This translates into providing a model for enabling convenient, on demand network access to a shared pool of configurable computing resources (networks, servers, storage, applications and services). We will assume that these services are delivered over the public network where security would be more of a concern.

Cloud computing can take the form of Infrastructure-as-a-Service (relying on remote data storage networks), Platform-as-a-Service (using a suite of applications, programming languages and user tools), or Software-as-a-Service (running specific applications through a cloud).

• IaaS – examples of this are Rackspace, Amazon and IBM where they offer servers, storage and network connectivity. 
• PaaS – examples of this are Google and Force.com where they provide the development environment so the company does not have to maintain the hardware or upgrade the software.
• SaaS – This is the most popular cloud computing services offering with email being the most common use. Saleforce.com is one example and other applications are moving to this delivery model as well.

While each of these service offerings have various levels of security – and many articles have been written about security breaches – you shouldn’t be as concerned as the hype would lead you to believe:

1. The companies deploying cloud services have far greater skills in security solutions than most small- to medium-sized companies. If you choose the right provider, they have teams of people dedicated to security and a variety of options for protecting your data, application and overall environment. Most small- to medium-sized businesses cannot afford to maintain a dedicated staff that stays up-to-date with technology and security challenges.
2. Cloud service providers are also able to leverage the most advanced hardware, software and data center technology since they are serving so many clients through their single investment. Companies cannot afford to make the same level of capital investment in technology.
3. Most small- to medium-sized business do not store the kinds of sensitive data that hackers are going after. Again, if you do then you would need to deploy some security measures internally or potentially not take this data to the cloud.
4. One of the biggest risks for security is social engineering, which is a non-technical kind of intrusion that relies heavily on human interaction and often involves tricking other people to break normal security procedures. An example of this is someone who gets a fake identification to get into an organization and then convinces an employee to let him or her into the data center because of a task that upper management has asked him or her to do. Statistics show internal security breaches run anywhere from 30 to 35 percent of total security incidents. Most of those are accidental, which can be attributed to social engineering techniques. Since this relies on getting someone to compromise a network’s security, it is not effective in a cloud environment where the network is controlled and accessed by the cloud vendor’s staff and not the company’s staff.

Cloud computing is the most talked about technology trend and likely the most misunderstood. In its simplest form, the cloud allows a company to deploy software, server, and storage technologies by leveraging a provider’s technology investment. There are a variety of options to consider for outsourcing parts of or your entire internal IT infrastructure. These range from network (IaaS), to hardware/operating software (PaaS), to complete software suites (SaaS).

If you’re uncomfortable moving to the cloud, consider that these providers have highly skilled security personnel and large investments in technology infrastructure. In addition, most small- to medium-sized businesses do not have the kind of sensitive data that is attractive to hackers. Finally, the number one method of security breaches is related to social engineering, which is reduced substantially since the data center is at a location controlled by the provider.

Cloud computing is projected to be a $150 billion industry by 2014. With more and more companies moving to some form of cloud services in the near future, there are several steps you can take to ensure a smooth transition:

• Understand cloud computing and your options
• Know the costs and the ROI – review all costs over a three- to five-year time horizon
• Develop a holistic strategy – include things such as migration, communications, long term implications and integration with business strategies
• Ask questions and learn from others – ask the providers and their references
• Address security and other concerns but don’t go overboard – there are many security service offerings available but some of these are unnecessary depending on your environment
• Thoroughly research potential providers/due diligence – as with any purchased service, “buyer beware” still applies
• Monitor performance and availability of data – don’t hand over the keys to your entire technology environment without keeping tabs on performance
• Make sure your infrastructure will support a cloud – before you leap to the Cloud you need to make sure your internal environment is ready

Marvin Sauer is the President of Lightspeed Data Solutions, a leading software development firm focused on providing greater value for clients by improving execution of operations and data management. More at: www.lightspeeddatasolutions.com