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#SaaS and European Legislation on #DataProtection

This article presents a summary of the legislative and regulatory aspects that European companies must take into account when choosing a SaaS provider. Particularly in terms of #DataProtection. When choosing a SaaS provider, companies must implement a checklist with controls and negotiations that they would apply if they work with a relocated service provider for their IT operations.

EU-Data-Protection-Regulation

The main features of Software as a Service are as follows:

 

– The user accesses the application via the Internet.

– The cost depends on the actual consumption of the service (software).

– The supplier of the application (software) is responsible for its maintenance and availability.

 

Typically, when a European company adopts a cloud service, it’s responsible for how the SaaS provider processes its data, not the other way around. Due to some uncertainty, as to how and where the SaaS provider will store the data, there is a risk that it may overstep on its customers national or European regulations, which impose strict controls on the processing data of outside the European Union.

 

In SaaS solutions, the client company data is stored on the servers of the provider. This may include personal data or sensitive data such as health data. This relocation of the data implies respecting their confidentiality and ensuring their safety. The contract must frame the risks and remind everyone of their obligations.

 

In accordance with the 1995 European Data Protection Directive, which was transposed into the national law of 27 EU Member States, the transfer of personal data outside the European Economic Area (EEA), including the countries of the European Union (plus Iceland, Liechtenstein and Norway) is prohibited unless certain conditions are met. By transfer, the Directive implies that the data will be processed in one way or another in a non-EEA country; On the other hand, the transit of data via these countries is authorized.

 

For Directive, personal data is equal to any information concerning an identified or identifiable natural person. This broad definition may include various information about a person, such as name, address, IP address, or credit card information.

 

Cloud Computing = Outsourcing?

 

Outsourcing is the well-known method whereby a third party supports one or more company functions, which often lack resources (time, expertise or both). It is common, for example, to outsource a project that requires an increase in resources or a function that will no longer be useful once the project is completed (one-time need for development, software integration, etc.).

 

With cloud computing, companies do not realize that they need to take the same precautions as outsourcing. Personal data may be transferred outside the EEA if they are processed in a country on the European Commission’s list of countries or territories which provide adequate protection for personal data. (Visit the European Commission website to check countries list ).

 

The United States is not on the list of countries approved by the Commission, but data can be transferred to US companies that have signed the Safe Harbor agreement requiring them to apply seven principles for the processing of information under the supervision of the Federal Trade Commission.

 

If a country is not on the European Commission’s list of approved non-EEA countries, companies or service providers may take other measures to provide suitable protective policies for personal data and enable their transfer.

 

The security of the SaaS provider must be evaluated by the companies

 

In addition to these measures, companies considering SaaS and wanting to avoid the failure to comply with #DataProtection laws generally have to prove that they have evaluated the safety of the supplier and specified measures to protect personal or other sensitive data processed by the supplier.

 

These measures may include asking the supplier a security evaluation from a third party, requesting that the data must be encrypted during transit, checking the provider’s data retention and destruction policies, setting up audit trails or the data and obtain information about any third-party company with which the supplier could share data.

 

With that being said, companies should not just look at data protection legislation when they want to adopt SaaS. Thus, national laws on financial legislation in EU countries limit the places where companies can store financial information. For example, European companies must keep electronic invoices for five to ten years. In addition, amendments to the European Council Directive 2010/45 / EU stipulate that this information must be stored on servers located either in the country of establishment of the undertaking or in a neighboring country providing access to the relevant tax authorities.

 

Confidentiality of Data

 

The confidentiality of data hosted in Cloud is today the most important of the brakes for the companies wanting to use this service. The standard of confidentiality becomes very important when the hosted data presents a strategic content for the company or when it can be considered as personal data.

 

The confidentiality of the data may be called into question by members of the service provider or the client company, as well as by a person totally outside these services. It is therefore necessary to put in place, a high level of security, for access to these data, especially if they are accessible via the Internet. The confidentiality of data can also be undermined by regulations applicable to the claimant, especially if the applicant is domiciled in the United States.

 

As the SaaS market matures, it is becoming increasingly simple to use these services without fear of breaking the law. Over the years, we have seen the evolution, the contracts have grown and different models have been set up on both the customer and the service provider’s side.

 

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Top 12 Cloud Computing Security Threats

cloud computing security

Due to cloud computing exponential growth, its benefits are now obvious.The most notable are, reduction of maintenance costs of its IT infrastructure, Reduction of energy consumption, the rapidity of sharing data with one or more other users of CC. Possibility of creating a collaborative virtual platform.

 

However, front all the possibilities offered by this new concept, cloud computing has created new security challenges. Still some enterprises are reluctant to in CC adoption mostly because of the safety factor which is still a challenge.

 

Just to remind, cloud computing is an IT approach that operates over the Internet (or any other WAN). It’s a type of Internet based computing where different services such as servers, applications, storage, collaboration and administration tools, etc. are delivered to any organization’s computers and devices through the Internet.

 

Seeing both the promises of cloud computing, and the risks associated with it, the Cloud Security Alliance (CSA) and the Information Systems Audit and Control Association (ISACA) has created several studies in which they have identified 12 points which are the major threats to data security and cloud applications. Let’s have a look to it.

 

  1. Leakage of that kind of information which wasn’t intended for public due to the existence of Data Breaches.
  2. The fragility in Identity, Credential and Access Management, although some providers prioritize authentication interfaces with other ways such as certificates, smart cards, OTP technology phone authentication, and many others;
  3. Using Insecure interfaces and APIs that customers can use to interact with cloud services
  4. Exploit of System Vulnerabilities in operating systems on servers in clouds or even in hosted applications
  5. Accounts or services Hijacking via software vulnerabilities
  6. Risk caused by Malicious Insiders are not new. It can be a person of management team who has enough access to privacy or secured data that he can easily to misuse it.
  7. Advanced Persistent Threats (APTs) consist of a form of attack where the hacker manages to install somehow a file in the internal network of an organization and can put his hands on important or confidential data of the organization. This type of attack are really difficult to detect for a cloud service provider.
  8. Data loss can be caused by a virus attack of Datacenter, a physical attack (fire or bombing), natural disaster, or even just to a human factor in the service provider, eg in case company’s bankruptcy. The thought of losing all data is really terrifying for both businesses and consumers!
  9. The shortcomings in the internal strategies of adoption or transition to the cloud technologies. Companies or organizations often doesn’t take into account all the safety factors related to their operation before subscribing to a cloud service.
  10. Abuse and Nefarious Use of Cloud Services via accounts created during the evaluation periods (most ISPs offer free 30-day trial) or purchased fraudulently access.
  11. Denial-of-Service is the kind of attack that is meant to limit the acces on data or services by excessive consumption of resources such as processors, memory or network. The idea for the hacker is to succeed in overloading Datacenter resources to prevent other users to use services.
  12. The faults related to the Shared Technology issues can cause problems in the internal architecture of the cloud and eternal interface architecture with users.

 

These twelve points, as mentioned above, could further reinforce the paranoid in their doubt regarding cloud, but will mainly encourage users (individuals and businesses) to be more demanding on service levels (SLA: Service Level Agreement) conclude with suppliers.

 

Sources:

 

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Business Intelligence Insights

Business Intelligence development in 2016

Strategic information is often embedded in the volume of data information systems. In addition, these data are sometimes stored unorganized or in unstructured way. The volume of data is growing daily, it is very difficult to treat them and understand their meaning. But access to information, all information, without any delay, that’s what leaders want and that’s what BI is offering. Since past twenty years BI or “Business Intelligence” has seriously made its entry into business. But what is this software solution? Who is it for?

 

In a few words: BI consist to transform data into information in order to predict the future development of any company. This is an IT approach that generates and processes data in order to enable leaders to have a global vision of the results of their business. Those data generated reports provides them a better analysis and understanding of the market. It is a real help in strategic decision making. Gartner findings revealed that the market for BI solutions has an annual growth of 7%.

 

Few years back, the BI was mainly used in financial sector for different departments such as accounting, management control etc. because financial institutions need to support business activities and decisions making in time. But now we all are witnessing a BI technological change and development means providing the opportunity of significant competitive advantage for all organization. Expansion of BI is having such a huge success that now it’s available to any size of organization. Not only in mode but the BI now, is a necessity of all organizations, it represents a real strength of company.

 

Moreover, the growing use of cloud-services clearly indicates that more and more companies choose not to waste their budget in purchase of expensive and complex software. They prefer the affordable price of services available in SaaS mode, simple and quick to implement, without cost to install or setup + access data any moment. These solutions especially have the enormous advantage of being a payback within months.

 

In a company, data presentation tools offered by Business Intelligence are for everyone. Every department will find the tool that suits them best and benefit for its function.

 

  • Management monitors business performance and effectiveness of their strategy via performance indicators presented in dashboards.
  • Analysts literally navigate in information to understand and analyze the highlights of any organization.
  • Finally, employees use structured reports to follow and adapt the day to day operational activities of the company.

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There’s no doubt that the collaboration of these services available in SaaS mode, offers companies the opportunity to create a fluid flow of information. A well-designed BI solution provides a consolidated view of key business data which isn’t available anywhere in the organization, gives management visibility and control over measures that otherwise wouldn’t exist.

 

Cloud computing adoption and growth

Cloud computing -BigData

Cloud computing is an IT approach that relies on shearing computing and application resources over internet rather than having local servers of personal devices to handle applications.

In cloud computing, the word cloud is used as a metaphor for “the internet”, so it’s a type of cloud-internet based computing. This computing approach brings several advantages to organizations by delivering them different services via internet. The most promising advantages are:

 

  • Reduction of maintenance costs of IT infrastructure
  • The rapidity of sharing data with one or more other users of CC. Possibility of creating a collaborative virtual platform
  • A free and open access to the client, which can establish its own connection anywhere and access their data immediately, without going through the establishment of a VPN (virtual private network) in the company.
  • Reduction of energy consumption

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Cloud computing IT infrastructure

In technological terms, 2015 was the year of “cloud”. According to research firm IDC, cloud computing now accounts a third of all IT infrastructure spending. For applications, Forrester suggests that overall worldwide spending on SaaS this year will reach $ 106 billion, about 17% of total spending in enterprise applications.

 

Such high figures demonstrate only the success of cloud computing.  In 2015, we saw the peak of Cloud computing hype with the potential to make any organizations more responsive than ever. The analysis firm Gartner predict how the cloud computing and applications transform enterprise computing in a better way.

 

Today, cloud computing has become essential in the business. The leaders have realized that it is more efficient and profitable for them to assign non-core processes to an external third party providers.

 

Cloud services in their various versions, SaaS (Software as a Service), PaaS (Platform as a Service) offers good opportunities to individuals and companies but still security and privacy continue to be the main inhibitors of cloud adoption because of insufficient transparency into cloud-provider security. Cloud providers need to demonstrate their capabilities to deliver services in a secure and reliable manner.

 

To summarize, We can see that in 2015 Cloud represents a radical change for companies and gain a competitive advantage. In short, more than a buzzword, cloud is a tool that can streamline your business processes and improve them.

 

Sources :

http://zd.net/1KM026q

gtnr.it/1PcuNPP

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