Cloud Computing

• Cloud computing enables a user to hold and access their data over the internet. The data is held in the cloud on servers hosted by a third party provider (supplier).
• A Software as a Service (SaaS) agreement is a sub-category of cloud computing. This model comprises a standard online platform and grants Users a restricted user licence (which may or may not be able to be tailored to the needs of the particular User).
• Advantages of SaaS agreements over bespoke software development and management by the organisation of systems held on its own premises are:
  • they are able to streamline business systems and decrease time and costs sunk into management and maintenance of IT systems; and
  • Enables efficient communication between User and its customers and suppliers and can automate a number of processes.

BUT

• a potential downside is that your business information (which may include confidential information and personal information of your employees/third parties) is held in the cloud which carries its own risks.
• governments and some corporations will have policy restrictions on where their information can be held.
• the features of the platform will be restricted and may not be customisable to meet the needs of your business.