"Businesses must ensure they select only cloud computing services that enable them to avoid risk entirely or manage it to a reasonable level," says Scott.
Cloud computing is still animmature business model and issues around risk and compliance still need to be ironed out.
Kelly Dempski, director of research at Accenture Technology Labs in France says everyone is still trying to figure out how best to use the cloud computing model.
"We are still in the period of learning and just beginning to come up with best practices," he says.
A lack of business process management to go with the services offered by cloud computing is another reason businesses should be cautious about the model.
Although companies are saving up to 40% on project costs by deploying CRM applications using the cloud computing model, the benefits could be short term says Michael Maoz, analyst at Gartner Research.
These services typically do not include help for businesses to improve customer processes over time.
This could result in an erosion of customer satisfaction, says Maoz, unless those using CRM services invest their own resources to measure and manage long-term process improvements.
Businesses need to realise that being able to deploy enterprise level applications quickly at a lower cost does not necessarily guarantee success, says US-based management consultant John Thorp of the IT Governance Institute.
The perceived benefits of the cloud computing business model are making it a popular and likely choice, with no end of the current economic crisis in sight, with some surveys indicating adoption by more than 60% of businesses.
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