Insurance is NOT the Answer for the Cloud - Page 2
Instead, computing providers (on-premise and cloud) should use a combination of risk avoidance and risk mitigation techniques (e.g., use of highly distributed systems with redundancy, reserve capacity, real-time fail-over and multi-layer security) to reduce the risk of data breaches, outages, slowdowns and capacity over-runs. Cloud providers – due to their specialization and economies of scale – are well positioned to do this more efficiently than most customers can do themselves.
Use of insurance is not the answer to reducing cloud risk. Requiring cloud providers to provide all the benefits of cloud computing – with information security, business continuity and recovery service levels that are better than enterprises can provide internally – is the answer.