Definition: Cloud computing utilizes servers available on demand over the Internet. It is especially favored by cost-constrained smaller companies, particularly those that are growing rapidly and/or those that have wide swings in their demand for computing capacity. As a result, cloud computing can be a cost-cutting idea considered by controllers and CFOs.
Potential pitfalls of cloud computing include the reliability of network links, data security and the tendency of costs to rise exponentially as overall system reliability is pushed beyond 99%. There are thus potential risk management issues.
The impact of cloud computing on data security also will be of concern to compliance officers, who may be constrained by regulation on the protection of client data, and the movement of such data across national borders.
For a quick primer, see "Is Cloud Computing For You?" by Philip McKinney of Hewlett-Packard in Forbes, 12/6/2010.
Potential pitfalls of cloud computing include the reliability of network links, data security and the tendency of costs to rise exponentially as overall system reliability is pushed beyond 99%. There are thus potential risk management issues.
The impact of cloud computing on data security also will be of concern to compliance officers, who may be constrained by regulation on the protection of client data, and the movement of such data across national borders.
For a quick primer, see "Is Cloud Computing For You?" by Philip McKinney of Hewlett-Packard in Forbes, 12/6/2010.
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