Why MSPs are Failing Compliance Tests
Regardless of how efficient your cloud-based file sharing infrastructure is, having proper compliance is still essential. If you’re the type of ambitious managed service provider (MSP) that plans on introducing your services to highly-regulated industries like healthcare, banking, or retail, compliance becomes even more important.
Sure, there is a lot of money to be made, but the barriers-to-entry for these coveted grounds are also pretty high. Manning these barriers are the compliance auditors, the gatekeepers that possess an array of methods with which they can figure out whether or not you are worthy of being let in.
Not only are the audits grueling, but failing to pass their scrutiny can lead to detrimental consequences for your company. Not being compliant is as dangerous for your clients, as it is for you. So tread carefully, enterprising MSPs, because the penalties for not meeting standards can range from $500 to $1,500,000!
The importance of being compliant
Compliance as business jargon refers to all the measures that you as a business entity must take so that you are in accordance with certain legal guidelines and rules which apply to the country, state, and/or industry in which you operate.
Indeed, many businesses that store and share sensitive data use certifications such as ISO27000 for determining which storage provider they will go with – and this is just basic stuff. Some of the more common compliance certifications that are looked for are the Healthcare Insurance Portability Act (HIPAA), Federal Information Security Management Act (FISMA) and Payment Card Industry Data Security Standard (PCI DSS).
Why businesses fail compliances
As compliance audits are lengthy and complicated procedures, there are number of reasons why a company can fail. In fact, despite the growing importance of cloud based computing, the failure rate in cloud implementation is quite high. In a survey of 276 IT professionals in December 2014, 56 percent cited a lack of understanding of security and compliance as the primary reason why cloud implementation failed.
Three of the main reasons why this happens include:
1.Improper network configurations
Any run of the mill cloud may not suffice for many companies. A proper cloud environment must be designed with adequate security solutions that take all data into account. For instance, PCI DSS compliance requires network configurations, which include strong Access Control Lists (ACLs) on all devices within said network. If certain aspects required by the compliance audits were ignored, then you could be facing some serious fines.
2.Insufficient data encryption
Almost every compliance audit requires strong encryption technologies in place, especially in environments where credit card and patient information is moving about. As these are very lucrative targets for malicious outsiders, you will need to implement proper encryption strategies to protect all sensitive data and information.
3.Insufficient number of people assigned to compliance
As you are getting started, hiring people just to oversee compliance may seem redundant, however as your business is expanding, it becomes necessary. Having a specialist – or group of specialists – that have expertise in certain types of compliances can go a long way to ensuring that your company meets the standards and remains up to date on them.
Being compliant not only ensures your business is obeying the law of the land, but it is also a serious reputation building tool. A certificate from a highly accredited and reputed governing body acts as a testimonial to how seriously you take what you do, which sets you apart from the humdrums of the cloud world.
