Data Encryption and Protection in the Cloud

European companies that want to remain competitive have a legitimate demand for cloud solutions. At the same time, these same companies fear unauthorized access to their sensitive data. Businesses are going through the ongoing struggle to keep sensitive data secure. As remote work increases, employees now work freely with each other, as well as with contractors and partners. However, this freedom to collaborate also means that information is shared between devices, applications, and networks over which the company does not necessarily have control.

 

Many decision-makers are also discouraged from the existence of data protection laws and regulations such as the NIS Directive or the EU-DSGVO/GDPR. How fortunate to have to deal with problems that can be easily solved for a change. Data protection in the cloud is one of them. Although data in the cloud is often stored abroad, this data storage is the safest option for companies to store files in compliance with the GDPR when encrypted!

 

The lack of knowledge about cloud responsibility shows that many companies do not sufficiently consider the data protection requirements of third parties. Often critical data is not protected from ransomware attacks and data loss. And many organizations have lost data because they solely relied on their CSPs’ solutions and backup tools. It’s been shown that the providers’ current offerings do not meet most of the company’s security needs.

 

Growing amounts of data flexibility & scalability have made the cloud increasingly popular as a data storage medium. The advantages are obvious: the files hardly need any local storage space, the cloud is highly available and the data can be accessed from any remote location.

 

Many programs use the cloud as data storage or backup without the customers being aware of it. This happens when synchronization is set by default or when the program is specially designed for cloud use. This is the case, for example, with Microsoft Office, Dropbox, and Google Docs. Particular attentiveness is required when using collaboration tools, software such as Microsoft Teams enables the simple exchange of messages and files. Users are used to practical desktop applications and have forgotten: data is sent to the cloud servers that are beyond the control of whoever owns the data. This is at the root of a serious privacy problem: loss of control.

 

Reservations about the cloud relate primarily to the lack of data protection. Despite this, too few companies are still taking the initiative. Countermeasures are only slowly being implemented. As a result, the number of data leaks continues to increase every year. A total of 108.9 million accounts were breached in the third quarter of 2022, a 70% increase compared to the previous quarter. According to ENISA, 57% of SMEs who experience a cyber-attack have to close their business operations as a direct result.

Many companies are aware of their security problems. But too few actively take care of the solution. Security measures, data protection laws, and compliance requirements are only as good as their implementation along with data encryption.

 

Encryption is effective when files are still encrypted on the device on which they are created or edited. In this way, the information is protected during transmission to the cloud and during the entire storage period. You can use it to ward off attacks by ransomware and leakage and protect yourself from access by the cloud provider or foreign authorities. To ensure data is protected and productivity remains high, organizations need an integrated, cloud-based approach to cybersecurity. Standard encryption algorithms and a transparent open-source basis guarantee mathematically complete and correct encryption.

 

High-quality encryption software fits seamlessly into existing workflows. This additional layer of protection is also ideal for backups. The motto of secure cloud use is therefore to stay in control. Encryption is an effective measure of this.

TOP IT Trends for 2023

Undoubtedly, COVID-19 was biggest push for many companies to accelerate with their digitization. In 2022 already many business processes are largely handled digitally and corporate data increasingly form the basis of business success. In order to continue to ensure their business success, in 2023 companies will increasingly deal with sustainability, their multi-cloud strategy and cyber-protection.

The market research company Gartner assumes that spending on on-premises and cloud services will be accelerated by 2025, with the cloud taking on the higher share vs traditional IT. After covid19, the two main reason of this dramatic shift are issues related to the supply chain and climate related issues.

 

Multi & Hybrid Cloud:

With more and more services migrating from on-premises to the cloud, the multi-cloud in particular is now gaining in importance. There are many reasons that speak in favor of a multi-cloud strategy when selecting cloud tools: If services from several cloud service providers are used, costs can be saved, the risk of application failures are reduced and certain types of GDPR requirements are respected. Furthermore, many companies attach importance to choosing the most suitable platforms for specific processes, ensuring scalability and not being exclusively dependent on one provider. It also provides the necessary overview of a wide range of management functions and data services. Since multi-cloud environments represent a larger attack surface for various threats, the development of a suitable IT security strategy is also much more complex. To ensure that potential security gaps do not arise in the first place, a comprehensive top-down security strategy should be implemented.

 

Sustainable Cloud

More and more companies are emphasizing on the reduction of their environmental impact. By demanding relevant and reliable evidence from their cloud suppliers, IT buyers are paying making more and more sustainable choices. Various studies indicate that cloud-based solutions can lead to significant CO2 savings. All leading hyperscalers (providers of cloud platforms such as Amazon/AWS, Microsoft/Azure, Google/GCP) are constantly working on energy-efficient data centers and on the most efficient resource allocation possible in order to reduce their energy consumption. IT that lives up to its responsibilities can make a significant contribution to a net-zero world. Sustainable IT focuses on the growing energy consumption of the entire IT value chain in an environmentally-oriented approach.

 

Lack of IT staff

The digital transformation is a constant challenge for the worldwide companies. The IT personnel market is tense due to a lack of specialist staff, which can impact companies’ efforts towards digitization. Companies cannot remain successful in the global market without specialists with in-depth IT & cloud knowledge. And the fact that the future is hybrid & multi-cloud, companies are concerned about the lack of qualified staff. The necessary skills cannot be acquired overnight. An increasing demand for software developers, service desks and administrators for information technology as well as experts for data security and business intelligence will be recorded in 2023.

 

Robotic Process Automation

Considering the general shortage of skilled workers and economic and geopolitical uncertainties, technologies are favored that are easy to use and produce a measurable gain in efficiency. Less administration, more productivity – this is the motto for the use of automation technologies in day-to-day activities. RPA software robots can imitate the actions of humans on the computer and thus carry out rule-based and repetitive tasks flawlessly and without a break. Thanks to the latest improvements in data entry and symbol recognition, many manual tasks can be done by robots. According to Gartner, the global robotic process automation market was estimated at USD 2.09 billion in 2020 and is expected to reach USD 33.3 billion by 2023 due to the growing trend of cloud-based solutions and the increasing adoption of robot-based solutions across various end-user industries.

Data as a Service: Enterprise search benefits from Artificial Intelligence and Machine Learning

According to IDC, data as a service, voice-controlled apps, and AI-based services are the most important IT trends of the coming years. Data marketing and data analysis are among the most important challenges for companies. IDC expects that the amount of data created in 2023 will reach over 100ZB, one trillion gigabytes), most organizations also need to turn to external data in order to execute a variety of business processes. This translates into more than 90% of large companies generating their revenue from data as a service.

Digital Era ARTIFICIAL INTELLIGENCE MACHINE LEARNING

This is the provision of information and distribution of data for customers. AI-based services and machine learning methods help to interpret data and are therefore becoming increasingly important. In the future, digital services or apps will hardly be able to keep up with the market without the support of artificial intelligence. Artificial intelligence (AI) is a driving force behind digital transformation, encompassing innovations such as machine learning, natural language processing (NLP), data labeling platforms, and predictive analytics. According to IBM 35% of companies report using AI in their business, and an additional 42% of respondents say they are exploring AI.

 

The latest report by Research and Markets also shows that AI is expected to achieve a compound annual growth rate of 52% by 2025, indicating its rapid adoption by global businesses. The global AI spending reached over $55 billion in 2021 (IDC) and the AI market is expected to grow to $1.81 trillion by 2030 (GrandViewResearch). By 2023, 60% of all digitization projects will be supported by artificial intelligence functions and almost half of all apps will be voice controlled. One survey also found that 87% of global organizations believe that AI technologies will give them a competitive edge.

 

The majority of companies are using machine learning processes in marketing & sales, healthcare, banking, manufacturing, and retail sectors. The machine processing of language is becoming increasingly important. Self-learning systems that process complex amounts of data in real time are also gaining importance. AI-based systems are expected to take on more and more tasks and relieve entire departments.

 

The benefits from artificial intelligence and machine learning are numerous:

  • 42% of companies stated that the profitability of their ML and AI initiatives exceeded their expectations, while only 1% said it didn’t meet expectations. (Accenture)
  • By 2025, 50% of companies will have devised AI orchestration platforms to operationalize AI, up from fewer than 10% in 2020.Gartner 
  • Global machine learning as a service (MLaaS) is currently used mostly in healthcare and life sciences, but it is expected to grow in industries including manufacturing, retail, telecom, finance, energy and utilities, education, and the government.
  • 92.1% of companies state they are achieving returns on their data and AI investments. (NewVantage Partners)
  • AI-powered enterprises will be able to respond 50% faster to customers, competitors, regulators, and partners than their peers. (Oracle)
  • AI and machine learning will contribute to the labor productivity increase by up to 37% by 2025.  Industry, Research and Energy (ITRE),
  • 27% of the respondents of the latest McKinsey Global Survey on AI report at least 5% of earnings before interest and taxes attributable to machine learning-based AI.
  • PwC research shows that the global GDP could be up to 14% higher in 2030 (up to $15.7 trillion1 to the global economy) as a result of the ML and AI accelerated development and take-up. (PwC)
  • According to PwC research, 45% of total economic gains by 2030 will be the result of AI-driven product enhancement, stimulating consumer demand.
  • IBM’s new cognitive phishing detection capability uses machine learning to help businesses detect a phishing site up to 250% faster than traditional methods.

Top Tech trends for 2023: What can companies expect in 2023 and position themselves better?

The year 2022 was marked by supply chain disruptions, inflation, debt, labor market gaps, geopolitical uncertainties, fears of recession and increasing ransomware attacks. These developments continue to pose a critical threat to the companies. But it is also important to look into the future at the end of the year to be better prepared for the challenges and opportunities to come & heal covid19 scars.

 

Cloud budgets are being analysed more closely

According to a recent report by Veritas, misunderstanding about cloud security, scalability and storage has led most enterprises spending much more than anticipated. 93% of companies overspend on the cloud, exceeding budgets by an average of 43%. As the amount of data increases every year, the cost of storing it in the cloud also increases. For IT teams, this is becoming increasingly difficult to justify. Exceeding budget is mainly due to the misunderstanding nearly all organizations had that CSPs are responsible for protecting their assets in the clous. Although cloud adoption has enabled most companies to implement advanced business strategies, future CEOs and boards of directors will demand more transparency into the return on investment (ROI) of cloud spending. IT managers are under great pressure to justify their cloud budgets while finding new solutions to reduce data volume as Veritas expect IT spending to be reviewed even more closely in 2023.

The vast majority of enterprises fail to stay within their cloud budgets

Low-code and no-code make compliance difficult

As the demand for hyper-automation and IT modernization is growing at an exponential rate, low-code and no-code applications are contributing significantly to the democratization of application development in companies. In 2023 they will become even more established. The global low-code platform market is forecasted to generate a revenue of $187.0 billion by 2030, increasing from $10.3 billion in 2019, and is expected to reach 31.1% CAGR in the forecast period (2020-2030).

Employees without a technical background (citizen developers) can develop their own applications. Almost 60% of the custom apps are now built outside the IT department. Of those, 30% are built by employees with limited or no technical skills, creating huge compliance issues for businesses. Because citizen developers are less experienced in implementing security and privacy systems. Creating new vulnerabilities that can be exploited by cyber criminals.

 

Edge device vulnerability

Gartner analysts predict that by 2025, around 70% of of the data managed by organizations will be created and processed outside of the data center or cloud vs 10% now. Adoption of edge devices are considered as the solutions that facilitate data processing & generation. But this increasing shift of data processing to the edge complicates the IT architecture and increases the attack surface. Because of the lack of IT specialists, it is often not possible to provide the same level of protection at the network edge as in the data center or the cloud. Nevertheless, to fully protect the enterprise, every single edge device must be secured.

 

IOT & hyper-connectivity

We live in a hyperconnected world where worldwide companies are under huge pressure of shearing and integrating data in a smart way. It’s predicted that there will be more than 43 billion connected devices by 2023 with the goal of generating, collecting, shearing and helping companies to make use to data in the smartest way possible. 5G technologies are also boosting the full potential of IoT & hyper-connectivity. It’s true that IoT devices make our lives easier and more convenient but also comes with huge security issues if not well protected.

As the number of devices explodes during 2023 and beyond, device manufacturers and security experts will have to strengthen their strategies to fight against cyberattacks and minimize the chances of losing valuable data.

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