Most Businesses Using Cloud Increasing Spend on Security

Businesses prefer storing data in the cloud, but plan to invest in additional security precautions, according to the second report in Clutch’s Annual Cloud Computing Survey.

The survey includes responses from nearly 300 IT professionals at businesses across the United States that use cloud computing. Nearly 70 percent of businesses in the cloud prefer storing data in the cloud instead of on a legacy system, and these businesses are willing to invest heavily in keeping their cloud’s data secure.

Clutch’s Riley Panko

More than half of companies surveyed spend more than $100,000 annually on additional cloud-security features.

Nearly seven in 10 U.S. businesses using a cloud computing service plan to increase their spending on the technology this year.

Riley Panko, Clutch’s content developer and marketer, tells Channel Partners the findings show a trend that is “perhaps paradoxical at first glance — businesses strongly prefer the cloud, but are also choosing to invest heavily in additional security features.”

“However, this just displays the multi-faceted nature of the cloud,” she said. “In many ways, it can be far more powerful and secure than a business’ own legacy system. However, there are elements that require extra focus when using the cloud — such as application-level security.”

One reason for the high investment in cloud security is companies’ greater awareness of the security risks that are out of their cloud provider’s control, according to industry experts. When it comes to application-level security, including user access, password sharing and other individual interactions, the company and its employees shoulder the responsibility.

In another finding, nearly one in four businesses in the cloud indicate that they use Internet of Things (IoT) services. However, the quality of security for IoT varies.

“We were certainly surprised to see so many businesses using IoT services,” Panko said. “This shows the importance of improving IoT security, which is often overlooked. Since many IoT devices take the form of everyday objects, they are often not considered as a prominent cybersecurity risk.”

Companies can protect themselves from security threats and prevent issues by following both mandatory and voluntary security guidelines, and implementing additional security features, such as extra encryption, according to Clutch.

“One surprising jump is that last year, 39 percent of enterprises reported following Cloud Security Alliance regulations,” Panko said. “Our survey this year showed 65 percent of all businesses following CSA regulations. While this may just mean that smaller businesses follow CSA regulations in greater numbers, it could also signify a jump in CSA’s popularity.”