From greater efficiency and dramatic cost savings, to anywhere, anytime access to applications and data, the advantages of cloud computing are well documented. Yet enthusiasm for the cloud is often tempered by security concerns: theft of data, unauthorized access, loss of data, and compliance issues.

We are flooded with articles and discussions about the security risks associated with cloud computing. While organizations do need to consider security implications carefully, a successful migration to cloud computing can actually reduce risk – particularly for small to mid-sized organizations.

Legacy doesn’t always equal safety

A common rationale given by those who are resistant to change is that the current system in place works just fine – and it’s safer to stick with the known (flaws and all) than venture into a new process, technology, or system.

Yet, just how safe are these legacy procedures? Let’s consider the legal world. It’s an industry where privacy is imperative when it comes to client data and client-lawyer communications. It’s also an industry that is notoriously slow to embrace new technology; faxing is still a common communication method after all.

Think about the last time you sent a fax, perhaps a legal document containing your social security number. Did you wonder where your information was going? How long would it sit in the fax tray, and how many hands would it cross before ending up at its intended recipient?

A cloud-based app provides an online workspace to securely share documents and information, where access is limited to the key stakeholders. There’s no worry that a sensitive document will be left behind at the fax machine overnight. In this case, the cloud improves both convenience and security.

When communications are too sensitive for email

Email is the de facto communication channel for businesses of all sizes. Not only is e-mail exposed to potential eves-dropping during transport, but e-mail clients automatically save unencrypted data to disk, meaning it can be easily read by anyone with physical access to your phone, tablet, or computer.

The bottom line is if access to the device is not physically secure, then your data isn’t secure. Period. Large enterprises often have security measures in place to counter this risk, including encrypted hard disks, password protection, even management tools that remotely lock and wipe a lost device.

However, how many smaller companies employ these strategies? Or more importantly, if a doctor, lawyer, or financial advisor is communicating with a client via email, how many of those clients will have stringent security measures in place to safeguard their home laptop or phone?

When content is stored in a secure client application, the threat of unauthorized physical access is eliminated and this approach still offers the convenience of real-time communications that’s expected in today’s digital age.

Everyone can’t be a security expert

In many cases, the level of security offered by a cloud-computing provider is greater than the security you have on your in-house servers. This is particularly true for small to mid-sized businesses that don’t have proper technical resources in house or the right resources like a dedicated, lockable server room. In these cases, on-premise servers can be subject to numerous risks, including: fire, flood, theft, cleaning staff, even mistakes from a well-intending, but inexperienced employee.

Based on economy of scale alone, it’s more cost-effective for cloud computing vendors to secure their systems from hackers, accidents, bugs, and more. More importantly, considering security has been the chief concern with cloud technology, cloud-computing vendors have extra incentive to put special emphasis on security from the start. After all, the future of their business, and industry as a whole, depends on it.

Heightened concern over security has driven cloud-computing providers to invest heavily in IT security and physical defenses. As a result, it’s far less likely that servers and data hosted with a cloud-computing provider will be burgled or breached from an external party.

Free vs paid services: not all clouds created equal

The private cloud gives companies the convenience of web-based access, while offering more privacy and greater control over data. Yet how many businesses outside of the Fortune 500 have the resources and budget to build, manage, and secure a private cloud on their network?

The public cloud is more realistic for the SMB budget, but businesses do need to consider the privacy of and control over their data when selecting a cloud service provider. For example, Google Drive, Google’s new online storage service, has drawn sharp criticism for a privacy policy that some interpret as giving Google unchecked access to a user’s stored content.

Companies need to consider both the security provisions and privacy policy of their potential cloud-computing provider. As a general rule of thumb, assume that a free service will eventually attempt to monetize customers in some way.

The truth is organizations do need to be concerned about security before moving their data to the cloud. However, these concerns shouldn’t paralyze them from moving forward. The benefits are too significant to ignore, as companies who choose not to leverage the agility and efficiency of the cloud will be at a disadvantage to those who do.

About the author

This is a guest post from Jack Newton, CEO and co-founder of Clio, a Vancouver-based company that offers web-based practice management software for solo practitioners and small-to-medium sized law firms.