CISOs Switch Cloud Providers Due to Security Concerns and Overpromising

Article Highlights
Off On

As cloud technology becomes increasingly vital to a wide variety of business operations, Chief Information Security Officers (CISOs) are grappling with the twin challenges of ensuring secure environments and managing their relationships with cloud service providers. The latest survey by Arctic Wolf reveals that 44% of CISOs have switched their cloud service providers due to security concerns, indicating a growing wariness toward providers’ security claims. This trend has arisen as 24% of CISOs find their cloud environments insecure, while 43% believe these providers have exaggerated their security capabilities, leading to mistrust and changes in provider relationships.

Challenges in Cloud Security

Despite the integral role of cloud technology in modern businesses, providing convenient access to files and services from any location, many security professionals continue to wrestle with a broadened threat landscape. A striking 73% of CISOs now collaborate with between two and five cloud service providers, necessitating a juggling act that can spread their security focus too thin. Consequently, 53% of these professionals state that they have to rely on the security assurances of their cloud providers due to a lack of sufficient in-house cybersecurity expertise. However, the downside to relying on these externalities is that some providers may overinflate their security measures, leaving organizations unprotected against emerging cyber threats.

A proactive approach to security has made it imperative for companies to avoid cloud providers with previous security incidents. The survey showed that 52% of CISOs steer clear of providers who have a history of security lapses, impacting their decision-making process and choice of partners. Given the complexity involved in ensuring secure cloud operations, the need for vigilant, reliable providers has never been more critical.

Investments and Resource Allocation

The financial investment organizations make in cloud migrations is substantial. According to the survey, 44% of companies reported spending between £101,000 and £250,000 on cloud migrations over the past year alone. Given such significant expenditures, businesses are under immense pressure to select trustworthy partners who can meet their security needs without incurring extra costs tied to switching providers or dealing with potential data breaches. Building strong in-house security infrastructures can be prohibitively expensive, with KPMG placing the annual budget for a security operations center (SOC) at $14.6 million, which is far beyond the reach of most companies.

To mitigate these costs, many organizations have turned to Managed Service Providers (MSPs) to enhance their cybersecurity. Partnerships with MSPs offer access to advanced skills and technologies that exceed what most individual companies can afford. Notably, 37% of CISOs who engaged channel partners during cloud migration efforts noted marked improvements in their security and risk management services. Furthermore, 30% of these responders indicated that being able to leverage advanced technologies, such as artificial intelligence (AI), contributed significantly to their enhanced security posture.

Benefits and Underutilization of MSPs

Engaging MSPs not only bolsters security but also provides job stability for CISOs. An overwhelming 92% of them acknowledge that having shared responsibility in the event of a cyber-attack helps safeguard their job security. This is because liability is distributed between the organization and the MSP, reducing the pressure on any single party. Despite these benefits, the survey highlights that only 22% of CISOs currently collaborate with channel partners for cloud migrations, a relatively low figure that points to a potential area of improvement for many organizations.

Clare Loveridge, Vice President and General Manager EMEA at Arctic Wolf, emphasizes that numerous organizations struggle with cloud security due to the overstatements of their cloud service providers and inadequate in-house capabilities. She advocates for partnerships with Managed Service Providers (MSPs) to ensure more robust security measures are in place. Such collaborations facilitate comprehensive threat monitoring and real-time response capabilities, positioning organizations to utilize cloud environments both safely and effectively. These enforced partnerships offer the additional benefit of up-to-date protection against a continually evolving landscape of cyber threats.

Future Considerations for CISOs

As cloud technology becomes increasingly central to various business operations, Chief Information Security Officers (CISOs) face the dual challenges of securing these environments and managing relationships with cloud service providers. A recent Arctic Wolf survey reveals that 44% of CISOs have changed their cloud service providers due to security concerns, showcasing a growing mistrust in providers’ security claims. This trend has emerged because 24% of CISOs find their cloud environments lacking in security, while 43% believe that these providers exaggerate their security capabilities. As a result, there is a notable shift in the relationships between organizations and their cloud service providers. The survey highlights the critical need for cloud service providers to build and maintain trust by providing transparent and robust security measures. Due to these security concerns, CISOs are increasingly cautious in their selection and ongoing evaluation of cloud service providers, emphasizing the importance of security in the evolving cloud landscape.

Explore more

Trend Analysis: Mobile-First Digital Connectivity

Did you know that over 5.64 billion people—nearly 68.7% of the global population—are now connected to the internet, with mobile devices powering the vast majority of this access, painting a vivid picture of a world where digital interaction begins with a smartphone in hand? Mobile-first connectivity has become the cornerstone of modern behavior, influencing how individuals communicate, consume content, and

Navigating Global Payroll Compliance: Challenges and Trust

Introduction Imagine a multinational corporation with employees spread across five continents, each expecting their paycheck to reflect local tax laws, benefits, and currency regulations accurately, without any errors that could disrupt their financial stability. A single misstep in payroll compliance could lead to hefty fines, legal battles, or, worse, a loss of trust from the very workforce that drives the

How Is Agentic AI Transforming Wealth Management Today?

The wealth management industry stands at a pivotal moment, where the integration of agentic AI is not just an innovation but a revolution in how financial services are conceptualized and delivered. This advanced technology, powered by multi-agent frameworks, is redefining the landscape of financial advisory, portfolio management, and investment strategies with an unprecedented level of personalization and efficiency. Unlike traditional

How Will Jeel and Synpulse Transform Saudi Wealth Management?

As Saudi Arabia’s financial sector undergoes a remarkable transformation, wealth management stands out as a critical driver of innovation and economic growth. Today, we’re thrilled to sit down with a leading expert in financial technology to discuss a groundbreaking partnership between Jeel, powered by Riyadh Bank, and Synpulse. This collaboration aims to revolutionize wealth management in the Kingdom through a

Why Is Observability Crucial for Modern DevOps Success?

I’m thrilled to sit down with Dominic Jainy, an IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain has positioned him as a thought leader in cutting-edge technology. Today, we’re diving into the world of observability in modern DevOps, a critical area where Dominic’s insights shine. With a passion for leveraging innovative tools and practices, he’s here