Yes, there are a few cost benefits to a cloud computing as a model, but security trumps them all.
Once you factor in the virtually non-existent "quality of service" level agreements that most vendors offer, you find that the cloud is aptly named: it is a bunch of vapor obscuring the truth that there isn't really anything there.
Our data is our business. If it were compromised by a corporate competitor, then we have nothing.
Access to our data is necessary to continue business. If we used a cloud service and (1) we lost internet connectivity, or (2) their servers went *pop*, or (3) the vendor went bankrupt ... well then, we would go out of business with them.
Our data is controlled by the EPA, FDA, and IRS, as well as being covered by many regulations (such as S/O, HIPA, and other such accountability and privacy acts). Can the vendor guarantee (1) proper retention is maintained, (2) the data will not be modified in any way, and (3) that no-one else will be able to access it?
Can they ensure that the data doesn't leave the governing body's zone, or for that matter, become entangled by different legal requirements held by governments at their off-site data center's backup location?
Clouds are pushed by people who don't understand business practices, governmental regulations, and legal requirements.
For a business, keeping critical data in-house is simply neccessary.
Regards,
Jon
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