A new report from CanadaOne.com found that small- and medium-sized businesses must improve data protection by using reliable networking and data security practices.

Using secure networking technology is crucial for SMBs, especially those relying on services, such as online backup or disaster recovery. The third-party cloud vendors contracted for these services work tirelessly to ensure their servers and technology are secure. However, SMBs often use consumer-level technology for their connectivity. For most people, these wireless routers and other devices are sufficient. Businesses, though, must protect against potential data loss by using more advanced technology.

Several companies opted against using cloud services initially because of questions regarding security and uptime. However, vendors have so aggressively secured their networks that they are often more secure than on-premise alternatives, experts say. Online backup is especially valuable to SMBs because information that is no longer needed for regular access but must be archived, whether for compliance or general record keeping, can be outsourced to the vendor's servers. This will help businesses avoid storage bloat and other capacity issues that could result in data loss.

A report from TechAisle found that SMBs will spend $11 billion on cloud services in 2011. Spending is expected to grow 12 percent annually through 2015.