Nov 10, 2014
Cloud computing is becoming increasingly popular worldwide, but some businesses may avoid using the technology due to fears over data loss.
A new study by Vanson Bourne revealed organizations in the financial sector are particularly concerned about keeping large quantities of sensitive information in the cloud.
The results showed that 40 percent of businesses in the industry that have failed to adopt cloud-based systems claimed data loss as the primary reason.
Nearly three-quarters (72 percent) of respondents said they were 'extremely concerned' about cloud data not being backed up and the ramifications this has for business continuity.
Global information assurance firm NCC Group commissioned the study, and the company's managing director, Daniel Liptrott, claimed effective disaster recovery can prevent potential cloud-based data problems.
"In a sector where time equates to large sums of money, organizations should ensure that they have comprehensive and effective disaster recovery plans in place to avoid costly delays if something goes wrong," he said.
"As we saw with collapsed data center provider 2e2 last year, without a proper disaster recovery plan a company can quickly fall to its knees."
Customers of UK-based 2e2 were asked to pay a collective £1 million (US$1.6 million) to keep data centers open after parts of the company went into administration in early 2013.
The company charged with administration activities, FTI Consulting, said in a letter to users that moving data to a new provider could take up to four months.
However, Liptrott said well-prepared organizations are less likely to experience problems during a cloud services crisis.
"There are comprehensive backup solutions available to those using cloud applications, so businesses needn't shy away from cloud adoption due to fear of data loss as long as they take necessary precautions," he explained.