!The Dangers of Cloud Computing! It’s the Internet!

Cloud Computing and Managed IT Services

Most businesses who have been around for 25yrs or longer probably started off with a large on-site IT and data center. This was not uncommon for many years and still carries the operational load for many businesses that are data heavy. Recently, in the last decade especially, companies like NetSuite and SalesForce have given businesses the opportunity to outsource their IT departments through what is known of as “cloud computing” or running their data through the cloud.

What is the Cloud and what are the risks?

The cloud is a metaphor for the internet. To better understand the cloud, it is first recommended to observe your own personal and business interactions on a day to day basis. Do you use email? That’s a cloud application. Do you communicate through Skype or another video chat / conferencing software such as GoToWebinar? Those are all cloud applications that have been around before the internet was referred to as the cloud. When considering that nearly 700,000 laptops go “missing” every year at airports alone, many of which contain vital and confidential business information such as user accounts, financials and customer information. This is a huge risk for companies that keep their information “in house.” The risks here are more related to human error and equipment failure, which has been the case since the beginning of personal computing. But what about the cloud? The risks that used to define the cloud were of course hackers who could easily breach the firewalls and gather business information or take down networks. Such isolated events caused a large scare for the cloud sector, which was bad for business. But how have those risks been addressed? Large cloud storage companies have increased security and encryption to the point of military specifications and have become virtually impenetrable. As companies providing cloud IT services, they have truly come of age in the security-aware space they now do business in.

Costs of Cloud Computing


When considering the cost of cloud verses on-site IT data centers, it’s almost a no-brainer. Over the lifetime of any onsite data center, which is about five years before equipment failure or not keeping up with today’s technology standards, businesses need to constantly assess the need for updating and replacing onsite data centers. After the first five years, the ROI on cloud solutions is truly welcome for companies who have adopted the solutions. So for a business that is looking at a long term investment, hosting their network and data on a cloud network is something that brings great value over time along with continued updates and support.

Getting started with a cloud application

There are many ways for businesses to start operations in the cloud. Many of the cloud application service providers offer loans – one of our favorite ways to get started with any kind of business need. Another way is to take an honest look at the real costs of having all IT in-house then make the necessary adjustments on the fly. Consider the real cost of having a full-time in-house IT department, this alone is potentially hundreds of thousands of dollars. Also, the cost of utilities to power the data center as well as cool it with 24/7 air conditioning; never mind the actual cost of purchasing the equipment every five years. So whether you’re interested in taking out a loan or adjusting your current monthly data spending, it’s always good to have an expert consultant for IT who can help you streamline processes with your in-house network or make the proper recommendations for a cloud solution tailored to your business. For PaydayLoansVBA and our computers and technology division, thanks for reading.