Explain any regulatory concerns regarding the use of cloud-based software. Are t

Question

Explain any regulatory concerns regarding the use of cloud-based software. Are there any regulatory issues that are specific to your locality?Would you recommend your business/company to move to a primarily cloud-based storage solution? Why or why not? Explain any regulatory concerns regarding the use of cloud-based software. Are there any regulatory issues that are specific to your locality?Would you recommend your business/company to move to a primarily cloud-based storage solution? Why or why not?

Explanation / Answer

A common and major regulatory concern regarding the use of cloud-based software would be third-party involvement. In fields such as banking, healthcare and the like where private and sensitive data is worked upon, it has to be treated with utmost due diligence when hiring an external cloud infrastructure provider to ensure that the legal confidentiality clauses that the organization is bound to is applied to the third-party as well.

As an example, for the health care sector (HIPPA) in US, the organization is responsible for any action by the sub-contractor that the organization hires as well. This is backed by the government and any dishonour to the legal contracts will make the organization liable for legal action against them. When the number of different cloud providers, cloud based data app developers and cloud support technicians increase, the risk of data being misused increases.

For a business that does not have very sensitive data(like data related to national security) but has moderately sensitive data (like the customer's demographical data), cloud based storage is less of a risk. The advantages of using cloud is that you need not maintain any sort of scalibility with physical storage systems in your location. The cloud provider would be taking the onus of keeping your data secure, scalable, fail-proof(usually by having multiple copies of the data) etc.

But in case the data a company handles could lead to a national securoty threat if misused, then it would be always advisable to keep it on-prem. As even if the cloud is safe, transmission of data to and from cloud can be hacked and hence cannot be trusted completely with cloud solutions.

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