Challenging Cloud Computing Risks Restraining Businesses from Adoption

The term cloud is often accompanied by computing – both come together to summarize a revolutionary technology that ensures data security, flexibility, data storage, seamless data processing, smooth interface and data intelligence.

The cloud has been around long enough for any business, startup and entrepreneur to cite its incredible results – so it is very easy to garner its success rate.

“The Grand View Research shared that the sector’s current value is $368.97 billion, expected to grow at 15.7% CAGR by 2030.”


Before we take to the cloud, let us help you navigate its benefits and the challenges that come with it. Several security risks in cloud computing can be overwhelming for first timers, consequently restraining businesses from adoption – however, they are equally surmountable. So, what are the risks of using cloud computing? Let’s evaluate them!

Overviewing Cloud Computing

Now that we have initial clarity on what cloud computing is, let us overview its concept in depth before we configure the various challenges that come along with it.

Cloud computing is the delivery of numerous software and hardware services over the internet by using remote servers. The purpose of these servers is to store, manage, and process the data allowing businesses to expand, scale, and upgrade their infrastructure while retrieving the data on demand.

The capabilities of cloud computing are divided into three categories:

Software as a Service – SaaS

A popular way of accessing and paying for the software without installing it on the system. The software is managed and delivered remotely by SaaS providers.

Infrastructure as a Service – IaaS

A self-service model that allows businesses to access and monitor storage, networking, and other services on demand.

Platform as a Service – PaaS

A broad collection of application infrastructure that delivers a framework for developers to build and create customized apps.

To understand more about Cloud Computing, check out “The Cloud on Horizon.”

Cloud Computing Risks and Challenges with Solutions Every Business Must Know

With every new invention or discovery, questions, and ambiguities follow suit. Cloud computing and its revolutionary solutions are no exception to it. Certain risks associated with cloud computing restrains modern businesses from adopting it. However, there are solutions to those problems that effectively address those challenges and mitigate the risks. Listed below are the most common risks involved in cloud computing, with solutions every business must know!


Top Cloud Challenges by Flexera State of the Cloud

Security – 85%
Lack of Resources /Expertise – 83%
Managing Cloud Spend – 81%
Governance – 77%
Managing Software Licensing – 76%
Compliance – 76%
Central Cloud Team / Business Unit Responsibility Balancing – 73%
Cloud Migration – 73%
Managing Multi-Cloud – 71%

Empower your business with solutions

Let’s dive right in with the most common risks surrounding cloud computing and their effective solutions to alleviate those challenges.

Security Concerns

We mentioned the global concern of security issues in our complex cloud environment guide and how it’s negatively impacting the embrace of cloud solutions. Security is a significant concern for every business, and the quandaries associated with cloud computing with uncertain security infrastructure often cast a daunting shadow. The fear of being unable to find the exact location where the data is being processed or stored puts cloud computing security risks at the highest level.

“93% of leading businesses are highly concerned due to significant data breaches within the cloud-centric ecosystems”


But what are the main security risks in the cloud computing ecosystem? Let’s pinpoint the most challenging ones!

  • Broken authentication
  • Mass sensitive data breaches
  • Account hijacking
  • Human error
  • Hacked interfaces and APIs

How to Prevent the Risk?

Such concerns make cloud computing a sensitive technology to adopt and embrace. However, the mature fortification capabilities of cloud computing are constantly improving. Verifying your SaaS provider has secure user identity management, data recovery policies, access control mechanisms, and authentication is crucial. Check whether they comply with database privacy and security laws.

You can only reduce the threats of data breaches and attacks by understanding the cybersecurity capabilities and ensuring each step.

Lack of Resources /Expertise

The second cause of major concern is the requirement for additional resources and expertise. Since cloud technologies are advancing and progressing rapidly, it has made it more challenging for businesses to keep up with the developments while utilizing the tools fully. The demand for expertise in cloud computing is proliferating, but the need for trained professionals is putting things to a halt.

Mitigating the Challenge

Many SMEs find adding specialist cloud experts to their teams an additional cost. However, automating some tasks can significantly resolve the need for expert cloud professionals. Moreover, leading DevOps tools can be beneficial in helping in optimizing cost, governance, and security.

Managing Cloud Spend

Managing costs involving cloud computing is another hurdle in its adoption. Modern computing can easily save money for businesses. And the cloud can quickly ramp up its processing capabilities without significant investments in new hardware. But due to the on-demand and scalability of cloud computing, organizations sometimes need help to define and predict the required quantities and costs.

Minimizing the Risks

Fortunately, there are numerous ways to keep cloud costs in check. Enterprises can optimize costs by conducting improved financial reporting and analytics, automating the ruling policies, and strictly following management reporting practices. They must audit the system regularly and implement resource utilization monitoring tools to mitigate the challenges of cloud computing.


Among the risks of using cloud computing, governance must be addressed. IT governance ensures that the tools are being utilized rightly i.e. where the assets are being implemented per the procedure agreed to by the policies. But due to the lack of governance, businesses face issues where their vision aligns differently from the available tools. With no control over compliance, data quality checks, and risk management, organizations face supporting concerns in achieving the goals.

Solution to the Challenge

To eliminate governance risks and challenges, enterprises must adapt their conventional IT control processes and include cloud migration into the mix. Third-party cloud management providers must progressively ensure support and best practices, where the IT personnel must adapt to the cloud’s limited framework regarding governance, risk control, compliance, and data quality management.


One of the cloud computing risks and challenges in compliance. It’s an issue for anyone who uses backup services or storage. Therefore, whenever a company moves its data from an internal storage system to a cloud, they face compliant issues with official regulations and laws.

For instance, healthcare organizations have to comply with HIPAA (Health Insurance Portability and Accountability Act of 1996) regulations, while public retail businesses need to comply with PCI DSS (Payment Card Industry Data Security Standard) and SOX (Sarbanes-Oxley Act of 2002). It’s challenging for these sectors to comply with regulations, move their data securely, and store them.

Key to Moving Data Securely

Each sector and industry must ensure these standards and respect data privacy. In order to do so, businesses must choose vendors that comply with the regulations and standards. Choosing cloud service providers with certified compliance is a great option to proceed cautiously. This way, you will abide by the applicable laws, save during the audits, and maintain customer trust.

Cloud Migration

The process of moving new applications to the cloud is an easy and straightforward procedure. However, moving an existing app to a new environment is challenging and involves risks. Even though many leading enterprises are migrating their applications to the cloud, most need help as their budget crosses estimated costs with missed deadlines.

So, what are the significant issues faced while storing data? Let’s find out!

  • Migration agents
  • Cutover complexity
  • Extensive troubleshooting
  • Understanding application dependencies
  • Dependency mapping
  • Cybersecurity challenges
  • Cost-optimization after migration
  • Application downtime
  • Slow data migrations
  • Assessing technical feasibility

Preventing the Risk

Organizations need a reliable cloud migration partner who understands their organizational needs and requirements to alleviate the challenges. Cloud computing experts must analyze cloud computing risks and challenges before investing in the latest services and solutions.

Managing Multi-Cloud

The use of multi-cloud has grown at an exponential rate in recent years. Businesses are either shifting or combining the public and private clouds. So, what are the challenges and hurdles SMEs face in this situation?

  • Increased architectural complexity
  • Failure in disaster recovery planning
  • Cloud sprawls and increasing costs
  • Managing security policies

Best Practices to Mitigate the Challenges

To ensure multi-cloud success and overcome the continuous risks of using cloud computing, the best solutions include:

  • Working with a multi-management specialist that can assist in integrating every critical system component per business-specific needs.
  • Choosing a hybrid operating model as the innovation will help manage private and public information seamlessly and securely.
  • Adopting a different protocol and management style according to each ecosystem component instead of taking a one-size-fit-for-all approach.

Cloud Wins

The discovery of risks and challenges are an imminent part of technology. Despite the risks and challenges, numerous benefits of cloud computing can’t be ignored. Technology is revolutionizing the IT sector and shaking the Business Intelligence landscape. Especially SMEs (small and medium-sized enterprises) that cannot afford costly server maintenance can use cloud computing to securely scale their business.

Cloud computing risks and challenges exist, but if appropriately addressed, any business can enjoy on-demand services instead of getting stuck with on-premise servers. Let’s discuss the benefits of the cloud and later evaluate how to mitigate cloud computing risks.

The Incredible Benefits of Cloud Computing

As an added edge, the numerous and universal benefits to Cloud Computing are highlighted below

  • Cost Saving
  • Flexibility and Scalability
  • Reliability and Uptime
  • Innovation and Agility

How to Mitigate Cloud Computing Risks

Mitigate cloud computing risks so businesses can conveniently adopt modern technology, alleviating the associated risks and concerns.

  • Analyzing the Security Features of Cloud Computing Providers
  • Meeting Legal and Regulatory Obligations
  • Implementation of Strong Security Controls
  • Educating Employees about the Risks

Cloud Wisely with the Experts

Indisputably, we have reached a new era where businesses can take charge and influence their technological destinies! Avoiding cloud computing because of challenges isn’t a healthy coping strategy, as without it, you will be left far behind the competition in a technologically fast-paced world.

To overcome cloud computing risks and benefits; you need to choose wisely! Opting for a reliable cloud service provider will help you avoid the associated risks and challenges with utmost ease.

Secure cloud computing benefits risks by choosing NETSOL as your partner and safely adapt to the ever-changing revolutionary technology of the modern age.

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