Friday, June 28th, 2013
A new report from the Ponemon Institute revealed an alarming statistic: nearly one-third of small enterprises in the United States suffered a cyber attack in 2012. And what’s worse is that following the attacks, 72% of those organizations were not able to fully restore their company’s data. And from a cloud computing perspective, this news should act as a wake-up call that Small and Medium Enterprises (SMEs) need to get serious about cloud backup.
SMEs are one of the fastest growing markets for cloud computing services. According to a separate report from from Parallels that came out earlier this year, 6 million SMEs entered the cloud market for the first time in 2012 helping create a $45B cloud services market in the SME segment. This growth rate is expected to continue, reaching an estimated $95B by 2016. Today, web hosting and email are the most prevalent form of cloud computing for SMEs, but that is also changing. Cloud-based data backup and recovery services are on the rise. When asked in a recent survey by Spiceworks, SMEs indicated that they are planning on purchasing more cloud computing services including application hosting, data storage and email hosting.
Taken together, these reports show that cloud backup—and the security it provides—should be a critical part of any cloud computing strategy. What is coming is the perfect storm of data loss: a market that is growing quickly and adopting cloud services while the rate of cyber attacks towards these same targets also rises. Although there is some dispute over the fabled statistic that 80% of companies that experience a major data loss are out of business within a year, common sense tells us that small to medium-sized businesses are less equipped to handle data loss than their larger counterparts.
However, the news is not all bad. That’s because in addition to other cloud services, the Spiceworks report showed that SMEs also plan on spending budget on cloud backup services. By using a cloud backup service, like Cloudfinder, SMEs will be able to continue enjoying the cost benefits and convenience cloud computing offers while significantly mitigating the risks associated with the growing risks of data loss.