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ACCA Applied Knowledge · Business and Technology · The impact of advances in technology

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

The specific risk is dependence on the provider's availability and security controls. Data and processing sit outside the company's direct control, so outages or breaches at the provider affect it. Lower capital cost, easy scaling and remote access are normally benefits of cloud, not risks.

  1. AHigher capital expenditure on servers
  2. BDependence on the provider's availability and security controlsCorrect
  3. CInability to scale capacity at peak trading times
  4. DLoss of access to the data from remote locations

Explanation

Using a public cloud makes the retailer reliant on the provider's uptime, security and data-protection controls, which it cannot directly control. The other options are generally benefits of cloud: lower capital spend, easy scaling and remote access.

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