Financial firms' fears of the cloud revealed

Data loss is the top fear of financial firms that are holding back from using the cloud, according to a new report.

Research conducted by NCC Group found that 40 per cent of those that are yet to adopt the cloud have not done so as they worry about a huge data loss due to a lack of security.

It was also revealed by the study that close to three-quarters (74 per cent) of the financial businesses surveyed believe it would take them more than a week to implement a contingency plan if their cloud supplier was to fail, while the poll found five per cent would take between two to three months to fully implement their plan.

Daniel Liptrott, managing director of NCC Group’s escrow division, stated that a company can quickly "fall to its knees" if it does not have a proper data recovery plan in place.

He said: "However, 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."

Mr Liptrott pointed out that some firms in the financial sector have spent a huge amount of money on cloud solutions without putting any security methods in place alongside them.

He added: "In a sector where time equates to large sums of money, organisations should ensure that they have comprehensive and effective disaster recovery plans in place to avoid costly delays if something goes wrong."

Although many companies have fears and concerns over the safety of cloud solutions, there are also a lot of benefits of using the technology. Cloud storage is a much more affordable option than investing in servers for smaller businesses, while use of the cloud is also flexible and can be scaled up quickly when required.

Businesses looking to move services into the cloud should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.