Ponemon Report Connects Cloud Service Use to Higher Breach Costs
Companies' use of cloud services will likely lead to higher costs from data breaches, according to a survey conducted by the Ponemon Institute.Information technology and security professionals believe that the increasing use of cloud services in business can raise the potential cost of data breaches by as much as 200 percent, according to a survey and analysis conducted by the Ponemon Institute. The survey, sponsored by cloud-management firm Netskope, found that IT staff and managers who report directly to the CIO believe that their lack of knowledge about employees' use of cloud services puts enterprise data at risk. The analysis measured the degree to which the 631 respondents believed nine different cloud trends impacted the risk to business data. The trends varied from an increase in data backed up to the cloud to a greater number of employees using consumer-level cloud services in the workplace. IT security staff "agree that a large percentage of data is out of their control," Sanjay Beri, CEO and founder of Netskope, told eWEEK. "They don't have any visibility or awareness, and they don't have the most basic controls."
The Ponemon Institute survey gauged the confidence that IT security practitioners had in their company's use of the cloud and whether data stored in cloud services was safe. Almost 70 percent of companies do not proactively classify their company's data before deciding whether to store it in the cloud or not. Without that information, more than half of the respondents believed the use of cloud increases the risk to their data, while only 14 percent responded that business data was safer in the cloud.