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Cloud Data Breaches: Cloud vs On Premise Security

January 24, 2023
3
 Min Read
Data Security

"The cloud is more secure than on prem.” This has been taken for granted for years, and is one of the many reasons companies are adopting a ‘cloud first mentality’. But when it comes to data breaches this isn’t always the case.

That’s why you still can’t find a good answer to the question “Is the cloud more secure than on-premise?”

Because like everything else in security, the answer is always ‘it depends’. While having certain security aspects managed by the cloud provider is nice, it’s hardly comprehensive. The cloud presents its own set of data security concerns that need to be addressed.

In this blog, we’ll be looking at data breaches in the cloud vs on premises. What are the unique data security risks associated with both use cases, and can we definitively say one is better at mitigating the risks of data breaches? 

On Premises Data Security

An on-premise architecture is the traditional way organizations manage their networks and data. The company’s servers, hardware, software, and network are all managed directly by the IT department, which assumes full control over uptime, security, and data. While more labor intensive than cloud infrastructures, on-premise architectures have the advantage of having a perimeter to defend. Unlike the cloud,  IT and security teams also know exactly where all of their data is - and where it’s supposed to be. Even if data is duplicated without authorization, it’s duplicated in the on-prem server, with existing perimeter protections in place. The advantage of these solutions can’t be overstated. IT has decades of experience managing on-premise servers and there are hundreds of tested products on the market that do an excellent job of securing an on-prem perimeter.  

Despite these advantages, around half of data breaches are still from on-premise architectures rather than cloud. This is caused by a number of factors. Most importantly, cloud providers like Amazon Web Services, Azure, and GCP are responsible for some aspects of security. Additionally, while securing a perimeter might be more straightforward than the defense in depth approach required for the cloud, it’s also easier for attackers to find and exploit on-premise vulnerabilities by easily searching public exploit databases and then finding organizations that haven’t patched the relevant vulnerability. 

Data Security in the Cloud 

Infrastructure as a Service (IaaS) Cloud computing runs on a ‘shared responsibility model’. The cloud provider is responsible for the hardware, so they provide the physical security, but protecting the software, applications, and data is still the enterprise’s responsibility. And while some data leaks are the result of poor physical security, many of the major leaks today are the result of misconfigurations and vulnerabilities, not someone physically accessing a hard drive. 

So when people claim the cloud is better for data security than on premises, what exactly do they mean?

Essentially they’re saying that data in the cloud is more secure when the cloud is correctly set up. And no, this is not as obvious as it sounds. Because by definition the cloud needs to be accessed through the internet, that also makes it shockingly easy to accidentally expose data to everyone through the internet.

For example, S3 buckets that are improperly configured have been responsible for some of the most well known cloud data breaches, including Booz Allen Hamilton , Accenture, and Prestige Software. This just isn’t a concern for on-prem organizations.  There’s also the matter of the quantity of data being created in the cloud. Because the cloud is provisioned on demand, developers and engineers can easily duplicate databases and applications, and accidentally expose the duplicates to the internet. 

Amazon’s warning against leaving buckets exposed to the internet

Securing your cloud against data breaches is also complicated by the lack of a definable perimeter. When everything is accessible via the internet with the right credentials, guarding a ‘perimeter’ isn’t possible. Instead cloud security teams manage a range of security solutions designed to protect different elements of their cloud - the applications, the networking, the data, etc. And they have to do all of this without slowing down business processes. The whole advantage of moving to the cloud is speed and scalability. If security prevents scalability, the benefits of the cloud vanish. 

So we see with the cloud there’s a basic level of security features you need to enable. The good news is that once those features are enabled, the cloud is much harder for an attacker to navigate. There’s monitoring built in to which makes breaches more difficult. It’s also a lot more difficult to understand a cloud architecture than an on-premise one, which means that attackers either have to be more sophisticated or they just go for the low-hanging fruit (exposed s3 buckets being a good example of this). 

However, once you have your monitoring built in, there’s still one challenge facing cloud-first organizations. That’s the data. No matter how many cloud security experts you have, there’s data being constantly created in the cloud that security may not even be aware exists. There’s no issue of visibility on premises - we know where the data is. It’s on the server we’re managing. In the cloud, there’s nothing stopping developers from duplicating data, moving it between environments, and forgetting about it completely (also known as shadow data). Even if you were able to discover the data, it’s no longer clear where it came from, or what security posture it’s supposed to have. Data sprawl leading to a loss of visibility, context, which damages your security posture is the primary cloud security challenge.  

So what’s the verdict on data breaches in the cloud vs data breaches on premises? Which is riskier or more likely? 

Is the Cloud More Secure Than On Premise?

Like we warned in the beginning, the answer is an unsatisfying “it depends”. If your organization properly manages the cloud, configures the basic security features, limits data sprawl, and has cloud experts managing your environment, the cloud can be a fortress. Ultimately though, this may not be a conversation most enterprises are having in the coming years. With the advantages of scalability and speed, many new enterprises are cloud-first and the question won’t be ‘is the cloud secure’ but is our cloud’s data secure.

Discover Ron’s expertise, shaped by over 20 years of hands-on tech and leadership experience in cybersecurity, cloud, big data, and machine learning. As a serial entrepreneur and seed investor, Ron has contributed to the success of several startups, including Axonius, Firefly, Guardio, Talon Cyber Security, and Lightricks, after founding a company acquired by Oracle.

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Joining Sentra isn’t just the next step in my career; it’s a chance to help lead the next chapter of data security. We’re not here to incrementally improve what exists. We’re here to rethink it. Redefine it. Solve it.

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In response, for the first time in two decades, the U.S. Department of Health and Human Services (HHS) has proposed significant amendments to the HIPAA Security Rule, aimed at strengthening cybersecurity measures across the healthcare sector. These proposed changes are designed to address emerging threats and ensure that healthcare organizations have robust systems in place to protect patient data from unauthorized access and potential breaches. This blog presents the major changes that are coming soon and how you can prepare for them.

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The latest proposed updates to the HIPAA Security Rule represent some of the most significant changes in years. These updates aim to modernize data protection practices and ensure healthcare organizations are better equipped to handle today’s security challenges. Below are the key highlights compliance and security teams should focus on:

Mandatory Implementation Specifications
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Stricter Encryption Requirements
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Timely Termination of Access
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Comprehensive Documentation Requirements
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Asset Inventories and Network Mapping
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Enhanced Risk Analysis
Organizations must conduct regular, thorough risk assessments to identify vulnerabilities and assess threats across all systems that interact with ePHI.

Stronger Incident Response Plans
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Mandatory Technical Controls
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The proposed changes to the HIPAA Security Rule are currently in the Notice of Proposed Rulemaking (NPRM) stage, with a 60-day public comment period that opened on January 6, 2025. During this period, stakeholders can provide feedback on the amendments, which may influence the final rule. Organizations should actively monitor the comment period, engage in the feedback process, and stay informed on any potential adjustments before the rule is finalized.

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The new HIPAA compliance amendments represent a major shift in how healthcare organizations must protect electronic Protected Health Information (ePHI). The introduction of enhanced encryption standards, mandatory multi-factor authentication (MFA), and stricter access control measures means organizations must act swiftly to maintain compliance and reduce cybersecurity risks.

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With Sentra, healthcare organizations gain a powerful, automated data security solution that:

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Now is the time for healthcare organizations to take proactive steps toward compliance. Stay informed, participate in the public comment process, and start implementing security enhancements today.

To learn how Sentra can help your organization achieve HIPAA compliance efficiently, request a demo today and take control of your sensitive data.

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Innovation without security isn’t progress. Let’s shape a future where both go together!

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