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This paper examines the implications of small businesses that are turning to cloud technology in order to mitigate their Capital Expenditure (Capex) in terms of IT costs, it will also report on the security mechanisms used by Cloud providers. The paper briefly looks at security issues in terms of compliance, but has a central focus on how Cloud providers are dealing with security. The paper opens with an introduction which will explain how financial pressures are forcing IT managers to evaluate their current IT configurations. It briefly explains and defines Cloud Computing and its services in relation to its application. The next section identifies potential Cloud users and the security concerns of potential Cloud users are addressed with an overview of current UK and European legislation.
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