To all aerospace industry actors: the sky is your playground! So why not take a closer look at the various possibilities offered by cloud computing?

In recent years, cloud computing has been hailed as a technological breakthrough. Despite that unquestionable fact, cloud computing remains poorly understood and is often overlooked, particularly by small and medium-sized enterprises (SMEs) that may view it as complex and high-risk. In actual fact, it is as easy to use as Gmail.

Cloud computing involves storing data and documents in an environment that is controlled by a third party and is accessible over the Internet. You simply lease the necessary resources from a service provider in order to develop and deploy your specific application, which then resides in the cloud.

Thanks to this breakthrough, private companies are gradually acquiring the technological capabilities they need without having to build a vast internal IT structure. The benefits are undeniable.

• Your productivity will rise as a result of flexible access to multiple bandwidth sources. Your ability to meet needs will also increase, primarily because collaboration and document control can be carried out from multiple locations simultaneously.

• Cloud computing gives SMEs access to sophisticated state-of-the-art technology without having to worry about making regular updates.

• Environmental concerns: This high-tech solution is good for the environment since it saves energy and reduces carbon emissions.

• Cost savings: The pay-as-you-go model means that investments in IT infrastructure are minimal.

Needless to say, the use of cloud computing does pose additional risks that must be taken into consideration. The main risks involve the potential consequences for a company's security plan when data and applications are "repatriated". There are also confidentiality issues, particularly since users tend to use their own IT tools. The main factors to keep in mind are as follows:

• Is the available network powerful enough to meet users' needs?

• Is your data recoverable? Strategic information may be stored in foreign countries with different regulatory frameworks than that used in Canada; this could lead to legal disputes over data ownership.

• Cybercrime can also impact cloud computing.

In any case, negotiating and seeking out effective guidance are both winning strategies. Otherwise, you may find yourself stuck with a less-than-stellar service provider. What's worse, you might not be able to switch providers since it would be difficult, if not impossible, to re-enter your data into a new IT system. Cloud computing does offer a number of advantages that are worth exploring. In order to make the right decision, be sure to seek advice from your PwC consultants.

For further information on this topic, here are links to two documents published by PwC:

• http://www.pwc.com/ca/en/private-company/lets-talk/cloud-computing.jhtml

• http://www.pwc.com/ca/en/directorconnect/top-ten-questions-directors-ask-cloud-computing.jhtml

Your PwC consultants would be pleased to answer any questions you may have.

Mario Longpré (514) 205-5065