Cloud computing risks outweigh benefits, new report finds

24 March 2010

A quarter of businesses which use cloud computing believe that the risks associated with the technology are greater than the positives, a new report has revealed.

Findings from a study by Information Systems Audit and Control Association (ISACA), which questioned companies from Europe, the Middle East and Africa (EMEA), showed that 35.6 per cent are planning on not using cloud computing in the future.

This is compared with 9.4 per cent who will be adopting the solution for use with “mission critical” services.

In the report, ISACA suggested that organisations are still uncertain of how to optimise cloud computing as is it still a developing technology.

Paul Williams, ISACA Strategy chair and IT governance adviser to Protiviti, said: “Every day we take calculated risks.

“Organisations need an integrated risk management approach to identify, assess and prioritise risks, so that they only take appropriate gambles with acceptable consequences or [levels] of reward. Enterprises must never crash and burn because the risk was ignored or misjudged.”

Further findings from the study revealed that 22.2 per cent of respondents do not effectively integrate their IT risk management processes and overall risk management solutions.

Up to 1,500 IT professionals from more than 50 organisations were interviewed as part of the study.

By Jim Ottewill