Microsoft raises concerns over cloud computing

Concerns are often raised over cloud computing security and now software giant Microsoft has added its voice to calls for caution.

The company released a paper which highlights the issue of privacy and said it raises a number of important questions.

It said privacy is the "number one concern" for businesses thinking about switching their applications to the cloud.

The paper stated that those adopting the technology need to know where their data is being stored and make sure they have full control over who can access it.

"Privacy protections are essential to building the customer trust needed for cloud computing and the internet to reach their full potential," it read.

In a recent article for Computer World, Chris Curran, chief technology officer at Diamond Management and Technology Consultants, warned firms to look out for hidden costs when investing in cloud computing.

He said expenses relating to people, processes and architecture could alter a company's outlook on the cloud.