A shift is occurring to the way businesses operate. Small businesses that engage with advance technologies, like ERPs and other cloud applications are outgrowing their more traditional counterparts. Meanwhile, the biggest tech companies on the planet are moving more and more toward virtual solutions.

The development marks a clear movement toward a greater reliance on digital technologies that allow businesses to perform with greater clarity and efficiency.

Still though, a general mistrust of the cloud exists. According to a recent study by Stratoscale, nearly four of five businesses avoid running sensitive data in the public cloud.

Over 80 percent of enterprises participating in the survey stated that they have either “moderate or high levels of concern around public cloud lock-in.” Small businesses (defined by the survey as having 100 or fewer employees) had the greatest concern.

The data suggests that while most companies are taking the shift to digital business as an imperative, many are reluctant. Most often it seems, that reluctance takes the form of security concerns.

As we’ve noted in the past, fear of the cloud is not always well founded. Though the cloud is not some impregnable entity that is the last solution we need to keep data safe, it is also not some wild west for hackers. Generally speaking, the fear of the cloud is the fear of the unknown, rather than a reaction to some obvious weakness.

These security concerns are leading many organizations down the path toward a hybrid model, wherein some data is stored and some operations are conducted via the cloud, and other data and operations are run locally.

The trend demonstrates the clear understanding that cloud-based business solutions are becoming a necessity, but that businesses are not yet willing to jump in feet first.