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ACCA Applied Skills · Performance Management · Management information systems

A company is considering moving its accounting and inventory systems to a public cloud provider. Which of the following is a risk that is specifically increased by this decision?

Moving to a public cloud increases reliance on the provider's availability and internet connectivity and reduces direct control over data storage and security. Avoiding hardware purchases, easy scaling and low upfront capital are benefits of cloud, not additional risks.

  1. ADependence on the provider's availability and on internet connectivity, with less direct control over where and how data is storedCorrect
  2. BThe need to buy and maintain all server hardware in-house
  3. CInability to scale processing capacity up when demand rises
  4. DA requirement to capitalise a large upfront investment in data centre equipment

Explanation

Using a public cloud makes the company reliant on the provider's uptime and on internet access, and gives less control over data location and security. The other options are typical advantages or features of cloud: no in-house hardware, easy scalability and lower upfront capital outlay.

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