Why Cloud Security Matters More Than Cost and Scalability

2024.10.24

Too many businesses believe that adequate security is too expensive. Here are some ways to keep costs under control.

According to a study conducted by Akamai Technologies, 87% of digital native businesses (a term that seems to be specific to the Asia-Pacific region) prioritize security over cost and scalability when selecting a cloud provider. While the study was focused on Asia, we are seeing similar buying patterns in the United States. This “security first” approach reflects a broader shift in how businesses operate amid accelerating technology adoption.

As enterprises integrate cloud computing, they are grappling with escalating complexity and cyber threats. To stay agile and competitive, they are adopting cloud-native design principles, an operating model that enables independence and scalability through microservices and extensive API use. However, this is not without its challenges.

How Safety is King

The shift toward prioritizing cloud security over cost and scalability is an important trend driven by several factors:

Rising cyber threats are both a perception and a reality. As businesses become more reliant on cloud services, they face more sophisticated cyber threats. High-profile data breaches and cyberattacks have heightened awareness and made security a top priority.

Complex cloud environments mean that adopting cloud-native designs introduces multiple layers of complexity. Ensuring security across distributed components (microservices and APIs) becomes critical, as misconfigurations or vulnerabilities can lead to significant risks. I and others have been screaming about this for years. While in IT, we accept that complexity is a means to an end, it needs to be managed based on its impact on security.

Compliance and regulatory pressures mean that many industries face strict regulations on data protection and privacy (e.g., GDPR, CCPA). Ensuring compliance requires strong security measures to protect sensitive information in the cloud. Many enterprises are moving to sovereign or local clouds that are local to the laws and regulations they comply with. Companies believe this reduces risk; even if these clouds are more expensive, the reduced risk is worth it.

Business reputation and trust are always fragile; companies recognize that a security breach can damage both immediately. In fact, you’ll see your stock drop 50% on the morning news. By prioritizing security, businesses aim to preserve their reputation and customer relationships.

Long-term cost impacts mean that initially focusing on cost and scalability may seem feasible, but the long-term financial impact of a security incident can be severe. Most people in the cybersecurity field understand that risk equals money. The greater the risk, the less valuable the system is, given the potential for vulnerability. Prioritizing security can prevent costly breaches and downtime.

Innovation and agility mean that in order to remain competitive, businesses need to innovate quickly. Secure cloud infrastructure enables this by providing a reliable foundation for building and deploying new services without compromising data integrity or security.

This situation has prompted enterprises to adopt a "security first" mindset. While it may be a cliché, we must recognize that without good security planning and mechanisms, the other benefits of cloud computing (cost savings and scalability) may be undermined. This shift reflects a broader global trend that values ​​resilience and reliability over traditional operational metrics.

How to Reduce Security Costs

Balancing cloud cost and security involves a strategic approach to optimizing resources while protecting systems and data. This is directly related to the price of the cloud and the value of security, and they are not usually so easy to link. Many people believe that the more security you need, the more the cloud service will cost. The study mentioned at the beginning of this article assumes that the higher the security, the higher the cost. I have not found this to be the case. In fact, in many cases, the opposite is true.

Here are some tips to help you find the value in security and break away from the notion that more security means more money.

Build security into the architecture from the beginning to avoid costly fixes later. This seems obvious, but it’s often not done. About half the time, security is an afterthought, and then companies are forced to throw money at the problem.

Automate compliance and administration to reduce manual work and costs. Automation means repeating good processes without relying on humans; security is no exception.

Use strong access controls to ensure that only authorized users can access critical data. Identity management is the most common approach here, and for good reason.

Audit cloud usage regularly to eliminate wasteful spending and optimize resource allocation. Also, train your team to effectively manage cloud resources and security.

It's not that hard when you get down to it. What's worrying is that businesses really think they have to spend a lot of money to achieve the right level of security. Nothing could be further from the truth.