We have so little visibility into what were paying for various technologies today that its easy to get sticker shock, Stroud of ISACA and CA said. Thats not the cloud providers fault.
Its not necessarily your fault either. Financial visibility into IT systems is a tricky matter. Many costs are opaque. Who consumes what? Who pays for what? Who gets to consume how much? For many IT departments, the answer to those questions is fuzzy at best. With the cloud, though, those answers become painfully clear.
According to Gartner, Service providers have not done a good job of explaining which jurisdictions they put data in and what legal requirements the service consumer must, therefore, meet. The service consumer needs reassurance that the provider does not violate any countrys rules for which the consumer may be held accountable.
Complying with industry regulations is also more troublesome. Even if cloud services limit your risk and technically make you more compliant, you may have a more difficult time proving that.
The vast majority of people I corresponded with for this story overwhelmingly advocated cloud computing. I received several emails saying that theyve seen few, if any, cloud failures.
The truth is that the cloud solves more problems than it creates. The cloud eases your IT management and maintenance headaches and lets you turn your attention away from IT and back to your core business. Failing to understand that is a huge mistake.