May 16, 2012
In a study by an independent software company in which data or application loss affected all 300 North American organizations surveyed in the last year, many saw cloud security as the antidote to their problems. Of the respondents, 55 percent of U.S.-based companies anticipate an increased use of cloud technology as part of their data protection plan.
The cost of poor data protection
Revelations about increasing trust in and reliance on cloud computing data security come as a follow up to another study by the same company that looked into the costs of data loss from 2011. That study found that the average North American business loses nearly $160,000 and 425 man hours per year thanks to IT downtime and data recovery.
Despite this finding - and the follow up study's discovery that every company surveyed reported a data loss - the study found that 66 percent of companies did not have a disaster recovery strategy in place. The follow up study also indicated that only 26 percent of U.S.-based companies had a data protection plan in place that was viewed as adequate.
The cost of good data protection
As organizations become aware of the cost of even a few hours of downtime, they are also spending more in general. In the United States, 49 percent of companies surveyed had increased their expenditures in the past year, according to the follow up study. This rise in strategic spending coupled with more and more businesses relying on data security in the cloud serve as an attempt to combat the threats of data loss.
Standing in the way of data security
The May 2012 study saw the reporting companies cite holdups toward instituting better data loss prevention and disaster recovery plans. Prohibitive costs due to a lack of budget were an issue for 54 percent of U.S.-based companies - even as budgets expanded for many - while 62 percent claimed that inadequate training of IT personnel was preventing better measures from being put in place.
To alleviate these concerns, these companies are increasingly turning to the cloud and - contrary to many prior notions of vulnerability - feeling safer because of it. Eighty-four percent of North American companies surveyed said they felt safe with their data in a private cloud. The public cloud inspired only moderately higher levels of doubt, as 73 percent of the respondents were assured that their data was protected.
-McAfee Cloud Security