The biggest risks of cloud storage (especially public cloud), is that it is not secure. Cloud services are easy pickings for hackers whether they are pranksters or outright criminals. CIOs and IS departments know this and even though they preach the importance of security, they still keep important information in public cloud storage. It seems that the increased agility and conveniences of cloud computing outweighs its shortcomings, including security.
A recent 451 Research survey suggests CIOs are fully aware of the dangers. In fact, 69 percent of those surveyed said they are highly concerned about security; however, many companies are still diving into the cloud computing pool. According to a Forrester survey, some 40 percent of organizations are dumping important information into public cloud systems and that number could pass 50 percent by next year.
Instead of putting information at risk of falling into the hands of anyone, competitors and malicious entities included, companies could be making use of a private cloud system. A private cloud is protected by the company's firewall and stays completely in their control. It offers safe and secure availability at any location with internet access, but only to people who have permission to use it.
A private cloud is more expensive. There is hardware you need to buy and will need to pay someone to maintain it. Many companies shy away from private clouds for this reason, often forgetting that a security breach in a public cloud could very well cost them much more. Don't take the risk. Invest a little now to save a lot later.