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21 May 2009
‘Like online banking, once you’re used to it, you want to use as much data storage online as possible,’ so says Vipul Shah, a partner with accountancy firm Carter Backer Winter, on the subject of cloud computing.
Nothing unusual in that but he was responding to research out last week offering a serious warning about security when dumping data in these web-based centres.
Cloud computing has attracted much attention in recent months, but the research from Forrester concluded that companies looking to use online data storage should undertake very careful security due diligence before taking the plunge.
Shah adds: ‘The concern for people is that they are used to having a computer with data on that computer, this is a different step forward. It’s opened up new doors for accountants.’
The Forrester report ‘How secure is your cloud?’ underlines the stigma attached to entrusting a third party with sensitive financial data but Shah, whose firm has over 2,000 clients, adopted cloud computing two months ago and believes it is a vital adjustment.
Stefan Reid, an analyst at Forrester, disagrees and is still uncertain whether there will be a wholesale move of confidential data, such as financials, to cloud centres.
He says: ‘Companies like car manufacturers would generally keep financial information in-house and move supply chain or classifying data and business processes, into cloud.’
But David Turner, marketing director of Coda, which provides access for
clients to Salesforce data centres, says they are protected like military bases
with many needing retina, and fingerprint scans just to enter.
‘Security is at the core of Salesforce, their reputation depends on it and it
would kill them overnight if there was any data loss, so their security is world
class,’ he says.
Forrester highlights a high-profile case between civil liberties lobbyists the Electronic Privacy Information Centre and cloud provider Google Docs, which was taken to the US Federal Trade Commission when users inadvertently shared their documents with a wider audience due to security flaws.
Duane Jackson, the CEO of online accountancy software provider KashFlow dismisses the risk of security problems.
He says: ‘They feel uncomfortable about the data being in the cloud. Customers will accept it is more secure but are uncomfortable with it being out there.’
Reid points out that cloud computing is an emerging market and at present there is no regulation governing best practice or codes of conduct for cloud providers.
‘There are not enough standards on cloud computing or a manifesto to align the industry,’ he says.
Despite these concerns, Forrester expects that revenues from cloud-based software will increase to 20% of global software revenue in 2-3 years and that 50% of vendors will offer online technology in eight years. A clear indication of the future.
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Briefings
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Visitor comments Add your comment
Flying into the clouds
The benefits of cloud computing are indeed compelling, creating a centralised method to access shared data, significantly lowering costs and reducing data centre space, power and cooling. However, organisations must realise that accountability for valuable business data cannot be as conveniently outsourced.
Companies could be exposing themselves to a business continuity disaster. In many ways cloud computing resembles the Application Service Provider (ASP) model that was prolific prior to the dot-com crash, and a lot of those providers are no longer around.
We must remember that management will always be responsible for protecting company and customer data. It is therefore essential when moving towards cloud computing that businesses consistently ensure the health of the cloud-provided services. This includes gaining complete confidence that the cloud provider is a viable, stable business with assurances and protections, such as comprehensive risk and security defences in place, to safeguard business data.
Alongside guarantees from the provider, businesses must also ensure that they have an alternative strategy in place in the case of any disruptions or loss of connectivity to the cloud-based service. This includes awareness of any of the provider?s fallback plans and commitments that may jeapordise valuable information. Businesses also need to bear in mind that any interruptions to cloud computing providers may have to be dealt with on both a short- and long-term basis, depending on the nature of the disturbance.
Whilst the benefits of moving to the cloud are evident businesses must be aware of what they are getting into, and be able to mitigate the risks.
Yours sincerely,
Andrew Heather
General Manager, EMEA
Tripwire
www.tripwire.com
Posted by: Andrew Heather, 22 May 2009 | 00:00
Not All Clouds Created Equal
I certainly agree that you cannot just store data in a public cloud and assume it will be safe and secure. The security concerns of storing data in the cloud are valid, but this is an issue that can be addressed. Companies within the financial services industry are very sensitive around both their data and financial models and would therefore not normally be comfortable with allowing this data to leave their own data centre. However, setting up a private cloud that leverages external computer and storage resources at a hosting provider, which currently supports co-location and managed services to this industry would be a different story. Many financial service firms already utilize these types of outsourced or managed services in a safe and secure way, with private network interconnects and firewalls to protect who has access to their data and infrastructure that it lives on. Using these trusted vendors, based on the precautions they take and track record, seems to be a viable way for firms to reap the benefits of cloud computing, while still maintaining close control as to who can access data.
Posted by: - David Warm, CTO Financial Services, Platform Computing, 02 Jun 2009 | 00:00