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Security Measures to Consider When Migrating to the Cloud

By Brian Wilson, Director of Information Technology, BitTitan

As more enterprises begin migrating to the cloud, the question of cybersecurity is increasingly urgent. While cloud migration offers many benefits, it’s key to understand your company’s overall goals. Security and data protection can be maintained and even enhanced by a move to the cloud, but the appropriate processes and procedures must be understood and implemented for safeguards to be effective.

Set Appropriate Goals

Problems arise if you fail to understand or adequately set your company’s cloud-migration goals. The cloud is a big amorphous term. Companies can get stuck when they find themselves in a “boiling the ocean” scenario. Migration projects must be broken down into deliverable actions with a realistic timeline.

It’s sometimes easy to assume the cloud is the panacea, especially with the cloud’s cost-cutting benefits. Cost is certainly a motivating factor, but the cloud is not a cost-cutting solution for every situation in every business. For example, an inappropriately-sized cloud environment that’s larger than a company requires will escalate costs.

It’s crucial to understand what an organization will gain in terms of flexibility, security and compliance. Most operating systems will work in the cloud, offering flexibility on the software and workloads they deploy. In addition, many cloud companies make significant investments in security, which are much bigger than what an individual company’s IT department could make.

Take a Holistic View

Fundamentally, the overall migration process remains the same, whether you’re moving from on-premises-to-cloud or cloud-to-cloud. Though in an on-prem environment, most companies are working with known systems and tool sets for security, network monitoring or mobile device management. Those existing tools might not translate to the cloud, even if fundamentally, your processes haven’t changed. It’s important to plan for having the right set of security processes and tools during a migration that presents a hybrid infrastructure, either temporarily during the migration, or as part of the ongoing architecture.

Given this, it’s vital to take a holistic view and evaluate the total environment so you can plan how to manage, monitor and secure operations within the cloud. Also, it’s important to understand that migration often brings new security responsibilities to managed service providers (MSPs) and their clients. These might include new application scanning tools, intrusion detection systems with event logging, internal firewalls for individual applications and database or data-at-rest encryption.

Though the underlying platform is the cloud provider’s provenance, it’s up to enterprises to decide how the platform will be used, what data will reside there, who will have access to it and how it will be protected. By thinking holistically about these things, you’ll be more successful in achieving the appropriate level of cybersecurity protection.

Stay Vigilant

The quest to guard against cyberthreats is never-ending. The cloud and all things associated with it are always evolving, and it’s a constant battle to stay one step ahead of the bad actors.

Therefore, companies must understand their risk profile and the level of protection they need. For example, businesses that handle personal data such as names, phone numbers, social security or credit card numbers, or medical info will likely have higher risk profiles than those who do not.

Sensitive data must be safeguarded, while appropriate employee education and procedures must be in place. The key to understanding your risk profile is to identify possible threats, and with that in mind, consider where you might be most vulnerable — both internally and externally. Use that information to drive conversations about the level of risk tolerance that is acceptable for your organization. In turn, this will define the level of investment required to minimize or mitigate any existing gaps in your risk profile.

Remember: regardless of whether data lives on-prem or in the cloud, the number-one security threat is still human error when it comes to data breaches caused by phishing attempts or ransomware. Companies should educate employees on appropriate procedures, while also leveraging their provider’s security tips and offerings. This often involves communicating risks, making security a responsibility for all staff and providing people with routine training.

Not All Data is Equal

Finally, companies should understand how to differentiate and classify sensitive and non-sensitive data. Companies can come to rely on their MSP’s abilities to automate data storage and security.

For larger corporations that may be running an Azure environment, for example, there’s greater willingness to rely on their MSPs to automate various provisioning activities. If an organization wants more control in those areas, they must be aware of their responsibility to turn those features off.

Additionally, regarding governance, companies get far greater leverage through automation methods that can facilitate application deployment, perform routine maintenance tasks to provide a level of uniformity that follows best practices and simplify compliance accreditation.

As a company considers a cloud migration, the simple edict is to understand from where you’re starting and where you ultimately hope to land — all before beginning a migration project. A clear vision of what your company wants to accomplish will ultimately determine your success. It’s a new environment that requires support from everyone involved.

Bio

Brian Wilson is the Director of Information Technology at BitTitan, where he specializes in the areas of IT strategy, roadmaps, enterprise systems and cloud/SaaS technologies. Prior to joining BitTitan, Brian worked as an executive with San Jose-based IT services company Quantum and in various IT consultant roles with Cascade Technology Consulting, PricewaterhouseCoopers and the Application Group. Brian has over 25 years of experience as a senior IT executive, with an industry background that spans high technology, consulting, commercial real estate and manufacturing.

Five Emerging Trends for MSPs and IT Pros in 2019

By Mark Kirstein, Vice President of Products, BitTitan

The new year brings a wave of eagerness and ambition for innovators across industries. For IT professionals and managed service providers (MSPs), this often means setting new business goals. For instance, in 2019 MSPs or IT firms may be considering new service offerings, building a new core competency, or simply growing revenue and improving profitability.

Regardless of the goal, as part of this process, it is often helpful to think about trends surrounding the adoption of technology solutions. At BitTitan, we’ve been thinking about this and want to share our thoughts on what to expect in the coming year:

1. Cloud solution adoption makes its way through the early majority

If a company is only using on-premise technology versus cloud-based solutions, they’re likely falling behind the times.

Consider, as just one example, email hosted in the cloud. According to a recent survey from Gartner, just shy of 25 percent of public companies have made the jump to cloud email services, with adoption rates among SMBs even higher. In the coming year, we expect to see many more SMBs and enterprises alike moving to cloud-based email – the end of the early adopters and the beginning of the early majority.

Given this, MSPs and IT firms may want to do an audit of technology solutions and workstreams under their management to evaluate whether on-premise solutions would be more cost-effective if they were transitioned to the cloud.

2. Fueling the fire of cloud adoption

Remember that the enthusiasm for cloud-based solutions is being fueled by a number of factors, not just email. Consider that:

  • Many businesses have already successfully migrated email and/or other work in the cloud, boosting the confidence for those who were once wary of cloud solutions.
  • Cloud providers like Microsoft are increasing license costs and shortening support cycles of on-premise solutions, pushing businesses toward cloud alternatives. As a result, maintaining this legacy infrastructure is becoming more costly for IT.
  • Security concerns previously prevented people from moving to the cloud, but these concerns are being addressed. Cloud solutions can provide a higher level of security and are better maintained by cloud providers like Microsoft or Google through regular updates and patches to address new cyber threats. The same cannot be said for on-prem systems.

3. Customers are becoming more savvy about the cloud

While the last decade has primarily focused on why and how organizations should move to the cloud, in the next decade we’ll see more managers focused on optimizing their cloud services. Tech professionals will be sophisticated when selecting cloud providers and adopting new services.

For instance, they may take a multi-cloud approach for more flexibility and room for negotiation, helping to stave off vendor lock-in while allowing businesses to host workloads with the cloud provider that makes the most sense for specific business objectives.

As a result, managing IT environments will become more complex. Hybrid and multi-cloud strategies dominate, but department-level technology decisions are influencing an influx of SaaS solutions. These solutions can be challenging for IT teams who manage governance and ensure broader business integration. As this trend continues in 2019, MSPs will seek additional software management solutions to ease the transition and troubleshooting.

4. The market for specialists heats up

Companies will move away from generalists to tackle their cloud needs, and MSPs might consider specializing in one particular area to distinguish themselves from competitors. A wealth of user technology is available — such as container services to move applications, serverless computing, blockchain applications and automation to manage IT environments — and more specialists are necessary to effectively manage the tech field’s growing landscape.

Also, look for MSPs to further establish vertical specialties in industries such as health care or education, where speaking the end user’s language and understanding their specific ecosystem’s needs, challenges, and technical solutions gives MSPs a leg up.

5. Governance further commands attention

Another primary focus for IT in 2019 will be improved security and governance practices. For those coming from on-prem infrastructure with well-established processes, cloud governance looks far different. IT and MSPs have an opportunity to review and update these processes to ensure they’re appropriate for cloud-based systems. In addition to dictating where data is stored and for how long, governance plans also should address the availability, usability, and integrity of data.

Also, IT managers must ensure migration plans – whether to the cloud or between clouds – have security as a core tenant of its execution. Cyberthreats are only becoming more sophisticated, and any organization, regardless of size or industry, is vulnerable. Educate users about cyberthreats, and keep systems and applications up-to-date, while exploring other options to ensure all bases are covered.

Despite new challenges in 2019, the outlook for IT professionals and the service provider landscape remains strong. Technology leaders continuing to look ahead and purposefully approach the cloud will help their organizations execute on their visions in the coming year and beyond.

Bio

Mark Kirstein is the Vice President, Products at BitTitan, leading product development and product management teams for the company’s SaaS solutions. Prior to BitTitan, Mark served as the Senior Director of Product Management for the Mobile Enterprise Software division of Motorola Solutions, continuing in that capacity following its acquisition by Zebra Technologies in 2014. Mark has over two decades of experience overseeing product strategy, development, and go-to-market initiatives.

When not on the road coaching his daughter’s softball team, Mark enjoys spending time outdoors and rooting for the Boston Red Sox. He holds a bachelor’s degree in Computer Science from California Polytechnic State University.

The Elements of a Good Disaster Recovery Plan

By Tim Mullahy, Executive Vice President and Managing Director at Liberty Center One

No one wants their business to have to weather a disaster – but sometimes they happen. If you go in without any concept of what you’re doing, you’re more or less guaranteed to be in crisis. But if you go in with a well-established disaster recovery plan? You’ll be able to survive just about anything.

Sometimes, bad things happen. Sometimes, those bad things are unavoidable. And sometimes, they impact your business in a way that could potentially lose clients, customers, and employees.

In today’s climate, your business faces a massive volume of threats, spread across a larger threat surface than ever before. Disaster recovery is critical to your security posture, as it’s often not a question of if you’ll suffer a cyber-incident, but rather of when.

Whether or not your organization survives a disaster largely depends on one thing – how well you’ve prepared yourself for it. With a good disaster recovery plan, you can weather just about any storm. Let’s talk about what such a plan involves.

A Clear Idea Of Potential Threats

It’s impossible to identify every single risk your business could possibly face – nor should you put time and resources into doing so. Instead, focus on the disasters you’re likeliest to face. For instance, a business located in Vancouver probably doesn’t have to worry about a tornado, but there’s always a chance that it could be struck by a flood.

When coming up with this list, consider your industry, the technology you use, your geographical location, and the political climate where you’re located. Incidents that impact all businesses include ransomware, malware, hardware failure, software failure, power loss, and human error. Targeted attacks are another threat to your organization, particularly if you work in a high-security space – you may even end up in the crosshairs of a state-sponsored black hat.

Ideally, your crisis response plan needs to be flexible enough to deal with any incident you deem likely, and adaptable enough that it can be applied when you encounter an unexpected disaster.

An Inventory Of All Critical Assets

What systems, processes, and data can your organization not survive without? What hardware is especially important to your core business, and what sort of tolerance does your entire organization have for downtime and data loss? Make a list of every asset you control, both hardware and software, and arrange that list in order from most important to least important.

From there, you want to ask yourself a few questions.

First, what systems are absolutely business-critical? This is hardware and software your business cannot operate without – stuff you need to get as close to 100% uptime as possible. This could include the server that hosts a customer-facing application if you need an example.

Second, what data do you need to protect? Healthcare organizations, for example, are required to keep redundant backups of all patient data and to ensure that data is encrypted and accessible at all times. Figure out what files are most business-critical and prioritize those in your response plan.

Third, for the assets mentioned above, what is their tolerance to downtime? If those systems do go down, how much revenue will you potentially lose for each minute they’re offline? Are there any other considerations aside from revenue that mark them as important?

For instance, a communications platform for first responders needs 100% uptime – lives literally depend on it.

Finally, what can you do without? If you run a home-repair business that brings in customers mostly through word of mouth, your website going down probably won’t be too harmful to your bottom line. If, on the other hand, you’re an eCommerce store, your website is likely one of the most important assets you’ve got.

As you’ve no doubt surmised, no two disaster recovery plans are going to look the same. Every business has different needs and requirements. Every business has different assets they need to protect, and a different level of tolerance for downtime.

Once you’ve figured out your critical assets, ensure you have backups and redundant systems in place. These failover methods need to be thoroughly tested. You must be absolutely certain they’re in working order; you don’t want to find out the files on your backup server are corrupt after you’ve lost your hardware in a flood.

Accounting For People

Too many disaster recovery plans neglect the business’s most important resource – its people. How will employees escape the building during a catastrophic event? What should each staffer do during an emergency? Who’s responsible for coordinating emergency communication, reaching out to shareholders, and ensuring all critical systems failed over properly?

Ensure that roles and responsibilities during an incident are clearly-defined and well-established. More importantly, your plan needs to include guidelines for how to shift responsibility. If the staffer who’s meant to handle coordination of their colleagues during a fire is on vacation, who steps into the role?

Your disaster recovery plan needs to account for these details, while also including a means of disseminating information between employees. Ideally, you’ll want a crisis communication platform of some kind. Ensure that everyone has access to that platform.

When establishing your communications guidelines, make sure you attend to the following:

  • How you will keep in touch with partners and shareholders
  • How you will notify customers of the incident
  • How employees will communicate during the incident

Seeing To Recovery & Service Restoration

So, you weathered the storm. Your business is still standing. Good – now it’s time for recovery.

You should already have a good idea of what services are most critical to your business from the inventory you performed, so this is a fairly simple process to figure out which ones to restore first.

What you need to establish beyond service restoration is who you’ll reach out to, and how you’ll reach out to them. If clients or shareholders suffered monetary losses during the incident, how will you reimburse them? After the crisis has subsided, what will you do to improve your response in the next incident?

Practice and Evaluation

It’s been said that no plan survives first contact with the enemy. That’s true of disaster recovery, as well – if you leave your plan untested and unevaluated until your first disaster, it’s extremely likely you’re going to find weaknesses at the worst possible time. To identify areas that need improvement and familiarize staff with their responsibilities, run regular practice scenarios.

Additionally, you should constantly revisit your disaster recovery plan. Don’t approach it as a project. Approach it as a process.

Always look for ways you can improve it. Regularly revisit and re-evaluate it in light of new technology or new threats. And never assume you’ve done enough.

You can always be better.

Don’t Let A Crisis Cripple Your Business

Natural disasters. Hardware failure. Hackers and rogue employees. Malware and ransomware. The array of different threats facing your organization is absolutely staggering. A good crisis response and disaster recovery plan is critical if you’re to survive – critical to establishing a good cybersecurity posture.

Bio

Tim Mullahy is the Executive Vice President and Managing Director at Liberty Center One, a new breed of data center located in Royal Oak, MI. Tim has a demonstrated history of working in the information technology and services industry.

Cyber Hygiene And You – Five Things You Need To Do For A Strong Security Posture

By Max Emelianov, CEO of HostForWeb

Cyber hygiene shouldn’t be a difficult concept – yet it seems like many organizations struggle with it. Yours might even be among them. Either way, it’s probably better to be safe than sorry. Read on to see if you’ve done everything necessary to keep your security posture strong – and what you still need to improve on.

Hygiene’s pretty important. If you don’t regularly shower, keep your environment clean, and wash your hands, you get sick. By that same vein, if you aren’t actively trying to keep your systems, people, and data safe, your business is going to end up in a spot of trouble.

Trust me, I am going somewhere with this analogy.

Today, we’re going to talk about cyber hygiene. It’s a pretty simple concept, but one that’s surprisingly complicated (and often difficult) to incorporate into your own organization. In essence, it’s everything involved in maintaining a strong security posture and ensuring your infrastructure stays in working order.

There’s actually quite a bit to it, even if we just focus on the security side.

Know Your Risk Profile

First thing’s first, you’re going to want to think like a cybercriminal. What assets or systems are most valuable to someone looking to make a quick buck off your business? What about someone wanting to defraud your organization or its staff, or a competitor looking to steal your intellectual property?

That’s only the first step. Next, you need to think about how a criminal might get access to sensitive assets. What elements of your infrastructure are most vulnerable to attack? Where are you most likely to experience a data breach, and how?

External threats from criminals aren’t the only thing you need to account for. You’ll also need to consider risks like internal bad actors, natural disasters, equipment failure, and more. The most important thing is that you have the security in place to protect yourself from all but the worst threats, and the resilience to survive should your systems still end up compromised.

Speaking of resilience…

Have a Disaster Recovery and Business Continuity Plan

You cannot control the weather. You cannot stop every cyberattack, nor can you account for a malicious insider. Eventually, there is a very good chance your systems will go down, a very good chance you will encounter a crisis of some kind.

How well you make it through that crisis depends on your level of preparation. It depends on how comprehensive and thought-out your disaster recovery and business continuity plans are.  How prepared you are for the worst, in other words.

In broad strokes, a good disaster recovery/business continuity plan establishes the following:

  • Roles and responsibilities in the event of a crisis. Who is in charge of keeping critical infrastructure operational and ensuring failover happens as it should? Who will keep in touch with shareholders and business partners? Ensure every employee understands precisely what their role should be.
  • A response plan for a wide range of emergencies. Figure out what your business is likely to face, and plan to weather that. A general crisis response plan is also important.
  • Critical and non-critical assets. What systems and data are critical to your business? What systems need to operate without interruption, and which ones need to be brought back online as quickly as possible?
  • Communication details. How will people stay in touch? Contact numbers, emails, a crisis communication platform, etc.
  • Major infrastructure. Do you have backup systems in place to ensure there is no interruption of service? Have those systems been adequately tested?
  • Do you retain multiple, redundant backups of critical data? How will you handle sensitive or regulated data?
  • Service recovery. What process will you have for getting services back online after an emergency?
  • Regular testing. This one is self-explanatory. Constantly evaluate and re-evaluate your crisis response plan.

Encourage Safe Practices By Staff

The old adage that your employees are the greatest security risk in your business holds true more than ever these days. Criminals are always going to seek the path of least resistance by default. What that means for you is that if you have nigh-unbreakable security infrastructure, they’ll simply try to gain access by bamboozling your employees.

And even if an employee doesn’t fall victim to the machinations of a hacker, they might still inadvertently compromise your business. Human error is the cause of most data breaches, after all. Unfortunately, there’s only so much you can do to mitigate this.

Do what you can to promote a culture of cybersecurity within your business. Ensure leadership is schooled in the importance of cyber best practices, and ensure you are regularly training and educating your staff on the ins and outs of staying safe in the digital world. More importantly, have systems in place to recognize people who best embrace and embody their role in keeping your organization’s data safe.

Make cybersecurity a part of everyone’s job. Because ultimately, whether you like it or not, it is. That’s not going to change anytime soon.

Don’t Forget About The Basics

We’ve talked about some fairly high-level stuff so far. Processes and policies, training programs, corporate culture, and so on. But the problem is, that’s not actually where the majority of businesses fail at cybersecurity.

As it turns out, most of them struggle with the foundation. In a study carried out by cybersecurity firm Tripwire, it was found that 57% of organizations still struggle with visibility into their networks and systems, taking weeks, months, or longer to detect new devices or services. Many businesses (40%) still aren’t scanning regularly for vulnerabilities, and even more (54%) don’t collect and consolidate critical system logs into a single location.

It gets worse. 31% don’t even have a password policy in place, and 41% aren’t using multi-factor authentication. In short, their cyber hygiene is awful, regardless of any other steps they’re taking to protect their data.

Luckily, it’s fairly easy to avoid falling into the trap that they have:

  • Patch your systems regularly and immediately.
  • Scan for vulnerabilities on a daily basis.
  • Ensure you have complete visibility into all networks and systems within your organization.
  • Implement automated monitoring tools that alert you of any unusual network activity.
  • Multifactor authentication: use it.

Understand That Cybersecurity Is Constantly Evolving

Last but certainly not least, one of the most common cybersecurity traps I see people fall into is the assumption that once their infrastructure is in place, their job is done. They don’t need to worry anymore – their data is safe, at least until next year sometime.

This is a dangerous mindset. The cybersecurity landscape is constantly shifting and evolving. You need to be cognizant of that. You need to pay attention to emerging vulnerabilities, new security techniques, and more.

Because if you’re not paying attention, you’ll simply be left behind.

Closing Thoughts

Whether you’re talking about your infrastructure or yourself, hygiene is critical. Poor personal hygiene can result in sickness and isolation. Poor cyber hygiene can result in lost or misplaced data, data breaches, and productivity bottlenecks.

You don’t want to fall victim to either – and now you know how to avoid both.

Bio

Max Emelianov started HostForWeb in 2001. In his role as HostForWeb’s CEO, he focuses on teamwork and providing the best support for his customers while delivering cutting-edge web hosting services.

Exclusive interview with Superb.Net’s Haralds Jass: Reflections on Twenty-Two Years as an Internet Frontrunner

By Quincy Solano, Marketing Manager, Superb Internet Corp.

Cloud hosting company, Superb Internet Corporation, was founded 22 years ago by current President and CEO, Haralds Jass, when he was just 16 years old. More than two decades in business have given Jass a powerful firsthand perspective on the Internet as it has developed, especially because his company has often served as an industry bellwether. I spoke with Jass about his inspiration for starting the company; what he feels has made the firm so successful; the rise of cloud technology; and various other aspects of the hosting industry. His responses give us a better picture of the world of web infrastructure from a recognized thought-leader.

  • Inspiration for starting the 2nd oldest hosting company
  • Success based on transparency
  • Lessons from 22 years in business
  • How more than two decades of experience is valuable to clients
  • Thoughts on the rise of cloud
  • Cloud’s relationship with the Internet of Things
  • Importance of infrastructure background to cloud
  • Maintaining speed and reliability
  • SMBs vs. enterprises
  • What compliance and standards are all about
  • Appreciation for the Internet and infrastructure
  • On the horizon for the industry and for Superb

Inspiration for Starting the 2nd Oldest Hosting Company

While Superb Internet Corporation is headquartered in Honolulu and features the original American hosting coast-to-coast IP network (HopOne), Haralds Jass grew up in Latvia. His father was the head engineer in his hometown of Cēsis before becoming a self-made entrepreneur.

Jass shared some of his father’s leadership spirit, even when he was a small child. “On the first day of school in first grade, some kids were saying how I was ‘bossy’ – back before I even knew what the word meant,” he says. “I also then kept looking at my watch, and made it clear that I didn’t think that all the introductory speeches from the principal and teachers were the best use of my time.”

Jass’s mother was a teacher, so he learned to read and write at about the same time he learned to walk. By the time he was five, he was already dabbling with invention. “I designed a perpetual motion engine, which was powered by electricity that was generated from its own motion,” he says. “I was planning to make one as soon as I could, realizing the business potential for it.”

Jass wasn’t just creative but also entrepreneurial. He went into business in a sense before he even started school, running his own publishing outfit that printed single copies of books. He also created large diagrams designed to improve city traffic flow, an early indicator of his future interest in Internet traffic optimization. Once he got into school, his penchant for starting businesses continued. “Ever since the first day of school, I was selling pencils and pens, at a margin of 100%,” he says. “I also tried and experimented with setting up satellite TV rebroadcasting through a powerful antenna, to try to make a wireless subscription service in my apartment building.”

Success Based on Transparency

One thing that Jass has always believed in fundamentally is transparency and clarity, and he thinks these principles have suffered in the world of cloud, particularly with consumer applications. Systems are too often geared toward the lowest common denominator. Companies don’t really know the inner-workings of cloud and don’t typically have much control.

Essentially, Jass believes in being forthright with customers and treating them as equals rather than pandering to them. “All of our data centers, platforms and services, as well as our network, operate under full disclosure: our customers know exactly what to expect, how things are built, the exact service and performance specs, the exact network architecture and maps,” he says. “We trust our customers to be true professionals and trust them to understand what we do.”

Plus, the company has always focused on overdoing it with everything it engineers to avoid limitations. “We always build for the fastest growth, highest load, highest traffic scenarios – and then double or triple it some more, so that infrastructure is never the bottleneck,” he says. “At the core of it, we are an infrastructure and a service organization, and we never cut corners on either.”

Lessons from 22 Years in Business

Jass stresses that a critical aspect of running a hosting service is that every tiny tweak must be carefully documented. Any change to the configuration, no matter how small, must be preceded by thorough planning, with complete scripting, peer-review, manager approval, and testing. Additionally, back-out steps must be outlined ahead of time for each step taken, Jass explains. “It is definitely an art form to balance the formal change management and QA, along with speed, agility and being responsive, one of our trademark elements,” he says. “It is an art form that I believe we have now perfected and that we truly deliver the best of both: speed, agility and responsiveness, along with a very high level of QA, thorough change control and management.”

How More Than Two Decades of Experience is Valuable to Clients

Superb Internet has been a frontrunner in the industry, Jass notes. The provider was the first to offer name-based virtual (shared) hosting in 1997 and the first to offer commercial virtual private server (VPS) hosting in 1999, the latter of which evolved into today’s cloud. “We are not just a user of the various platforms and technologies,” he says. “We have been, often, involved in actively shaping and developing them.”

This extensive experience as a thought-leader and bellwether is a great source of value to clients, explains Jass. The company’s background “gives us a far deeper level of understanding of the underlying hosting technology, and thus its security implications and the best ways to optimize performance, speed and reliability,” he says. “Our 7 million lines of original code base, the core that ties all of our operations into a unified whole, is the result of nearly 100 man-years of development time alone. The level of efficiency, coherence, and expertise that we have is, frankly, unmatched.”

Thoughts on the Rise of Cloud

As indicated above, Jass thinks that the downside of others’ cloud technology is that both individuals and businesses lose privacy and control; they typically don’t even know where their data is located. The convenience, scalability, and redundancies of cloud must be balanced with control and ownership.

Businesses can protect themselves when choosing cloud hosting in a couple of ways, Jass explains. They should “use a responsible, mature commercial cloud hosting service with a strong SLA and full transparency of exactly how the data is handled and where it resides,” he says. “Even better, a business should consider setting up a private cloud, where the business is still in full control of the architecture and their proprietary, confidential data, leaving nothing to doubt.”

The other major aspect that must be remembered about cloud is that the convenience isn’t just a plus for consumers and businesses, but also for hackers, Jass notes. With everything interconnected and accessible, security is a very real concern. “That is the one part that the industry doesn’t like to talk about and which keeps being quietly ignored,” says Jass. “Once again, choosing a mature provider, with full transparency, credible third-party audits and certifications, and a strong SLA is integral.”

While cloud increases the convenience and ubiquity of computing globally, it also brings with it another broad risk: if a large public cloud has an outage, it could mean a sizable chunk of the Internet goes down with it.

To look again at the positive attributes of cloud, Jass notes its application to the field of big data and analytics. The technology allows companies to analyze data essentially without limitation, thus discovering previously unimagined correlations. Another huge plus throughout industry is its scalability, he explains. The technology allows for “optimizing business operations and cost, by instantly scaling up and down as needed and never lacking the processing power or storage space,” he says. “The massive and instant scalability is a major boon to business, making every business using the cloud much more agile and responsive.”

Cloud also levels the playing field in business, allowing SMBs to compete with long-established enterprises. “What an SMB can get out of a public cloud is not very different from what an enterprise has in a custom-built private cloud,” says Jass. “It makes computing, storage and connectivity more ubiquitous and available for rapid, massive scaling to everyone, allowing SMBs and start-ups to start out small, but very quickly scale to many times their original size.”

Cloud’s Relationship with the Internet of Things

Some recent estimates suggest that the Internet of Things (IoT) could triple the size of the public cloud. The expected astronomical growth of IoT creates incredible opportunities for companies via emerging business models. Jass explains that much of this growth will be in advertising, as firms collect and sell personal information, such as shopping habits. “Combined with even more intelligence from interconnected, correlated, and personally identifiable data,” he says, “the Big Data will get even bigger and bigger.”

Importance of Infrastructure Background to Cloud

Cloud systems should be built by companies with deep histories in infrastructure, Jass explains, because problems that can potentially arise are manifold. The hosting service must understand “the intricacies of the hardware, the network protocols, the network architecture, the Internet routing as a whole, the distributed storage technology, the actual source code running the platform, and so on,” he says. “This is essential in order to be able to build and design it with multiple layers of fault-protection and redundancies within, and to truly optimize it for the best performance and resilience.”

To clarify, Jass adds that it isn’t difficult to create a cloud. However, it is exponentially more difficult to build one that is not going to fail no matter the circumstances, and that will always deliver a steady, predictable performance level.

Maintaining Speed and Reliability

One of the main concerns when designing for optimal speed and reliability is to engineer platforms and services that have safeguards against failure on numerous layers, Jass advises. The key concerns are “closely guarding against human errors, which are the #1 cause of all IT-related outages and problems,” he says, along with ensuring that there are “no single-points-of-failure – utilizing a completely distributed, decentralized architecture, as opposed to the legacy mainframe-like central storage filers that are still widely used by most in their ‘cloud’ hosting systems.”

It’s also fundamental that a hosting service doesn’t become greedy and oversell its cloud, Jass explains. “The great obfuscation and lack of transparency in the public cloud is an opportunity that, for most of the other Cloud Hosting Providers, has been simply too tempting to ignore,” he says. “Engaging in cloud overselling will dent both speed and reliability, not to mention destroy customer confidence in the CHP and in the cloud as a whole.”

Finally, Jass notes that you want to build with growth in mind, so that you are prepared for unexpected issues, such as traffic spikes and DDoS attacks. Speaking of DDoS, he says, security needs to be a primary concern at all times.

SMBs vs. Enterprises

Superb Internet has recently pivoted toward better meeting the needs of enterprises, while at the same time continuing to serve the SMBs who have populated its loyal customer base for over two decades. The needs of these different sizes of business are essentially the same, Jass explains: they both need IT solutions that are functional, fast, and reliable. The difference between the two “is that enterprises need third-party certifications and compliance with various US and international standards,” he says. “That is, enterprises need to meet the requirements of a complex and ever-changing regulatory environment and require third-party assurances that the service meets or exceeds various standards, such as ISO 27001 Information Security Management and ISO 9001 Quality Management.”

Actually, there is a significant advantage to focusing on enterprise requirements that is helpful to all clients, Jass adds. It means that Superb is able to serve “the full growth cycle of a company, from a startup, through its SMB years, and up to when it becomes a global enterprise,” he says. “Our services, capabilities, certifications and expertise are there to serve the business through its full growth cycle. Our customers never outgrow us and our capabilities.”

What Compliance and Standards are all About

Certifications for compliance and standards are critical for hosting services to be able to get the business of enterprises and government agencies. Jass says that in getting audited and certified for various standards, he realized the basic idea behind most of them is fundamentally the same: “formal and well-documented change management, quality management, and stringent security standards employed in the company and systems, network-wide.” He adds that he has “especially enjoyed seeing how our internal self-developed processes, continuous improvement techniques, and checks and balances were already, largely, in compliance with many of the standards; thus, often, only the wording and terminology, and sometimes recordkeeping format, had to be updated.”

Appreciation for the Internet and Infrastructure

The Internet is integrated into almost everyone’s life and is central to how businesses operate, Jass notes. At the same time, it’s still the same basic trusting environment of “best effort” that it’s been for over 30 years. “It’s like an airport with no security checkpoints,” he says. “A single network, either by misconfiguration or on purpose if compromised by attackers, can severely disrupt and potentially take down large portions of the Internet, by simply advertising some invalid BGP routes, for example. The impact of that risk has never been greater, as more and more data is stored and lives are lived ‘in the cloud’ and ‘on the net’.”

When you look at the cloud platforms themselves, they are incredibly accessible and efficient technologies, Jass explains. However, they are accompanied by a tremendous and increasing risk “of potentially devastating global consequences, with few measures in place by governments and ISPs for how to respond to feasible security-compromise or human-error-inflicted scenarios.”

Jass sees the Internet in terms of its promise but also in terms of its vulnerabilities. “It is such an integral part of our lives, but the security and resilience have not kept up at the protocol and architecture level,” he says. “While some networks, such as our coast-to-coast IP backbone, take a multi-layered approach to redundancies and security, most other networks just hope for the best; and that if something happens, everyone else will be down as well anyway.”

On the Horizon for the Industry and for Superb

Jass believes that a major upcoming trend in hosting will be a blurring of the lines between dedicated and cloud as hybrid hosting becomes more prevalent. Beyond that blending of approaches, hosting will likely “become even more ubiquitous, and even more cloud-based,” he says. “It’s both a threat of further commoditization, but also an opportunity to do things better than the giants, such as AWS.”

In terms of Superb Internet itself, Jass looks forward to another 22 years of client satisfaction and loyalty, with customers growing their businesses exponentially. “Our whole raison d’être is to be there for our customers as their partner in success,” he says. He also sees the company continuing to serve as an industry bellwether, living up to its motto Ahead of the Rest®. “We will never rest on our laurels and will always continue investing heavily in R&D, thus keeping our customers ahead of their competition and benefitting from our innovative industry-first services.”

*Disclaimer: The opinions expressed by Haralds Jass in this interview are entirely his own and do not necessarily reflect the position or views of Superb Internet Corp.

The Top 4 Traits of Top Performing MSPs

Key Findings from IT Glue’s Global MSP Benchmark Survey

By Joshua Oakes, Documentation Evangelist, IT Glue

The managed services business is reinventing itself, quickly. Companies are starting to realize the value of process and planning. More MSP owners, having been in the game a while, are starting to think more carefully about their exit strategies. In fact, even if you’re just starting out, you should be thinking about how to maximize the valuation of your business. It’s never too early to start building your equity.

For most MSP owners, when it comes time to retire or leave the business, there’s only a couple of viable options – sell the business, or wind it down. The latter option is problematic because all of the sweat equity the owner puts into the business is for naught. The former option is better, but there’s a problem here, too. Only around 20% of MSPs are sold. This makes sense – most MSPs are very small businesses, with their value deriving almost entirely from one or two key people. Buyers are looking for high-performing MSPs that aren’t reliant on key people, especially if those key people are exiting the business. It’s not easy to get into that top 20% of MSPs, but if you understand what those high performers look like, it becomes a lot easier.

So how do you get there? That Golden Quintile of MSPs that are attractive to prospective buyers – what do they look like? The results of IT Glue’s recent Global MSP Benchmark Survey provided us with some great insight into what the top 20% of performing MSPs actually looks like. Size doesn’t matter – great MSPs range from one-person shops to integrated companies large enough to target small enterprise clients. But there are some common traits that they all share:

High Margins

Some MSPs are earning amazing margins. Net margins of at least 20% are required to get you into the Golden Quintile. There are a couple of key implications to this figure. First, it means that the best-performing MSPs aren’t price cutting in order to win business. They are focusing on the value that they deliver to their clients, and charging fees in accordance with that value. They’ve built their entire sales model around being a premium player in the market. For example, when they talk to prospects, they don’t get sucked into a negotiation about price. Instead, they highlight how they will handle tickets quickly, because the value they bring lies in maintaining as close to 100% uptime as possible. Combine this pricing approach with cost control measures, and you’re on your way.

Rapid Growth

The best-performing MSPs not only earn high margins, but they are growing quickly as well. The top 20% of MSPs are earning growth rates of at least 10% compounded annually. There are three keys to sustained double digit growth.

  • Investment in sales and marketing
    • More than half of MSPs report struggling with sales, marketing or both. But investment in these areas is critical to lead generation and sustained growth.
  • Delivering on your promise
    • Selling great service is one thing, but if you deliver, you’ll gain customers who become evangelists. If lead gen is a pain point, these evangelists are critical for helping you attract new business.
  • Eliminating churn
    • Churn is evil – if you churn 10% of your customers every year you need to add 20% just to hit 10% net growth. Nuts to that. Deliver on your promises and you’ll go a long way to eliminating churn.

Process Orientation

According to Greg Abbott of Aabyss, a leading UK MSP, venture capitalists looking to buy MSPs will add anywhere from 5-15% for a turnkey business. If your business depends on you, the owner, and you are leaving when the sale has been completed, then you will not get the premium valuation you want for your business. You need to build a business that can thrive without you, and that means having a process orientation. First, you need to determine the best processes, perhaps by adopting lean methodology or other process improvement techniques. Second, you need to document your processes. If the buyer feels confident that past performance will be replicable without you, your MSP will be more attractive, and command a higher multiple.

Customer Focus

Not to be lost in all this is having a customer focus. If you truly want to deliver value, then you need to know what your customers value. Find out what their pain points are, and focus on the ways that you can mitigate or eliminate that pain. Having a strong customer focus increases the likelihood that you’ll have lower churn, and be able to earn higher margins while maintaining customer satisfaction.

Getting into the Golden Quintile definitely takes some work, but with a better sense of what the industry’s leaders are doing, it will be easier to get there yourself. IT Glue is a powerful IT documentation platform that contributes in many of these areas, especially delivering great service, optimizing your repeatable processes and lowering the cost of service delivery.

Bio: Joshua Oakes is the Documentation Evangelist for IT Glue, where he strives to produce thought-provoking pieces that help IT service providers improve their business, focusing on lean practices and the value chain.

GDPR – Comply or Pay High Fees

Mark Gaydos, Chief Marketing Officer, Nlyte Software

General Data Protection Regulation (GDPR) is Europe’s new data protection law that standardizes data protection across all 28 EU countries and imposes strict new rules on controlling and processing personally identifiable information (PII). The new mandate replaces the 1995 EU Data Protection Directive, supersedes the 1998 UK Data Protection Act and goes into effect on May 25, 2018. Organizations that are not compliant will be fined up to 4% of their global revenue. Simply put: GDPR extends the protection of personal data and data protection rights by giving control back to EU residents.

Time is running out for data centers to comply with GDPR rules for tracking the location of the data and transport from storage device, to server to the customer. No doubt, IT personnel know that the infrastructure’s physical security is as critical as the digital management of consumer data assets. But the IT physical infrastructure is not confined to the data center’s walls. For this reason GDPR compliance extends to colocation facilities, managed service providers, hosting services, SaaS vendors, and virtually any X-aaS vendor. To mitigate risks, organizations need visibility into their vendors’ IT framework to ensure the integrity of the consumer data they are responsible for.

What are the GDPR requirements? As reported by TechCrunch:

  • Anyone involved in processing EU consumer data, including third-party entities involved in processing data to provide a particular service, can be held liable for a breach.
  • When an individual no longer wants their data to be processed by a company, the data must be deleted, “provided that there are no legitimate grounds for retaining it.”
  • Companies must appoint a data protection officerif they process sensitive data on a large scale or collect information on many consumers (small and midsize enterprises are exempt, if data processing is not their core business).
  • Companies and organizations must notify the relevant national supervisory authority of serious data breachesas soon as possible.
  • Parental consent is required for children under a certain age to use social media(a specific age within a group ranging from ages 13 to 16 will be set by individual countries).
  • There will be a single supervisory authority for data protection complaintsaimed at streamlining compliance for businesses.
  • Individuals have a right to data portabilityto enable them to more easily transfer their personal data between services.

One way to expedite GDPR compliance is using a Data Center Infrastructure Management (DCIM) software solution. DCIM allows an organization to track the location of the data within the physical IT infrastructure, so they know if and when consumer data is transported cross-borders. This DCIM-enhanced, data transport visibility is critical for understanding:

  • Secondary locations of infrastructure for safe handling and transportation of data across borders.
  • The location of critical data as it moves across all network devices — regardless of location.
  • Expedited data breaches.
  • Exact geographic sites and locations of where the data is replicated.
  • All security tools that are deployed, enabled and residing on identified devices.

Since GDPR mandates meeting specific articles, organizations can fully rely on a DCIM software solution to meet the following articles:

  • Article 45 – Transfers on the Basis of an Adequacy Decision – Visibility into the entire lifecycle tracking – with accountability and compliance visibility and reporting.
  • Article 35 – Data Protection Impact Assessment – Workflow feature captures asset and application names while the system is operating or hosting data with the ability to assign a data protection officer’s review activity within any IMAC data center process. Using asset management and asset integrity monitoring in a DCIM allows for easy tracking of data at rest and the infrastructure used for that data. Furthermore, it provides a report of all workflows with a GDPR activity — whether they are active or closed.
  • Article 58 – Investigative Powers – The asset optimization and tracking support feature provides compulsory data protection audits when an organization needs to provide reports.
  • Article 17 – Right to be Forgotten (Right to Erasure) – The Asset Management feature allows controllers to flag/track the lifecycle of assets used for storage or data subjects processing – of all personal customer data. This tracking capability extends from the point of existence (in physical computer infrastructure) through decommissioning or destruction.  This type of visibility into a complete lifecycle record of the data’s physical location is critical to meeting the mandate.
  • Articles 59, 33, 33a – Activity Reports and Data Breach Notification to Authorities – Impact assessment report provides a list of flagged assets for GDPR tracking, providing assets’ location and status. This includes such critical information as mapped business application, data last audited, rack, name, IP address among others.

May 25, 2018 is almost here! Meet the GDPR compliance deadline and avoid hefty fines, put into place a GDPR compliance plan that includes a full-suite DCIM software solution.

Bio: Mark Gaydos is Chief Marketing Officer for Nlyte Software, the leading data center infrastructure management (DCIM) solution provider for seamlessly automating data center operations and infrastructure into an enterprise’s IT ecosystem.

What Businesses Need to Know in the Wake of a Major Data Breach

By Jason Tan, CEO, Sift Science

Online businesses everywhere are going to be dealing with the effects of data breaches in the post-Equifax breach era. It’s a tough truth to swallow, but these large-scale data breaches have become a fact of life – and it’s not just the breached business that pays the price. The reality is, even if your company wasn’t breached, you still have a huge challenge on your hands. As fraudsters mine the valuable data that’s been compromised, all e-commerce sites and financial institutions need to be on alert.

The downstream consequence of a major breach is that stolen information is sold on the dark web many times over. Since two-thirds of people use the same login information on multiple sites, when fraudsters get ahold of it, they use these stolen credentials for criminal purposes all over the web. The information may have been stolen elsewhere, but if even a small handful of your customers get their accounts hacked or experience fraud on your site, it’s your company that loses the customer’s trust, and your brand reputation that is at risk.

The new reality that businesses need to accept is that a significant number of their customers have been victims, or soon will be. Because of this, there are important things businesses need to look out for to protect themselves. The trick is not to create a bad experience for customers in the process.

Keep an eye out for signs of account takeover.

Last year, 48% of online businesses saw an increase in account takeover (ATO), according to the Sift Science Fraud-Fighting Trends report. And the growing number of major breaches will only exacerbate this trend, potentially flooding the dark web with names, addresses, Social Security numbers, and other personal information that fraudsters can leverage to gain access to a legitimate user’s account. They then make purchases with a stored payment method or drain value from the user’s account.

Some of the signals that could point to an ATO:

  • Login attempts from different devices and locations
  • Switching to older browsers and operating systems
  • Buying more than usual, or higher priced items
  • Changing settings, shipping address, or passwords
  • Multiple failed login attempts
  • Suspicious device configurations, like proxy or VPN setups

Keep in mind that individually, each of these signs may be normal behavior for a particular user. It’s only when you apply behavioral analysis on a large scale, looking at all of a user’s activity and all activity of users across the network, that you can accurately detect ATO.

Monitor for fake accounts and synthetic identity fraud.

Fraudsters can also take all of the different pieces of personal data leaked in a breach to steal someone’s identity and create new accounts. They may also pick and choose pieces from various people’s accounts – like a birthday, Social Security number, and name – and mix them together to create an entirely new ID.

To keep tabs on fake accounts, you can monitor new signups to look for risky patterns, like a sudden spike in new accounts that can’t be attributed to a specific promotion or seasonal trend. If the average time it takes a new user to sign up suddenly gets much faster, that may point to fraudsters using a script to quickly create accounts. And seeing multiple new accounts coming from the same IP address or device is a red flag for a single person creating many accounts.

Stay focused on maintaining user trust.

Even if a breach doesn’t happen on your site, any downstream fraud attacks still happen on your watch. If you don’t invest in protecting your users from the devastating effects of ATO, identity theft, and fraud, you will soon lose their trust. Trust is earned in drops, but lost in buckets.

At the same time, e-commerce businesses and financial institutions should make sure they aren’t overly cautious to the point where they’re rejecting good customers and denying legitimate accounts. Preventing fraud is a delicate balancing act, and the right technology – which looks at a range of data points to make an accurate prediction about what is and isn’t fraudulent – can help you strike the right balance.

Fight technology with technology.

We are at a point where no one can afford to put their head in the sand when these breaches happen, and that includes marketing leaders. It’s time to develop a healthy paranoia and start operating from the point of view that every breach is going to affect you sooner or later, in some way or another. Get your house in order now, because breaches are going to keep happening. Prepare to fight technology with technology. Fraudsters are becoming increasingly good at pulling together large data sets to create ever more nuanced and sophisticated attacks. Businesses have to get out ahead of them with technology that also lets them leverage data and technology to create more nuanced and sophisticated authentication processes.

About the Author:

Jason Tan is the CEO of Sift Science, a trust platform that offers a full suite of fraud and abuse prevention products designed to attack every vector of online fraud for industries and businesses across the world.

Reducing Data Center Risk with Data Center Infrastructure Management (DCIM)

Mark Gaydos, Chief Marketing Officer, Nlyte Software

In 2017, data center failures around the world became big news. The British Airways outage in May, which caused the cancellation of over 400 flights and stranded 75,000 passengers, cost the company an estimated $112 million in refunds and compensation. This doesn’t take into account the cost of reputation damage, and the loss of productivity during the downtime.

It later came to light that this outage was caused by a simple mistake made by one person – an engineer working at Heathrow, who disconnected and reconnected a power supply. This restarting action caused a power surge which took down not only the primary data server site, but the backup site as well.

The British Airways incident is just one example of how fragile our IT and computing infrastructure can be. Depending on the statistics, human error is the culprit in 22%-38% of data center outages. Other top causes of downtime are circumstances such as UPS failure, heat or CRAC failure, weather issues and in some cases, generator failure.

The costs associated with data center downtime can rapidly accumulate to hundreds of thousands of dollars per incident, and more in the case of financial market outages. As data centers increase in complexity, and start to include more remote processing locations, the task of assuring uptime becomes more challenging with an increased degree of monitoring difficulty.

The good news is that most data center outages are preventable – especially if data center managers have better insight into operations which will improve reaction time.

A Data Center Infrastructure Management (DCIM) solution gives these managers the “better insight” by providing the visibility into all operations to significantly mitigate the risk of downtime.

Here are some examples of risks that can be easily reduced with a DCIM solution:

Overheating

A DCIM solution provides real-time temperature monitoring throughout a facility. This makes spotting hot spots in the computing infrastructure as simple as looking at a dashboard showing a real-time heat map. With this knowledge, any data center manager can rearrange equipment or load or simply adjust the speed of a fan, to remediate hot spots. In addition, DCIM solutions can identify opportunities for safe ambient temperature adjustments so the facility’s temperature can be raised without causing damage to IT equipment.

Power Overloading

The first step in protecting against power overload is not only knowing where power is being used, but how it might be used more safely and efficiently. DCIM’s real-time power monitoring and tracking can deter power overload. With alert features the right people are notified when a pre-set power limit is close to being reached, giving data center personnel ample time to react, make changes and shift the load before a major disaster strikes. And if, despite this foreknowledge, catastrophe does occur, a DCIM system can simplify disaster recovery.

Flawed Redundancy

Flawed redundancy relates to power failure. The ability to test the resiliency of the power chain is essential to good data center stewardship. A DCIM solution provides the ability to perform “what if” tests of the power chain, in a virtual environment, with no risk to the actual infrastructure. With this ability, a data center manager can test for situations and answer such questions as:

What if this piece of equipment were to suddenly fail?

Where would the load go?

What else might fail as a result?

Are my a and b sides safe?

Capacity

The biggest problem with capacity planning in a data center is: not knowing how much of the capacity is actually being used, and how much is left. A DCIM solution supplies not just power capacity intelligence, but also the physical space information as well. Moreover, it can provide information about how the physical capacity is being used, and how it might be used more efficiently, enabling consolidation of resources. The risk of running out of space or power is no longer an issue if you have a DCIM solution deployed. In addition, DCIM users have consolidated IT equipment to actually postpone or eliminate the need for multi-million dollar expansion projects.

Asset Management

Another data center risk has to do with asset management. The challenge is the ability to know what equipment is where. A DCIM solution not only keeps track of equipment throughout its useful life – providing information on where the asset is, what it is connected to and when it is moved, but also, it alerts the user when an asset has reached the end of its life and should be retired and replaced. This type of monitoring keeps the data center from having to support older equipment which has a higher risk of failure and becomes difficult and expensive to maintain.

Workflow

Here’s one data center risk that’s related to human error. A built-in workflow engine in a DCIM solution helps data center staff avoid errors by giving them a central repository of what work has been performed, by whom as well as what still needs to be accomplished.

Human Error

If we agree that people aren’t perfect and that they make mistakes, then we can agree that people might be the weakest link in the data center chain. But, with a DCIM solution in place data center teams have access to valuable information to prevent errors. A DCIM solution is a data repository for all data center staff to utilize and make more intelligent, informed decisions.

These are just a few examples of how a DCIM solution can help reduce risks and cut costs in a data center environment.

To find out more about reducing data center risk and how a DCIM solution can help, access this pre-recorded webinar. Hear 451 Research’s Rhonda Ascierto and Nlyte Software’s Mark Gaydos provide valuable examples on how to lower data center risks, OPEX and CAPEX.

Bio: Mark Gaydos is Chief Marketing Officer for Nlyte Software, the leading data center infrastructure management (DCIM) solution provider for seamlessly automating data center operations and infrastructure into an enterprise’s IT ecosystem.

The impact of GDPR: What businesses should plan for in 2018

David Thomas, CEO of Evident ID

After a busy year of increasing data breaches and threats to personal data across the globe, a major data privacy protection reform effort from the European Union is barreling down the pipeline. It’s an important step forward for consumers’ rights and safety; however, companies around the globe now have the challenge of getting protective systems in place and must re-evaluate how they manage personal data. And the stakes for noncompliance are significant with reform becoming standard policy in just a few short months.

What is the GDPR?

The General Data Protection Regulation (GDPR) is an EU edict designed to improve the overall standard for data privacy while synchronizing data privacy laws across Europe. It will change how a wide range of businesses handle, hold, store and protect information. Its official and inflexible enforcement date is May 25, 2018, a mere four months away.

In addition to specific country requirements, businesses have to meet a minimum standard across all 28 EU member countries as part of the GDPR requirements. This standard is significant and will likely take a large investment to meet. One PWC survey showed 68% of companies expect to spend from $1 million to $10 million.

Who does it affect?

GDPR’s increased geographical scope is arguably the biggest change in European data privacy regulations. The new rules apply to all companies residing in any of the EU’s 28 member states as well as companies based outside of the member states that process and store personal data of EU citizens. Additionally, the regulation takes a wide view of what constitutes personal identification data – ranging from social media posts to an individual IP address.

Why is it important to me?

Noncompliance penalties for GDPR regulation are steep: up to €20 million or four percent of global annual turnover, whichever is higher. This marks a huge change in scale for potential penalties. For example, Facebook received a €1.2 million penalty in Spanish courts this past year for the sharing of profile information to advertisers. That type of information sharing will carry a much steeper fine once the regulatory change goes into effect. Businesses that fail to adhere to these new rules also expose themselves to class-action lawsuits from victims in and all 28 separate member countries, let alone damage to their brands and commercial reputations.

Four short months is not much time to understand the GDPR’s many moving parts and build out internal processes in order to reach compliance. And remember, it’s not just about meeting compliance by May. It’s also about creating a system that supports sustainable compliance. GDPR is the new standard and there’s no going back.

How hard could it be?

Several requirements will challenge your security team, but we wanted to highlight three important components that could require major operational overhauls:

  1. Stronger consent conditions
    Companies are allowed to store and process personal data for a specific use case only when an individual consents. According to the EU’s GDPR website, the request for consent “must be given in an intelligible and easily accessible form.” And once a company is permissioned to use an individual’s data it must only be used for the purpose as defined when the initial consent was given, and if the person no longer wishes to engage with the company for the initial intended purpose, their personal data must be removed from the appropriate systems.
  1. Mandatory breach notification
    As stated on the EU’s GDPR website, companies must report a data breach to supervisory authorities of each EU country within 72 hours of when said breach was detected. Individuals affected also must receive notification “without undue delay.”
  1. Privacy by design
    Businesses are now legally obligated to build data protection into information management systems from the outset rather than treat security as an addition. Patchwork fixes will no longer cut it.

Only time will tell how businesses respond to this watershed moment in data security. 2018 will be a year of changes across the cybersecurity landscape starting with this critical shift in regulatory requirements for companies. The sooner companies start to evolve their security management protocols, the safer both their customers and their businesses will be.

Bio: David Thomas is the CEO at Evident. He is an accomplished cybersecurity entrepreneur, having held key leadership roles at market pioneers Motorola, AirDefense, VeriSign, and SecureIT. He has a history of introducing innovative technologies, establishing them in the market, and driving growth – with each early-stage company emerging as the market leader.