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Cloud Computing or Cloud Services – Security and Advantages for Businesses

Many businesses wonder whether they should rely on cloud services for software proposals or prefer an in-house solution. They are uncertain about the security of their data.

Cloud Risks

The majority of risks associated with cloud computing are also present when an in-house solution is used. This is not widely recognized by many businesses.
From this perspective, it was long believed that the location of the data centers necessary for providing software proposals via internet access was more or less irrelevant. After all, customers only need an internet connection and a browser to use such services.

This has fundamentally changed with the revelations from former NSA employee Edward Snowden. Data protection has become a major issue. An additional risk in the cloud is the interception of data by foreign states.
For a long time, many German businesses were uncomfortable with the fact that the majority of American cloud providers served the European market through data centers in Ireland and the Netherlands. In the meantime, however, data centers in one's own country are increasingly being used for cloud proposals.

The risk of data transport over the internet remains. If internet traffic is encrypted, this risk can be eliminated or minimized.

Compared to In-House Solutions

The security of data in a cloud provider's data center is – compared to in-house data storage at an SME – higher. If one carefully selects their cloud provider, they can achieve better protection than with an in-house solution. Choosing a cloud provider in the domestic or EU area can prevent states outside the respective jurisdiction from accessing data (subject to espionage), unless it is an American-controlled company.

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Requirements for Cloud Computing

Today, businesses want to use cloud services like a consumer good over the internet. All their requirements regarding legal and regulatory aspects, risk and security issues, compliance, flexibility, efficiency enhancement, etc. should be met, while at the same time their costs are reduced. Sovereign software at an affordable price – this now also enables smaller companies to implement a cloud solution.

Advantages of Cloud Computing

Every company has its individual starting position. In any case, the use of cloud services in businesses can bring many benefits and advantages:

Simple Evaluation & Access

  • The website provides a good initial overview for comparison
  • Fees are usually visible and can be fully calculated right away.
  • Access to IT services is simplified for businesses.
  • Software can often be tested online for free, without having to talk to a salesperson and get something activated by them.
  • Installation on one's own computers is not necessary. This allows a new system to be introduced extremely quickly. 

Low Costs

  • Extensive business applications, e.g., CRM, ERP systems, can be used easily, without investments over the internet.
  • There is a monthly fee and, in the best case, no hidden costs (e.g., setup, maintenance, hosting).
  • Services are always up to date, so no elaborate follow-up projects are necessary.
  • Updates no longer cause problems, thus reducing administrative effort.

Full Flexibility

  • Services can be used regardless of location and system.
  • The number of users can be adjusted to meet demand in a very short time.
  • Offer of mobile solutions 

Always Up-to-Date Technologically

  • Updates are automatically installed without affecting the user.
  • New demands on IT services due to the introduction of new products or adjustments to market conditions are taken into account more quickly. This directly benefits the companies – they are always up to the latest standard. 

Less Commitment

  • Companies can switch to another provider more easily, as expensive setup costs do not emotionally hinder them.
  • Cloud offers do not 'arrest' companies. They have no long contract durations and can be terminated at short notice. 

More Efficient Work

  • Due to the up-to-dateness of the data, resources and economic efficiency can be optimized better.
  • In the event of company relocations and the acquisition of new devices, nothing needs to be reinstalled.
  • Internal technical know-how is no longer necessary 

Progress in Cloud Computing

Digitalization is currently a big topic. This includes the area of cloud computing. If companies want to be innovative and stay competitive, they can no longer avoid cloud services. Cloud computing is no longer just an IT question but a strategic one, located at the company management level. With a professional approach, a company can only benefit.
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