PERILS IN THE CLOUD.

The article reports on the challenges facing business enterprises concerning the implementation of cloud-based computing software in the U.S. It discusses the failure of the Simple Storage Service (S3), an Internet-based software offered by Amazon.COM Inc. on July 20, 2008 and the transformer explosion at the data center of 365 Main Inc. in July 2007 which affected the connections of various companies utilizing the software. It reveals that reliability and security are the common problems facing the use of cloud computing software. The author stresses that eliminating the use of software offered by outside service providers by businesses will help them address the security risks offered by Web-based software.