CIORisk Management

5 Liabilities of Working in the Cloud

There’s always a catch for any positive innovation in the world. We invented the wheel, but the fallout from it was traffic jams; every positive has some negatives of it to take into consideration. It rings true for the cloud as well, as there are some liabilities that need to be taken into account. In an article for CIO magazine, Tim Molino highlights five different liabilities of the cloud:

  1. Transparency (or lack thereof)
  2. Open source
  3. Copyright
  4. Patent risk
  5. Unavailability of a service

Liabilities of the Cloud

One of the biggest red flags of cloud service is a lack of transparency. You should be able to easily identify the key suppliers and subcontractors that underlie how you provide products and services. A lack of transparency from your own suppliers implies that there is something to hide and that they may not have full control of their service. Another issue is in using open-source components. It can be tricky to keep up with all the required attributions that come with using open-source components. Additionally, not only do you have to cover your own use, but the coverage of your cloud provider as well.

Copyright will also be a liability, as employees upload content from various different sources. You need to have a system in place so you can handle copyright take-down requests when they come in. Patents will also pop up as issues for your company. Patent trolls–companies who solely exist to gobble up patents–will try to target you. But larger competitors may also try to shut down your business if they can. Cloud providers respond to these risks in different ways.

Lastly, Molino says that unavailability of a service might cause problems as well:

There are many reasons why your service may go down. You can suffer a cybersecurity attack which takes down your system, or you can face a regulatory compliance issue which requires you to stop operating the out-of-compliance service. These issues can also impact your cloud provider and prevent you from running your service. In any case, you may face hefty penalties from your customers, as they can’t use your service. Contract terms often try to address these risks by clarifying what’s covered and what’s not.

You can view the original article here:


Austin J. Gruver

Austin is a Staff Writer for AITS. He has a background in professional writing from York College.

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