What Is Encryption | Why Encryption Is Important for Business

Written by | 2025

If you’ve ever logged into online banking, made a purchase from a secure website, or sent a message through an encrypted chat app—you’ve already used encryption. But what is encryption—and why does it matter for your business?

Encryption is the process of converting readable information into scrambled code to protect it from unauthorized access. It’s one of the most effective ways to safeguard data—whether it’s stored, shared, or in transit. With encryption, you still have full access to your data, but no one else can see it without the right key.

What Encryption Does

Encryption secures your information by locking it in a digital vault and scrambling the contents so only someone with the correct key can read it; even if someone intercepts a file or message, they can’t access the contents unless they’re authorized to decrypt it.

Here’s how it works: when data is encrypted, a special algorithm turns it into unreadable text—also called ciphertext. Only someone with the correct key can decrypt that data and return it to its original form.

You’ll find encryption quietly working behind the scenes every time you:

  • Send a secure email
  • Log into a cloud app
  • Make an online purchase
  • Access a VPN or company network remotely
  • Use a website that starts with “https”

It protects your information in two main ways:

  • At rest – encrypting stored data (files, databases, backups)
  • In transit – encrypting data as it moves between devices or networks

Why Encryption Is Important for Your Business

With growing cyber threats, remote workforces, and increasing compliance demands, encryption has become a foundational part of business IT strategy.

Here’s why encryption is important to businesses of all sizes:

  • Protect Sensitive Data – Shield customer records, employee info, and financial data
  • Prevent Data Breaches – Keep information secure even if a device is lost or stolen
  • Meet Compliance Requirements – Align with regulations like HIPAA, GDPR, and PCI-DSS
  • Enable Secure Remote Work – Ensure employees can work safely from anywhere
  • Build Customer Trust – Demonstrate your commitment to data privacy and protection

By encrypting critical information, your business reduces risk, limits exposure, and strengthens its overall security posture. Simply put, this is why encryption is important—it helps keep your data safe, your reputation intact, and your business moving forward.

From Setup to Security: How Managed IT Supports Encryption

Encryption plays a role across nearly every part of an IT environment—from email and endpoints to cloud storage and data backups—but it only provides full protection when implemented and managed properly. To be effective, encryption needs to be thoughtfully integrated into everyday operations, securing everything from file sharing and cloud access to internal systems and communications.

Our managed IT support includes:

  • Assessing current security practices
  • Enabling encryption across systems and devices
  • Managing encryption keys and user access
  • Monitoring threats and suspicious activity
  • IT Help Desk services
  • Ensuring compliance with industry-specific regulations

You shouldn’t have to choose between accessibility and security. With the right encryption strategy, you get both.

Common Encryption Use Cases We Support

Encryption isn’t one-size-fits-all—different tools and environments require different layers of protection. From securing emails and cloud storage to protecting backups and remote connections, encryption helps safeguard sensitive data wherever it lives or moves. Here are some of the most common use cases in business settings:

  • Email Encryption – Keep business communications private
  • Disk Encryption – Protect data on laptops and servers
  • Cloud Encryption – Secure your files in Microsoft 365, Google Workspace, and more
  • VPN Encryption – Secure connections for remote workers
  • Backup Encryption – Protect stored data in the event of loss or breach
  • File Transfer Security – Encrypt documents shared across teams or vendors

TL;DR: Encryption, Simplified
Encryption protects your business data by converting it into secure, unreadable code—accessible only with the correct key. It’s a cornerstone of modern cybersecurity, allowing your team to work confidently while reducing the risk of unauthorized access, data breaches, and costly incidents.

DOCUmation makes encryption simple, effective, and tailored to your needs. Whether you’re securing files, networks, or cloud environments, our managed IT services help keep your business protected—without the complexity.