Businesses should not fear cloud computing security

For businesses of all sizes, the implications of data loss can be extremely serious. In addition to the fines they can potentially incur, companies risk suffering irreparable reputational damage. Once a business has seen its security processes called into question, customers are likely to lose confidence in the services they provide. This naturally affects turnover, and in the worst cases, can drive entire companies out of business.

Understandably, companies do not want to take risks with the data they store. This applies to both internal information – such as that relating to products, finances and HR – and external consumer data such as financial details. Businesses invest large amounts of money ensuring their networks and physical hardware are equipped with the latest security software, and closely scrutinize data management processes. 

Traditionally, business data has been stored on physical servers within companies' on-premise data centres. Prior to the broadband revolution, the hardware would need to be manually compromised on-site in order for a breach to occur. But with an increasing number of companies embracing cloud computing - outsourcing hardware management to third-party IT infrastructure providers – many companies are now reviewing their security policies and procedures.

Security fears dissuading cloud computing uptake?

Some business leaders remain somewhat unsure about moving to the cloud, with IT security seemingly among their concerns. According to a new study conducted by YouGov on behalf of Kaspersky Lab, 62 per cent of IT managers cite security fears as an obstacle to cloud adoption. The firm found that data protection worries (60 per cent) and a perceived lack of regulation (26 per cent) were also significant issues for cloud buyers.

Andrew Lintell, corporate sales director at Kaspersky Lab, urged potential users to focus on the positives of cloud computing, rather than the perceived negatives. He noted that cloud-based solutions can make IT systems leaner, more agile and more cost effective – freeing up valuable expertise and resources for end users. "Cloud technology has huge potential for streamlining IT operations, particularly in larger organisations with more sophisticated IT requirements," he added. In his view, these benefits far outweigh any concerns about cloud security – which in any case, are built upon false logic. Just because a company has delegated responsibility for data storage, it does not mean the information is any less secure. If anything, it should be more so.

Cloud computing providers are specialists in their field, and ensuring the highest levels of IT security is of paramount importance to their business models. When companies outsource to the cloud, the data they transfer to their host is locked down in highly secure data centres, and only accessible to the account holder. Cloud vendors invest large sums of money constructing state-of-the-art server rooms using the latest storage technologies, and protecting their infrastructure investments using appropriate security software.

As the physical hardware is the core business asset for such firms, they have a higher proportion of their budgets to dedicate to upgrades, maintenance and security. Individual companies, who store data on their own in-house servers, can rarely say the same. Data centre management is likely to be just one of a number of priorities for them, one of many areas competing for limited funding. 

Businesses are embracing cloud services en masse

There is plenty of evidence to suggest that the popularity of cloud computing is rapidly increasing. IT analyst Gartner claimed recently that cloud adoption will be the most prominent trend within the IT sector during 2011, as companies seek to invest in cost-saving IT solutions.

Research by the Cloud Industry Forum (CIF) indicated that some 94 per cent of businesses using hosted services are fully satisfied with the service they are receiving – which may help ease the concerns of more reluctant IT buyers. Andy Burton, chairman of CIF, said the findings of this survey are "very encouraging" for the cloud sector. "The reality is that customers are trying the cloud, they're doing it for a purpose and they're very happy with it," he stated.

For many companies, the hardest thing may simply be deciding to take the plunge and commit to revamping their IT. Michael Dean, head of marketing at the National Computing Centre, said companies simply need to be confident when contemplating the cloud. He suggested that they should have a clear idea in their mind what they want from hosted services, and undertake all necessary planning for the infrastructure overhaul. Mr Dean noted that the benefits of cloud computing far outweigh the risks, and businesses simply need to adopt a positive attitude towards the technology.

Conclusion

Rob Lovell, chief executive of ThinkGrid, claimed recently that "a lack of understanding" about how cloud computing works is responsible for many firms' reluctance to embrace the storage model. He noted that business leaders who lack understanding about hosted services tend to be more fearful about security. "However, when they understand that data is stored remotely in the cloud and is managed by a specialist company with a highly skilled team of IT professionals, it is actually far more secure than their typical office IT set-up," Mr Lovell stated.

Just because the model relies on using the Internet to transfer data off-site, it does not mean that this vital business asset is any less secure. While a certain degree of trepidation is understandable among the less tech-savvy, business leaders should view the cloud as offering ready access to a pool of advanced IT resources, in terms of hardware, software and personnel. Cloud computing offers businesses of all sizes the opportunity to modernise their data storage and management processes, at little initial cost. The IT delivery model adds external expertise, demonstrable business value, and if anything, has the ability to reduce risks rather than exacerbate them.