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Are you losing it?

Editorial Type: Feature     Date: 07-2015    Views: 3256      









Bryan Forrester, Senior Vice President of Sales at eFolder, describes the top five sources of cloud data loss, and offers some advice on how to protect critical data.

Businesses are rapidly adopting cloud applications. According to the Aberdeen Group, 80% of businesses reported at least one SaaS application in their organisation. Beyond adoption, usage has also increased: 2014 was the first year in which the majority of workloads took place in the cloud, versus a traditional on-premises space, 51% to 49%, according to Silicon Angle. Moving to the cloud has increased productivity, enabled mobility, and promoted collaboration.

One major issue that moving to the cloud has not eliminated for organisations is the reality of data loss. While SaaS applications such as Salesforce, Office 365, Google Apps, and Box are inherently secure and resilient, the biggest threat is not hardware or software malfunctioning - the biggest threat is humans. As an indicator, 32% of companies in 2013 using cloud services reported losing data. This data loss reality is especially pertinent when we consider that more than 50% of organisations are transferring sensitive or confidential data to the cloud.

1. User Error
Accounting for a whopping 64%, user error checks in as the primary source of cloud data loss. Examples of user error include accidentally overwriting data or deleting files. Accidental deletion accounts for 47% of all lost cloud data, which goes to show that even the most earnest of humans make mistakes. Accidents are inevitable at any company, but it is critical for businesses to clean them up before they interrupt business continuity and productivity.

2. Hackers
At 13%, the second largest source of data loss comes from hackers, outsiders who get into the system with nefarious intent. Hackers are increasingly willing to attack companies of any size, not just mega corporations such as Sony, Target, or Home Depot.

In fact, now 50% of data breaches occur at companies with fewer than 1,000 employees. Common types of hacker attacks consist of the hacker breaking into an organisation's database or acquiring administrator and user credentials. Often, this type of activity results in sensitive data being compromised, jeopardising both the business and its customers.

3. Closing Account
10% of cloud data loss is the result of closed accounts. This type of data loss is the result of a registered user or provider who closes an account without regard for the data left behind. A common example of this kind of data loss is an organisation that switches their CRM application from one platform to another without a comprehensive transition of data.

According to the 2011 Pacific Crest "Private SaaS Company Survey," the average churn rate for a SaaS application is 5%. When organisations make these software switches, cloud data is lost, costing the business time and money.

4. Malicious Delete
"Jim would never do that" - unfortunately, Jim would. Malicious deletions account for 7% of lost cloud data. Malicious deletion happens when a registered user purposely deletes data. This type of activity may be initiated by a disgruntled employee or a recently terminated employee who still has access to cloud applications and data.

At all levels, there are examples of employees not valuing company data nearly as much as the IT department or executives do, especially when these employees view their job as a stop-gap or temporary. Consider that the average turnover rate for a B2B sales representatives is 13.9%, and those individuals are responsible for working with potentially important leads and accounts. Malicious deletion is a difficult and dangerous form of data loss to control because the culprit is a member of the organisation and knows where the most vital data resides.



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