Any kind of security requires spending. This is a myth. It is a myth that is exploded by cloud backup and recovery technologies.  These technologies integrate security at every step—from the point of data seeding to the point of access and use. The cost savings benefit is derived from proper deployment of security tools and monitoring of all activities associated with the use of the cloud backup technology. Security weaknesses are recognized and handled by cloud backup and recovery service providers before they are exploited. This results in visible and invisible cost savings for the organization.

The first tool that is used by cloud backup services is encryption. The encryption key is user defined and remains in the custody of the user. It is inaccessible even to the service provider.

All data is encrypted at source before it is transmitted over the Internet. Listeners and eavesdroppers will find it extremely difficult to read or hijack the data. Further, the data at rest or storage remains encrypted and cannot be read by unauthorized entities without the encryption key.  Authorized users who have access to the data are assigned user ids and passwords by the Administrator and every access is logged and monitored from a central console. Hence, the organization can be fairly confident that they have taken care of every possible security weakness in the cloud backup and recovery setup. They can be sure that they will not have to face irate customers / clients whose data has been compromised by carelessness and negligence of the organization. As a result, the costs of litigation will be saved.

The second tool that is deployed by cloud backup service providers is redundancy. They ensure that data that is streamed over the Internet to the remote server in the cloud is mirrored and replicated to one or more geographically dispersed servers for disaster recovery and business continuity. They ensure that the end customer is never inconvenienced by primary server outages. The secondary servers automatically take over from the failing primary server and the customer can continue to do business while the primary server is being restored. Moreover, customers will find that their mobile workers are serviced by servers that are closest to the point of access. Data uploaded by mobile workers to secondary servers will be replicated to the primary server during synchronization between the servers. This makes for high availability of business information and consequent increase in profit margins with least expenses.

Other cost saving tools deployed by cloud service providers include optimization of storage space, compression, and de-duplication and on demand scalability.