Why Ensuring Data Security During ERP Migration to the Cloud is Important?

ERP or Enterprise Resource Planning systems are a vital part of modern business operations. This system integrates various types of important functions into a unified platform. Such as supply chain, finance, customer relationship, human resources, etc. So, when organizations are looking for scalability, agility, and affordability, migration from ERP to cloud-based platforms has become a great option.

With this transition, organizations can enjoy several benefits. Such as reduced IT overhead, improved accessibility, improved innovation, etc. However, this transition also has some notable challenges. One of the most significant of those challenges is data security. All ERP systems have to manage sensitive data. Those can be the main targets for cyber threats during the procedure of migration. 

Issues like compliance violations, data breaches, etc., can lead to unwanted damages to the company’s reputation and finances. So, all organizations have to follow a security strategy that will help them in many ways. For example, risk assessment, data protection, identity management, encryption, and more. 

So, here we will discuss why data security is important during ERP and data migration to the cloud, and how to do it.

Why Businesses Are Migrating ERP to the Cloud

To remain competitive, companies across several industries are choosing cloud technology. Today, this technology is a very important part of any company. Just by migrating from ERP to the cloud environments, companies can enjoy several important benefits. Such as:  

Benefits of Cloud ERP

1. Scalability 

One of the notable features of ERP is its ability to easily scale with a business. When organizations enter a new market, they can add many modules, users, etc., without facing the limitations of physical infrastructure. No matter what kind of company you have, cloud ERP systems can offer amazing flexibility to adapt in real time.  

2. Cost-efficiency 

Cloud ERP can eliminate the need for lots of investments in several devices. Such as servers, hardware, data centers, etc. Instead, they can reduce their operational costs just by choosing a subscription based model. Also, the need for IT employees, upgrades, maintenance, etc., can be minimized with ease.

3. Collaboration and Accessibility 

With cloud ERP, companies can easily access applications and data from anywhere. They will only need a good internet connection. This can support remote work and enhance amazing cross-departmental collaboration. Thus, companies can enjoy real-time decision making with ease. 

Common Migration Scenarios 

To enjoy data center migration from ERP to the Cloud is not a procedure that will be the same for all organizations. They need to choose different paths as per their needs, infrastructure, etc. Such as:

1. On-prem to cloud 

This is one of the most easy migration route. With this, businesses can move their entire ERP system to a cloud-based solution. Many companies like it as it helps by reducing infrastructure costs and allowing digital transformation. 

2. Hybrid setups 

Some like this hybrid approach. Here critical components stay on-premise. However, other parts are shifted to the cloud. This model is perfect for companies that want to enjoy the benefits of cloud ERP without stringent data residency needs. 

3. Modular Migration 

A large organization with a complex ERP system, go for this phased approach. It includes the task of moving one module at a time. Thus, they can enjoy smoother transitions and reduce risks.  

Cloud Adoption Trends in ERP 

The trend of cloud ERP is nothing but a strategic shift. Nowadays, many companies have already adopted cloud-based ERP systems and some will do it within the next one or two years. Vendors like NetSuite, Oracle, SAP, etc., are choosing cloud-based ERP systems to enjoy a more accessible transition.

Key Data Security Risks During ERP Migration

When companies need excellent data center migration, they choose ERP system migration to the cloud. It is a complex procedure that can offer amazing benefits. However, it also introduces some serious and new risks for data security. Some of those include:

● Data Breaches During Transfer 

One of the most exposed forms of data during a migration procedure is data in transit. An ERP system is often a complex and large system that transfers data across all networks. Hence, this can lead to serious vulnerabilities. Cyber attackers can exploit all kinds of weak encryption methods or unsecured channels. They can even use open ports to intercept sensitive data. To get rid of this, you can use end-to-end encryption, secure VPNs, etc. Moreover, you must use monitored channels to minimize your data exposure. 

● Insider Threats and Misconfigurations 

Besides external cyber attacks, internal risks are also very common and similarly dangerous. During a migration procedure, consultants or employees can cause data exposure unintentionally. Misconfigurations, like unsecured cloud storage buckets or incorrect access permissions can leave your sensitive data open to others. 

● Corruption or Loss of Data 

The entire ERP system and its data are quite vast and also deeply interconnected. So, if your data is corrupted or lost, it may affect your business operations, and even compromise data integrity. Many companies underestimate this risk and ignore it in the planning stages. It is more applicable in large-scale migrations where data mapping between the cloud ERP and legacy systems is really complex. 

To get rid of this issue, you must conduct comprehensive data backups just before migration. Also, you need to verify the accuracy of your transferred data through reconciliation checks and validation scripts.

● Compliance Violations 

Nowadays, many companies and their industries are governed by strict regulations for data protection. Some of those are GDPR, HIPAA, SOX, etc. All these can impose notable penalties for non-compliance. During the procedure of ERP migration, if a company dies cannot follow these regulations, it may have to face expensive violations. 

So, you need to work with an experienced legal team early in the data migration procedure, to find out regulatory obligations and follow the industry-specific standards. 

● Third-Party Access Risks 

Sometimes, cloud migrations include third-party vendors. Such as migration tools, consultants, third-party cloud service providers, etc. These partners usually help the company to flawlessly streamline the migration procedure. However, they also introduce some risks. 

Hence, to get rid of this issue, you must thoroughly check that all your third-party providers are following compliance certifications. Also, you need to carefully monitor their access throughout the entire data migration procedure.

Security Best Practices During Migration  

Migrating an ERP system to the cloud is a very important step toward digital transformation. It is of utmost importance to do this task in a risk-free way so that the company’s data is secured. To ensure a secure ERP migration and mitigating risks successfully, you need to implement some comprehensive security practices. Some of those include:

1. Encrypt Data in Transit and at Rest

One of the most vital security practices in this situation is encryption. During an ERP migration procedure, data sometimes has to travel across semi-secure networks. This makes the data susceptible to interception. It is proper encryption that can ensure the required security. It is thus important to work with the cloud service provider and ensure proper encryption.

2. Use Secure Migration Tools and Protocols

Usually, not all types of migration tools as well as protocols have the same level of security features. So, if you use unsupported, updated or poorly configured tools can be the reason for vulnerabilities. So, to maintain the integrity of your data, you must use secure tools, enforce authentication, and track every part of the migration properly. 

Moreover, you must choose migration tools that are regularly updated, certified, and can support secure communication protocols.

3. Limit Access to Authorized Personnel only

The ERP system of your organization usually involves sensitive data. That includes some vital elements. Such as customer information, financial records, and even intellectual property. So, if you grant excessive access during the migration procedure, it may result in insider threats or unwanted leaks. So, it is crucial to limit access to your vital company data. Data exposure and unauthorized actions will be greatly reduced.

The implementation of Role-Based Access Control can ensure that only trusted users will get access to the data for the necessary tasks. Other than that, revoke access after the task is done.

4. Monitor Activity and Logs in Real-Time

During ERP migrations, visibility is important. It is through the real-time monitoring that you will be able to detect any suspicious activity. Your IT experts will be able to find out the anomalies and hence investigate the issues when proper real-time monitoring is done on a regular basis. Thus, you can complete your migration process as planned.

So, you can set up real-time alerts for any unwanted behavior. Such as large data exports, failed logging attempts, off-hour access, etc.

5. Backup All Data Before Migration

 Even if you plan carefully, there is always a risk of something going wrong. Such as accidental deletion, data corruption, and even system crash. So, try to have up-to-date and complete backups. This will ensure that your ERP system is restored quickly, and without any major issues

Conclusion

So, before starting the migration procedure, you must perform a full backup of your entire ERP data. Also, store all those backups in some secure locations. Hence, during the entire procedure of an ERP migration to the cloud, you must choose an approach that is layered and proactive. Such as you must ensure encrypting data in both transit and at rest, using secure tools, limiting access to authorized users, ensuring complete backups, etc. Moreover, you must evaluate your ERP migration plans through a lens that prioritizes security. Only a fully secured data migration procedure will lay the foundation for the long-term success of your business.

FAQs Related To Data Security While Migration