Jun 10

Your Business Depends on the Cloud. Do You Know How It Works?

June 10, 2026
  • Share:
  • Share with LinkedIn
Your Business Depends on the Cloud. Do You Know How It Works?

By ONUVO,

Today, using “the cloud” has become commonplace across businesses of all sizes. However, many owners don’t fully understand what it involves or the responsibilities that come with it. 

From email to accounting systems, CRMs (Customer Relationship Management), and ERPs (Enterprise Resource Planning) that operate entirely online, the digital ecosystem has become an essential part of the daily operations of businesses large and small. Here, we share what you need to know about the responsibilities that come with using the cloud, its risks, and key information to help you make informed decisions about these services for your business.

What is “the cloud”?
Simply put, it’s a technological infrastructure owned by a third party. It consists of servers, storage systems, and platforms located in other companies’ data centers, which your business accesses via the internet.

However, the term is now used very broadly, and people refer to almost any system as the cloud—from a specialized company’s robust and secure infrastructure to a simple application created by an independent programmer. At first glance, they all seem the same, but there are significant differences in security, reliability, and support. 

Therefore, the right question isn’t whether something is in the cloud, but which cloud, how it’s configured, and who is responsible if something goes wrong. 

The cloud doesn’t eliminate your responsibility; it could amplify it
It’s important to understand that even if your business uses the cloud, responsibility for what happens to your information doesn’t fall solely on the provider. Most of these services operate under a shared responsibility model. The provider is responsible for the infrastructure (servers, availability, and connectivity), while the business is responsible for the information and its security. 

This includes:

  • Who has access to the data
  • How the information is protected and backed up
  • What to do in case of data loss or a security incident

In other words, when you contract for cloud services, you delegate the technical aspects, but not the ultimate responsibility for what happens to the information you’ve stored there. 

Beware: not all cloud services include backup
Here’s another common myth: the belief that the information you store in the cloud is automatically protected against any loss. This isn’t always true. 

Understanding what is and isn’t covered by your provider’s contract is essential. Many of these services are designed for availability, not necessarily for backup or continuity. If a file is deleted, incorrectly modified, or affected by an incident (such as malware or unauthorized access), the change can propagate across the system undetected.

Therefore, even when using reputable platforms, additional backup solutions are necessary. 

The risk doesn’t go away
Some of the most common risks of moving part of your operations to the cloud include:

  • Unauthorized access through compromised credentials
  • Incorrect configurations that expose sensitive information
  • Total dependence on a single provider and lack of clear alternatives
  • Lack of visibility into where the data resides and who controls it 

Many businesses don’t know exactly which cloud systems they use, who contracted with them, or under what terms, which hinders auditing, compliance, or claims processes.

Choose your providers wisely
If the cloud is someone else’s infrastructure, choosing that “someone else” is a critical decision. Before signing with any cloud service provider, you should ask key questions—and request that they be answered in writing. Here are five:

 

1.  What does the service include, and what is excluded? Don’t assume anything. It’s essential to confirm in writing which services the provider covers. For example, Microsoft 365 provides tools such as email, OneDrive, and other apps; however it states that it is not responsible for the data and does not perform backups. If an incident occurs, the responsibility for safeguarding and recovering information falls to you, the customer, not the provider.

 

2.   Where will the information be stored? The data’s geographic location—the country or region where it is stored—can have significant legal implications for your or your customers’ compliance with financial or data-protection regulations.

 

3.   Who will recover the data in the event of a disaster? The provider should explain how the data will be recovered, how long it will take, and the maximum amount of data that could be lost in a major incident.

 

4.   What security controls does the provider have? It’s important to know what security measures are in place, such as data encryption, multi-factor authentication (MFA), and the maintenance of logs documenting usage and platform changes, among others.

 

5.   Who provides support for the contracted service, and when? You need to know who handles customer support, their business hours, the languages they support, and the associated costs of the service.

 

What you can do
You don’t need to be a technical expert to make better decisions. Here are some of the best practices:

  • Identify which business systems are in the cloud
  • Confirm who has access to each platform
  • Verify whether there is a separate backup plan
  • Ask your provider about their service liability model
  • Stop assuming that “cloud” automatically means “secure” 

The cloud is a powerful tool that, when used correctly, can improve efficiency, reduce costs, and drive business growth. But like any solution, it requires proper understanding and management. The cloud does not eliminate responsibility; it only shifts where responsibility lies.

 

 

This article was written by ONUVO, a Puerto Rican managed service provider (MSP). It has been named the leading MSP in the Caribbean for six consecutive years by ChannelFutures and has received the IT Services Company of the Year award from the Minority Business Development Agency. For more information: info@onuvo.com or 787-961-5400.

This article is for informational purposes only and does not constitute an endorsement or guarantee of the accuracy or applicability of its content for any particular purpose. Neither Popular, Inc. nor any of its affiliates, subsidiaries, and/or related companies (“Popular”) are, nor will they be, liable for any special, direct, indirect, or incidental damages, including, but not limited to, lost profits, that may arise from or relate to the information or advice provided in this article, which was not prepared by Popular. Popular provides financial services and does not (directly or indirectly) provide services related to the content of this article. Should you require any service related to this article, you should seek advice from a qualified professional of your choice.