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(Updated 10/25/2011)
After writing about the
benefits of cloud computing, I mentioned that it’s not without some risk and downsides. Cloud computing presents a strong case for cost savings, new capabilities, flexibility and speed, but to do a proper return on investment (ROI) analysis, you need to evaluate the risks and costs associated with implementing cloud computing for your organization. This article describes risks and disadvantages of moving to “the cloud,” how to mitigate those risks, and identifies issues relevant to your provider choice and implementation plans. In addition, there are topics that may not qualify as risks or disadvantages of cloud computing, but that may require an assessment of the impact on your organization. An evaluation of the risks and impact is an important precursor to decision-making regarding whether to make the move to “the cloud” and who you select to provide ”cloud” services. In fact, thinking about and addressing these issues should be part of the planning process for any deployment (cloud or not). Critical components of such planning should include technology, personnel, business process and company culture. Moving to “the cloud” requires not only considerable planning, but possible unexpected financial investment.