What is a Chief Concern of Cloud Computing
More executives today find cloud computing to be an ideal platform for certain business processes, with some using SaaS platforms as the foundation for a comprehensive and cost-effective risk management framework. However, when making the transition to a cloud computing solution, it is important for executives to keep managers at every level of the business informed of this switch.
That is because moving certain business data to cloud environments may have implications that are unforeseen by major decision makers. KPMG LLP – a U.S. audit and tax advisory firm – recently surveyed more than 200 individuals at corporate tax departments nationwide and found that many were out of the loop regarding their company’s decision to adopt cloud-based technology or process automation software.
In fact, 52 percent of respondents say they were not involved in these decisions, which KPMG officials say may be a critical error on the part of these businesses. That is because cloud adoption may have tax implications related to, among other things, new or changed filing obligations, regulations and the implementation of tax-risk mitigation procedures.
Server location was a chief concern among these professionals, as out-of-country data storage may have domestic and foreign tax consequences, according to the report.
The concerns impress the need for businesses considering SaaS-based risk management software to consider a partnership with a provider that takes a consultative approach to technology implementation. This becomes especially important given the high rate of cloud technology adoption – a study from InformationWeek shows 50 percent of surveyed IT professionals believe at least half of their company’s data servers will be virtualized by next year.