Cloud computing is a broad term that compasses everything from Facebook and Twitter to Google Docs and Amazon Virtual Private Clouds. At its simplest, cloud computing is the practice of making applications, software or other services available to consumers on demand over the Internet. Many businesses have started to use cloud computing services their productivity. For example, a company may use Amazon's Simple Storage Service to store their companies data on the web freeing up the time and resources storing the data on a private server would take.

While the use of cloud computing services can change the way business run and consumers interact, users should be aware of the risks and educated in protecting their privacy and data before signing up with a provider.

Benefits of Cloud Computing

  • Allows users to make use of applications, services and software they would otherwise not have the physical or technical capabilities to use
  • Prevents data loss by placing data on servers that are more reliable and secure. Such servers often store data in multiple locations.
  • Allows data to be accessed from any computer with the required Internet connection
  • Increases productivity and efficiency by allowing resources to be used on expanding business function as opposed to the upkeep of technology

Drawbacks of Cloud Computing

  • The data owner does not have direct supervision over the data processors
  • Data placed in the "cloud" (ie: the Internet) is less protected than data that remains in a private computer or network
  • Technology has outpaced the ability of government to develop timely regulations and ensure privacy.
  • The data owner loses complete control over data accessibility and destruction. Problems such as data outages, wrongly employed encryption, accidental deletion and failed destruction of files are all risks involved with storing data with a cloud computing service.

When considering placing personal information or important business information with a cloud computing service there are a number of things to consider: