While there has been growth in public awareness about cloud computing, there remains some confusion about what it actually is. Put simply, cloud computing is pooled hardware and software made accessible via the internet. It means IT users can access their applications and data online. The applications and data are stored and maintained by a third party (cloud service provider) remotely, rather than on servers and networks physically located at the users’ premises.
The stakes are high. Many organisations are very dependent on their IT infrastructure and a failure in IT operations, even for a short period of time, could cause significant financial loss and damage to a company’s reputation. If a company stores its data in the cloud, and the cloud service provider fails to function or loses that data, which party is liable?
In conjunction with the launch of new CFC wordings giving clear, unambiguous cover in the event of a privacy breach or data loss from a cloud service provider, Laurence Rossini, Technology and Media Underwriter at CFC, discusses some of the risks and benefits of cloud computing.