Hidden Costs of Cloud Misconfigurations

Cloud mistakes are costing UK firms a lot of money. By 2025, 99% of cloud security breaks will come from human slip-ups, leading to data leaks, big fines, and work stops. Here’s what you should know:

• Common errors: Bad setup in Identity and Access Management (IAM), open storage, seen API keys, and turned off monitors.
• Money loss: Each leak costs £3.1 million on average, with GDPR fines up to 4% of global money made.
• Work issues: Stops, less work done, and harm to name.
• Important numbers: 82% of cloud security problems are from human mistakes; 79% of firms use many cloud services, making things more complex and risky.

How to stop risks? Use tools to check security automated with Cloud Security Posture Management (CSPM) tools, fit security into DevOps steps, and check often. Dealing with these mistakes early can save cash, keep data safe, and follow rules.

Capital One's $200M Cloud Data Breach

Money Lost from Wrong Cloud Setups

The money hit of wrong cloud setups on UK firms is very high. These tech mistakes mess up budgets and affect work, causing trouble both now and later.

Government Fines and Legal Costs

When wrong cloud setups lead to data leaks, money loss can be huge, more so under GDPR rules. Fines can reach up to €20 million or 4% of a firm's yearly world sales, whichever is more. For example, TikTok was fined £12.7 million, while Meta and Amazon Europe got fines of over $1.3 billion and €746 million.

Costs to Fix Issues

The loss does not stop at fines. The money to deal with the mess adds more strain. Around the world, the average loss from a data break is now £4.45 million, including costs like deep checks, telling customers, and lawyer costs. A big case in 2019 is the Capital One mistake. A wrong AWS firewall let out data on 100 million people, ending in a $190 million deal and lasting costs to stay right with rules.

The faster it's found, the less it costs. Breaks found after over 200 days cost £1.02 million more on average, showing fast find and fix are key.

Lost Work Time and Sales

Lost work time from wrong cloud setups hurts too. Long stops hurt sales, delay orders, and make customers trust less, often making big sales losses. One case made a firm lose £500 million in stock value.

In 2021, a mistake in Microsoft Power Apps let out 38 million records from health and government groups. This caused work stops as groups rushed to lock systems and get back to normal. For firms that sell online, every hour down means lost sales, lost orders, and maybe losing customers to others.

What's clear from this research is that misconfiguration risks are impacting the bottom line. Senior network professionals are prioritising compliance and feeling confident about network security but delivering on it at scale and continuously is a major challenge. – Phil Lewis, CEO, Titania [5]

The data shows it: 75% of the jump in the average cost of a breach comes from losing business and trying to fix things after the breach [4].

Hidden Costs and Lasting Effects on Business

Even though the first cost of errors might seem clear, the ongoing effects often cause deeper, longer-lasting problems. These hidden costs can mess up work, lower trust, and hurt business results in ways that are tough to count but can't be overlooked.

Losing Customer Trust and Harming Reputation

Data breaks really harm how much customers trust a business. A notable 47% of security leaders in the UK see harm to reputation as a big worry, with recovery taking years[6]. Even more worrying, 43% of firms noted a loss of current customers after cyberattacks[7]. This shows a clear connection between security fails and losing customers.

Look at when storage setups go wrong: this has led to the leak of millions of records before, starting a wave of distrust and more checks from regulators. Such breaks not only cause pain in the short run - they leave a long-lasting mark on a company’s name. Customers become scared to share personal info, which adds to the harm to the name and increases the need to follow rules.

More Costs for Following Rules and Managing Business

After a security problem, there's often a big jump in the cost to follow rules. With GDPR, fines can be up to 4% of global revenue for breaking the rules[3], pushing businesses to spend a lot on security checks and better controls to avoid future fines.

For example, when Toyota had a setup error that exposed lots of personal records, it led to official checks, needed audits, and expensive changes to how they manage things[9]. Plus, over 70% of businesses don't have tools to check costs in the moment[8], making it hard to handle the growing costs that come after such events. These rising costs not only hit budgets hard but also pull needed resources, making work even harder.

Less Productivity in the Team

Setup mistakes also hit productivity hard. They cause 45% of security problems, often pulling engineers from making new things to fix issues[8]. This fix-first way is made worse by not seeing things clearly - 67% of firms find it hard to watch their cloud setup well[10]. So, teams often end up taking a lot of time checking manually, which slows down work and leads to burnout.

By implementing dynamic defences like microsegmentation, organisations can significantly improve their threat response capabilities and recover from incidents without jeopardising their resources, reputation, and trust. - Trevor Dearing, Director of Critical Infrastructure at Illumio[6]

This loop of hidden costs makes for a hard cycle: rather than aiming for big growth, groups keep using their means to fix errors from bad setups. What's the outcome? Companies stay open to new issues, caught in a cycle that blocks them from moving forward and coming up with new ideas.

Why Cloud Misconfigurations Happen

Cloud errors are a big issue for UK firms, causing money loss and work stop and they should worry here more. A data group says almost all failures in cloud spots will be from human slips by 2025[2][1], and most security breaks are due to errors[17]. Now, let’s look at why wrong steps, not seeing all, and not allowed use make these weak spots.

Wrong Steps in Tricky Spots

Today's cloud setups are packed with many parts and endless setup levels. This makes it easy to mess up, even for smart IT folks. 45% of groups see 1 to 50 wrong cloud setups every day[12], showing just how big the problem is.

The give-and-take duty model between cloud firms and users often mixes people up. IT teams think safety steps are done by the firm and miss out on key setups like who gets in, saving set-ups, and checks. In 2018, FedEx did not lock an AWS save spot and let out key private files like passports and customer info[14]. This shows how one small overlook can expose lots of private info.

Too much freedom on cloud IDs is another key fault. 99% of cloud IDs have too much power[13]. Groups give too much reach when setting up or testing, but forget to pull it back when all goes live. Not following the least need for access leaves big open holes. Also, weak check stuff makes it tough to find and fix these wrong setups.

Not Seeing Well and Weak Tools

Many groups can't keep an eye on their cloud setups. 67% say they don’t see well[10], and it's tough to catch and fix errors early. Without good checks, IT teams end up solving issues rather than stopping them.

Old tools made for systems in a building do not work well with quick, changing cloud needs. As tech expert Mike Small points out:

Cloud services are dynamic and a traditional static approach to security is not effective[16].

Old ways make things worse. These old methods are slow and full of mistakes, increasing the chance of security problems. 82% of companies have had security issues because of wrong cloud setups[10], often because they rely on manual checks over automated ones.

The lack of clear view and automation doesn't just bring more risk - it also uses up resources. IT teams spend a lot of time fixing issues and doing manual checks, which leaves little time for new ideas and growth. This cycle of reacting makes it hard to stay on top of possible dangers.

Shadow IT and Not Allowed Use

Shadow IT, or the use of not allowed apps and tools, also leads to wrong cloud setups. 80% of workers use shadow apps[19], often without their IT department knowing. This makes it hard to see and manage security and setups.

The problem is big. 53% of CIOs and IT Directors say they don't know how many apps run in their company[18]. More worrying, one-third of all cyber attacks use weaknesses in shadow IT[18], and 30% of company tools are outside official tool systems[19].

Workers often use shadow IT because they are tired of waiting or limits, but these tools often miss key security parts. Poor entry controls, no two-step check, and unsafe data sharing are some of the risks. Shadow IT tools also often link to other systems through unsafe ways, putting the wider company systems at risk. Without good checks, these bad setups can go unnoticed for a long time, making the risk even bigger.

IBM says shadow IT is:

Any software, hardware or IT resource used on an enterprise network without the IT department's approval and often without IT's knowledge or oversight[18].

In the UK, firms face a tough task. They need to find a middle way between keeping things safe and staying productive. Fully stopping shadow IT can annoy workers and cut down on work speed. Yet, letting it run free is too risky. The main thing is to fix basic issues like slow IT help while keeping strong security in place.

How to Stop Mistakes with Cloud Security Fixing Tools (CSPM)

Mistakes are a big cause for cloud security issues, blamed for more than 90% of problems [11]. By 2025, human error may lead to almost all cloud failures [22]. For UK companies, using automatic cloud security fixing tools (CSPM) is very important to find, tackle, and stop these mistakes before they turn into big, costly issues.

Next, we will look at how CSPM tools work, why they save you money, and smart ways to make them part of your work.

How CSPM Tools Work

CSPM tools help check and keep cloud places safe all the time. Unlike old security checks that happen now and then, CSPM tools link to cloud service info, showing what's happening right now with all your stuff.

These tools set standard ways things should be in the cloud and check them with set security rules. Through info from the cloud, CSPM tools give details about what you have in the cloud, how it's set up, check logs, how things connect, and events in the cloud [15]. This way doesn’t need extra software on servers, making everything simpler.

CSPM systems come with ready-to-use safety rules based on known sets like CIS, NIST, and ISO 27001. They look for usual weak spots, such as too open access, not locked safe places, or turned off logs. Better CSPM tools not only find but also fix issues like wrong account rules [20].

A key thing about CSPM is how smart it acts on threats. It doesn't just throw a lot of warnings at the security team. Instead, it sorts issues by how bad they are, how likely they can happen, and how badly they could hit the business. This smart sorting cuts down the time to react and makes things more smooth.

Money Wins from CSPM

Picking CSPM makes more sense money-wise when you see how much it costs versus how much a security problem could cost. IBM's 2023 study shows a problem costs over $4.45 million USD (about £3.5 million) [22]. CloudTech Insights in the same year said the right use of CSPM cut security issues by 40% [24]. This means saving money with fewer fixes, less stopped work, and smaller fines.

CSPM also finds and removes stuff you don’t need, like left or too much supplied items, which helps see costs better and cuts waste [21]. Plus, these tools sort out false alarms and give steps to fix real problems, making the work of Security Operations Centres (SOCs) more about what really needs attention [22]. As Matt Bellingeri, the main security guy at CoreWeave, said:

CrowdStrike saves us hundreds of hours a year in unnecessary triage. For a lot of alerts, CrowdStrike kills the process before we can even get to our keyboards. [22]

In the UK, when groups work under tough rules, CSPM automates tests based on standards such as SOC 2, HIPAA, and CIS. This makes following rules easier, cuts down on the need for hands-on checks, and keeps up with laws [21].

Not just saving money, using CSPM with wider business and safety plans boosts total cloud safety.

Bringing CSPM into UK Business Plans

For CSPM to work well, safety checks must be part of the creation and set-up steps. Gartner thinks that by 2026, six in ten firms will see cloud setup errors as a top safety worry [23], so starting early helps.

Mixing CSPM with DevSecOps steps lets safety checks and fixes happen right in the set-up flow [25]. This shift-left method spots and fixes setup errors before they go live, cutting the risk of leaks.

In the UK, where sticking to local laws is key, CSPM keeps cloud setups in line with these rules. CSPM tools auto-tweak setups to fit legal needs, stopping rule-breaking changes. Also, mixing CSPM with SIEM systems links tracking and offers deep looks into setup mistakes and rule breaks [22].

The start step should map all cloud services, even ones not approved or shadow IT [26]. This check often finds new services, letting teams slowly use auto rules and steps for fixes.

Teaching is vital for CSPD use. Safety teams must know how the tools work, and developers need clear instructions on how to handle safety results. Often checking and updating CSPM rules keeps them strong as business needs and threats change. Gartner says well-set and kept CSPM can cut cloud safety issues from setup errors by up to 80% [27].

Fighting Mistakes in Cloud Configurations

Key Points

Mistakes in cloud setups are a big risk that can cost UK companies a lot. Gartner says by 2025, 99% of cloud issues will come from mistakes we can avoid. This matches with Verizon's 2023 Report on Data Breaches, which shows mistakes as a top reason for these breaches.

The money at risk is huge. Configuration errors can eat up to 9% of yearly income, and an average breach costs about $4.45 million. UK companies also deal with high GDPR costs, adding to the stress.

The good news? We can dodge these risks with good planning and tools. Techniques to manage cloud security settings are working well, lowering the number of safety incidents a lot.

Companies are now paying more attention. Gartner thinks by 2026, 60% of companies will focus more on avoiding these mistakes, up from 25% in 2021. This swap shows companies are starting to take cloud safety seriously.

This need to act on cloud safety fast is something Hokstad Consulting is ready to help with.

How Hokstad Consulting Can Assist

With big risks and costs tied to these mistakes, getting the right help is key. Hokstad Consulting gives custom help that tackles both safety risks and extra costs from errors.

We start with a deep review of cloud costs and plan making, finding where mistakes lead to bigger costs or safety risks. We’ve cut cloud costs by 30–50% for firms, while also boosting their safety.

To stop issues early, we put safety tools right into your DevOps processes. Through custom changes and automation, we make sure safety checks are part of your work. For example, our auto CI/CD setups have safety checks that find mistakes early in the making stage.

We also give steady checks and tune-ups. This includes regular safety and performance reviews to keep your setup safe and working well as your company grows.

We also offer a No Savings, No Fee deal for cost cutting. You only pay if we make real improvements, making sure every step we suggest is worth it by increasing safety and lowering costs.

Hokstad Consulting changes configuration mistakes from a big risk to a clear benefit with expert cloud changes, DevOps blending, and constant checks. With us, your cloud setup becomes a safe, cost-effective base for growth.

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