Cloud ERP
ERP Implementation
ERP Trends
Sep. 29, 2021

How Secure is Your Data in the Cloud?

Leor Barth

How Secure is Your Data in the Cloud?

While small and mid-size businesses have long been using cloud-based ERP, larger organizations are following suit, and are slowly (and surely) venturing to the cloud as well. While cloud ERP is advantageous in most scenarios, there are some industry experts, along with the occasional CTO who have raised concerns about data security. Perfectly valid, and there have been instances where ERP system data stored in the cloud was found to be vulnerable to multiple threats.

Thankfully, cloud ERP products offered by reputable vendors are extremely secure, and they can be made safer by following a handful of best practices.

Let’s take a look at just how valid these concerns are, and if your cloud ERP data is truly protected from vulnerabilities and threats.

  1. Legacy ERP has security loopholes. Older ERP products have a number of known security-related vulnerabilities. The moment you switch from a legacy ERP system to a cloud ERP, you have probably made the best decision possible to secure your data.
  2. On-premise ERP is vulnerable to multiple threats. Although there is a strain of thought which favors on-premise ERP over cloud ERP based solely on security, this assumption is not based entirely on facts. On the contrary, from rogue employees to poor management of IT infrastructure, on-premise installations carry a number of threats with them.
  3. Cloud vendors have a profit-motivated reason to focus on security. Cloud ERP vendors face a tough market to appease, and their challenges are compounded by fierce competition. As a result, top-notch security is provided not only as a feature but also as a competitive business strategy. In other words, your data is safer in cloud ERP because your vendor wants to remain in business.
  4. Cloud ERP ensures compliance. Cloud-based ERP solutions offered by reputable vendors comply with a number of regulations, which add multiple layers of security to your data. For example, most cloud ERP systems are PCI and DSS compliant, which keep financial data safe. If you’re looking for HIPAA-compliant ERP, there are many cloud products that offer top-notch security for health records and other sensitive business data.
  5. Following vendor-suggested best practices enhances data security. In addition to cloud ERP being inherently safer and secure as compared to other available alternatives, you can enhance your data security by following your vendor’s advice. Most vendors have their own best practices, and it makes sense to communicate with your vendor to literally, follow in their footsteps.

What can you do to safeguard your data while using cloud ERP?

Audit your access management protocol
Studies show that most data breaches occur due to vulnerabilities in permissions granted to company employees and third-party applications. Audit your access management protocol, and revoke unnecessary permissions to keep your data safe.

Review all your integrations
While third-party integrations can enhance your ERP functionality, they are also beyond the control of your vendor. As a result, it’s important to review all of your integrations, products and apps on a regular basis, and uninstall those that may pose security risks.

Follow your vendor’s best practices
Reputable cloud ERP vendors often suggest specific security protocols and best practices. Make sure you follow what your vendor recommends, especially in terms of safeguarding your data and network access.

Implement password hygiene
Data breaches can also occur due to weak passwords. It’s important to put password hygiene in place, which includes reviewing, changing, and maintaining passwords on an ongoing basis.

Request timely ERP audits
Timely ERP audits are the surest way to safeguard your data. Your cloud ERP vendor may perform an audit at an additional cost, or this service may be included in your existing plan. Make sure to communicate your specific concerns with your vendor.

Yes. Your data is safe and secure in cloud ERP

Data in your cloud ERP system is generally safe, and trusted and reliable vendors go to extraordinary lengths to ensure that security breaches are avoided. These vendors regularly update the software to fix known errors and vulnerabilities and work closely with their customers to identify security risks. To maintain your data security, be sure to schedule regular audits and follow your vendor’s security best practices.

Cloud ERP is often safer than on-premise installations due to its access to technology and security-related manpower. What’s more, cloud ERP vendors often have a profit-motivated and competition-influenced reason to provide you with top-notch data security. In other words, data security is every cloud ERP vendors’ mission. Hands down, your success is their success.

To review your existing ERP data security, or to request an audit, contact us for a no-obligation call with one of our ERP implementation experts.

The Author

Leor Barth


A dynamic team leader, Leor oversees the entire technological spectrum at Priority. With a BA in Computer Science and nearly two decades in the ERP sector, Leor brings a wealth of experience from his time at Precise Software, where he specialized in creating performance monitoring software. Outside of work, he's an enthusiastic hiker and a devoted father of three, often found planning or embarking on his next uphill trek.