The current climate for cloud and why businesses are risking data loss

Increasingly stringent regulations around data protection mean that all types of organisations are required to pay more attention to how they backup data. However when it comes to data backup it seems that old habits die hard, especially in smaller companies. Recent research findings revealing that a quarter of UK small to medium sized organisations (SMEs) are risking significant data loss by storing data on-site instead of embracing cloud technology.

Larger businesses are also not immune from poor data protection strategies. The uptake of cloud is greater among larger organisations, with 83 per cent of those recently surveyed having confidential or highly confidential data in the cloud*. However, there is a clear need for greater awareness around how to protect this data. Perhaps surprisingly, four per cent of large businesses reported that they had experienced a security or data breach in the last year relating to one of their cloud computing services.

Consequently, it is important for small and large organisations alike to consider IT security as a fundamental part of any risk management plan. Employing the appropriate data protection tools to ensure that information stored in the cloud is secure, is essential.

Understanding the benefits of cloud
In a new survey by Onyx Group, it was clear that many businesses do understand the value of cloud. 30 per cent of those SMEs surveyed considered cloud’s main benefit to be cost effectiveness, 40 per cent praised its resilience, 38 per cent believed the key advantages to be scalability and flexibility and 22 per cent valued cloud due to its agility. For example, cloud services are traditionally quick to provide and set-up, enabling companies to get to market rapidly. Despite these benefits, nearly 40 per cent do not currently consider the use of cloud as part of their IT management.

Many businesses are still using and relying on traditional methods of data backup despite research showing that 50 per cent of all tape backups fail to restore. As a result, they are taking unnecessary risks which could potentially damage their growth and profit margins.

The impact of data loss on a business can be profound. Research has shown that 50 per cent of businesses that suffer disruption from data loss can go out of business within two years. This can either be due to lost revenue as a result of the disruption or as a result of subsequently failing to meet compliance regulations.

In addition, over a quarter of companies are still storing data on-site despite the threat this poses to business continuity. When a company moves to the cloud, they mitigate a number of risks associated with traditional storage. Tape and disk-based data is at risk from fire, flooding and theft and when data is stored on a desktop computer or laptop, there are obvious security risks. Data that is stored in the cloud is secure and can be accessed remotely in the event that a workplace is inaccessible.

Time for education
The Onyx survey found that only nine per cent of SMEs store data in the cloud. It is clear that many companies are discounting cloud storage due to misconceptions and concerns over complying with regulations on where data resides. Equally, they might be worried about perceived risks associated with security or losing control of their data by handing it over to a cloud provider. Ironically, they are taking an even greater risk by storing it on-site.

There are also concerns over availability of data that is held in the cloud. Within their service level agreements (SLAs), all providers of cloud solutions should offer guarantees on availability of service. Onyx recommends that it is at least 99.99 per cent, meaning just 52 minutes of downtime a year is acceptable in order to ensure 24/7 access to data.

Conclusion
Cloud has many benefits including the ability to adapt and adjust to business needs as and when required. The best practice for data protection and backup rests in a logical common-sense approach. That is, the chosen solution should allow a company to recover its most critical data first and then use a phased approach to recover less essential information. To increase the security of business critical data, it is vital that cloud providers work closely with businesses of all sizes to fully reap the huge benefits the solution can provide.