CLOUD COMPUTING: Risks to Hospitality
Cloud computing provides companies with the flexibility, efficiency, cost savings and adaptability to remain competitive in today’s rapidly changing global marketplace. The buzz around cloud computing continues to grow, but not all industries have embraced the technology with the same level of enthusiasm. For example, large multinational hospitality companies continually look to improve service capabilities and cut ex-Cloud computing propones, but although the benefits of cloud technology are apparent, many companies within the flexibility, efficiency, and cost hospitality space are familiar with high profile data security breaches, and savings and adaptability they widely consider these technological solutions to lack sufficient maturity for the market.
There is a concern about the security and reliability a cloud solution can remain competitive into provision as a platform for facilitating PCI-compliant transactions.
However, today’s rapidly changing competitive nature of both industries, coupled with the lure of reducing costs, improving global marketplace. Efficiency and updating outdated legacy applications are proving hard to ignore as some companies begin to explore opportunities in the cloud. Introduction While the phenomenon of cloud computing has shifted from conceptualization to implementation for more and more companies worldwide, the associated risks of cyber-attacks and data breaches have escalated almost as quickly.
There are raised concerns about led many companies to question whether their information is safer “in the cloud” or on the security of cloud their own systems. Concerns about cloud computing are further compounded by the need to comply with data security standards...
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...le, the cloud may even provide a safer environment for storing information, managing transactions, and conducting business. But even the most secure cloud vendors may not be fully compliant with PCI DSS standards or the privacy and data security laws in some countries.
Hospitality companies should take precautionary measures to assure compliance, which, in the case of PCI DSS, often means that they will need to maintain an active role in meeting requirements. Additionally, companies should ensure that they are financially protected from the consequences of a data breach. They may be able to contractually transfer some of the risk to cloud vendors, albeit limited. To ensure adequate protection, management should speak with a knowledgeable broker about the benefits of specialized insurance coverage to mitigate the growing exposures associated with cloud computing.