1. Cloud Computing Team Members: Aleksandra Knezevic Willie Robbins
Tom Potere
Spring 2012-ACG6415
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2. Agenda What is cloud computing? Security Regulatory & Legal Concerns
Essential Cloud Characteristics
Types of Cloud Computing
Drawbacks & Benefits
Security Regulatory & Legal Concerns
Security Mitigation
Accounting & the Cloud
Future Outlook
Questions
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3. What is Cloud Computing?
Cloud computing is an on-demand service that uses the Internet and central servers remotely to store and access information rather than locating data in a secure network facility.
The service is obtained through third-party providers who offer flexible rates depending on the type and level of service.
Cloud computing is an on-demand service that uses the Internet and central servers remotely to store and access information rather than locating data in a secure network facility.
The service is obtained through third-party providers who offer flexible rates depending on the type and level of service.
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4. Essential Cloud Characteristics
On-demand self service
Rapid elasticity
Broad network access
Resource pooling
Measured service
On demand self services: computer services such as , applications, network or
server service can be provided without requiring human interaction with each service
provider.
Rapid elasticity: Cloud services can be rapidly and elastically provisioned
to quickly scale out and rapidly released to quickly scale in. To the
consumer, the capabilities available for provisioning often appear to be unlimited and can
be purchased in any quantity at any time.
Broad network access: Cloud Capabilities are available over the network and accessed
through standard mechanisms that promote use by heterogeneous thin or thick client
platforms such as mobile phones, laptops and PDAs.
Resource pooling: The provider’s computing resources are pooled together to serve
multiple consumers using multiple-tenant model, with different physical and virtual
resources dynamically assigned and reassigned according to consumer demand. The
resources include among others storage, processing, memory, network bandwidth, virtual
machines and services. The pooling together of the resource builds economies of
scale (Gartner).
Measured service: Cloud computing resource usage can be measured, controlled, and
reported providing transparency for both the provider and consumer of the utilized service.
Cloud computing services use a metering capability which enables to control and optimize
resource use.
The more you utilize the higher the bill.
Just as utility companies sell power to subscribers, and telephone companies sell
voice and data services, IT services such as network security management, data center
hosting or even departmental billing can now be easily delivered as a contractual service.
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5. Types of Cloud Computing
There exist three different types of cloud computing, as follows:
Iaas (infrastructure as a service) - all the hardware, software, facilities, and expertise to make a virtual server is made available by the service provider; supports end-to-end software development life cycle; client has control over the deployed applications; e.g. Amazon EC2
Paas (platform as a service) - a set of tools for developers to build their own applications in the cloud; client has control over operating systems, storage, and deployed applications; e.g. Microsoft Azure
SaaS (software as a service) - the service provider owns, hosts, and manages the software application and delivers it as a service to the customer; the client does not manage or control the underlying cloud infrastructure; e.g. Google Docs
In addition, there are four different models for the delivery of cloud computing.
Private clouds are used on an internal infrastructure for security-sensitive applications.
Public clouds offer resources over the Internet through third-party service providers and can be used for less-sensitive applications.
Hybrid clouds combine the benefits of both private and public cloud models.
Finally, community clouds are similar to private clouds but are shared by several organizations that have common security and privacy concerns.
App Engine
Azure
EngineYard
Force.com
Heroku
Amazon
GoGrid
Linode
Rackspace
Google Apps
Salesforce
Taleo
Workday
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6. Drawbacks & Benefits Drawbacks Benefits Convenient Data Security
Pay for Access
NO –IT Department
Share Resources
Convenient
Reliability Issues
Data Availability
Data Security
There are several benefits and some drawbacks of using cloud computing by CPA firms and their accounting clients.
Pay for Access -Payment for the service is analogous to payment for the use of electricity; that is, a monthly bill based on usage
NO-IT Department -There is also no requirement for funding or managing an IT department where manpower and maintenance is costly and equipment malfunctions and replacements are expected.
Share Resources Another cost saving feature of cloud computing is the capability for users to share resources offered by service providers. This equates to real economies of scale and cost effectiveness for both the CPA firm and service providers, as well as the accounting client.
Convenient - Since the cloud can be accessed anywhere with almost any computing device, the expense and time to travel to the client’s office for accounting and bookkeeping can be virtually eliminated. The cloud is faster and more reliable than servers.
One of the main drawbacks concerns the paradigm shift required for CPA firms to switch company operations from in-house servers to cloud computing. Most people do not fully understand the risk associated with storing or transmitting confidential data in this shared environment. And businesses are much more wary than consumers about confidentiality and privacy concerns.
Uncertainty about cloud availability is also a concern for CPA firms. Several well-publicized failures in 2009 highlight major problems for cloud users: Amazon lost service due to a lightening strike to the cloud.
The cost-savings features of the cloud, such as relying on third-party providers for service and sharing resources with other users, also present the greatest security risks concerning the cloud’s use
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7. Security Regulatory & Legal Concerns
Compliance
Availability
Integrity
Identity & Access Management
3rd Party Provider
Legal Risks
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8. Security Mitigation
Encryption helps ensure confidentiality, integrity, and authenticity of data
Certification of authority-helps gathers security credentials of all involved parties
Digital certificates-work as digital passports
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9. Accounting & the Cloud Model
Cloud-based accountant-centric model
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10. Accounting & the Cloud Advantages
CPA firm can customize accounting solution
Client can self-serve needs
CPA becomes a virtual “CFO” for client
Cloud is “great equalizer” for small CPA firms
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11. Audit Risks & Defenses Governance/ownership Data security policies
Data protection
Identity and access control
Communications
Service Level & contract management
Regulatory compliance
Vendor Management
………………………………….. Use Defense - In- Depth
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12. Historical Backup & Restoration
(1) Expensive Hard Drives & Tapes
(2) Complicated & Time-Consuming Procedures
(3) Off-site storage, restoration of data
(4) Back-ups not reliable
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13. Future Backup & Restoration
Cloud Back- up
(1) Daily Copies Securely Sent to Vendor
(2) Checked for Integrity & Stored
(3) Available for CPA & Client
(4) Restored to CPA after Emergency
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14. Future Outlook More CPA firms are turning to cloud computing
Cloud is flexible and cost-effective
Offers greater security
Client is better served
More CPA firms are turning to cloud computing
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15. Questions
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