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ACCA Applied Knowledge · Business and Technology · Technological factors

Marlow Co has adopted cloud-based software for its sales ledger, replacing servers it ran itself. Which of the following is a RISK that the change introduces which was less significant before?

Dependence on the cloud provider's availability and security is the new risk. Marlow now relies on a third party to keep systems running and data protected. Hardware costs, in-house updates and limited remote access are problems of self-run servers, which cloud usually reduces.

  1. ADependence on the cloud provider's availability and security controlsCorrect
  2. BHigher costs of purchasing and housing server hardware
  3. CNeed to install software updates on each server by the company
  4. DLimited ability to access data from different locations

Explanation

Cloud use makes the company reliant on a third party for uptime and data protection, a risk that was smaller when it controlled its own servers. The other options describe disadvantages of in-house systems that the cloud typically reduces.

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