Home > Cloud Computing, Digital Policy > Assessing Cloud Computing Risks for SMB’s

Assessing Cloud Computing Risks for SMB’s

Small and medium-sized businesses (SMB) are adopting cloud computing technologies at an alarming rate in the US, according to a new survey by Dell.  In a recent article in e-week:

The survey, which included more than 450 U.S.-based companies with employee bases ranging from 50 to 999, found that up to 69 percent of SMBs prefer to purchase cloud applications from a single, trusted vendor.

However, 50% of respondents in the US state that they are having problems keeping up with the service level agreements with cloud providers, and application developers.  This is a problem, since not keeping up with service level agreements can put your business at extreme risk. You also need to know how your data and your customers data is used by cloud developers and providers.

While there are some issues that all SMB’s need to keep on top of, the benefits of cloud computing are extremely attractive.

The survey also showed that efficiency and productivity continue to be top benefits of applications integration. On average, SMBs state they have experienced up to 38 percent improvement in operational efficiency due to reduced manual processes and up to 39 percent improvement in employee productivity due to automation of tasks and information.

Canadians are still awaiting a digital economic strategy.  I would caution those thinking about cloud service integration until we have policy put into place that protects Canadian businesses.  The US seems to think its own domestic law trumps international trade law.  Last month US authorities seized Canadian based Bodog’s US domain name, and the sites founder is currently on an extradition order.  Until there are clear rules of the road in Canada, the risks for businesses moving towards cloud computing at present are pretty substantial, especially if you are doing any US-based business.  Those risks turn to extreme if you are not keeping up with service level agreements, no matter what country you are servicing.

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