ExpertMedium2 marksMultiple Choice
ACCA · Question 2 · Technology and Data Analytics
Section A
CloudTech Solutions, a SaaS provider, is migrating its core financial performance data to a public cloud infrastructure. The management accountant is concerned about the specific risks associated with cloud computing compared to on-premise servers.
Which TWO of the following are specific risks heightened by using cloud computing?
Section A
CloudTech Solutions, a SaaS provider, is migrating its core financial performance data to a public cloud infrastructure. The management accountant is concerned about the specific risks associated with cloud computing compared to on-premise servers.
Which TWO of the following are specific risks heightened by using cloud computing?
Answer options:
A.
Loss of physical control over data storage locations (Data Sovereignty).
B.
The need to manually install software updates on individual user machines.
C.
Total reliance on continuous internet connectivity to access financial systems.
D.
Increased capital expenditure (CAPEX) for server hardware.
How to approach this question
Evaluate each option against the definition of cloud computing. Cloud means data is hosted elsewhere and accessed via the internet.
Full Answer
Cloud computing involves hosting services on the internet. This introduces risks regarding data sovereignty (where the data is legally held) and operational reliance on internet connections. Conversely, it reduces capital expenditure and removes the need for local software updates.
Common mistakes
Selecting option D, forgetting that cloud computing is typically a subscription model (OPEX) rather than an upfront hardware purchase (CAPEX).
Practice the full ACCA PM — Performance Management Practice Exam 1
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