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cloud erp for Data Security 

Why Every Business Must Use Cloud ERP For Data Security 

Businesses in today’s digital economy struggle to protect their data from cyberattacks, but is cloud ERP safer than other options? Acumatica’s VP of Product Management explains why the answer is “yes.”

Data safety is a significant concern for businesses in the modern age. Tech. Co reports that in 2022, data breaches were pervasive, costing US businesses millions of dollars in damages. Modern companies must implement a secure and comprehensive ERP solution to combat such disasters. 

Businesses are deciding whether to purchase an on-premises or cloud-based ERP solution. Which type of technology is best for their data security requirements? 

Understanding the differences between the two software options can help you choose the best fit for your company. 

On-premises ERP systems Vs Cloud ERP systems 

We can begin by looking at an on-premise ERP solution. It requires that a business purchase and maintain the hardware on which the ERP system runs in its facility. Substantial upfront and recurring costs go into purchasing, storing, and managing the technology and hiring the IT staff needed to perform required operating system and database upgrades and mitigate security/access risks. For some businesses, an on-premises ERP system causes tremendous stress as their IT teams constantly strive to keep the system secure and stay ahead of ongoing and increasingly elaborate cyberattacks. 

Cloud-based ERP solutions provide a cost-effective alternative to traditional on-premises solutions. The cloud vendor maintains the servers in its own data centres, offers automatic software updates, upgrades the hardware as needed, and ensures that all data stored in the system is safe from today’s newest cyberattacks and most ingenious hackers. With a cloud ERP system, businesses pay a subscription fee that covers these services, eliminating the initial costs associated with on-premise ERP solutions. 

Cloud ERP’s security capabilities include 

Cloud ERP solutions are hosted on secure platforms, like Amazon Web Services (AWS), which automatically encrypts the data that enters their global networks. They also give customers the tools to set up the processes and controls needed to comply with industry regulations (e.g., PCI DSS, HIPPA, and GDPR). 

Cloud-based solutions are also designed to identify and immediately address security threats using tried-and-true methods, such as constant monitoring, frequent testing, and automatic—and regular—backups. If vulnerabilities and weaknesses occur, the ERP vendor is responsible for finding and fixing them. For the vendor, failing to protect a business’s data results in huge monetary payouts, significant reputational damage, or both. 

How Businesses Can Best Protect Their Data 

An Acumatica cloud ERP solution offers many data security features and functionalities, but businesses should still take steps to ensure the security of their data. 

Companies should have an established access management system and protocols to help them manage employee permissions. When new employees are added to the ERP system, the business must set the proper permissions for these new users, thoroughly train them in appropriate data etiquette, and teach them to recognize cyber threats. When employees change jobs or leave the company, their access permissions should be cancelled immediately. 

Though passwords remain the most common authentication method, they have become the most vulnerable single security point. Attackers have developed ways to breach passwords much faster than ever before, even if long and complex passwords are used. A password can be mismanaged and subsequently stolen or guessed through a specialized cyberattack. 

Enabling MFA for your accounts can protect them from account compromise. Microsoft claims that 99.9% of account compromise cyberattacks can be prevented by allowing MFA for a company or personal statements.

Businesses must also remember that data breaches may stem from the third-party applications a company uses to manage its business operations and extend the functionality of its cloud ERP system. Or they may come through different links in the company’s supply chain—links with which a business has had to share proprietary information. 

Business-to-business supply chains are complex and often rely on third-party applications that may need to be more secure and reliable. Businesses must regularly review the safety of their applications and establish protocols for carefully sharing information with their supply chains. 

How Acumatica can help your business 

On-premises ERP solutions are popular among many businesses but can be vulnerable to cyberattacks or insider mistakes. In addition, maintaining the hardware and software for these systems requires more time and money than most businesses can provide for their IT teams. 

Acumatica’s modern cloud ERP solution provides businesses with the highest levels of data security. Acumatica’s cloud data security model is described in detail below.

1. Security Access 
  • Object-level access controls let you create different user roles and assign specific screens, inquiries, fields, and reports to each position. 
  • The data is protected using Single-Sign-On (SSO) and multifactor authentication options (MFA). 
2. Application Security 
  • Acumatica stores all of its application code and verification logic on its servers. New code is introduced and verified using industry-standard procedures, and regular audits ensure these practices continue. 
  • Acumatica’s hosted SaaS environment uses a NextGen Web Application security solution that prevents data loss, malicious attacks and other security risks. 
3. Data security and integrity 
  • Every screen, inquiry and report can be configured to control access permissions for user accounts, sub-accounts, customers, financial accounts, etc. Each screen and message automatically enforce these permissions. 
  • Acumatica’s business logic processes every data entry entered by a user, whether it is in the main program or via an API-integrated function. 
4. Security Storage 
  • Acumatica Database encrypts data stored in instances hosted on the cloud or an on-premise server. 
  • The Acumatica business logic protects sensitive data from unauthorized access. 
5. Security of Transmission 
  • To ensure the security of data packets during transmission, Acumatica encrypts all browser-server and API-server communications. 
  • Acumatica uses the following encryption algorithms to secure network data transmissions. 
  • Advanced Encryption Standard (AES) encryption of 128, 192 or 256 bits 

Acumatica Cloud ERP is an integrated business platform that enables companies of all sizes to transform their operations. Acumatica lets small businesses manage every aspect of their business digitally, helping them grow smoothly and expand effectively. 

Tayana Solutions specializes in software consulting, with clients ranging from e-Commerce to Customization. Our focus is on process manufacturing in the manufacturing industry. We are Gold Certified VAR and ISV partner for Acumatica. Please visit www.TayanaSolutions.com to learn more about our compassionate and reasonable approach to providing digital transformation services.