Issues and Challenges in Cloud Based Business Models

Cloud Computing Issues & Challenges – Cloud computing is a common term you hear about on and off. And professionals use it without even knowing about the actual concept. So to put it in simple words, cloud computing is storing, accessing, and managing huge data and software applications over the internet. In this technology the entire data is secured by firewall networks. You can use the software without using your computer’s hard drive as the software and data is installed in world wide data centres.

The cloud technology is used by many people in their daily lives. Using web based email services or preparing any document over the internet is a common example of the cloud technology. In the IT industry, there are three different types of cloud computing such as infrastructure as a service (IaaS), platform as a service (PaaS), Software as a service (SaaS). All these types of cloud technologies are being used for the different kind of services. Cloud technology is very useful in business development as it brings astonishing results in a timely manner.

However, there is a minor gap between the success and failure in businesses. Selection of the right technology takes your business to new heights while a few mistakes land your business in troubles. Every technology comes with a baggage of some pros and cons. Similarly, cloud computing too comes with its share of issues despite being core strength of some business industries. It also can create some major problems under some rare circumstances. issues and challenges of cloud computing are characterized as ghosts in the cloud. Let us talk in brief about some real life ghosts of cloud computing.

1. Data Security concern

When we talk about the security concern of the cloud technology, then a lot of questions remain unanswered. Multiple serious threats like virus attack and hacking of the client’s site are the biggest cloud computing data security issues. Entrepreneurs have to think on these issues before adopting cloud computing technology for their business. Since you are transferring your company’s important details to a third party so it is important to ensure yourself about the manageability and security system of the cloud.

2. Selecting the perfect cloud set-up

Choosing the appropriate cloud mechanism as per the needs of your business is very necessary. There are three types of clouds configuration such as public, private, and hybrid. The main secret behind successful implementation of the cloud is picking up the right cloud. If you are not selecting the right cloud then maybe you have to face some serious hazards. Some companies having vast data so they prefer private clouds while small organisations usually use public clouds. A few companies like to go for a balanced approach with hybrid clouds. Choose a cloud computing consulting service which is aware and clearly disclose the terms and conditions regarding cloud implementation and data security.

3. Real time monitoring requirements

In some agencies, it is required to monitor their system in real time. It is compulsory term for their business that they continuously monitor and maintain their inventory system. Banks and some government agencies need to update their system in real time but cloud service providers are unable to match this requirement. This is really a big challenge for cloud services providers.

4. Resolving the stress

Every organisation wants to have a proper control and access over the data. It is not easy to handover your precious data to a third party. The main tension between enterprise and executives is they desire to control over the new modes of operations while using technology. These tensions are not unsolvable, but they do suggest that providers and clients alike must deliberately address a suite of cloud challenges in the planning, contracting and managing the services.

5. Reliability on new technology

It is a fact of human nature that we trust on the things present in front of our eyes. Normally entrepreneurs feel hesitation in letting out the organisational information to any unknown service provider. They think that information stored in their office premises is more secure and easily accessible. By using cloud computing they have fear of losing control over the data. They think that data is taken from them and handover to an unknown third party. Security threads are increase as they do not know and where is the information stored and processed. These frights of the unknown service providers must very amicably be dealt with and eliminated form their minds.

6. Dependency on service providers

For uninterrupted services and proper working it is necessary that you acquire a vendor services with proper infrastructural and technical expertise. An authorized vendor who can meet the security standards set by your company’s internal policies and government agencies. While selecting the service provider you must carefully read the service level agreement and understand their policies and terms and provision of compensation in case of any outage or lock in clauses.

7. Cultural obstacles

High authority of the company and organisational culture has also become a big obstacle in the proper implementation of the cloud computing. Top authority never wants to store the important data of the company somewhere else where they are not able to control and access the data. They have misconceptions in their minds that cloud computing puts the organisation at the risk by seeping out important details. Their mindset is such that the organization on risk averse footing, which makes it more reluctant to migrate to a cloud solution.

8. Cost barrier

For efficient working of cloud computing you have to bear the high charges of the bandwidth. Business can cut down the cost on hardware but they have to spend a huge amount on the bandwidth. For smaller application cost is not a big issue but for large and complex applications it is a major concern. For transferring complex and intensive data over the network it is very necessary that you have sufficient bandwidth. This is a major obstacle in front of small organisations, which restrict them for implementing cloud technology in their business.

9. Lack of knowledge and expertise

Every organisation does not have sufficient knowledge about the implementation of the cloud solutions. They have not expertise staff and tools for the proper use of cloud technology. Delivering the information and selection the right cloud is quite difficult without right direction. Teaching your staff about the process and tools of the cloud computing is a very big challenge in itself. Requiring an organisation to shift their business to cloud based technology without having any proper knowledge is like asking for disaster. They would never use this technology for their business functions.

10. Consumption basis services charges

Cloud computing services are on-demand services so it is difficult to define specific cost for a particular quantity of services. These types of fluctuations and price differences make the implementation of cloud computing very difficult and complicated. It is not easy for a normal business owner to study consistent demand and fluctuations with the seasons and various events. So it is hard to budget for a service that could consume several months of budget in a few days of heavy use.

11. Alleviate the threats risk

It is very complicated to certify that the cloud service provider meet the standards for security and threat risk. Every organisation may not have enough mechanism to mitigate these types of threats. Organisations should observe and examine the threats very seriously. There are mainly two types of threat such as internal threats, within the organisations and external threats from the professional hackers who seek out the important information of your business. These threats and security risks put a check on implementing cloud solutions.

12. Unauthorised service providers

Cloud computing is a new concept for most of the business organisations. A normal businessman is not able to verify the genuineness of the service provider agency. It’s very difficult for them to check the whether the vendors meet the security standards or not. They have not an ICT consultant to evaluate the vendors against the worldwide criteria. It is necessary to verify that the vendor must be operating this business for a sufficient time without having any negative record in past. Vendor continuing business without any data loss complaint and have a number of satisfied clients. Market reputation of the vendor should be unblemished.

13. Hacking of brand

Cloud computing carries some major risk factors like hacking. Some professional hackers are able to hack the application by breaking the efficient firewalls and steal the sensitive information of the organisations. A cloud provider hosts numerous clients; each can be affected by actions taken against any one of them. When any threat came into the main server it affects all the other clients also. As in distributed denial of service attacks server requests that inundate a provider from widely distributed computers.

14. Recovery of lost data

Cloud services faces issue of data loss. A proper backup policy for the recovery of data must be placed to deal with the loss. Vendors must set proper infrastructures to efficiently handle with server breakdown and outages. All the cloud computing service providers must set up their servers at economically stable locations where they should have proper arrangements for the backup of all the data in at least two different locations. Ideally they should manage a hot backup and a cold backup site.

15. Data portability

Every person wants to leverage of migrating in and out of the cloud. Ensuring data portability is very necessary. Usually, clients complain about being locked in the cloud technology from where they cannot switch without restraints. There should be no lock in period for switching the cloud. Cloud technology must have capability to integrate efficiently with the on premises. The clients must have a proper contract of data portability with the provider and must have an updated copy of the data to be able to switch service providers, should there be any urgent requirement.

16. Cloud management

Managing a cloud is not an easy task. It consist a lot of technical challenges. A lot of dramatic predictions are famous about the impact of cloud computing. People think that traditional IT department will be outdated and research supports the conclusions that cloud impacts are likely to be more gradual and less linear. Cloud services can easily change and update by the business users. It does not involve any direct involvement of IT department. It is a service provider’s responsibility to manage the information and spread it across the organisation. So it is difficult to manage all the complex functionality of cloud computing

17. Dealing with lock-ins

Cloud providers have an important additional incentives to attempt to exploit lock-ins. A prefixed switching cost is always there for any company receiving external services. Exit strategies and lock-in risks are primary concerns for companies looking to exploit cloud computing.

18. Transparency of service provider

There is no transparency in the service provider’s infrastructure and service area. You are not able to see the exact location where your data is stored or being processed. It is a big challenge for an organisation to transfer their business information to such an unknown vendor.

19. Transforming the data into virtual set-up

Transition of business data from a premise set up to a virtual set up is a major issue for various organisations. Data migration and network configuration are the serious problems behind avoiding the cloud computing technology.

20. Popularization of cloud computing

The idea of cloud has been famous that there is a rush of implementing virtualization amongst CIOs. This has led to more complexities than solutions.

These are some common problems regarding the cloud computing execution in real life. But the benefits of cloud computing are more vast in compare to these hazards. So you should find the perfect solutions and avail the huge benefits of cloud technology in your business. It can take your business to the new heights!!