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ACCA Applied Knowledge · Business and Technology · Technological factors

A firm introduces a cloud-based customer relationship management (CRM) system accessed by sales staff in several countries. Which of the following is most likely to be a risk specific to using a cloud-based system rather than an in-house one?

The most likely cloud-specific risk is dependence on the provider's availability and on data stored outside the firm's own premises. Multi-location access and avoiding server purchase are benefits of cloud, and data can normally be backed up, so the other statements are incorrect.

  1. ADependence on the provider's availability and on data held outside the firm's own premisesCorrect
  2. BThe system cannot be accessed from more than one location
  3. CThe firm must purchase and maintain all server hardware itself
  4. DData cannot be backed up by anyone

Explanation

Cloud use creates reliance on the provider's uptime and raises concerns over data location, security and control. Remote access from multiple locations is a benefit, not a risk. Avoiding hardware ownership is also a cloud benefit, so those options are wrong. Backup is typically provided by the vendor.

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