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Solving M&A Integration Challenges with Sentra's DSPM

February 5, 2024
3
 Min Read
Data Security

Mergers and acquisitions (M&A) integrations bring forth various risks that can significantly impact the success of the combined entity. The complexity involved in merging diverse systems, technologies, and operational processes may result in IT integration challenges, disrupting day-to-day operations and impeding synergy realization. Beyond these challenges, there are additional risks such as regulatory compliance issues, customer dissatisfaction due to service disruptions, and strategic misalignment that must be adeptly navigated during the M&A integration process. Effective risk mitigation requires proactive planning, clear communication, and meticulous execution to ensure a smooth transition for both organizations involved. Further complicating these challenges are the data security concerns inherent in M&A integrations.

Data Security Challenges in M&A Integrations

As organizations merge, they combine vast amounts of sensitive information, such as customer data, proprietary technology, and internal processes. The integration process itself can introduce vulnerabilities as systems are connected and data is migrated, potentially exposing sensitive information to cyber threats. Neglecting cybersecurity measures during M&A integrations may lead to incurring unnecessary risks, compliance violations and fines, or worse—data breaches, jeopardizing the confidentiality, integrity, and availability of critical information.

This can affect millions of individuals, and in certain situations even a billion… One notable instance of a major data breach of this size was during the 2017 acquisition of Yahoo by Verizon. Throughout the due diligence phase, Yahoo revealed two significant data breaches that it had initially tried to conceal. In the months preceding the deal, hackers compromised the personal information of 500 million Yahoo users, followed by another breach affecting one billion accounts. Despite the breaches, the acquisition proceeded at a reduced price of nearly $4.5 billion, with Verizon negotiating a $350 million reduction in the transaction value.

Navigating the M&A integration process involves addressing several critical challenges, such as:

  • Hidden vulnerabilities: Undetected breaches in acquired companies become sudden liabilities for the merged entity.
  • Integration chaos: Merging disparate data systems creates confusion, increasing access risks and potential leaks.
  • Compliance minefield: Navigating a web of new regulations across various industries and territories raises compliance burdens.
  • Insider threats: Disgruntled employees in both companies pose increased risks during integration and restructuring.

In order to achieve a seamless transition and safeguard sensitive data, it is crucial to conduct thorough due diligence on the security measures of both merging entities. It also requires the implementation of robust cybersecurity protocols and clear communication to all stakeholders about the steps being taken to protect sensitive information.

Failure to address data security challenges can result in not only financial losses but also reputational damage, eroding trust among customers and stakeholders alike. Therefore, a comprehensive approach to data security is essential to navigate M&A integrations successfully. Data Security Posture Management (DSPM) is an essential tool for easily and quickly assessing the risk of data exposure and related compliance adherence of candidate acquisition and integration targets.

Rapid Assessment of Data Risk

DSPM provides a rapid and straightforward assessment of data exposure risks, ensuring compliance with standards throughout the acquisition and integration efforts. Its unique capabilities include unparalleled detection of both known and unknown shadow data repositories, exceptional granular data classification, and posture and risk assessment for data, regardless of its location.

security posture score

Cloud-native Data Security Posture Management (DSPM) requires no connectors, agents, or credentials for operation. This simplicity makes it a valuable asset for organizations seeking a comprehensive and efficient solution to enhance their data security measures throughout the intricate process of M&A integrations. Set up is quick and easy and no data ever leaves the target environment - so there is no impact to operations or increased security risk.


DSPM is agnostic to infrastructure, so it works across the entire cloud estate - despite variance in the host public cloud provider. It supports all leading Cloud Service Providers (CSPs), or in the underlying data structure - it works equally for structured as well as unstructured data. Assessment time is short, generally within hours to a few days max, and takes place autonomously. 

Risk Sensitivity Score

Once the assessment is complete, a risk sensitivity score is generated for each discovered data store, for example, S3, RDS, Snowflake, OneDrive, etc., and the underlying data assets contained within. These scores can be easily compared with other portfolio members (as long as they also have actively configured accounts) to determine the level of risk a new portfolio member brings to the organization. This is done granularly, and can be filtered by account type (AWS, GCP, Azure, etc.),  by environment (development, production, etc.), by region or can be custom defined.

Adherence to Compliance Frameworks

Ensuring adherence to compliance frameworks in the context of M&A integration is a critical aspect of assessing risk associated with potential integration targets. 

It involves a thorough examination of an organization's compliance with industry data security standards and regulations, as well as the adoption of best practices. Sentra's Data Security Posture Management (DSPM) offers a comprehensive range of frameworks for independent assessment of compliance levels, while also providing alerts for potential policy violations. This proactive approach aids in a more accurate evaluation of the risk of audit failure and potential regulatory fines. Maintaining compliance with global regulations and internal policies for cloud data is essential. Examples include General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), Health Insurance Portability and Accountability Act (HIPAA), and Payment Card Industry Data Security Standard (PCI-DSS). 

In the era of multi-cloud operations, sensitive cloud data is in constant motion, leading to various challenges such as:

  • Unknown data risks due to lack of visibility and inaccurate data classification.
  • Undetected data movement across regions.
  • Unnoticed changes to access permissions and user activity.
  • Misconfigurations of data security posture resulting in avoidable violations. 

The continuous movement and changes in data activity make it challenging to achieve the necessary visibility and control to comply with global regulations. Your data security posture management needs the ability to keep pace by being fully automated and continuously on guard.

Conclusion

To conclude, successful mergers and acquisitions (M&A) integrations demand a meticulous strategy to address data security challenges. In the integration process, organizations merge vast amounts of sensitive information, introducing vulnerabilities as systems are connected and data is migrated, potentially exposing this sensitive information to cyber threats. 

Data Security Posture Management (DSPM), stands out for its simplicity and rapid risk assessment capabilities. Its agnostic nature, quick setup, and autonomous assessment make it a valuable asset during the intricate M&A process.

The Risk Sensitivity Score provided by Sentra's DSPM solution enables granular evaluation of risks associated with each data store, facilitating informed decision-making. Adherence to compliance frameworks is crucial, and Sentra's DSPM plays a vital role by offering a comprehensive range of frameworks for independent assessment, ensuring compliance with industry standards.

In the dynamic multi-cloud landscape, where sensitive data is in constant motion, DSPM becomes indispensable. It addresses challenges such as unknown data risks, undetected data movement, and misconfigurations, providing the needed visibility and control for compliance with global regulations. In essence, a proactive approach, coupled with tools like DSPM, is essential for secure M&A integrations. Failure to address data security challenges not only poses financial threats but also jeopardizes reputational integrity. Prioritizing data security throughout the integration journey is crucial for success.

To learn more about DSPM, schedule a demo with one of our experts.

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David Stuart is Senior Director of Product Marketing for Sentra, a leading cloud-native data security platform provider, where he is responsible for product and launch planning, content creation, and analyst relations. Dave is a 20+ year security industry veteran having held product and marketing management positions at industry luminary companies such as Symantec, Sourcefire, Cisco, Tenable, and ZeroFox. Dave holds a BSEE/CS from University of Illinois, and an MBA from Northwestern Kellogg Graduate School of Management.

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Ward Balcerzak
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Why I Joined Sentra: A Data Defender’s Journey

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After nearly two decades immersed in cybersecurity, spanning Fortune 500 enterprises, defense contractors, manufacturing giants, consulting, and the vendor ecosystem, I’ve seen firsthand how elusive true data security remains. I've built and led data security programs from scratch in some of the world’s most demanding environments. But when I met the team from Sentra, something clicked in a way that’s rare in this industry.

Let me tell you why I joined Sentra and why I’m more excited than ever about the future of data security.

From Visibility to Vulnerability

In every role I've held, one challenge has consistently stood out: understanding data.
Not just securing it but truly knowing what data we have, where it lives, how it moves, how it's used, and who touches it. This sounds basic, yet it’s one of the least addressed problems in security.

Now, we layer on the proliferation of cloud environments and SaaS sprawl (without mentioning the increasing proliferation of AI agents). The traditional approaches simply don’t cut it. Most organizations either ignore cloud data discovery altogether or lean on point solutions that can’t scale, lack depth, or require endless manual tuning and triage.

That’s exactly where Sentra shines.

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When I first engaged with Sentra, what struck me was that this wasn’t another vendor trying to slap a new UI on an old problem. Sentra understands the problem deeply and is solving it holistically across all environments. They’re not just keeping up; they’re setting the pace.

The AI-powered data classification engine at the heart of Sentra’s platform is, quite frankly, the best I’ve seen in the market. It automates what previously required a small army of analysts and does so with an accuracy and scale that’s unmatched. It's not just smart, it’s operationally scalable.

But technology alone wasn’t what sold me. It was the people.
The Sentra founders are visionaries who live and breathe this space. They’re not building in a vacuum, they’re listening to customers, responding to real-world friction, and delivering solutions that security teams will actually adopt. That’s rare. That’s powerful.

And finally, there’s the culture. Sentra radiates innovation, agility, and relentless focus on impact. Every person here knows the importance of their role and how it aligns with our mission. That energy is infectious and it’s exactly where I want to be.

Two Decades. One Mission: Secure the Data.

At Sentra, I’m bringing the scars, stories, and successes from almost 20 years “in the trenches”:

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  • A background stitching together integrated solutions across silos and toolsets

  • A unique perspective shaped by my time as a practitioner, leader, consultant, and vendor

This blend helps me speak the language of security teams, empathize with their challenges, and design strategies that actually work.

Looking Ahead

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.

If you’re passionate about protecting what matters most, your data. I’d love to connect.

This is more than a job; it’s a mission. And I couldn’t be prouder to be part of it.

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What the HIPAA Compliance Updates Mean for Your Security

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The Health Insurance Portability and Accountability Act (HIPAA) has long been a cornerstone of safeguarding sensitive health information in the U.S., particularly electronic protected health information (ePHI). As healthcare organizations continue to face growing cybersecurity challenges, ensuring the protection of ePHI has never been more critical. 

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.

Instead of considering compliance as a one-time effort, with Sentra you can monitor your compliance status at any given moment, streamline reporting, and remediate compliance violations instantly.

How Sentra Can Help You Stay Compliant

Sentra’s data security platform equips healthcare organizations with the necessary tools to stay compliant with the new HIPAA Security Rule amendments. By providing continuous monitoring of ePHI data locations and assessing associated risks, Sentra helps organizations maintain full visibility and control over sensitive data.

Key Benefits of Using Sentra for HIPAA Compliance:

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  • Real-time Risk Assessment: Continuously assess vulnerabilities and flag security gaps related to HIPAA requirements.
  • Access Control & Encryption Monitoring: Ensure compliance with mandatory MFA, encryption policies, and access termination requirements.
  • Smart Compliance Alerts: Sentra doesn’t just detect generic cloud misconfigurations. Instead, it pinpoints security issues affecting sensitive data, helping teams focus on what truly matters.

Without a solution such as Sentra, organizations waste valuable time manually searching for and classifying sensitive data, diverting key employees from higher-priority security tasks. With Sentra, security teams gain an ongoing, real-time dashboard that ensures efficient compliance and faster risk mitigation.

What You Need to Know About the Proposed HIPAA Security Rule Updates

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
All implementation specifications under the HIPAA Security Rule will become mandatory. Covered entities and business associates must now fully comply with all safeguards—no more "addressable" exceptions.

Stricter Encryption Requirements
Encryption of electronic protected health information (ePHI) will be required both at rest and in transit. Organizations must ensure encryption is in place across all systems handling sensitive data.

Required Multifactor Authentication (MFA)
MFA will become mandatory to protect access to ePHI. This added security layer significantly reduces the risk of unauthorized access and credential compromise.

Network Segmentation for Threat Containment
Organizations must implement network segmentation to isolate sensitive systems and limit the spread of cyber threats in the event of a breach.

Timely Termination of Access
Access to ePHI must be revoked within 24 hours when an employee leaves or changes roles. This reduces the risk of insider threats and unauthorized access.

Comprehensive Documentation Requirements
Healthcare organizations must maintain detailed, up-to-date documentation of all security policies, procedures, risk assessments, and incident response plans.

Asset Inventories and Network Mapping
Annual updates to technology asset inventories and network maps will be required to ensure accurate tracking of where and how ePHI is stored and transmitted.

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
Entities must be able to restore lost systems and data within 72 hours after a cyber incident. Regular testing and refinement of incident response protocols will be essential.

Annual Compliance Audits
Healthcare organizations will be required to conduct annual audits of their HIPAA Security Rule compliance, covering all technical and administrative safeguards.

Mandatory Technical Controls
Technical safeguards like anti-malware tools, firewalls, and port restrictions must be in place and regularly reviewed to protect systems from evolving threats.

What’s Next?

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.

Steps Organizations Should Take Now:

  • Review the proposed changes and understand how they impact your current security posture.
  • Engage in the public comment process to share concerns or recommendations.
  • Start assessing security gaps to align with HIPAA’s evolving compliance requirements.

Conclusion

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.

Compliance is not just about meeting regulations, it is about efficiency. Organizations relying on manual processes to locate and secure sensitive data waste valuable time and resources, making compliance efforts less effective.

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

  • Eliminates manual data discovery by providing a real-time, continuous inventory of sensitive data.
  • Prioritizes relevant data security risks instead of overwhelming teams with unnecessary alerts.
  • Ensures compliance readiness by automating key processes like access control monitoring and encryption verification.

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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We’ve always said security shouldn’t slow innovation - it should fuel it. And that’s exactly what we’re enabling.

It's All About the People


At the end of the day, it’s people who build it, scale it, and believe in it. I want to extend a heartfelt thank you to our investors, customers, and, most importantly, our team. It’s all about you! Your belief in Sentra and your relentless execution make everything possible. We couldn’t make it without each and every one of you.

We’re not just building a product, we’re setting the gold standard for data security, because securing your data is the heartbeat of your organization!

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

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