e instances, customers might opt to store their files separately on dedicated servers that are not shared with other organizations. This is more costly than using a shared service. Large enterprises are especially concerned about security. With the exception of the largest and most sophisticated enterprises, major cloud providers have more resources and capabilities for implementing strong security than a majority of the con- cerned organizations. Nevertheless, customers need to be assured about the level of security before placing their data behind someone else's firewall. Security also applies to factors, such as protection from water damage, severe weather, unauthorized entry to data centers, natural disasters, and defense from hackers. Conversely, using a cloud provider for web-based applications that are intended for public consumption is a prime motivation for using the cloud. This is because insti- tutions either do not need or do not want to add or maintain the necessary resources. This is particularly true with regard to handling traffic spikes that these applications can generate, such as with a retail site during the holiday season. Nonetheless, they need ways to evaluate whether providers have the infrastructure and network band- width to keep up with these spikes and that the cloud provider's infrastructure can handle all of the customers that it adds. This requires enough bandwidth for external traffic, adequate storage and servers, and an adequately fast Local Area Network. Well-thought-out service agreements and contracts that clearly define provisions for security, control over data, uptime, response times, capacity, privacy, and other issues can help to protect customers. Contracts written to address these issues spec- ify penalties if the vendor fails to meet contract terms to further protect vendors and customers. The more transparent vendors are about their networks, the more attractive their offerings will become to institutions. Vendors can achieve transparency and win cus- tomer confidence