Cloud Computing Risks: What to Watch Out For

June 10, 2012 Off By David
Object Storage
Grazed from Midsize Insider.  Author: Ab Sam.

Cloud computing is now the concept of choice for start-ups and midsize businesses that want to overhaul and streamline the performance of their IT infrastructure. Despite the apparent benefits, cloud computing risks are now becoming clearer.

The increased rate of uptake of the cloud is confirmed by the high revenue generated from cloud computing, which is reported to have increased by 15 percent in the last quarter of 2011, compared to 2010. A summary of the key figures from the 2011 research study were published in a news report by Codestone Cloud

The risks in cloud computing are similar for both private and public cloud infrastructures, as they work in the same way. The basic structure involves a server hosting several applications that are accessed via the Internet. The server is managed by a third-party company, typically a cloud services provider. This essentially means that businesses entrust third parties with sensitive business information, including information about customers. It’s therefore imperative for businesses to evaluate a potential service provider with close attention to the following areas.

Data Transfer

When you have a service hosted on the cloud, all the data exchange will occur via the Internet, a public network. The security threats on a public network like the Internet are well documented, and all your traffic will be potentially exposed to those security risks. Thus, a cloud services provider ought to provide businesses with the most secure channels to access applications hosted on the Cloud. This means implementing technologies and security protocols designed specifically for Internet traffic, such as Internet protocol security (IPSec) that works with virtual private network (VPN) technology.

Application Interfaces

Businesses that are using cloud services to host their applications must ensure that the application interfaces used to interact with those applications measure up to the recommended security benchmarks for cloud services application programming interfaces (APIs). According to security recommendations by the Cloud Security Alliance (CSA), businesses risk being exposed to multiple threats associated with integrity, confidentiality, accountability, and availability, all stemming from negligence and reliance on porous interfaces or APIs. The CSA advises businesses to have a thorough understanding of how a potential cloud services provider implements the necessary security in the APIs.

Data Storage

While it’s important to ensure that data in transmission is secure, it’s equally important to learn from a potential cloud services provider how they plan to secure your data during storage on their servers. What encryption standards do they implement for stored data, if any? Furthermore, establish how your data will be disposed of, whether the method is secure, and whether it accounts for the security standards of the data while in storage.

Access Control

The normal personnel user access control mechanisms implemented in localized IT settings do not directly apply in the cloud structure. Data stored in the cloud may be easier to access by employees without much control over them. Thus, businesses should carefully consider the data they are willing to let out into the cloud, in addition to the level of access they can allow for various employees and the service provider personnel that manage the data.

Separation of Data

A key element of cloud computing is shared resources, where cloud service providers use components and space on the same servers to store and manage customers’ data. However, according to the CSA, cloud environments have come under attack recently. Therefore, it is vital for small businesses to evaluate the way cloud services providers secure the virtual containers used for separation of customers’ data.

These cloud computing risks are some of the most pertinent in the cloud sphere. However, there is so much to gain by adopting cloud computing that small businesses cannot afford to simply dismiss it as too risky.