Increasingly observers are expressing concerns about the risks inherent in "cloud computing". Rather than keeping data on a local computer hard drive, “cloud computing” involves the use of web-based applications to store, manage and share files, from photos to tax returns, making the files conveniently accessible from any computer. Notable examples of such applications include Google Docs, the web-based version of QuickTax, and Acrobat.com from Adobe, that allows users to create PDF documents without installing software on their computers. Microsoft is also reportedly developing a web-based version of its Office software.
Observers are particularly concerned about possible privacy risks that include: unauthorized access to information through mistakes; not having appropriate security safeguards; targeted attacks or through users’ own computing habits (i.e. weak passwords or careless use of public computers). As the users’ data is normally under the control of a third party service provider, users may run the risk that their data will be mined for market research and advertising purposes. Another concern is the risk of lost data should the service provider go out of business, or suffer a technical breakdown.
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