Cloud backups safeguard business information. Some organisatons are not well-prepared to implement contingency plans when an IT failure occurs. PHOTO/ Shutterstock
In July, a faulty software update caused a global outcry as flights were grounded, financial companies and news outlets came to a standstill and businesses were disrupted. This update was authorised by a cybersecurity firm, CrowdStrike, affecting Microsoft Windows customers.
While the problem is not directly because of cloud computing, it is clear that the affected entities ran their operations on the cloud hence the effects.
Mr Mustafa Mugisa, an anti-fraud risk expert, explains that cloud computing is a technology that enables 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 storage, Google Cloud email services, Microsoft 365 productivity tools, and QuickBooks Online, among others 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,” he says.
Previously, computing was on-premises and if a business needed to automate its processes, the only option was to purchase hardware and software and set up ICT operations at their office. Today, many institutions – both private and public – have a hybrid approach. They use both the cloud and local hosting because of regulatory requirements, risk management, convenience, and cost management among others.
Cloud computing is irresistible because it saves businesses money. With cloud computing, one does not have to buy gadgets such as servers to ease data storage. Cloud computing caters to that.
“Even in a small space, one can run a powerful company with reliance on cloud computing that hosts the servers,” he says.
Peace of mind: Imagine having to buy servers, routers, switches and bridges only for them to be robbed. Mr Ernest Mwebaze, the executive director of Sunbird AI, says cloud computing, not only saves you from buying those gadgets but also the loss from the theft.
Cloud is scalable: Imagine having a backpack that can magically expand to fit all your books as you get more. That is what cloud computing is to businesses - growing to fit the company’s needs without buying more equipment.
“One of the biggest challenges to innovation for startups is lack of capital. Running a simple application such as a news website requires having a powerful computer in a stable data centre that has 365 days of electric power availability to ensure constant website uptime. The expenses include buying costly software programmes, hiring expert staff and security, which is costly, more than a start-up can raise,” Mr Mugisa, who is also the managing director at Summit Consulting Ltd, says.
All one needs is an active internet connection and start-up capital to acquire hosting space from cloud providers such as Amazon, Google or locally Raxio, MTN or UTL depending on their offerings and suitability for your business model.
Leveled competition
Rather than buy books, one can borrow from a virtual library, which also saves the need for building a library. That is evidenced by Google Books. Then rather than buy CDs, one can access movies and valuable information from platforms such as Netflix Amazon Prime or YouTube premium videos.
“In the same vein, businesses do not have to buy software yet can gain access to newer technologies to compete internationally. That levels the playing field to the power of ideas and business models, making it possible for them to thrive in the computing world,” he says.
Using on-premise software (software licensed and installed on computers) is expensive because it comes with paying for licences. However, Mr Mwebaze says the other headache is getting updates.
“Apart from the cost of accessing the software, the upgrades are very costly. That is not forgetting the downtime that some upgrades may bring and the costly errors that any mistake could cause,” he says.
Downsides
Despite the rosy praises, cloud computing is not without shortcomings.
Uncertain security: Imagine someone accessing your diary, filled with secrets dear to your heart.
“Will our competitors access our trade secrets? Will hackers break into our company, leaving us paralysed?” These are some of the questions that keep most business executives awake.
“Whenever 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 is like entrusting the bank with your jewels, yet uncertain if a heist will happen. It is a big risk,” Mr Mugisa says.
System downtime: When your bank’s network is down, and you cannot access your money, you will fidget, more so if you have an emergency.
“That is what the bank officials are suffering because this downtime is also causing them financial loss since cash transfers cannot be done and one may opt for another hence a loss to that bank,” Mr Mwebaze says.
Limited control: Boards, regulatory bodies and leaders have less control over cloud services as they 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 licence suspended by the Central Bank of Kenya. Its entire banking system went offline. Since the Ugandan branch was accessing the core banking system in the cloud over the Internet, their system was also affected. While the issue was fixed swiftly, it made many appreciate the essence of hosting their core banking systems locally to avoid such a pervasive impact of regulatory actions in other countries,” Mr Mugisa says.
Slow Internet speeds: If your Internet is slow, accessing cloud servers to work can be frustrating. This is common in Uganda where ATMs stop working because of an upgrade, banking systems go off, and mobile money systems become unavailable.
Solutions
While cloud systems are a better way to do business, their failures are nerve-wracking and solutions must be availed.
Some cloud systems suffer redundancy and Mr Mwebaze says one of the solutions is replicating the system in another installation.
“While you use the cloud, you can replicate in a parallel cloud, which only comes into play when your main system fails,” he says.
Backup system: While having a local cloud is very costly, Mr Mwebaze says for security and failure’s sake, you need to back up critical data.
“Instead of keeping it only in Google Drive, you could also keep part of it on Dropbox. You could burn it on CDs that you can store in a secure place,” he says.
That ties in with having a hybrid approach where a cloud system operates with real-time synchronisation alongside a local backup solution to cater for such eventualities.
Plan B: If the Internet connection will take days, the company must get an alternative to serve their clients.
“You want to avoid prolonged total downtime. If Internet banking will take days to be restored, there should be an arrangement with other branches to assist the clients. The same thing should happen for cloud computing where an organisation should have a standby server for an emergency,” he says.
Regularly test the systems to ensure everything works well. It is akin to having fire drills at a company premises, which helps everyone know what to do in case of a real problem. Mr Mugisa says a well-led business continuously conducts risk assessments to identify its mission-critical assets and capabilities, ensuring effective response mechanisms are in place for unexpected events.
“An organisation must do tests and dry runs of how to respond to a massive hacking incident with the potential of paralysing the business,” he says.
Know if an automatic switch exists and who has control over it.
“Use systems that automatically switch to a backup if something goes wrong,” he says.
