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05 March 2015

Security fears stop firms using cloud computing services, says FSB

Reference number: FSB PR 08/2015

Research from the Federation of Small Businesses (FSB) has found that despite 60% of small firms using cloud computing services, 38% remain sceptical about the benefits of the technology in the face of perceived risks.

When asked what risks they most associated with cloud computing, the FSB members questioned listed the following top five concerns: data theft or loss, reliable access to online services , concerns over who would have access to the data, liability issues, and over dependence on cloud computing services. 

The results build on previous work by the FSB into the benefits of using technology for businesses, and the barriers to take-up of productivity-enhancing new ways of working.These barriers must be addressed to allow more firms to reap the benefits of cloud computing. A 2012 European Commission report found that as a result of the adoption of cloud computing, 80 per cent of organisations could potentially reduce their costs by around 10 – 20 per cent. There are also significant potential green benefits as well, with one study indicating that the energy footprint of small firms can be reduced by up to 90 per cent by moving tasks online.

Commenting on the findings Graham Buck , Regional Chairman, said:  "Many small businesses are recognising the advantages of cloud computing services, but there remains a great deal of concern that sensitive data may not be secure or the service not reliable. 

"Businesses don''t want a transition to cloud based systems without knowing who will be liable if something goes wrong. As our research has shown, there are significant gains to be made from using this technology so it is imperative more is done to address understandable reservations and remove barriers to take-up."

ENDS