As globalization squeezes the market for many industries, more and more businesses are adopting some form of enterprise resource planning (ERP) system to gain a competitive advantage. However, many of these businesses unknowingly assume that storing their data on their own dedicated on-premise servers is more secure and less expensive than on cloud-based ERP.
This assumption is untrue, and sticking to it can prove to be a very costly mistake. That’s because the information located in your ERP system contains some of the most sensitive data of your entire organization. A single breach in data security, corruption, or theft can have a devastating effect on your business. Such as disrupting your operation, creating poor publicity, reducing profits, and generating negative analyst reports.
The number of direct cyber-attacks on ERP systems is continuously increasing. According to Symantec’s 2019 report, supply chain organizations saw a 78% increase, while websites saw a 56% increase in attacks. A July 2018 alert from the U.S Department of Homeland Security (DHS) also warned of increasing activity from criminal groups, nation-state hackers, and hacktivists against Enterprise Resource Planning (ERP) systems.
Three Protective Measures Against Ransomware Threats
In the same vein, a 2018 investigation conducted by Symantec revealed that enterprises accounted for 81% of all ransomware infections. This malicious malware invades your computer and displays messages asking you to pay a fee to restore your system. To curb this attack, the National Cyber Security and Communications Integration Center (NCCIC) recommends the following protective measures:
- Avoid clicking or opening any URLs or attachments from unsolicited emails.
- Ensure your software and operating systems are up to date with the latest patches.
- Always backup your business data regularly on different devices.
What Does This Mean For Businesses With On-Premise ERP Systems?
It means spending a lot of money and channeling the bulk of your IT staff’s time to update your security software and ERP applications. While larger firms would have the revenue, infrastructure, and human resources to achieve this. On the other end, small and medium-sized businesses usually struggle to manage the ever-evolving security protocols and challenges along with day-to-day business operations.
A business’s ERP software can also be difficult to safeguard against malicious attacks because of its complex architecture system with several interfaces and integrations. Besides, no matter where it’s hosted, users access it via the internet and various devices, which are prone to cyber-attack.
Finally, because ERP supports mission-critical business processes, businesses usually have zero tolerance for its downtime, complicating the immediate deployment of security patches and updates when they arrive.
How Software Companies Can Safeguard Their Data With NetSuite’s Cloud ERP
Dedicated Security Resources
Cloud-based ERP providers like NetSuite have a large pool of highly experienced, full-time security teams. NetSuite cloud ERP offers an advanced multi-layered data security strategy for protecting data and securing access. The cloud ERP system is always updated and patched promptly. Furthermore, migrating to the cloud allows for comprehensive monitoring and immediate configurable alerts of any security issues that might affect sensitive data.
One of the reasons why some businesses have yet to migrate to the cloud is the fear of losing control. They worry about where their data is being stored in the cloud and whether unauthorized users can access it. Users interact with the ERP via a standard web browser, eliminating the need for software installation and device-related threats. In addition, role-based security and action authorization can be updated to prevent unauthorized users from accessing data. Cloud ERP can even handle security for mobile devices quickly and efficiently.
NetSuite’s cloud-based ERP automatically backs up data consistently, making an immediate and complete recovery possible if disaster strikes. The data is distributed across multiple servers in several heavily secured geographic locations, making it difficult for cybercriminal groups to locate a particular company’s data for a targeted attack. On-premise ERP hosting is like putting up a sign saying, “My data is right here. Come and get it.” It can become a target and eventually hacked. The continuous data backups that NetSuite ERP provides can be a potential lifesaver.
Despite popular belief, on-premise ERP systems are not more secure than cloud-based ERP systems. With more sensitive data at risk, cyber-attacks such as ransomware infections are on the rise. Even if a company can pay off the ransom for its data, your data is vulnerable to cybercriminals. Cloud-based ERP, like NetSuite, offers a more secure option.