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.
- ADependence on the cloud provider's availability and security controlsCorrect
- BHigher costs of purchasing and housing server hardware
- CNeed to install software updates on each server by the company
- 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.
Did you get it right without looking?
One question tells you little. A timed set on Technological factors shows your real accuracy, how long you take and where you lose marks.
More Technological factors questions
- A retailer links its point-of-sale tills directly to its warehouse system so that when stock falls to a set level, a replenishment order is …
- A manufacturer installs robots that perform tasks previously done by skilled workers. Which is the most likely direct effect on its cost str…
- A retailer plans to replace its manual stock-recording process with a new automated system. Which of the following is the most likely benefi…
- A company moves its core accounting and ordering applications from its own servers to a supplier's platform, paying a monthly fee and access…
- A manufacturer is considering whether to adopt a new production technology that few rivals have yet used. The technology is expensive but wo…
- A firm finds that a competitor's new technology could make its main product obsolete. Which strategic response best reflects proactive adapt…