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The top five risks of cloud financial software


Data security in cloud computing isn't foolproof

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"The biggest concern I have is with data loss," Heiser said. If the worst happens, "can you verify with your provider that your data will be recovered? And how long will it take? [The cloud] is a living, breathing entity. It's amazing that it works as well as it does."

To be sure, there isn't widespread looting of data in the cloud, but it's very difficult to disprove that it's not happening either. "Security transparency of cloud providers is terrible. I'm sure they actually do a fine job at security, but they don't do a good job proving that to us," Heiser said. Again, the onus is on the enterprise to ensure data security in cloud computing. The savings businesses thought they achieved by using a SaaS model are now just shifted. "We go from managing our software to managing our providers. And there is no systematic way yet to go about this," Heiser said. "It takes 'buyer beware' to another whole level."

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