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While the industry shift towards a business cloud solution seems to be grabbing everyone's attention, it is important to be aware of the dangers and risks associated with this transition. Although the cloud makes some aspects of data storage seem more convenient; there are a number of hidden costs and negative aspects that must be explored.

Many people assume that using the cloud will cut costs associated with maintaining hardware, personnel salaries, training, and more, but that is not necessarily the case. While the cloud may reduce initial costs, the recurring subscription fee over time adds up and can cost more than on premise servers depending on the regularity of updates your company requires.

There are six key aspects to consider when making a decision to use on premise or a business cloud solution.

1. Regulations

Some industries are regulated by the government in regards to storing sensitive data. If your industry requires you to ensure the security of particular information, it is beneficial to have complete access and control of your data which is not possible through the cloud.

2. Security

If a company requires advanced security, they may have trouble finding a cloud service whose capabilities meet their needs. In addition, handing off the responsibility of security to a third party is a risk in it of itself.

3. Visibility

The location of where the data resides in a business cloud solution is unclear. Its a common concern across the board. Once you release confidential information to the cloud, you no longer have the capability to monitor its location.

4. Accessibility

The two factors that limit accessibility are bandwidth and legal restrictions. While the ideal server would allow access from all locations at any time, the bandwidth constraints might not support all users at the same time. In addition, other countries may have restrictions to specific internet content which proves problematic to global companies.

5. Latency

This issue of controlling latency is easy to deal with in private data centers; especially where you control the network end-to-end, but can be a major issue if all data is on the cloud.

6. Lack of trust

Trusting that your cloud provider will keep your data secure is one of the largest issues and most difficult to overcome. Noted, your level of trust may change as your needs change, but you must place some trust in your cloud service provider as you are giving them full control and access to your data.
It is imperative to understand the risks associated with a business cloud solution and make a decision based on the needs of your company. Since the cloud contains information from a vast number of companies, it is a stronger target for hackers because of the multitude of information stored in it. If data privacy, accessibility, and control are important to your company, then an on premise server will serve you best. In addition, if your company does not require frequent updates, an on premise server is most likely going to cut costs overall.

If you would like to learn more, contact CPI Solutions today.