Cloud Computing Risks and Security: Key Considerations Before Migration

Introduction

Migrating to the cloud offers exciting opportunities for your business, but it’s essential to understand the potential risks that come with it. In this post, we’ll explore the key risks of cloud computing and provide strategies to mitigate them, ensuring a smooth and successful transition.

With years of experience helping businesses navigate cloud migrations, we’ve seen firsthand how addressing these risks early can prevent costly mistakes and ensure long-term success.

Ready to learn how to protect your business during a cloud migration? Let’s dive in and explore the solutions.

Cloud computing in digital transformation

Cloud computing is a leading strategy for digital transformation, and it’s hard to envision a successful transformation without leveraging cloud solutions.

According to Precedence Research, The global cloud computing market size was valued at USD 480 billion in 2022 and is expected to reach USD 2297.37 billion by 2032 (growth in CAGR of 17% from). This trend highlights dynamic growth and underscores that an increasing number of companies are opting for cloud migration.

However, even as more companies adopt cloud technology, concerns about security remain—especially when it comes to protecting sensitive data and intellectual property.

Another common worry is whether cloud performance will match or exceed that of previous on-premise solutions. Additionally, some companies fear unexpected costs, hidden fees, and the overall financial impact on the business. These concerns are completely understandable for businesses moving to the cloud for the first time.

Cloud computing benefits

Despite these valid concerns, it’s important to highlight that cloud computing is a game-changing technology with significant benefits for many businesses. Let’s explore some of the key advantages it offers:

Cost savings

Cloud computing offers numerous cost-saving opportunities, starting with reduced spending on software, hardware, and infrastructure. Most providers use a pay-per-use pricing model, ensuring you only pay for the resources you actually use, unlike on-premise services where unused capacity can lead to overspending.

Scalability

One of the key benefits of cloud computing is the ability to effortlessly scale resources up or down on demand. Providers can adjust capacity as needed, ensuring your business has the right resources at the right time. This flexibility reduces costs by improving cost management and allocation efficiency.

Availability

Cloud computing solutions are available 24/7, with this guaranteed by the provider through Service Level Agreements (SLAs). This level of availability is difficult to achieve with on-premise resources, where maintaining uptime is entirely the company’s responsibility.

Disaster recovery

Cloud infrastructure enables rapid and efficient disaster recovery in the event of a disruption. With proven, robust recovery strategies offered by cloud providers, businesses can quickly restore critical data, ensuring minimal downtime and uninterrupted operations.

Easy deployment

Cloud computing solutions are among the easiest environments to deploy, thanks to provider-supplied tools. Unlike building an entire in-house infrastructure—which is time-consuming, resource-intensive, and requires specialized expertise—cloud deployment streamlines the process, allowing for faster and more efficient setup.

Improved collaboration

Using cloud-based applications enhances collaboration within teams and between departments, even when working remotely. This improvement in work processes adds convenience and flexibility, making it easier to coordinate and share information across various locations.

By leveraging these benefits, you free up resources and can concentrate on critical business activities, such as generating new product ideas, expanding product portfolio, improving processes, and achieving overall better business results.

Cloud computing risks 

However, if you’re seriously considering a move to the cloud, it's crucial to understand the associated risks and how to mitigate them. One of the most common concerns is security. Since data is stored with an external provider, you might wonder: How are my data protected?

What are the security risks of cloud computing? 

Insecure integrations

APIs are a crucial technology for synchronizing data across various cloud tools, supporting automation and enhancing data workflows. However, if an API fails to properly encrypt data, it can create significant vulnerabilities across systems. To mitigate this risk, it’s essential to use APIs that incorporate robust authentication protocols.

Identity theft & Account hijacking

Cloud computing infrastructure is a common target for phishing attacks. As sharing documents through cloud-based tools—such as emails and virtual drives—has become routine, it has made employees less cautious and more vulnerable to phishing scams. Shared account passwords can also pose a risk of account hijacking. If hackers gain access to an employee’s email password, they can potentially infiltrate the entire cloud infrastructure and access sensitive files.

Data loss

The primary tactic for preventing data loss is creating backups. Cloud computing services make it easy to create and store backups, which are generally highly resilient. However, it's important to note that cloud storage is increasingly targeted by cybercriminals through ransomware attacks. This is why backups should not be overlooked. Relying too heavily on cloud computing solutions without a robust data recovery plan can result in permanent data loss.

Limited visibility

The cloud environment often involves a mix of various platforms, including on-premise tools. In such a complex infrastructure, it can be challenging to monitor and track all vulnerable spots. This not only leads to inefficiencies but also increases exposure to cyber threats.

Compliance issues

In Europe, including the DACH region, various regulations are in effect, such as GDPR (General Data Protection Regulation) and HIPAA (Health Insurance Portability and Accountability Act). Using cloud services can sometimes complicate the task of keeping information fully secure, potentially leading to compliance issues and costly fines if regulations are not met.

How to mitigate security risks of cloud computing? Mitigation strategies & best practices

Once we understand the main threats and risks of cloud computing, it’s important to consider how to mitigate these risks for a successful migration. Fortunately, there are numerous tools and strategies available. Let’s explore some of them.

Cloud penetration testing

The first tool is regular cloud penetration testing. Cloud networks are frequent targets for hackers, so ongoing monitoring should be an integral part of a company's risk management strategy. Cloud penetration testing helps assess the effectiveness of cybersecurity measures within cloud infrastructure and identifies and mitigates potential vulnerabilities.

Data security audit

Regular cloud audits are another crucial security measure, particularly if you handle sensitive or personal data. Audits help monitor and control access management, data backups and recovery, and adherence to compliance regulations. It's also important to require this from your cloud provider—ensure they conduct regular security audits and verify their audit practices.

Business continuity plan

Before committing to a potential cloud provider, verify that they have a robust Disaster Recovery Plan in place for emergencies such as natural disasters, terrorist attacks, or significant downtime. Additionally, ensure that the plan is regularly tested to confirm its effectiveness when needed.

Security trainings

According to the Data Breach Investigations Report 2023, 74% of all breaches involve the human element. This underscores the importance of providing cybersecurity training for your staff on using cloud services. Proper education can prevent serious security breaches and help employees understand how their actions affect the overall security of the system.

Multifactor authentication

According to Microsoft, enhancing standard authentication methods, like passwords, with additional methods such as biometric authentication can prevent over 99.9% of security breaches. Implementing this approach is worth the effort and investment.

Using VPN

Using Virtual Private Networks (VPNs) helps encrypt online traffic, making it a crucial practice for employees working remotely and accessing files and data through cloud computing tools.

Is cloud computing secure?

After reviewing this information, you might wonder: Are the security risks of cloud computing worth it? Our answer is a resounding yes. Cloud computing remains a safer option compared to many on-premise methods. However, to ensure its security, you must understand potential cloud computing security risks and implement effective preventive measures.

All you need to do is develop a successful cloud migration strategy. For more information on how to create one, check out our cloud migration strategy guide.

If you need personalized support and expert advice on cloud migration and mitigation of cloud computing risks, visit our list of top cloud consulting companies. There, you can find the right partner to help you navigate and address all your cloud migration challenges.