Primer CLOUD COMPUTING DEMYSTIFIED 5 CLOUD COMPUTING MYTHS EVERY SMALL BUSINESS SHOULD KNOW ABOUT

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1 A Primer CLOUD COMPUTING DEMYSTIFIED 5 CLOUD COMPUTING MYTHS EVERY SMALL BUSINESS SHOULD KNOW ABOUT

2 Everyone is talking about how cloud computing may bring considerable benefits to small and medium-sized businesses (SMBs). It allows even organizations with limited resources to store critical data or leverage considerable computing power without purchasing additional software and hardware. Cloud computing not only reduces overhead costs but also allows SMBs to to focus their resources on areas that need them most. But what do SMB owners and decision makers need to know about the cloud? And what do many of them misunderstand?

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4 SMBs know they are using the cloud. Consider the following services: (e.g., Gmail, Hotmail, and Yahoo! Mail!) Websites (e.g., official company web portals and externalfacing sites) Social media (e.g., Facebook and Twitter) Online productivity tools (e.g., Office 365 and Google Apps) Online storage and backup services (e.g., Dropbox, YouSendIt, Google Drive, and SafeSync) If your organization uses any one of the services mentioned above, you already enjoy the benefits the cloud can offer. Each of the services above employ cloud computing in one way or another in order to satisfy users needs. Surprised? You are not alone. According to a Trend Micro study, some organizations used cloud computing services without being aware of it. 1 The respondents were presented with the same list as above and asked which ones they were already using. Everyone was surprised to find out that they were indeed already leveraging the benefits of cloud computing. As long as a business process or service is provided from someone else s server or infrastructure, it is safe to say that cloud computing is involved. 1

5 Paying for cloud services is more costly than buying hardware and software. Consider the following scenario: A small start-up needs a server in order to store all of its business-critical data. Purchasing an actual server will not only take a lot of capital; it will also cost a lot in terms of overhead and maintenance. The organization also has to enlist the services of a competent IT technician to make sure the server properly runs at all times. Software programs need to be regularly patched and updated as well, which typically cost money. Cloud computing services provide companies the benefits of having numerous servers with none of the hassle. Keeping servers up and running smoothly is left to the service providers. If this responsibility is left to a single IT technician who does not work 24 x 7, the solution may not be as reliable. A recent survey found that 14% of SMB cloud adopters saw a 20% or more IT expense reduction versus noncloud users who only reported a 3% reduction SMB cloud users spent 11% less on IT than noncloud users.

6 59% of SMB cloud adopters reported significant productivity benefits compared with only 30% of non-cloud users. Cloud computing slows processes down and reduces productivity. As far as productivity is concerned, cloud computing services not only streamline critical processes but also improve productivity. How? Take a look at some of the reasons: Cloud computing solutions allow SMBs to harness the power of top-of-the-line servers, programs, and technologies. Cloud computing solution vendors and service providers have better manpower and IT resources to handle software and hardware issues than SMBs. Cloud computing services help keep data accessible even if SMBs devices fail, are destroyed, or get stolen. Cloud computing services allow users to access, handle, and work with even large amounts of data wherever they are. Now, what if an organization maintained its own central server? Assuming the organization hired an IT technician, it would take some time before he/she can get the server running again. Repair services can be expensive. If the server sustained severe damage, it may need to be replaced, costing the organization much more in terms of expenses and lost productivity. Microsoft enlisted Edge Strategies to conduct a survey, which revealed that 59% of SMB cloud adopters reported significant productivity benefits compared with only 30% of non-cloud users. 3 3

7 Using personal devices to access the cloud does not pose risks. While it is more secure for SMBs to use the cloud to store data, they still face risks of losing data. 4 81% of organizations have suffered from a data breach due to negligent or malicious employees or other insiders over the past two years. Using personal devices to access company data stored in the cloud pose risks of losing data or suffering from a breach, especially if the devices are stolen or are not sufficiently secured from data-stealing malware. Data loss as well as device replacement and repair are expensive and can damage an organization s reputation. Human error cannot be discounted as a risk, too, as based on a Trend Micro-sponsored Ponemon Institute study: 81% of organizations have suffered from a data breach due to negligent or malicious employees or other insiders over the past two years 52% said their employees failed to update their antivirus/antimalware solutions 35% said that losing laptops and/or other mobile devices was the root cause of data breach incidents 22% said malicious employees or other insiders was the root cause of data breach incidents

8 Cloud service adopters have nothing to worry about. If an organization s cloud service provider suffers from a power outage, while rare, its owner and employees will have no way to access the data stored in the cloud unless it keep backups on servers or storage drives. The service provider s servers could also malfunction, rendering the organization s data inaccessible. Scenarios like these can result in productivity loss. Another risk that organizations may face is having their cloud service providers servers seized by authorities for certain violations. Megaupload, a file-hosting service provider, for instance, was recently indicted for copyright violations and other charges, which rendered its servers inaccessible. While such an event may be rare, it does pose possible risks that organizations must plan for. In case of a power outage, service-level agreements (SLAs) can assure cloud service adopters that their chosen vendors will provide consistent and sustained services. Note, however, that cloud services like Gmail and Dropbox, which SMBs commonly subscribe to do not offer any kind of SLA, as these mainly cater to consumers.

9 WHAT YOU CAN DO TO HELP YOUR ORGANIZATION ENJOY THE BENEFITS OF GOING TO THE CLOUD With Trend Micro, securing your business while enjoying the benefits of the cloud is easy. Here s a list of what you can do to start enjoying the benefits of going to the cloud: Make a laundry list. Identify which of your organization s tasks require hosting software on a computer or server. Ask yourself if these can be performed by a cloud solution instead. Make a decision. Ask questions like, Do I want to maintain my own server? Do I have the skills and budget to do so? If your answer to both questions is No, find a service provider who can manage your server. Then weigh how much it would cost you to manage your server and server software on your own than hiring someone else to do so. Have a backup plan. Thoroughly read your cloud service provider s terms of service. If possible, ask your provider what would typically happen should a power outage occur. Ask questions like What kind of SLA do you offer? and What sort of contingencies do you have in place should a power outage occur? Then come up with a plan to ensure that business goes on as usual despite power disruptions or other unavoidable circumstances. Secure your devices. Make sure your devices or endpoints are secure. Trend Micro Worry-Free Business Security Services provides enterpriselevel protection for your desktops, laptops, and servers without the need for a server to host the solution. Give secure access. Provide your employees secure access to businesscritical data stored in the cloud. Trend Micro SafeSync for Business provides anytime, anywhere file access from any device with a 99.9% service availability backed by a money-back agreement. Protect against spam. Provide protection against spam. Trend Micro Hosted Security does not require maintenance while continuously delivering updated protection against spam and malware before these even reach your network.

10 TREND MICRO Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global cloud security leader, creates a world safe for exchanging digital information with its Internet content security and threat management solutions for businesses and consumers. A pioneer in server security with over 20 years experience, we deliver top-ranked client, server and cloudbased security that fits our customers and partners needs, stops new threats faster, and protects data in physical, virtualized and cloud environments. Powered by the industry-leading Trend Micro Smart Protection Network cloud computing security infrastructure, our products and services stop threats where they emerge from the Internet. They are supported by 1,000+ threat intelligence experts around the globe. TRENDLABS SM TrendLabs is a multinational research, development, and support center with an extensive regional presence committed to 24 x 7 threat surveillance, attack prevention, and timely and seamless solutions delivery. With more than 1,000 threat experts and support engineers deployed round-the-clock in labs located around the globe, TrendLabs enables Trend Micro to continuously monitor the threat landscape across the globe; deliver real-time data to detect, to preempt, and to eliminate threats; research on and analyze technologies to combat new threats; respond in real time to targeted threats; and help customers worldwide minimize damage, reduce costs, and ensure business continuity by Trend Micro, Incorporated. All rights reserved. Trend Micro and the Trend Micro t-ball logo are trademarks or registered trademarks of Trend Micro, Incorporated. All other product or company names may be trademarks or registered trademarks of their owners.

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