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October 18, 2012

Data Security, Privacy Halt or Delay 66 Percent of Cloud Implementations

Security threats continue to be an obstacle for widespread cloud adoption, according to a new study conducted by cloud encryption provider CipherCloud.

Data security, privacy, residency, and compliance issues continue to block cloud adoption, with 66 percent of organizations reporting at least one cloud project that has been stopped or delayed due to these factors – which can cost organization millions of dollars, according to Pravin Kothari, founder and CEO of CipherCloud.

“Stalled or cancelled projects are costing companies millions. Many organizations are clearly deploying SaaS (News - Alert) or cloud applications first and assessing the risk later,” Kothari said in a statement. “These delays and costs can be avoided by bringing in cloud security and privacy experts early during the architecture planning phase of any implementation.”

In addition, worries over data leakage topped the list with 52 percent of respondents indicating this was a concern.

In considering storing sensitive data in the cloud, the respondents, which CipherCloud said were IT professionals with “in-depth experience in cloud implementations,” indicated concern over these issues: data security, 66 percent; data privacy, 56 percent; compliance, 34 percent; and data residency, 26 percent.

Image via Shutterstock

The study also showed a large percentage of respondents were also concerned with other specific cloud threats, including the following:

  • Unknown risk profiles – 34 percent
  • Account, service, and traffic hijacking – 32 percent
  • Shared technology vulnerabilities – 32 percent
  • Malicious insiders at cloud providers – 28 percent
  • Insecure programming interfaces – 24 percent

Although cloud is experiencing explosive growth, most of the technologies to address the security threats associated with this new model have not kept pace, Kothari added.

“At CipherCloud, we’ve closed that gap with cloud-optimized encryption and tokenization advances that preserve the user experience, can work with any cloud application, and can be implemented in hours instead of months,” he said. “Our cloud encryption gateway fully addresses the concerns that our survey found, so that more organizations can move confidently and rapidly to the cloud.”

In related news, a new study by the Cloud Security Alliance (CSA) and ISACA the Information Systems Audit and Control Association revealed organizations feel the lack of innovation and security issues will hamper full adoption if things don’t change, TMCnet reported.

Security is an issue that concerns most cloud users especially when international service providers are concerned. Sensitive data can get lost or stolen if cloud databases are not protected with strict regulations and assurances.

“One of the most interesting findings is that governance issues recur repeatedly on the list of the top 10 concerns. Cloud users recognize the value of this model, but are wrestling with such questions as data ownership, legal issues, contract lock-in, international data privacy and government regulations. As cloud services continue to evolve, it is critical that we work together as an industry to provide insights and recommendations on these issues so that service and solution providers can look to innovate and deliver what the cloud services market needs to advance and what enterprises need to succeed,” said Greg Grocholski, CISA, international president of ISACA.

Edited by Brooke Neuman

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