The security of data stored in the cloud, especially in the context of ERP systems, is one of the key concerns for companies considering migration to a cloud environment. Concerns about data security are understandable given the sensitivity of information managed by ERP systems, such as financial data, customer information, and details related to production and supply chains.
Are security concerns valid?
The security of data stored in ERP systems is constantly analyzed and debated in business circles. This is no surprise, as the scale of cybercrime is overwhelming. In just one year, almost 1 billion emails were compromised, affecting the security of one in five internet users. Data breaches cost companies an average of $435 million in 2022, and in just the first half of the year, there were approximately 2361 million ransomware attacks worldwide (AAG IT 2024).
Given these statistics, choosing a conscious and professional cloud service provider is crucial. Renowned providers invest in advanced security technologies, such as data encryption, protection against DDoS attacks, regular security audits, and compliance certifications with international standards such as ISO 27001 and GDPR. This is important, as 79% of companies experienced at least one cloud data security breach in the last 18 months (Eftsure 2022).
Proper configuration and access management are key to maintaining security. These activities include implementing authorization policies and regularly reviewing the permissions of current users.
Why the concerns?
First and foremost, storing data outside local servers raises concerns about control over that data and the possibility of unauthorized access by individuals or institutions. Additionally, data breaches that have affected even renowned cloud service providers exacerbate the worry of potential sensitive information leaks. The technical complexity of managing security in a cloud environment, often perceived as a barrier—especially in smaller organizations lacking the necessary resources—further deepens distrust. These factors contribute to a general sense of caution, intensified by the fact that almost 90% of cybersecurity experts expect an increase in attacks on ERP systems in the coming years (Eftsure 2022).
Advantages of cloud-based ERP and data security
- Advanced security measures: Cloud service providers invest substantial resources in securing infrastructure, including advanced encryption technologies, intrusion detection and prevention systems, and regular security audits.
- Automatic updates: cloud-based ERP systems are regularly updated by the provider, including automatic implementation of security patches, reducing the risk of exploiting vulnerabilities.
- Data recovery and continuity: In the event of physical failure or cyberattack, cloud systems offer advanced data recovery options and ensure business continuity.
- Access control: Cloud ERP enables the implementation of advanced access control policies, including multi-factor authentication (MFA).
- Scalability and flexibility: Cloud ERP systems offer scalability and flexibility, allowing for rapid adjustment of resources to meet current security needs and business operations.
