Security vs. Flexibility

Analysis of the potential benefits and disadvantages of cloud computing from the perspective of the flexibility it offers and the security risks it entails.

By Ariana Carrazana Di Lucia

The main conclusion of a report by ENISA (European Network and Information Security Agency) is that, from a security standpoint, the economies of scale and flexibility in the cloud are both favorable and detrimental elements. Massive concentrations of resources and data constitute a more attractive target for attackers, but cloud-based defenses can be more robust, scalable, and cost-effective. They point out that cloud computing can refer to various types of services, including Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). The risks and benefits associated with each model differ, as do the key considerations when contracting such services. However, they emphasize that security is the market differentiator, as it is a priority for many cloud customers, who make acquisition decisions based on the provider's reputation for confidentiality, integrity, and resilience to failures, as well as the security services offered by the provider. This is a compelling reason for cloud providers to enhance their security practices.

RightScale, now part of Flexera, conducts an annual survey of companies and SMEs to analyze cloud adoption [1]. According to Flexera and its 2021 state of the report, 31% of companies (750 participants) have an annual expenditure of over 12 million USD on public cloud. This percentage is 11% higher than reported in 2020 [2].

According to the thesis by Blanco and Astrada (2019), by eliminating the capital investment (CAPEX) involved in acquiring hardware, software, configuring and running a proprietary data center (power and cooling, administrators, among others), costs are considerably reduced, allowing a shift to an operating expense (OPEX) model due to payment for the use of cloud services, allowing an increase in Return on Investment (ROI). This work, based on data obtained from Deloitte, suggests that the reduction in IT costs is 20-50% due to the reduction in investment in IT infrastructure and maintenance. This allows companies to have more capital available for other investments that promote productivity and growth [3].

A European study (Shaping Europe's digital future) highlights the economic benefits of cloud computing adoption and the free flow of data within the European Union. The study shows that broader adoption of cloud services could add a total of 449 billion euros to the GDP of the EU-28 with a significant impact on employment and business creation. Implementing security certification and eliminating data localization requirements could increase benefits by 19 billion euros between 2015 and 2020 [4].

It is clear that the economic benefits of Cloud Computing have a very large positive impact and that security aspects will depend on the shared responsibility model [5], where possibly part of a company's investment will go towards making the services it manages more secure, reallocating resources based on the security responsibilities transferred to the service provider.

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