A recent CSO article details the reasons why it (finally?!) is making sense for organisations to employ encryption for the data that belongs to and resides within their boundaries.  They comments that hardware and software vendors have whittled away at the traditional objections to encryption, including performance penalties and the difficulty of managing keys.

They also mention that "Now, companies that have a great deal of sensitive data are beginning to move beyond the tactical point products they might have used years ago to high-level encryption "platforms" that provide services to applications, databases and networks companywide."  Worth a read - go to CSO Online and read about encryption .