In the last decade, a steadily growing number of companies, both large and small, have turned to third-party vendors for their data storage needs. Data is no longer stored within the confines of a company’s four walls. At many companies, data now resides on third-party servers in the cloud.
Although the use of cloud vendors has obvious benefits—including the potential for reduced information technology costs—there are also inherent drawbacks. Chief among these drawbacks is the potential that a vendor can be the subject of a malicious attack, which enables hackers to access proprietary or protected company data and exposes the company to potential liability. For example, last year’s high-profile Target breach did not occur from within the corporation itself. Instead, hackers obtained a login and password given to an outside vendor (a heating and air conditioning company) and gained access to customer credit card information at the point of sale.
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