Three Issues to Consider Before Moving to the Cloud As more businesses are moving data online, here are some of the top security issues to examine before making the jump yourself.

By Ramon Ray

Opinions expressed by Entrepreneur contributors are their own.

By letting a cloud services vendor store your company's files and applications online, you can easily expand in-house storage capacity and processing muscle as your business grows. Let's say you have a surge of new orders on your e-commerce system or you need to expand processing power for an application. Your vendor can boost your computing capabilities to satisfy those needs.

But there can be some risks associated with moving to the cloud. What if your vendor goes bankrupt and closes? What if its technology fails, leaving you unable to access your sensitive business data?

Migrating valuable business information to a technology vendor is a big move and can require a lot of consideration. Here, we look at three of the most important factors to consider when making the transition for your company.

1. Research the vendors.
Because it's relatively easy to offer cloud services, your choices will range from larger, established companies to unknown startups. The small players may be competent, but be sure you feel comfortable being among the first to put them to the test.

To assess vendors, ask for customer references, talk to other companies you trust and do some research online. The ideal vendor will have a strong track record for both performance and customer service.

Related: How One Small Company Outsourced IT to a Cloud-Computing Platform

For example, low latency -- the delay in moving data from one point to another -- is an important measure to check. Prompt and reliable service is critical because your cloud provider is essentially your new outside information technology department. If the vendor is slow to deal with your problems, your response time to customers also will likely suffer.

2. Be aware of legal issues.
Understand your potential legal liabilities and ensure that your cloud vendor abides by the same rules that govern your company.

Your business may have internal audit rules that demand careful handling of sensitive information. If you're in a regulated industry or do business with the government, you also may be subject to restrictions on handling data.

Related: How to Move Your Business Data into the Cloud Safely

Make sure the vendor also understands the latest privacy laws affecting your business and that it states in writing its commitment to confidentiality and its methods for securing your data. "As your data is stored in the same storage space as your neighboring tenants, you need to know how your cloud vendor will ensure that your data isn't illegally accessed," says Ian Huynh, vice president of engineering at Hubspan, a cloud services integration company.

3. Consider a back up to the cloud.
Your data will likely be just fine in the servers of a cloud services vendor. I've been using online services for years and have never lost data. But if you would like an added measure of security, you might want to regularly back up data stored in the cloud.

You could manually export your information from the cloud and back it up on-site. Or you could select a cloud backup service from such companies as Symantec, CloudBerry, KineticD and CTERA Networks, which typically allow users to keep copies of their cloud data on local servers or in other locations.

Related: Still Foggy on Cloud Computing?

Installing software on a server or local computer hard disk has been the traditional way of using computers for years. However, online software offers growing businesses a much faster, more productive and more cost effective way to create, manage and move information. Just be cautious about what software you can move securely to the cloud.

Wavy Line

Ramon Ray is editor of SmallBizTechnology.com and author of Technology Solutions for Growing Businesses.

Editor's Pick

'Catastrophic': Here's What You Should Know About the Debt Ceiling Crisis — And How a Default Could Impact Your Business
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Leadership

The Real Reason Why The Return to Office Movement is Failing is Revealed in New Study

There is a vivid sign of the disconnect between employees and their workplace, a glaring indication that companies need to revise their scripts to improve their hybrid and remote work policies.

Money & Finance

3 Ways to Create Multiple (Big) Streams of Income

Here are three ways to create multiple streams of income. These strategies require effort and resources but offer significant financial potential.

Legal

'That '70s Show' Star Convicted on Two Counts of Rape. He 'Drugged' His Victims.

Danny Masterson was accused of forcibly raping three women at different times between 2001 and 2003. The jury reached a verdict on two counts but was deadlocked on the third.

Business News

7 of the 10 Most Expensive Cities to Live in the U.S. Are in One State

A new report by U.S. News found that San Diego is the most expensive city to live in for 2023-2024, followed by Los Angeles. New York City didn't even rank in the top 10.

Business News

Raccoon Adorably Orders A Donut From Dunkin' Drive Thru: 'Little Gentleman'

The hilarious clip has garnered over 21.3 million views on TikTok.

Management

12 Good Reasons to Explain Why You Left a Job During an Interview

Not sure what to say when asked why you left your last job? Check out these reasons so that you have a great answer on your next interview.