt for the 24-hour availability promised with cloud-computing solutions do so only by turning over security over to another party. In addition, companies also face challenges in migrating data when the time comes.

Report Editor Giles Hogben said that despite these shortcomings, cloud computing solutions still have plenty of advantages.

"The business case for cloud computing is obvious — it's computing on tap, available instantly, commitment-free and on-demand,” he said. But the number one issue holding many people back is security — how can I know if it's safe to trust the cloud provider with my data and in some cases my entire business infrastructure?"

Furthermore, the report said that all companies should perform risk-assessments before they sign on with a cloud-computing provider. Specifically, companies should thoroughly vet all potential providers. After signing with one, the company's management should then decide which key tasks and functions will be carried out through the cloud-computing company, and which one will be handled in house.

Read the ENISA's report.

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