How startups fail to use the cloud to grow business, and how to change it
Most startups use cloud applications to store and process their data. In fact, IDC predicts that by 2020, the share of cloud-based infrastructure and software for organizations will reach 67%. However, not all growing businesses achieve their cloud goals. The Netwrix 2019 Cloud Data Security Report reveals that nearly half (46%) of organizations that store customer personally identifiable information (PII) in the cloud consider moving it back on-premises due to security concerns. It’s worth exploring why.
One of the main reasons cloud projects fail is unmet expectations. The survey found that the most common drivers for moving PII to the cloud were to cut costs (32%), make data available for remote workers (25%) and enhance security (17%). However, the top reasons cited for possibly moving data back out of the cloud were unreliability (43%), security (29%) and costs (15%).
Clearly, there is a disconnect here. But the solution to this paradox is not to uncloud all your data — that’s a radical and expensive step that simply takes you back to square one: facing the same challenges that drove you to migrate to the cloud in the first place. This isn’t a path startups can afford to take. A better approach is to embrace the cloud wisely, with a clear vision of what you want to achieve and a plan for getting there. At a high level, that means carefully choosing which data to move to the cloud and establishing proper data governance around all the sensitive information you store there.
Here are the primary steps startups should follow when building a cloud strategy that controls costs while maintaining both security and user productivity:
- Define your goals.
To ensure your cloud infrastructure aligns with the long-term goals of your business, start by documenting the drivers for your cloud migration. Are you primarily trying to minimize deployment times, increase agility or something else? By using this insight to guide your choices about cloud technologies, you can avoid wasting resources (which you don’t likely have a lot of) and placing your growing business at unnecessary risk. For example, if you need to enable certain teams to exchange files with your partners, you might choose Microsoft OneDrive for Business as your cloud service. But don’t purchase licenses for everyone in your company — by giving licenses to only those employees who actually work with partners, you can control costs while reducing the risk of data leaks. - Assess the costs.
Frost & Sullivan report that only 25% of IT decision-makers do a complete cost analysis to understand what it will take to manage a workload in the cloud using the offerings from various providers. But it’s worth doing your homework and shopping around. Determine how much compute capacity, memory and storage you need for your workloads based on your current consumption. Compare the cost of a pay-per-use plan versus paying by volume. Also be sure to consider whether you have sufficient expertise in house for a cloud migration; if not, be sure to budget for professional consultants. - Inventory your information assets.
Review what data you have and determine which you need in the cloud and which you should keep on premises. For example, if remote access is a key business driver, then archived data that employees do not need for their everyday work might be best left on premises. Once you store data in the cloud, review it regularly and delete redundant files that are no longer needed to reduce your cloud storage costs and make it easier, and faster, for users to find what they need. - Establish strong data security controls.
To protect your startup against data breaches, it’s critical to systematically classify and tag data according to its sensitivity and apply appropriate access controls consistently. Also, regularly assess risks to your sensitive data, such as invalid permissions or overexposure, and monitor user activity around the data. Ensure your IT team is alerted to anomalous activity and failed access attempts so they can intervene immediately. Note that these best practices apply to all your data, whether it is stored on premises or in the cloud. - Choose your cloud provider carefully.
To minimize the risks of poor reliability and performance that could lead to business losses, choose your provider carefully. In addition to reading reviews from customers and evaluations from experts, examine the provider’s offering in detail. Pay particular attention to the security options available, including the methods for ensuring data protection, backup and compliance. If the provider cannot satisfy your security needs, consider third-party security solutions that can be integrated with your cloud deployment.
Cloud technology offers a wealth of benefits, including dynamic scaling that delivers the speed and efficiency that fast-growing companies need. But to gain all the benefits of the cloud, instead of being ready to move everything back on premises in a few months or years, you need to think through your cloud migration project thoroughly and pair it with a strong cybersecurity strategy and proper data governance.
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