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How Do I Know My Cloud ERP Data Is Secure?

Posted by Jack Beech

Feb 5, 2014


By now many small- and medium-sized businesses (SMBs) know that embracing cloud ERP to conduct their accounting efforts and store financial data is the smart way to do business.

They recognize that bad people, faulty technology or natural disasters can happen and that the chances of their data being available at all times are higher when stored at a data center compared to an on-premises system. That’s because data centers are designed to focus on protecting your information from weather and hackers, among other potential problems.

Often, however, the only hesitation SMBs have with the move from on-premises ERP to cloud ERP is security. They’re wary of putting their sensitive financial and customer data in the cloud because it feels safer to have your data close to home, in your office’s server in the basement.

Let’s explore four facts that highlight why your data is safer in a data center than it is stored on-premises.

  1. The security technology at a data center is more powerful than the technology in your office: Security level requirements at data centers are of the highest level that exists. Their firewalls and encryptions are much stronger than your office’s. The internal server that many SMBs run isn’t much more secure than a wireless Internet router at a house. In fact, most SMBs run the same kind of Wi-Fi routers as they do in their homes. If someone really wanted to hack into this kind of residential router — even one with an encryption — they probably could. It would be far more difficult to hack past a firewall and into a data center server.
  2. It’s easier to break into your office than it is to break into a data center: If you were to conduct a hypothetical experiment of trying to break into offices and data centers, you’d quickly learn which is more secure — and it is not the offices. Physical access protection for a data center alone is much stronger than office buildings.
  3. A data center is more liable for security breaches than your office: The liability that a data center has around security is incredibly high because it’s in the business of storing data and protecting the information of many companies. This is why data centers work so hard to keep people out. Your office doesn’t have this kind of liability or pressure. SMBs just don’t have the luxury of affording a security expert, but a data center provides that service to all of its customers.
  4. The internal monitoring of employees in data centers is greater than an office: Data centers monitor what server rack their employees access, when they access them and why they accessed them. If information goes in or out, the center is notified. That’s because the data center is just as liable for disruptions, theft or breaches that originate internally as it is for external threats. This makes monitoring highly tight all around. Your office doesn’t carry the same amount of control over your employees. All it takes is one disgruntled IT employee at your company to wreck your business.

SMBs need to focus on their products and services. They should outsource anything about the business that is not a core function, such as security. Let the experts do what they do best so you can get on with what you do best — running your company.