Will cloud computing be your best option? Make sure you answer these questions first.

from SmartComplianceInc.com

Cloud computing, cloud technology, cloud services, “in the cloud”, in whatever context, you’ve heard of it. And by now you could probably recognize it by this definition “a type of computing in which "massively scalable IT-enabled capabilities are delivered 'as a service' to external customers using Internet technologies"  or by the services you’ve used personally for years that already employ the technology: Gmail, YouTube, Google Docs. Now that cloud technology is transforming corporate IT infrastructure, it’s being used in collaborative areas such as file storage and sharing, web and video conferencing, web-based project management software and online education and training. Many predictions are being thrown around involving billions of dollars saved as IT budgets expand the “Cloud services outsourcing” item, but the decision to use or not use cloud services has not come lightly, especially where sensitive monetary, employee, and client data are involved.

Employing cloud-based services requires a lot of questions that don’t have short answers. And when supplying cloud-based services, we’ve learned there are even more questions to ask ourselves before our clients ask them of us. So below, is our list of questions that must be understood, asked, answered, and verified by all those involved in the IT decision making process, no matter if you’re on the service or the client side of cloud services.

Questions to ask before employing cloud services

What federal privacy regulations are the client subject to, is the service provider subject to the same regulations or can they incorporate them and help the client guarantee compliance?

How is data restoration and recovery ensured if a disaster occurs? How long will it take and how does it affect the contract?

That in mind, what is the service providers history and statistics on data loss and services downtime?

Who is responsible for managing this client’s data and who has access to it from the cloud service provider’s side? What are their qualifications?

What support assurances and services are available should questions, problems or concerns arise throughout the contractual period?

How is data encrypted and segregated from other clients? Is the client prepared to pay more for various levels of data encryption?

Where exactly is client data physically stored? Are proper regulations and protocol being followed in that location?

What investigative support does the cloud service provider offer, should the security of a client’s data be breached?

If the service provider goes out of business or is bought, what will happen to the client’s data? How can the services be replaced or transferred?

How does the client plan to provide support on data if it’s hosted externally and what promises have the cloud services client made to their clients?

How and how often do you test for data integrity and errors and how will these findings be presented and resolved for the client?

What type of financial remediation are you entitled to through a Service Level Agreement (SLA) should the cloud provider go down?

Summary

Now this is just the beginning. There are endless offshoots of these questions based on your company, industry, employees, hardware, budget...the list goes on. What’s important is coming up with a list of questions before you begin the hunt for a cloud service provider, adding to the list during negotiations, and getting them all out on the table and discussed before signing any contracts. And most of the answers should be documented in those contracts.

What other questions, concerns, issues have your company come across in the search or use of cloud services? Leave us a comment below.