Do part b only

Core Issues of Having Accounting Data in the Cloud

Introduction

According to Bahga and Vijay, cloud computing refers to the practice of using an internet hosted network of remote servers to effectively keep, maintain and process data (1). This technique exists as one of the recent technological trends that have resulted in the improvement of data storage and retrieval in modern organizations. The cloud houses a large number of applications that different accountants and their customers use to ensure efficient flow of information within the organization. This paper will discuss critical issues of having accounting data stored in the cloud.

Core Issues to Consider when Having Accounting Data in the Cloud

According to McAfee, there are essential factors to put into consideration when storing data in the cloud (1). These factors include cost, reliability, Security, and reliability. Despite findings concerning the cost of storing data on the cloud being contradictory, the widespread uncertainty regarding this system tend to be apparent in debates over its comparative value. Accountants have to ensure that the cost incurred when shifting and storing data on this system are minimal when compared to other systems (Marinescu, 8). Costs must be kept lower to ensure that the company earns supernormal profits.

Bahga and Vijay add that cloud system users have to make sure that the system is reliable and stable to eradicate losses that may incur due to the use of unreliable systems for storing, managing and retrieval of data (23). Today, cloud companies are continuously eradicating system redundancy and improving the reliability of their offerings. Managers should also question over the security of the cloud frequently to ensure that the system is safe from being corrupted with worms, viruses, and the invasion of all other malwares (McAfee, 1). Lastly, it is important to ensure that the organization puts into consideration all the regulations, rules and guidelines set to oversee the efficient installation and management of the cloud system.

Conclusion

Cloud computing has far reaching benefits to the organization utilizing it in storing data. This system is not only cost-effective but also gives the entire business organization a competitive advantage over its competitors. Additionally, cloud computing has associated benefits such as quick implementation, easy and all-time access, lower maintenance and upfront costs, as well as simpler and more regular updates. However, reliability, security, cost and regulation remains top concerns when storing data in the cloud.

Works Cited

Bahga, Arshdeep, and Vijay, Madisetti. Cloud Computing: A Hands-on Approach. , 2014. Print.

Marinescu, Dan C. Cloud Computing: Theory and Practice. Elsevier Science & Technology, 2013. Internet resource.

McAfee, Andrew. What Every CEO Needs to Know About the Cloud. Harvard Business Review. From the November 2011 Issue. Retrieved on May 9, 2016 from: https://hbr.org/2011/11/what-every-ceo-needs-to-know-about-the-cloud.

Rhoton, John. Cloud Computing Explained: Handbook for Enterprise Implementation. London: Recursive Ltd, 2009. Print.