Risk Thinking for Cloud-Based Application Services

Enterprises take risks, like developing new product/service offerings and expanding into new markets and sales channels, in pursuit of reward. Many enterprises are moving their applications and IT services to the cloud in pursuit of reduced operational expenses and an accelerated pace of service innovation without compromising user service quality. Better risk management results in fewer operational surprises and failures, greater stakeholder confidence and reduced regulatory concerns; in essence, proactive risk management maximizes the likelihood that an enterprises objectives will be achieved, thereby enabling organizational success. This work methodically considers the risks and opportunities that an enterprise taking their applications or services onto the cloud must consider to obtain the cost reductions and service velocity improvements they desire without suffering the consequences of unacceptable user service quality. The better the risk management that an enterprise has in place, the more risk it can take in pursuit of returns.