The findings are revealed in a new survey by Onyx Group which shows that although most businesses understand the cost effectiveness, resilience, scalability and flexibility of cloud, nearly 40 per cent have no plans to adopt cloud as part of their IT management.
The survey, which questioned SME IT managers, also revealed that many businesses are still using and relying on traditional methods of data backup despite research showing that 50 per cent of all tape backups fail to restore.
Neil Stephenson, CEO, Onyx Group said: “UK SMEs are taking unnecessary risks which could potentially damage their growth and profit margins, by not capitalising on the benefits cloud technology brings.
“We work with SMEs and larger national organisations on a daily basis and although they do understand the benefits of cloud, particularly how it can reduce the risk of data loss, many are reluctant to incorporate cloud-based solutions. This is evidenced by the fact that over a quarter (26%) of companies are still storing data onsite despite the threat this poses to business continuity,” he added.
“When a company moves to the cloud, they mitigate a number of risks associated with traditional storage. Tape and disk-based data is at risk from fire, flooding and theft and when data is stored on a desktop computer or laptop, there are obvious security risks.”
The Onyx survey found that only 9 per cent of SMEs store data in the cloud.
Stephenson added: “Many companies are discounting cloud storage due to misconceptions and concerns over complying with regulations on where data resides. Equally, they might be worried about perceived risks associated with security or losing control of their data by handing it over to a cloud provider. Ironically, they are taking on even greater risk by storing it onsite.
“Cloud can adapt and adjust to business needs as and when required. It is vital that cloud providers work closely with businesses of all sizes that are adopting cloud technologies to fully reap the huge benefits.”