Is cloud computing good or bad?

Before enrolling on cybersecurity courses, I would look keenly at the skies for servers running the cloud computing. When I got the opportunity to travel by air, I took a window seat so as not to miss the up-close opportunity of seeing so many computer servers in the cloud.

I never saw anything because cloud computing is not about having so many servers in the cloud.

Rather, cloud computing is a technology that makes it possible for large and small businesses or individuals to acquire or subscribe to use computing resources such as servers, storage, databases, software, and more over the internet, often referred to as “the cloud.”

This allows users to access and use resources such as Google cloud email services, Microsoft 365 productivity tools, QuickBooks online, etc on-demand from cloud service providers.

 Any resource or service that you access only via an Internet connection is said to be in the cloud.

In the past, computing was on-premises. If you do not need an active internet connection to access your files or services, then your services are off the cloud. Gone are the days when there was one option for businesses wishing to automate their processes, acquire hardware and software, and set up ICT operations at their head office. Today, many institutions, both private and public, if not all, have a hybrid approach. They use both the cloud and local hosting. This is because of regulatory requirements, risk management, convenience, and cost management, to mention but four. Cloud computing is irresistible due to:

All you need is an active internet connection, and start-up capital to acquire hosting space from cloud providers like Amazon, Google, or locally Roxio, MTN, or UTL depending on their offerings and suitability for your business model.

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Cloud is scalable as it grows with your business. Imagine you have a backpack that can magically expand to fit all your books as you get more. That is what cloud computing does to businesses, it grows to fit your needs without buying more equipment. One of the biggest challenges to innovation for startups is a lack of capital. To run a simple application like a news website, one needs a powerful computer in a stable data center which has 365 days of electric power availability to ensure 99%+ website uptime. They need to run several software programs which are expensive to acquire and operate. They must hire great staff to operate the datacentre, in addition to investing in security of the application! Such setup would be prohibitive to compete with already established businesses, as a startup would need not less than USD 350,000 to setup such operations. That is where cloud computing comes up. All you need is an active internet connection, and start up capital to acquire hosting space from cloud providers like Amazon, Google or locally Roxio, MTN or UTL depending on their offerings and suitability for your business model. The ability of using small resources as you start and therefore paying less, and having access to more computing resources as you grow, makes cloud computing the best option and one which is here to stay.

Cloud saves money for businesses. Instead of buying lots of books, you can borrow them from a library and return them when you’re done. Or look at the Netflix or Amazon Prime or YouTube premium videos, instead of buying CDs, you just subscribe and watch. And come to think about it, how many people re-watch a movie? Cloud computing works similarly, letting businesses pay only for what they use. No wonder the online movie subscriptions killed the movie rental business. Many small business, otherthan for reasons of compliance, do not need to setup local servers since cloud offers much more benefits and newer technologies to compete internationally.

A finitech in the US uses same computing resources on Amazon aws like the one in Japan or Kenya. This helps entreprenuers to tap into same computing power and evens the playing field to the power of ideas and business model. Cloud computing works anywhere with Internet connection. Just like you can watch videos on your tablet at home or at a friend’s house, cloud services let you access your data and programs from anywhere with internet. It’s a game changer.  Think of cloud services like automatic updates for your favorite video game - they keep everything running smoothly and securely without you having to do anything. And if you lose your homework, it can be a disaster. But if it’s saved on the cloud, you can easily get it back even if your computer crashes. Recently a CEO of a top company had his MacBook Pro stolen from his car. The company implements strong encryption meaning that the documents on the computer are secure. The fact that the laptop also auto backups on iCloud Drive, all they have to do is get a new laptop and access all the documents as their legal and finance processes insurance to replace the lost MacBook Pro. Imagine, without the cloud, all the informaiton on the laptop would be lost. How much would it cost the company to recover all the data on the CEO’s laptop?

Cloud computing is not without its shortcomings.

Many executives think about security when the topic of cloud computing comes up. Just like you wouldn’t want strangers to see your diary, storing data in the cloud can make it vulnerable to hackers. Every time you initiate a connection to access the server where your data is stored, someone could intercept your connection and take it over from you. It’s a big risk. It is like having your office 10 km away from your home. Every time you wake up in the morning to go to work, someone could intercept you on the way from home to the office. Should you decide to work from home? Will that be most secure? Yes and no. If someone indeed wants you, they can find you at your home despite the high electric fence and dogs. They could go through your house help or shamba boy! Whether cloud or local computing, good security is needed to keep information safe.

Another issue that is of concern about cloud computing is system downtime. Imagine if your favorite online game went offline while you were playing. If the cloud service goes down, you can’t access your data, which can be a big problem. The fact that you are not in control of the entire setup leaves you at the mercy of the cloud provider. The good news is that cloud services, due to scale and in built redundancy, is more resilient than a siloed local setup. Imagine your local data center catches fire, how long would you take to set up a new one or activate a disaster recovery site and then set up another primary data center?

Of more concern for boards, regulatory bodies, and leaders is less control over the cloud services. If your bike breaks, you might want to fix it yourself, but with cloud services, you have to rely on the provider to fix problems. One time a bank operating a branch in Uganda with a head office in Kenya had its banking license suspended by the Central Bank of Kenya. Its entire banking system went offline. Because the Ugandan branch was accessing the core banking system in the cloud over the Internet, the system went off too in Uganda! Yes, you read right. A Ugandan licensed bank could not provide Ugandan savers access to their money despite having a local regulator, the Central Bank of Uganda. The issue was fixed swiftly, but it woke everyone up about the issue of cloud computing and from then on, all local banks are required to host their core banking systems locally to avoid such pervasive impact of regulatory actions in other countries. What many global companies do is a hybrid approach, where a cloud system is operates with realtime syncronisation and update of the local backup solution to cater for such eventuality.

Slow Connections is another major concern.  If your internet is slow, accessing cloud servers to work can be frustrating.

Don’t get ready, stay ready.

Imagine if one day all the ATMs stopped working because of an upgrade, and people couldn’t get their money, even in emergencies. It happens in Uganda, and not good especially for those with emergencies. Sometimes banking systems go off, mobile money is unavailable and heck Internet and phones go off.

You can prepare by having plan B, a backup to keep the systems ready. For example, if the ATM at one location isn’t working, there should be another one nearby that does. If the bank’s Internet banking is off on the mobile phone, the nearby branch should be able to help. You want to avoid prolonged total downtime. If Internet banking will take days to be restored, the branches should be ready within an hour or two to allow customers to transact. The same thing should happen for cloud computing. If one server is off, you should be switched automatically to another.

Staying ready means that you must regularly test systems to make sure everything works well. Like having fire drills at school, this helps everyone know what to do in case of a real problem. Any business with good leadership conducts ongoing risk assessments to identify its mission-critical assets and capabilities and mechanisms to respond in case unexpected events happened. For example, fire is a common occurrence in factories. You expect quarterly or bi-annual fire drills to ensure that staff know what to do in case a fire breaks out. As a bank, it must do tests and dry runs of how to respond to a massive hacking incident with potential of paralyzing the business. 

Who has the automatic switch? Does it exist? Use systems that automatically switch to a backup if something goes wrong. It’s like having a spare tire ready if you get a flat tire on your bike. By default, all cars have a spare tyre so much so that some men have fixed themselves some form of “spare tyre” in Playboy speech. What happens if it rains? And this brings the issue of who does what, and when? If there’s a problem, inform everyone quickly and give them other ways to get what they need. For example, if ATMs are down, let people know they can use mobile banking or visit a bank branch. Who makes the communication? Have an emergency response team ready to be activated in case of an incident requiring a series of actions to recover the operations in record time.

As a cybersecurity consultant, I still think that many companies do not have good commercial lawyers with understanding of service level agreements especially cost management over the project lifecycle. So bad that lawyers ask the vendor to submit a contract for their review and signing! So many clauses are written in favor of the vendor which brings a lot of cost burden to the company. Make sure the companies you use for cloud services or any IT service promise to fix problems quickly and have minimal downtime. It’s like having a warranty for your toys that guarantees quick repairs.

Above all, continuously monitor systems to catch and fix issues before they become big problems. Like keeping an eye on your pet to make sure they don’t get into trouble. There is nothing better than training everyone about what to do when things go wrong. This is like having everyone know how to safely exit the house in case of a fire.

Cloud computing works anywhere with Internet connection. Just like you can watch videos on your tablet at home or at a friend's house, cloud services let you access your data and programs from anywhere with internet. It’s a game changer.

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Ends

Mustapha B Mugisa, Mr Strategy is Managing Director at Summit Consulting Ltd.