Is Cloud technology savior or is it breaching your application? Does it indicate the demise to overall IT functionality?  These are some common dilemmas that buzz inside the mind of business executives, while they are thinking about implementing it into their business. Though this technology enables organizations to access on-demand computing capabilities, software and business functionality, but still there are some concerns to consider.

These are the situations that companies are facing while moving to the cloud.  

Challenge 1# 

Safeguarding data security

Data security and privacy is the major concern that has been responded by many IT executives. Most of the well established businesses that adopt cloud are concerned about the security of data outside the corporate firewall. In addition, people hack brands or applications, regardless of what the infrastructure it relies upon. It is because a cloud hosting provider hosts multiple websites, each can have the influence of attack by action taken against any one of them. It is the similar fact, as in distributed denial-of-service attacks, in which server requests that inundate a provider from widely distributed computers.

However, these risks are alleviated by adopting sophisticated security applications such as encryption practice and data-loss prevention software. Cloud providers facilitate hard core security features, like using analytics to examine unusual behavior across vast numbers of virtual servers, which in turn reduces the risk up to a great extent. 

Challenge 2# 

Dealing with Lock-in

It is yet another big concern for companies looking out to exploit cloud computing services. There is always a switching cost when any company is gaining the external resources to implement on their application.

Executives should aware about the fact of lock-in. The first mode of lock-in is, technology-lock-in, which implies the cost of moving a business service from one cloud platform to another. A second mode, institutional lock-in that occurs when technologies become embedded within organizational standards and user's work practices. Particularly, the users of software-as-a-service face the serious impact on the ability to switch other cloud providers, which increases the severity of lock-in.

Cloud hosting providers are likely to focus on increasing lock-in as competition reduces the cost margins. Competitors, however, will coherently focused on reducing switching costs for dominant business players.

Challenge 3# 

Managing the contractual relationship

Cloud is a multi- tenant architecture, which involves a mix of outsourcing, software and leasing.

Cloud contracts generally centered on SLA (Service Level Agreement), but the network of interactions within the overall system increases the intricacies of SLA. For example, Software-as-a-service providers, often share a single platform for all web application users, and so they cannot provide a differentiated SLA to each client.  According to the research, one of the major problems associated with cloud providers is that they have not evolved to the point that they are comfortable being custodians of data.

In response, organizations should evaluate cloud SLAs in context to their company's risk management profile and the IT service infrastructure of the cloud providers.

Bottom-line: Resolving the gauntlets

A bottom line has exposed potential gauntlets among business executives, who need the command and control over business services, and the IT executives, who strive to adopt innovative technology when it comes to leveraging the power of the cloud. Other tensions move out as well: if cloud suppliers commoditize the services, then how will clients obtain the customized services to support business agility and innovation?

Such tensions are evenly not manipulated, but one thing should happen and that is -providers and clients alike must deliberately address a number of cloud challenges in the planning, contracting and management of cloud services.