Migrating to the Cloud – Pros and Cons

Migrating to the Cloud – Pros and Cons

October 8, 2019 Business Insurance and Risk Management, The Beacon Blog 0 Comments

For businesses which have not yet decided whether to move some or all of their computer operations to the cloud, a post by Sam Martin on the Cyber Security Intelligence website (https://www.cybersecurityintelligence.com/blog/business-migration-to-the-cloud–4521.html) lists the advantages and risks.

Advantages:

  • Cuts cost by not needing expensive infrastructure investment.
  • Flexibility when more space is needed.
  • Applications are automatically updated without need for staff input.
  • Improved storage at lower cost.
  • Accessibility around the clock, so staff can work remotely.

Risks:

  • More vulnerability to cyber attack or malware. If a third party debugs the system data transparency can be lost.
  • Some highly sensitive data cannot be stored on the cloud because of compliance regulations.
  • Legacy systems may have compatibility issues.
  • Data loss because of power outages, system malfunctions or human error.
  • Vendors may lock in data by contract.

To make the best use of the cloud and minimize risks, businesses need a plan.

  • Identify needs and key performance indicators.
  • Assess applications for compatibility and make adjustments if needed before signing a contract.
  • Draw up a plan to insure continuity and data integrity during the transition.
  • Choose the best provider based on their expertise and level of support.



About the Author

Harry Cylinder

Harry Cylinder, CPCU, ARM has spent nearly fifty years in the insurance industry, the majority of the time as a consultant. He has been employed by The Beacon Group of Companies since 2008, specializing in the review and analysis of property and casualty coverage forms. Mr. Cylinder has been reviewing policy forms as they have evolved over the past decades. In 2008 he published an article in the CPCU Journal which was the first description of cyber insurance coverage for a general insurance audience. Since that time he has regularly written on cyber and other topics for The Beacon Companies’ blog.