Cloud computing is no longer a new word. Almost every major enterprise makes use of it to reduce infrastructure costs as well as provide a Software as a Service (SaaS) business model to offer web-based applications for more profitable revenue streams. Since cloud computing has become a common name in the industry, the question arises, “How do you select the right cloud service provider for your business?”

Cloud computing, by nature, requires the interaction of various entities and, as this technology grows, interactions between various companies are becoming the rule rather than the exception. Because of this, it is important to understand which parties, if any, are involved in your cloud computing services apart from your company and the vendor. Third parties can enter a cloud computing service in an outsourcing agreement.

Like all other cutting edge technologies, cloud computing has a number of security issues that are peculiar to the medium. While none of these are insurmountable, it is still necessary that they be handled correctly. Since most of the environment is virtual in nature, the security and business continuity challenges are very different from those faced by more traditional IT centers.

Trust remains an integral part in every situation or relationship whether business or personal in nature. When it comes to cloud hosting, trust earns the top spot in its core operations and if not, then it should.

When adopting cloud computing for your business, making sure that your data is properly backed up and that not all of your “eggs are in one basket” can save you money and time and ensure that your data is safe. Most cloud services providers will give you options with regard to cloud hybridization and avoiding risks with multiple locations. However, these are often all on the same cloud, which may pose a risk. So how to get around that?

Not too long ago, many organizations would wrestle with the opportunities and negative consequences of cloud technology. Back then, many had qualms about placing their valuable data to a faraway storage location that, when jeopardized, could potentially cause a major operational disturbance.

When companies migrate their business processes to the cloud, service assurance will be an important aspect of the migration. CEOs need to be reassured that a minimum acceptable level of service will be provided and that there will be legal safeguards to ensure that this level of service can be enforced.