It's true that encrypting tapes using some types of backup software increases backup times, consumes more storage space and costs more money. But those arguments may be losing steam. A dizzying assortment of products were introduced last year, promising to make encryption better, smarter and faster. The bad news: A single encryption method can't be used in moving data from a laptop to off-site storage in most cases. The good news: Decryption has become simpler, and backup times have improved significantly, especially when using encryption appliances.

A successful encryption plan involves identifying the right data to encrypt, choosing only the encryption technologies that you need and managing encryption keys effectively.

"There is still no right way to apply encryption," says Jon Oltsik, an information security analyst at Enterprise Strategy Group Inc. in Milford, Mass. "It depends on what you perceive the risks to be and where the money is to solve the problem. Focus on figuring out one or two technologies that will take care of the biggest chunk of issues."

Here's a look at some of the newest encryption technologies.

Back-end appliances