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Cloud computing offers potential benefits including cost savings and improved business outcomes for Australian government agencies. However, there are a variety of information security [and reliability] risks that need to be carefully considered. Risks will vary depending on the sensitivity of the data to be stored or processed, and how the chosen cloud vendor (also referred to as a cloud service provider) has implemented their specific cloud services
http://www.asd.gov.au/publications/protect/cloud_computing_security_considerations.htm
Hacking/ private information
Unlike a data centre, which is run by an in-house IT department, the cloud is an off-premise system in which users outsource their data needs to a third party provider. The provider does everything from performing all updates and maintenance to managing security. The bigger picture, however, is that users are trusting their data for someone else to look after, said Steve Santorelli, a former Scotland Yard detective, now manager of outreach at the Internet security research group Team Cymru.
Any time you store data on the Internet, you are at risk for a cyberattack. This is particularly problematic on the cloud, where volumes of data are stored by all types of users on the same cloud system.
http://www.businessnewsdaily.com/5215-dangers-cloud-computing.html
There have been multiple incidents regarding a cloud network, being hacked. This was the case when “code spaces” was hacked.
Code Spaces is a company that hosted application development work in Amazon Web Service’s cloud on behalf of its customers. On June 17 the company experienced a DDOS attack where traffic floods the company’s servers. Multiple media outlets have reported that when company officials contacted the perpetrator, a ransom was demanded. When the money was not paid, the bad guys hacked into the Cloud Spaces administrative console for Code Space’s AWS account and deleted what appears to be the entirety of the company’s files. Code Spaces has since been shut down.
http://www.networkworld.com/article/2366862/iaas/a-wakeup-call-for-the-cloud.html
Reliability problems
The facts are that Cloud networks are never 100% reliable.
There have been several high profile outages at data centres that host sites, such as video site DailyMotion, credit card authorization service Authorize.net, and Microsoft’s Bing Travel. Even the Google App Engine—a platform for third-parties to run their own cloud services—experienced performance issues that resulted in high latency and even data loss.
http://arstechnica.com/business/2009/07/cloud-computing-promise-still-stormy-with-reliability-issues/
Due to the advancement of technology higher quality data can be used. However this puts more strain on cloud networks that have to store and manage this data. To keep up, cloud service providers have to upgrade their equipment, which means they have to shut down their network for a limited time to install said equipment. This down time is usually assigned and then alerted to the members using the network. But if something fails at the cloud centre and needs to be replaced strait away, then without warning you’ll no longer have access to your data.
Technical risks aren't the only kind that affect cloud customers—what happens if your cloud service provider goes out of business? In this economy, it could conceivably happen.
http://arstechnica.com/business/2009/07/cloud-computing-promise-still-stormy-with-reliability-issues/
Then once again you’ve been stranded without your data. Except this time you might not even be able to get it back.
Conforming to the cloud
Yet another issue with the cloud is compatibility with all the IT systems in a company. It is universally acknowledged today that cloud computing works out to be the most cost efficient option for companies. However, the problem arises out of the fact that the company would have to replace much of its existing IT infrastructures in order to make the system compatible on the cloud.
Much of a company's data, which is supposedly “off the cloud”, is essentially stored on multiple servers, sometimes spanning across several countries. This means that if a certain centre develops and issue and cannot be accessed, it might pose a serious problem for the company involved. This problem would intensify if the data is stored in a server of a different country.
http://mobiledevices.about.com/od/additionalresources/tp/The-Risks-Involved-In-Cloud-Computing.htm
However most cloud networks do this so there isn’t really a way around it, you just have to put up with it. This is also the case with cloud standardization.
A provider could have the latest security features, but due to the general lack of cloud standardization, there are no clear-cut guidelines unifying cloud providers. Further, given the plethora of cloud services in different sectors, this is especially problematic for users when determining exactly how "safe" their cloud really is.
Since not all cloud providers are built the same, one provider's definition of "safe" may not be the same as another's said Robert J. Scott, managing partner of Scott & Scott LLP, an intellectual property and technology law firm.
http://www.businessnewsdaily.com/5215-dangers-cloud-computing.html
Cloud computing offers potential benefits including cost savings and improved business outcomes for Australian government agencies. However, there are a variety of information security [and reliability] risks that need to be carefully considered. Risks will vary depending on the sensitivity of the data to be stored or processed, and how the chosen cloud vendor (also referred to as a cloud service provider) has implemented their specific cloud services
http://www.asd.gov.au/publications/protect/cloud_computing_security_considerations.htm
Hacking/ private information
Unlike a data centre, which is run by an in-house IT department, the cloud is an off-premise system in which users outsource their data needs to a third party provider. The provider does everything from performing all updates and maintenance to managing security. The bigger picture, however, is that users are trusting their data for someone else to look after, said Steve Santorelli, a former Scotland Yard detective, now manager of outreach at the Internet security research group Team Cymru.
Any time you store data on the Internet, you are at risk for a cyberattack. This is particularly problematic on the cloud, where volumes of data are stored by all types of users on the same cloud system.
http://www.businessnewsdaily.com/5215-dangers-cloud-computing.html
There have been multiple incidents regarding a cloud network, being hacked. This was the case when “code spaces” was hacked.
Code Spaces is a company that hosted application development work in Amazon Web Service’s cloud on behalf of its customers. On June 17 the company experienced a DDOS attack where traffic floods the company’s servers. Multiple media outlets have reported that when company officials contacted the perpetrator, a ransom was demanded. When the money was not paid, the bad guys hacked into the Cloud Spaces administrative console for Code Space’s AWS account and deleted what appears to be the entirety of the company’s files. Code Spaces has since been shut down.
http://www.networkworld.com/article/2366862/iaas/a-wakeup-call-for-the-cloud.html
Reliability problems
The facts are that Cloud networks are never 100% reliable.
There have been several high profile outages at data centres that host sites, such as video site DailyMotion, credit card authorization service Authorize.net, and Microsoft’s Bing Travel. Even the Google App Engine—a platform for third-parties to run their own cloud services—experienced performance issues that resulted in high latency and even data loss.
http://arstechnica.com/business/2009/07/cloud-computing-promise-still-stormy-with-reliability-issues/
Due to the advancement of technology higher quality data can be used. However this puts more strain on cloud networks that have to store and manage this data. To keep up, cloud service providers have to upgrade their equipment, which means they have to shut down their network for a limited time to install said equipment. This down time is usually assigned and then alerted to the members using the network. But if something fails at the cloud centre and needs to be replaced strait away, then without warning you’ll no longer have access to your data.
Technical risks aren't the only kind that affect cloud customers—what happens if your cloud service provider goes out of business? In this economy, it could conceivably happen.
http://arstechnica.com/business/2009/07/cloud-computing-promise-still-stormy-with-reliability-issues/
Then once again you’ve been stranded without your data. Except this time you might not even be able to get it back.
Conforming to the cloud
Yet another issue with the cloud is compatibility with all the IT systems in a company. It is universally acknowledged today that cloud computing works out to be the most cost efficient option for companies. However, the problem arises out of the fact that the company would have to replace much of its existing IT infrastructures in order to make the system compatible on the cloud.
Much of a company's data, which is supposedly “off the cloud”, is essentially stored on multiple servers, sometimes spanning across several countries. This means that if a certain centre develops and issue and cannot be accessed, it might pose a serious problem for the company involved. This problem would intensify if the data is stored in a server of a different country.
http://mobiledevices.about.com/od/additionalresources/tp/The-Risks-Involved-In-Cloud-Computing.htm
However most cloud networks do this so there isn’t really a way around it, you just have to put up with it. This is also the case with cloud standardization.
A provider could have the latest security features, but due to the general lack of cloud standardization, there are no clear-cut guidelines unifying cloud providers. Further, given the plethora of cloud services in different sectors, this is especially problematic for users when determining exactly how "safe" their cloud really is.
Since not all cloud providers are built the same, one provider's definition of "safe" may not be the same as another's said Robert J. Scott, managing partner of Scott & Scott LLP, an intellectual property and technology law firm.
http://www.businessnewsdaily.com/5215-dangers-cloud-computing.html