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What enterprise key management plans are and why your business needs one 

In today’s increasingly digitized world, organizations deal with a growing volume of data daily. Data and analytics are the backbone of informed business decisions, lending valuable insights to drive growth and productivity. Companies seeking to gain market advantage must therefore be data-driven in their decision-making processes.

Since 2020, enterprise data volume has experienced an average annual growth rate of 42.2%. This growth is attributed to factors such as multi-cloud data environments, the increasing application of analytics, and the availability of IoT devices. Using sensor technologies for real-time data collection, IoT devices include items such as activity trackers, AI voice assistants, and smart home applications.

The volume and value of organizational data will only grow, delivering actionable insights to help propel innovation, cybersecurity, and overall business success. There are also vulnerabilities that come with every aspect of your organization’s approach to handling data. This is why many companies encrypt data, which restricts access to authorized users and obscures the information to anyone without the proper encryption key.

However, your encryption strategy is only as secure as the keys themselves. Each encryption key must be protected against unauthorized access, corruption, and loss. This is where an enterprise encryption key management plan comes into play, helping organizations manage their hundreds or thousands of encryption keys.

In this article, we will explore what an enterprise key management strategy is, how it benefits your business, and best practices for creating a key management plan.

What is an enterprise key management system?

Safe, accessible data depends on having strong cryptographic keys. Think of a cryptographic key as the tool that codes and decodes your sensitive information so that it can only be accessed and understood by authorized users.

A key management system safeguards encryption keys against unauthorized access, corruption, and loss. It is a multi-faceted process that includes changing keys regularly, controlling how and to whom keys are assigned, and protecting the central key repository.

Your organizational data can exist in different digital states, as well as in many different locations. For example, data exists in three states:

  • Data at rest. When data is not being used or accessed, it is considered at rest. Data at rest might be stored on a computer, mobile device, database server, backup device, network storage, or cloud server storage.
  • Data in use. Information that is being directly accessed, read, or processed by systems or users is categorized as data in use. This data state is vulnerable to security risks as it moves through the various parts of your IT infrastructure.
  • Data in transit. Also known as data in motion, this state occurs as information transfers from a source to its destination, such as between different systems.

In addition to distinct states, data can be stored in many different places, such as:

  • On-premises in physical storage, such as data servers and network-attached storage (NAS).
  • In cloud storage services, including Dropbox, One Drive, SharePoint, and Google Drive.
  • In a data warehouse, such as Oracle, Google BigQuery, and other database warehousing tools.
  • Within a data lake, including Azure, AWS, Google, and other data lake solutions.

All of this data needs to be utilized by different parts of your organization, by many different people, with different levels of access. It also needs to be protected against loss, theft, and compromise. A cryptographic key management strategy keeps data safe and secure while making it accessible to designated users.

Why your business needs an enterprise key management plan

Key management is a complex but necessary process for data security. Without proper management and oversight, the compromise of any cryptographic key threatens your entire security infrastructure, allowing attackers to do the following:

  • Access systems without authorization.
  • Decrypt and steal sensitive data.
  • Authenticate themselves as privileged users to access other sources of information.

Encrypted data cannot be retrieved and understood without the correct key. As such, access to keys must be carefully monitored and controlled. According to the US General Services Administration (GSA), key management is at least as important as the confidentiality and integrity of the data that the encryption keys protect.

Implementing encryption at various levels, such as databases, networks, endpoints, and files increases data security—at the cost of key management complexity. With all those disparate data sources, a consistent approach to encryption key management helps maintain control over your data and encryption keys.

Otherwise, each of those points in your scattered data stacks can become a possible point of human error or malicious access. Should encrypted data be stolen along with its key, the encryption itself is rendered useless. With cybercrime an ongoing and growing threat, key management should be a primary concern for enterprise organizations.

Storing encryption keys securely is just one component of an enterprise encryption key management strategy. It also includes the following:

  • Limiting user access to encryption keys.
  • Implementing secure key backup capabilities.
  • Developing policies and standards for key management processes.
  • Securing access to key storage.
  • Using a single key for a single purpose.
  • Documenting procedures for the generation, storage, distribution, and destruction of encryption keys.

Best practices for enterprise key management

Your key management strategy is critical for managing key lifecycles and facilitating secure, reliable distribution of cryptographic keys. The more data you have to encrypt, the more keys you have. The more keys you have, the more important it becomes to adhere to best practices for key management.

Key management is so important to data security that it is addressed by the National Institute of Standards and Technology (NIST). Recommendations for key management are found in NIST Special Publication 800-57, which states that “the security of information protected by cryptography directly depends on the strength of the keys, the effectiveness of cryptographic mechanisms and protocols associated with the keys, and the protection provided to the keys. Secret and private keys need to be protected against unauthorized disclosure, and all keys need to be protected against modification.”

Here are some enterprise key management strategy best practices:

1. Centralize your management systems

Companies tend to use hundreds or thousands of encryption keys, but 53% of organizations do not know exactly how many keys they have. By centralizing your enterprise key management system, it is easier to protect, manage, organize, and use your cryptographic keys.

Centralized key management stores keys and certificates in a safe location, separated from the encrypted data and systems. Should the encrypted data be compromised, the keys remain protected, reducing the potential damage in the event of a data breach.

2. Enable access controls

Not everyone in an organization needs the same level of access to data or encryption keys. For example, the person who creates and manages a key should not have access to the protected data. Limit vulnerabilities by granting key access based on strict, need-to-know user roles. This is achieved by following the Principle of Least Privilege, which gives users or processes only the privileges that are essential to performing the intended job function.

It is also important to ensure that no one individual holds sole access to your enterprise key management system. Should that user or administrator lose their credentials or leave the company, you need to have a backup mechanism to shield the keys and the data they protect.

3. Implement key backups

If an encryption key is lost or compromised, you cannot use it to recover encrypted data. Ensure you have back up capabilities so that you can quickly restore lost keys.

The database used to store backup keys should be encrypted using at least a FIPS 140-2 validated process. Back up encryption keys frequently, even multiple times per day. To increase their protection, the backed up keys themselves should also be encrypted.

4. Employ audit logs

Despite your best efforts, accidents can and will happen. An audit log helps you track activities involving encryption keys, such as who accessed a key, when, and for what purpose. Should an encryption key be lost or compromised, you can review the audit log details to aid in the investigation.

Audit logs are also beneficial for demonstrating compliance with various regulations. For example, PCI DSS requires that you keep audit logs files for at least a year and be knowledgeable about who uses system access and for what purposes. They are also important for HIPAA compliance, which requires the monitoring of user activities.

How to create an enterprise key management system

Effective key management system is a balancing act between accessibility and security. This requires a centralized approach to secure data in various environments while maintaining and managing the associated keys.

The first step in developing a key management strategy is to create a comprehensive inventory of your cryptographic keys. This includes not only the location of the keys, but also their intended use and who has access to them.

Next, identify any risks that could compromise your data security. For example:

  • Weak keys. If you use a weak encryption algorithm, you increase the likelihood of an attacker bypassing the encryption. Make sure that the key length is complex enough to secure sensitive data, such as with AES encryption algorithms.
  • Improper storage. Never store keys in the same location as the encrypted data. Otherwise, a malicious actor can steal and decrypt data within a single breach event.
  • Key reuse. Encryption keys should have a single, distinct purpose. They should not be duplicated or reused for different tasks.

You will then need to develop policies and procedures governing the full lifecycle of encryption keys. According to the NIST, this includes the key’s generation, storage, establishment, entry, output, use, and destruction.

  • Creation. Define who can create encryption keys. For example, is it the sole responsibility of the key manager administrator, or will you allow authorized users to create keys to protect encrypted files on their devices?
  • Storage. Keys must be stored securely, such as in a hardware security module (HSM) or otherwise processed with encryption modules. They should not be stored in plaintext format.
  • Use. Authorized systems and users should be able to easily retrieve keys for encryption and decryption processes. To help control access, keys should not be used in the same place they are stored.
  • Rotation. A single key should not be used indefinitely to protect a data set. Rotating keys at regular intervals, such as every week or every year, limits the amount of data that could potentially be compromised if something happens to the encryption key.
  • Destruction. If a key is no longer in use or has been compromised, it should be destroyed in a manner that makes its recovery impossible. Removing all traces of the keying material protects sensitive encrypted data.

A strategic approach to key management helps protect your encryption keys against unauthorized disclosure, modification, or theft. To achieve optimal security, many companies use a variety of tools to protect data across different states and environments.

One such tool is WinZip® Enterprise, which combines data encryption, compression, sharing, and management in a powerful, customizable solution. With centralized IT control, it is easy to deploy and enforce security policies across the organization.

See how WinZip Enterprise fits into a solid key management plan for your enterprise.

Three key differences between enterprise and consumer file sharing solutions

As today’s workplaces become increasingly digitized, collaboration has shifted to shared digital documents or files that team members can all work on together—anywhere, anytime.

Keeping these files and documents up-to-date and ensuring that everyone is working from the correct version has always been a challenge. With the rise in remote work and increased usage of mobile devices for business purposes, it is more important than ever to use solutions that facilitate effective file sharing and accurate version synchronization.

The term file sharing solutions encompasses the various types of software designed to store and transmit files across your organization’s network or over the internet. This eliminates the need for physical file storage and enables collaboration between internal and external stakeholders.

To maintain the integrity of shared data, most file sharing solutions also synchronize the files, capturing updates and changes in real time.

While tools such as Dropbox and Google Drive are popular for sharing and syncing files, it is important to understand the risks of relying on consumer-grade software solutions for business needs. If you’re not using enterprise file sharing and synchronization software solutions, your data is at risk of unauthorized access and loss.

In this article, we identify three key differences between enterprise-level and consumer software solutions. These distinctions illustrate why secure enterprise file sharing and syncing is essential for protecting sensitive data while enabling collaboration for today’s remote and hybrid workforces.

1. Compliance with regulations and legal requirements

Companies that handle sensitive data are at risk of compliance violations if they rely on consumer-grade solutions. While consumer solutions may be well-suited for individual use, they typically do not provide the types of security controls needed for regulatory compliance in many industries or locations.

Some common data security compliance requirements and regulations include:

  • The Gramm-Leach-Bliley Act (GLBA). GLBA compliance protects the confidentiality of personally identifiable information (PII). Recommended best practices include encryption key management and encryption.

  • The Payment Card Industry Data Security Standard (PCI DSS). In order to reduce fraud and increase protection of sensitive cardholder data, PCI DSS requirements include data encryption, secure access controls, and maintaining secure systems and networks.

  • The Health Insurance Portability and Accountability Act (HIPAA). The primary goal of HIPAA’s Security Rule is to protect electronic health information (ePHI). HIPAA-compliant file sharing solutions use proper encryption algorithms, generate audit logs, and enable secure access controls.

  • The General Data Protection Regulation (GDPR). GDPR regulations protect personal data by requiring the implementation of appropriate technical and organizational measures, including encryption, audit trails, and granular user access roles.

Unsecured file sharing and syncing exposes your company to potential violations for regulatory noncompliance. For example, in January 2021, New York health insurer Excellus Health Plan agreed to pay $5.1 million to settle compliance violations that included unsecured file sharing. These violations stemmed from a data breach that impacted over 9.3 million people.

But that’s far from the sole example. For instance, Texas-based Ascension Data & Analytics agreed to a settlement in December 2021 to resolve allegations that it violated the GLBA’s Safeguards Rule when one of its vendors stored customer financial information in an unsecure cloud storage platform.

Enterprise organizations can be held responsible for the actions of their third-party vendors, which occurred in the aforementioned case when Ascension failed to ensure that their vendor maintained appropriate safeguards for customers’ personal information.

2. Enhanced visibility and security controls

Using consumer-oriented technology for business purposes often leads to a loss of visibility and lack of control over who can access sensitive data. This is because individual software solutions lack the security controls needed to define folder and access permissions. This makes it harder to identify the users and actions involved in the creation, modification, or removal of a file.

Enterprise file synchronization and sharing platforms allow enable you to address multiple layers of access capabilities with enhanced security controls, such as:

  • Role-based access control (RBAC). RBAC enables the development of specific permission-based user roles based on job role, project assignment, or other relevant factors which define the scope of access granted to various users.

  • Principle of least privilege (POLP). POLP restricts a user’s access to only the materials necessary for their job and prevents unauthorized access to sensitive data.

  • Multifactor authentication (MFA). MFA verifies a user’s identity using two or more credentials, such as passwords and security tokens.

  • Audit logs. Use audit logs to identify how files are shared and track user activity to quickly detect unusual behavior or potential breaches that could lead to data loss.

  • File integrity monitoring (FIM). FIM enables IT departments to monitor files for unexpected changes that could indicate illicit activity, noncompliance, or other security risks.

  • File-level encryption. Encrypting data at the file level restricts access to authorized users who can only decrypt file contents with the appropriate password or encryption key.

Without visibility into file sharing and synchronization processes, your IT personnel cannot ensure that your organization is following your internal policies and any external regulatory requirements.

3. Secure file access and sharing

Enterprise file sharing and synchronization solutions update files in real-time and facilitate sharing and collaboration between users both within and outside your organization. This is especially important given the ongoing growth in remote and hybrid work environments, as well as the increased usage of mobile phones for business purposes.

By the end of 2022, experts predict that 25% of all professional jobs in North America will be completely remote. This trend will only grow—remote opportunities have increased from around 9% of all high paying jobs in 2020 to 15% in the third quarter of 2021.

Accordingly, there is an associated demand for file sharing solutions that enable these types of workforces to easily collaborate, synchronize, and securely share files.

Our usage of mobile devices has also increased. In fact, 80% of IT executives believe mobile device usage is essential for people to do their jobs effectively. However, when used as enterprise endpoints, devices such as smartphones and tablets pose a security risk.

In addition to the risk of device loss or theft, communication between unsecure devices and networks can be intercepted by malicious actors when employee or contractor devices are used to access company files over outside networks. For example, an unsecured Wi-Fi connection can be a gateway for malware and unauthorized file access.

Enterprise-grade file synchronization and sharing solutions protect sensitive data while ensuring teams can share and collaborate on the same files. Common features of these solutions include:

Share and sync your sensitive data with WinZip Enterprise

WinZip® Enterprise is a powerful, customizable solution that supports team collaboration while protecting your organization’s critical data. Featuring military-grade file encryption, WinZip Enterprise secures files at rest and in transit.

With WinZip Enterprise, your IT admins have centralized control over the complete file sharing environment. This functionality streamlines the implementation and enforcement of secure file sharing, backups and audits, and compliance with various industry regulations and security policies.

Discover how WinZip Enterprise can help your organization with secure enterprise file sharing.

Top five benefits of secure enterprise file transfer

Today, 55% of businesses globally offer some form of remote or hybrid work.Half of the employees access work data on personal devices such as laptops and smartphones, and are using multiple devices: Workers used an average of three devices in 2019, and are projected to use at least four by 2024.

The increase in remote and hybrid work as well as device usage (including personal devices) led many companies to change how they use technology to get work done. Tools for messaging, email, and file sharing––as well as access to cloud-based systems and internal servers across multiple platforms and devices––are now used to enable employees to communicate and collaborate so they can be productive from anywhere.

With these shifts in the digital workspace, companies must also learn how best to protect against new security risks. For example, remote employees may access servers via unsecured networks, such as public Wi-Fi. This heightens cybersecurity risks such as data theft, ransomware, and viruses.

Even when employees work from within offices, businesses are at risk for cyberattacks that can occur during standard activities, such as file transfers. According to Egress’ Insider Data Breach Survey 2021, 94% of organizations experienced insider data breaches in 2020. The Ponemon Institute reports the average cost of worldwide data breaches in 2020 totaled $3.86 million.

Secure file sharing is thus vital for companies to conduct business safely and securely. In this article, we’ll define what secure enterprise file transfer solutions are, the benefits to business, and how a solution like WinZip Enterprise® enhances file transfer security.

What is secure enterprise file transfer?

File sharing is the action or process of sharing files between multiple users. Enterprise file transfer (also called enterprise file sharing) is a system that enables team members at a particular organization to securely share files (e.g., documents, images, emails, and videos). Well-known examples of these systems include Dropbox, Google Drive, Box, and Microsoft OneDrive.

In order for file sharing to be secure, the shared files must be encrypted. Encryption is the process of altering digital information via cryptography so that it cannot be read by unauthorized parties. It works by using an algorithm to encrypt units of information called plaintext. Once the algorithm is applied, the text is scrambled. At this point, it is called ciphertext.

Encryption creates strings of data (called bits) that move information in and out of plaintext into ciphertext. These bits are the key that is used to lock and unlock the data, therefore rendering it readable or unreadable.

The most widely used encryption algorithm comes from the Advanced Encryption Standard (AES). It was developed by the National Institute of Standards and Technology (NIST), and is used by financial institutions, government agencies, and insurance and healthcare organizations, among others.

AES uses 128-, 192-, or 256 bit key lengths to encrypt and decrypt data. The longer the bit key, the more complex it is (and therefore, the more difficult it is to decode). For example, with 256 bits, there are 2256 possible combinations to hack the keycode. This makes it virtually impenetrable to brute force attacks.

Files should be encrypted at two main points:

  • In transit. As the name suggests, in-transit encryption protects data while it moves from one place to another, e.g., when a file is shared via an enterprise messaging service or email.

  • At rest. Files are at rest when they are not being transmitted. If files are not protected when at rest, they are vulnerable to various forms of cyberattacks, such as restoring a backup to an unsecured server, making a copy of the database and its files, or attaching files to another unsecured server.

Individual vs. enterprise-wide file transfer

Consumer file sharing systems typically provide some level of encryption to keep files safe as they are shared. For example, Dropbox offers some security features, such as in- transit AES encryption.

However, these systems typically lack enterprise- level capabilities such as password protocols and custom file read-write privileges. Without these capabilities, IT administrators must shoulder the burden of protecting enterprise data on top of managing the data protection challenges that stem from remote work and the myriad devices used.

An enterprise-level system should also offer support for any unique file types a specific industry may require. These may not always be supported by file transfer systems created for more general use.

For example, graphic designers use vector images, which are often created in solutions like CorelDRAW®. If your device doesn’t have this software installed, you may resort to downloading third party extensions to access the necessary files, which can open up your organization to cyberattacks.

Additionally, an enterprise-level system should offer advanced security controls, including:

Top five benefits of secure enterprise file transfer with WinZip Enterprise

In order to securely transfer files, many businesses turn to solutions systems such as WinZip Enterprise, which enables users to share, compress, and encrypt files within a simple interface. Employees can share files to one or many locations, all while knowing the data is protected by military-grade encryption.

WinZip Enterprise offers organizations the following key benefits:

1. Lowered risk of cyberattacks.

Cyberattacks can involve accessing files as they are being transferred. Since cyberattacks are occurring in ever-growing numbers, this is a real concern for businesses. By September of 2021, the total data breaches for the year had outnumbered the breaches in 2020—and surpassed the previous year’s count by more than 17%.

Cyberattacks also increased by 27% the same year, and cost companies $1 million more on average when remote work was involved. WinZip Enterprise protects data in transit and at rest using AES-256 encryption. With this encryption, even if cyber attackers access files, they cannot read the encrypted data. This ensures your data (and the data of clients or customers) is protected.

2. Reduced data loss.

One possible result of a data breach due to a cyberattack is data loss. This involves unwanted or unplanned data removal or data tampering. It also involves the corruption of data, rendering it inaccessible or unreadable.

With secure enterprise file transfer, data is password- protected and encrypted. This prohibits would-be attackers from tampering with or removing data and ensures file integrity for data that could potentially fall into the wrong hands.

3. Improved regulatory compliance.

Depending on your industry, there may be strict regulations requiring data access, storage, and sharing. Since finance, healthcare, and insurance industries all handle sensitive information, they must comply with industry-specific standards regarding data sharing and access. This extends to file sharing and the associated security.

For example, under the Health Insurance Portability and Accountability Act (HIPAA), all healthcare-related entities must comply with HIPAA regulations regarding the protection of Electronic Protected Health Information.

HIPAA also extends to third parties such as insurance agencies. Each entity must protect against both actual and anticipated threats that may allow unwanted parties to access personally identifying or sensitive information.

4. Automated tools for scheduling transfers and backups.

Most enterprise-level file transfer software includes features such as backup scheduling, which ensures that files are backed up in another location(s). This helps prevent data loss in the event of a cyberattack.

Backups also help protect data in the event of natural disasters, such as floods and fires. These events could potentially damage or destroy both computers and on-site storage systems (e.g., hard drives or servers). In fact, 50% of companies with data loss from a natural disaster immediately filed for bankruptcy.

Scheduling backups, audits, and transfers can also help your organization operate more effectively. When you don’t have to manually monitor your data, you’re in a better position to focus on the tasks at hand.

5. Increased control for IT administrators.

With WinZip Enterprise, your organization’s IT department has access to robust reporting and analytics tools that enable them to track usage. These tools can be highly customizable, which gives IT administrators the ability to tailor the file transfer system to your company’s specific security needs.

These tools also help IT and management gain a deeper understanding of your organization’s storage use and needs. This information can be crucial when it comes to technology-based decision making, such as which new cloud-based system to purchase for data storage.

Learn how WinZip Enterprise helps your organization securely transfer enterprise files.

Enterprise cloud file sharing and storage: what you need to know

The pandemic fundamentally shifted the way many organizations operate, with 55% of global businesses now offering some capacity for remote or hybrid work. Of those employees who work remotely or in a hybrid model, 50% access work data on personal devices such as laptops and smartphones.

With this increase in remote work and digital access, the need for off-premises file sharing (the process of sharing files between multiple users) continues to grow.

Flexera’s 2020 State of the Cloud Report states that by the end of 2020, 93% of enterprises had a multi-cloud strategy and 87% had a hybrid cloud strategy in place for data storage solutions.

Since cloud file sharing works through a cloud computing system rather than an on-premise software solution, the need for cloud storage systems also continues to grow. Gartner predicts that by 2024, the enterprise cloud storage sector will grow by nearly 15%. This is a steep difference from the 5% increase the sector experienced in 2020.

As more businesses turn away from on-premises servers and toward file sharing and cloud storage solutions, they are experiencing some challenges. These difficulties range from a lack of resources when managing cloud spending to governance for these systems.

Cybersecurity also becomes a growing concern. Employees often access their file storage systems via unsecured networks such as public Wi-Fi, putting businesses at increased cybersecurity risks, including data theft, ransomware, and viruses.

This article highlights how cloud storage is used by enterprises, plus the pros and cons of cloud file sharing and storage for businesses.

How enterprises use cloud file sharing and storage

Examples of ways enterprises use cloud file sharing and cloud storage include the following:

  • Data storage. Cloud storage systems store data and allow multiple (authorized) users access to this data.

  • Data backup. Even organizations with on-premises servers can utilize the cloud as a data backup solution. This ensures data is safe in another location, should the on-premises solution experience data loss via events such as a server crash, a cyberattack, or a natural disaster.

  • File archiving. Rather than replacing a file with an updated version (which is what happens when you press “Save” on most systems such as Microsoft Word), file archiving saves all versions of a file. Preserving each version enables you to easily access all versions of a file throughout its history.

  • Open file backup. Power outages, computer crashes, cyberattacks, even natural disasters—the unexpected can always happen, and these events can lead to data loss if documents are not automatically saved. Open file backup ensures even documents you have open and are working on are saved as you go.

  • Device syncing. The number of devices used by workers is increasing. Workers used an average of three devices in 2019 and will use an average of four by 2024. Device syncing ensures data from all devices is stored in a central location. This eliminates the possibility of multiple files of the same document being worked on at once.

  • File security. Most cloud systems encrypt files during both transfer (such as when being sent over email) and during storage. In general, cloud storage companies employ 256-bit AES encryption, which uses a 256 bit key to encrypt and decrypt data (and is therefore virtually resistant to brute force attacks).

  • Cloud hosting. Enterprises may opt for cloud storage solutions that come with hosting features and messaging systems. A popular example is Microsoft, which offers the email service Microsoft Outlook and the messaging service Microsoft Teams.

Industry-specific regulatory compliance for cloud storage

Many industries must meet regulatory requirements with respect to the storage of personal data.

Consider the following regulations regarding data storage:

The pros and cons of cloud file sharing and storage

As with any system, there are pros and cons to cloud file sharing and storage. Consider the following advantages and disadvantages of these systems before deciding if they are right for your organization.

Pros

  • Disaster recovery. Floods, fires, and other natural disasters can damage or permanently destroy computers and backup storage systems such as hard drives. This loss can be detrimental for businesses. One study found that 50% of companies that lost data due to a natural disaster immediately filed for bankruptcy. Keeping your enterprise’s data on a cloud system avoids data loss due to such events.

  • Increased accessibility. Employees working off-premises may still require the same level of access to files, folders, and communication-sharing systems that they had access to in-office. With remote access, both remote workers and in-office employees who are on-the-go can complete tasks and collaborate with others.

  • Data control. When multiple workers are working on the same digital file, it’s easy for mistakes to happen. With cloud-hosted systems, files are all stored in one location, and data is automatically synced between all devices. This ensures everyone uses the most up-to-date version of files.

  • Data recovery. Hard drive crashes or system failures are responsible for 67% of all data loss. With cloud storage systems, data is never lost due to these factors.

  • Cost efficiency. Enterprises must purchase, implement, and maintain their equipment. This requires initial investments and expertise. Down the road, issues with your server could also lead to downtime. While cloud systems can be costly, the costs are often more manageable and more predictable.

Cons

  • Lack of resources and expertise. For enterprises that are new to using cloud systems, deficits abound. The top challenges for enterprises include the lack of resources to implement a system and a lack of employees with internal knowledge of how to use these systems.

  • Managing cloud spending. An estimated 30% of cloud spending is wasted when, for example, organizations purchase storage they do not need or fail to make use of all features they’ve paid for.

    Additionally, 56% of organizations report a lack of knowledge regarding the cost implications of software licenses. For these reasons, more than 80% of enterprises state managing cloud expenditures as the biggest challenge.

  • Security concerns. Cloud storage systems may come with security features such as two-factor authentication or secure passwords. While these help safeguard your data, no system is immune to human error: 74% of organizations have been breached after employees broke security rules.

    Furthermore, 73% of enterprises have experienced phishing attacks. For these reasons, 83% of enterprises indicate that security is a challenge.

  • Internet dependency. Cloud-based systems require an internet connection for access. Should your employees have internet connectivity issues or be in an area where internet access is down, you could end up with lost productivity.

Protect your enterprise’s cloud information with WinZip Enterprise

To protect your enterprise’s data, consider using a solution like WinZipⓇ Enterprise.

WinZip Enterprise syncs with many enterprise-grade cloud file sharing and storage systems—including Google Cloud, Office 365 Business, and SharePoint—to ensure your data is locked under a secure layer of protection.

WinZip Enterprise uses AES encryption, which is an encryption algorithm used by entities such as banks, financial institutions, insurance companies, healthcare companies, and government agencies. WinZip Enterprise’s AES encryption uses a 128, 192, or 256-bit key to encrypt and decrypt data.

WinZip Enterprise is also compliant with the military-grade encryption set forth by the FIPS.

WinZip Enterprise includes WinZip Secure Backup, which is an automated endpoint data backup to ensure your files are protected. It includes features such as deduplication (to avoid duplicate documentation) and file compression (to make the most of data storage).

Discover how WinZip Enterprise makes using the cloud for file sharing and storage beneficial for your business.

The best alternatives to Dropbox for business

For companies that use cloud-based solutions, one popular option is Dropbox, a cloud storage system with more than 500,000 US clients that use its enterprise system, Dropbox Enterprise. This number increased by 50,000 since 2019 (an increase of 11.11%), indicating its growing popularity among businesses.

Dropbox appears to be a solution designed to avoid data loss, which is the unwanted or unplanned removal or tampering of data that often includes sensitive information. Data loss also includes data that has been lost or corrupted, rendering it inaccessible or unreadable by the intended user.

Enterprise data loss can happen for a multitude of reasons. One of the most common is a system failure, which includes hard disk drive (HDD) crashes on desktop and laptop computers. In just the US, 140,000 hard drives crash each week. Mechanical failure is to blame for 60% of these hard drive failures, and misuse leads to failure in the other 40%.

Natural disasters (for example, floods and fires) can destroy or permanently damage computers and backup storage systems such as hard drives. This loss can be detrimental for businesses: 50% of companies that lost data due to a natural disaster immediately filed for bankruptcy.

Data breaches also cause data loss. Egress’ Insider Data Breach Survey 2021 found that 94% of organizations experienced insider data breaches in the previous year. The Ponemon Institute’s Cost of a Data Breach Report states the average cost of worldwide data breaches in 2020 was $3.86 million.

In many of these cases, data loss could have been avoided if businesses utilized a cloud storage system that offers automatic data backup. This shift could have a wide-ranging impact on organizations: one study reports that 55% of companies still use on-premises (physical) servers.

But Dropbox is not a failsafe approach to data storage. In a study involving IT leaders, 84% of respondents reported human error as the leading cause of serious data breach and data loss incidents. Employees who failed to follow established security procedures were responsible for attacks in 74% of organizations.

Even with a system such as Dropbox in place, data loss and data breaches can still occur. It is therefore vital that organizations consider another level of security for their data backup.

This article highlights the current trends among business backup storage solutions as well as the security risks of Dropbox and how they can be mitigated with other solutions.

The current state of enterprise backup storage solutions

According to 56% of IT professionals, the increased amount of remote work due to the global pandemic has led to an increase in data breaches. This is due in part to more human error by remote workers when sharing files and accessing shared servers.

As a result, many companies turned to cloud-based storage solutions for off-premises collaboration. By 2021, nearly 50% of all corporate data was stored on the cloud. Even entities such as Google, Facebook, Twitter, and LinkedIn moved their processes to cloud computing servers.

Companies in certain industries, however, still rely on on-premises solutions that are more customized to their needs. For example, up to 25% of companies in electronics and hardware do not use the cloud, and 16% of government entities remain cloud-averse. Up to 17% of finance organizations rely primarily upon on-premises servers. In many cases, the hesitation to move to a cloud-based system stems from logistics related to migration.

Solutions such as Dropbox may help avoid data loss from physical servers, but they also come with their own security challenges. For example, Dropbox is not immune to situations that cause data loss, such as human error and cyber-attacks.

File security limitations of Dropbox

Dropbox has a history of data attacks. In 2012, an undisclosed number of emails and passwords were stolen from Dropbox’s servers. In 2016, Dropbox admitted that this attack had involved the login credentials of 68.6 million users.

The gap between the Dropbox hack and its announcement about the severity of the attack raised eyebrows for many users. How do they know if sensitive data stored on Dropbox is safe? And how can businesses using Dropbox ensure data security for their customers and clients?

Dropbox does offer some security features such as the following:

  • Intransit data encryption. Intransit encryption protects data as it moves from one place to another, such as when data is transmitted over the internet to another user.

  • 256-bit Advanced Encryption Standard (AES) encryption. AES encryption employs blocks of cryptographic code in lengths of 128, 192, or 256 bits. With 256 bits, there are 2256 possible combinations to hack the key, making it virtually impenetrable.

  • Secure Sockets Layer/Transport Layer Security (SSL/TSL). Dropbox encrypts data in transit, which is further protected by 128-bit or higher AES encryption. Files at rest are encrypted using 256-bit AES.

The solution additionally offers an optional two-step verification layer and regularly tests its infrastructure for security vulnerabilities.

Despite these security measures, there are still possibilities for data stored on Dropbox to fall into the wrong hands or become lost.

  • Dropbox enables users to store files in public folders, which could easily be accessed by anyone. These files could also easily be uploaded to the wrong location, allowing access to unauthorized (or potentially nefarious) individuals.

  • Dropbox users are also still at risk of being victims of cyberattacks such as phishing. In a phishing attack, users are tricked into giving up their personal credentials and access to Dropbox accounts.

  • Dropbox does not offer the enterprise-grade, purpose-built security controls that many organizations need, such as the blocking of actions like copying, printing, or saving.

  • Dropbox does not offer redaction tools, which means that IT cannot control the levels of privacy within documents.

What to look for in a new data backup solution

With so many issues regarding security and use, it’s in your best interest to invest in an enterprise-level data backup solution. Some of the most important factors to consider are cost, security, ease of use, and regulatory compliance.

Cost

Many factors influence a data backup solution’s costs. Before researching the costs of different systems, take into consideration the following:

  • The amount of data that will be stored.

  • The number of users that need access to the solution.

  • Additional security measures (such as two-factor authentication).

  • Customer service, training, and support costs.

  • Data migration costs.

Security

When evaluating data backup solutions, consider the following security features:

  • Encryption. With encryption, data has an extra layer of protection in the form of uncrackable codes. Encryption ensures that even if your data falls into the wrong hands, it cannot be read.

  • Multi-factor authentication. Multi-factor authentication is an added layer of protection that requires users to not only enter one form of authentication, such as a password, but also pass through another layer, such as fingerprint identification on a smartphone.

  • Custom controls for IT. When IT can control certain aspects of a data backup solution—such as file and folder-level security and access—they can better tailor the system to your organization’s specific needs. (For example, your organization’s compliance requirements.)

Ease of use

The right solution balances security with ease of use. If backup processes are overly complex or require multiple steps to initiate the backup process, people will be less inclined to back up data regularly. Look for tools that enable automatic backups and are easily accessible to employees whether they are on-premises or offsite.

Carelessness is responsible for 60% of insider security incidents, and this behavior often stems from not understanding the importance or full scope of your data backup strategy. Since human error is one of the main causes of data breaches, employees must be adequately trained on internal file and folder management.

Regulatory compliance

Data security and storage-related requirements vary by industry: finance, healthcare, and insurance, for example, are subject to strict data standards since they deal with particularly sensitive information. These requirements may influence your choice when evaluating a data backup tool.

Some examples of regulatory standards are as follows:

Alternative data backup solutions to Dropbox

There are many choices when it comes to backup storage solutions. If Dropbox does not offer the enterprise-level data backup solution that your business needs, consider other solutions.

Alternatives to Dropbox for business data include:

  • Google Drive. Perhaps the most well-known option, Google Drive is free for all Gmail users but can be upgraded to enterprise accounts with pooled data sharing. Google Drive and all the apps in Google Workspace automatically sync with your desktop and smartphone.

  • Microsoft 365. Microsoft 365 is a cloud-based suite of Microsoft applications and services, including Microsoft Teams, Word, OneDrive, and more. It automatically syncs your folders and files to the cloud, ensuring they are available across a range of devices.

  • SharePoint. SharePoint is a collaborative platform that integrates with Microsoft Office. It offers basic backup features but lacks granular access controls for enhanced data security.

Secure data with WinZip Enterprise’s powerful backup routines

WinZip® Enterprise enhances the security and efficiency of the solutions such as Google Drive, Office 365, and SharePoint. While these solutions sync data, they often rely on third-party tools to back up your data and store it on a secondary storage platform.

Thanks to its native integration with leading cloud storage services, WinZip Enterprise gives you the ability to back up to any connected cloud account. Among its many enterprise tools is WinZip Secure Backup, which provides automated endpoint backup for additional data security. Additional features of WinZip Secure Backup include the following:

  • Deduplication (the removal of redundant data).

  • Compression (the reduction in file size).

  • Encryption (the encoding of information to make it impossible for third parties to decipher).

WinZip Enterprise protects data in transit and at rest with advanced encryption methods, including 256-bit AES encryption. This enables your IT department to implement and uphold data security standards across the workforce, including multi-cloud network environments.

See how WinZip Enterprise provides easy, secure data backup for your organization.

Learn more about WinZip Enterprise today!

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