The IEEE begins drafting standardization policies for cloud computing

Insurance TechnologyCloud computing is becoming a popular phenomena in the tech world. A cloud-based system allows several people to use and access a multitude of server-based computational resources via a digital network. This sort of computing is appealing to businesses because it enables them to make use of vast amounts of computing resources that speed up their operations. However, many are not taking advantage of cloud computing for fear of security. While such fears are not to be taken lightly, the Institute of Electrical and Electronics Engineers (IEEE) says that many of these concerns are grossly exaggerated.

Alexander Pasik, chief information officer with the IEEE, claims that cloud computing poses no more threat than any other online activity. He likens the cloud to a bank in terms of security. People often place their money in banks with the belief that it will be safely kept. Banks, however, are subject to risk, as all things are. And when risk enters the picture, so too does insurance.

In the same way the FDIC insures money, an insurance company can protect information, according to Pasik. However, what information can be protected within the cloud remains somewhat ambiguous. So the IEEE is drafting a number of standardization principles that will serve as guidelines for cloud computing and give insurers a data point from which they can form policies to protect clients.

Pasic admits that there will always be risks when businesses seek to venture into the digital world and cloud computing is no exception. These risks can be significantly mitigated by appropriate insurance coverage. As the cloud continues to evolve, more insurance companies are gaining an understand on how to manage the risks inherent in the system and will be able to provide protections accordingly.

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