5 Cloud Computing Myths Debunked for Midsized Businesses
Everyone is talking about how cloud computing may bring considerable benefits to small and medium-sized businesses (SMBs). It allows even organizations with limited resources to store critical data or leverage considerable computing power without purchasing additional software and hardware. Cloud computing not only reduces overhead costs but also allows SMBs to to focus their resources on areas that need them most.
But what do SMB owners and decision makers need to know about the cloud? And what do many of them misunderstand?
Below is a summary of Trend Micro’s study titled “5 Cloud Computing Myths Debunked for Midsized Businesses“.
Myth 1. SMBs know they are using the cloud.
Consider the following services:
• Email (e.g., Gmail, Hotmail, and Yahoo! Mail!)
• Social media (e.g., Facebook and Twitter)
• Online storage and backup services (e.g., Dropbox, YouSendIt,
Google Drive, and SafeSync)
If your organization uses any of the services mentioned above, you already enjoy the benefits the cloud can offer. Each of the services above employ cloud computing in one way or another in order to satisfy users’ needs. Surprised? You are not alone. According to a Trend Micro study, some organizations used cloud computing services without being aware of it. The respondents were presented with the same list as above and asked which ones they were already using. Everyone was surprised to find out that they were indeed already leveraging the benefits of cloud computing. As long as a business process or service is provided from someone else’s server or infrastructure, it is safe to say that cloud computing is involved.
Myth 2. Paying for cloud services is more costly than buying hardware and software.
Consider the following scenario:
A small start-up needs a server in order to store all of its business-critical data. Purchasing an actual server will not only take a lot of capital; it will also cost a lot in terms of overhead and maintenance. The organization also has to enlist the services of a competent IT technician to make sure the server properly runs at all times. Software programs need to be regularly patched and updated as well, which typically cost money. Cloud computing services provide companies the benefits of having numerous servers with none of the hassle. Keeping servers up and running smoothly is left to the service providers. If this responsibility is left to a single IT technician who does not work 24 x 7, the solution may not be as reliable.
A recent survey found that 14% of SMB cloud adopters saw a 20% or more IT expense reduction versus non-cloud users who only reported a 3% reduction.
Myth 3. Cloud computing slows processes down and reduces productivity.
As far as productivity is concerned, cloud computing services not only streamline critical processes but also improve productivity. How? Take a look at some of the reasons:
• Cloud computing solutions allow SMBs to harness the power of top-of-the-line servers, programs, and technologies.
• Cloud computing solution vendors and service providers have better manpower and IT resources to handle software and hardware issues than SMBs.
• Cloud computing services help keep data accessible even if SMBs’ devices fail, are destroyed, or get stolen.
• Cloud computing services allow users to access, handle, and work with even large amounts of data wherever they are.
Now, what if an organization maintained its own central server? Assuming the organization hired an IT technician, it would take some time before he/she can get the server running again. Repair services can be expensive. If the server sustained severe damage, it may need to be replaced, costing the organization much more in terms of expenses and lost productivity.
Microsoft enlisted Edge Strategies to conduct a survey, which revealed that 59% of SMB cloud adopters reported significant productivity benefits compared with only 30% of non-cloud
users.
Myth 4. Using personal devices to access the cloud does not pose risks.
While it is more secure for SMBs to use the cloud to store data, they still face risks of losing data.
Using personal devices to access company data stored in the cloud pose risks of losing data or suffering from a breach, especially if the devices are stolen or are not sufficiently secured from data-stealing malware. Data loss as well as device replacement and repair are expensive and can damage an organization’s reputation.
Human error cannot be discounted as a risk, too, as based on a Trend Micro-sponsored Ponemon Institute study:
• 81% of organizations have suffered from a data breach due to negligent or malicious employees or other insiders over the past two years
• 52% said their employees failed to update their antivirus/antimalware solutions
• 35% said that losing laptops and/or other mobile devices was the root cause of data breach incidents
• 22% said malicious employees or other insiders was the root cause of data breach incidents
Myth 5. Cloud service adopters have nothing to worry about
If an organization’s cloud service provider suffers from a power outage, while rare, its owner and employees will have no way to access the data stored in the cloud unless it keep backups on servers or storage drives. The service provider’s servers could also malfunction, rendering the organization’s data inaccessible. Scenarios like these can result in productivity loss.
Another risk that organizations may face is having their cloud service providers’ servers seized by authorities for certain violations. Megaupload, a file-hosting service provider, for
instance, was recently indicted for copyright violations and other charges, which rendered its servers inaccessible. While such an event may be rare, it does pose possible risks that organizations must plan for.
In case of a power outage, service-level agreements (SLAs) can assure cloud service adopters that their chosen vendors will provide consistent and sustained services. Note, however, that cloud services like Gmail and Dropbox, which SMBs commonly subscribe to do not offer any kind of SLA, as these mainly cater to consumers.
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