Cloud Multiplier Effect on the Cost of a Data Breach
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We asked the Ponemon Institute, a foremost expert in data breach research, to conduct a study to estimate the financial cost of a cloud data breach. The study, a first-of-its-kind report called “Data Breach: The Cloud Multiplier Effect.”, is based on a survey of 613 IT and security professionals. Here are some of the highlights from the report: - Increasing use of cloud services can increase the probability of a $20 million data breach by as much as 3x - 36 percent of business-critical applications are housed in the cloud, yet IT isn’t aware of nearly half of them - 30 percent of business information is stored in the cloud, yet 35 percent of it isn’t visible to IT
Transcript of Cloud Multiplier Effect on the Cost of a Data Breach
ON THE COST OF
A June 2014 report based on a survey of 613 IT and IT security practitioners in the United States conducted by the
Ponemon Institute and sponsored by Netskope reveals that cloud app usage in the enterprise increases the probability
of a data breach, and for the first time, quantifies the expected economic impact of a cloud data breach.
THE FOLLOWING ARE CONTRIBUTORS TO THE CLOUD MULTIPLIER EFFECT:
depending on the scenario
The rate of cloud app adoption and usage in the enterprise
The growth of mobile and ever-present effects of consumerization
In that scenario, if your organization had 100 cloud apps and added 25 more in a 12-month period,
you’d increase your probability - and expected economic impact - of a data breach by 75%.
According to the Netskope Cloud Report, IT underestimates the number of cloud apps by 90%.
So, if you estimate 50, you could actually have more like 500 cloud apps.
Ease and speed of data sharing
through cloud apps
WHY IS THERE A CLOUD MULTIPLIER EFFECT ON THE RISK OF A DATA BREACH?
CHANGING CLOUD APP USAGE IN THE ENTERPRISE INCREASES THE PROBABILITY OF A DATA BREACH
INCREASES IN CLOUD USAGE MULTIPLIES THE EXPECTED ECONOMIC IMPACT OF A DATA BREACH
BYO + CLOUD = SLEEPLESS NIGHTS FOR IT
Want to find out more?
Using well-established calculations for the expected economic impact of a data breach, we can see how the cloud multiplier
effect can impact the bottom line:
© Netskope 2014 | IG-25-1 | www.netskope.com
The established average cost of a data breach involving the loss or theft of 100,000 customer records is $20.1M. Survey respondents estimate an 11.8% chance of this happening in the next year. So, the probability adjusted economic impact is $2.37M
The estimated economic impact
(IN MILLIONS)
The established average cost of a data breach involving the theft of high value information is $11.8M. Survey respondents estimate a 25.4% chance of this happening in the next year. So, the probability adjusted economic impact is $2.99M
50% of employees using cloud and BYOD are using these devices to connect to the cloud
THE CLOUD EQUALS BUSINESS, AND WE'RE LOSING CONTROL
A DATA BREACHA DATA BREACHA DATA BREACHA DATA BREACHA DATA BREACH
CLOUD MULTIPLIER EFFECTCLOUD MULTIPLIER EFFECTCLOUD MULTIPLIER EFFECTCLOUD MULTIPLIER EFFECTCLOUD MULTIPLIER EFFECT
The probability of a data breach increases by 124% if the number of employee-owned mobile devices with access to cloud services increases by 50% over a 12-month period.
2.6XINCREASE
3.1XINCREASE
2.2XINCREASE
INVISIBLE TO IT
Use of cloud services(SaaS)
Use of cloud services(SaaS)
INCREASE USE OF CLOUD BY 50% IN 12 MONTHS
INCREASE USE OF CLOUD BY 50% IN 12 MONTHS
Backup and storage of
sensitive and/or confidential information
Access of cloud services from employee owned mobile devices
The estimated economic impact
(IN MILLIONS) Backup and storage of
sensitive and/or confidential information
Access of cloud services from employee owned mobile devices
1.6XINCREASE
1.5XINCREASE
1.2XINCREASE
