IN FIVE WAYS, A WRONG CLOUD SERVICE PROVIDER CAN COST YOUR BUSINESS

 Companies are switching to cloud to reap maximum business benefits, like cost efficiency, simplified business operations, and to gain flexibility and agility. However, in reality, how much a company benefits from cloud depends upon the service provided by their cloud provider.
If your Cloud Service Provider fails to run behind-the-scene-operations effectively, then it can cost your company big time.

Here are five areas that can affect your company’s business operations, if a wrong service provider is brought in to manage the needs:

1. Cost of downtime - Your business needs to be up and running around the clock. Even a minute of downtime can cost your company a grave amount. As your work will suffer badly, systems will go down, application may under perform, and customers orders will not be processed thus negatively affecting your company revenue.

2. Damage Reputation - Any company can meet an outage, but what are important in an outage is how the company handles work in such a case, and how much time an organization takes to recover from such low point. Because if an outage persists for long, customers may lose confidence in the company and it will result in negative reputation of the company in the market.

3. Loss of productivity -  When a company uses cloud for running all its business critical applications then any kind of outage will not only affect customers but will also reduce productivity at the workplace. As employees will not be able to access business critical apps, they will not be able to access even their emails. For instance- a company with 1,000 employees, with an average salary of 20$ per hour will approximately stand to lose $ 15,000 per hour in productivity.

4. Security Costs - When a service provider fails to update as per the changing trends it can also cost a company fortune. If systems are not patched as per the newly discovered vulnerabilities then it makes your system and data open to risks and threats. In such case, a company may end up paying for security breaches, penalties, and other fines from regulatory bodies.

5. Regulatory Costs - As per a recent study done by PHI (Protected Health Information) it was found that breaches have increased 97 percent within a period of one year. Therefore, industry needs to comply with data privacy policies and other data protection rules including HIPAA. Any kind of regulatory breach can make you heavily pay for fines and penalties.