{"id":2471,"date":"2019-10-24T10:34:43","date_gmt":"2019-10-24T14:34:43","guid":{"rendered":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/?p=2471"},"modified":"2026-03-26T12:00:31","modified_gmt":"2026-03-26T16:00:31","slug":"trading-off-security-for-cloud-benefits","status":"publish","type":"post","link":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/trading-off-security-for-cloud-benefits\/","title":{"rendered":"Trading off security for cloud benefits"},"content":{"rendered":"\n

The State of the Cloud Transition<\/strong><\/p>\n\n\n\n

Why are some manufacturers still uneasy about adopting cloud software for product innovation and engineering? The benefits are clear, as we discussed in our prior posts, The Subtle Shift to \u201cWhy not Cloud?\u201d<\/em> and Cloud Engineering Software: More than Engineering Software on the Cloud<\/em>. But the transition started out slowly. <\/p>\n\n\n\n

\"Jim
Jim Brown, Founder and President of Tech-Clarity. (Image and bio courtesy of Tech-Clarity).<\/figcaption><\/figure><\/div>\n\n\n\n

For a while, one of the most significant inhibitors to cloud\nadoption was a lack of \u201capples to apples\u201d capabilities between traditional\napplications and those available on the cloud. But that disparity is no longer\nthe issue as we discussed in our Why Not to Justify Buying Cloud Engineering\nSoftware<\/em> post. So what\u2019s leaving manufacturers hesitant about cloud\nmigration? <\/p>\n\n\n\n

For some companies we speak to, security still makes them uncomfortable starting their cloud transformation. It\u2019s an important issue and one that they must consider. Let\u2019s take a look at how companies perceive the security-cloud benefits trade-off, the reality of the situation, and what they can do to objectively evaluate risks and rewards. <\/p>\n\n\n\n

Security is a Scary Topic<\/strong><\/p>\n\n\n\n

Security is a challenging topic. No company wants to put\ntheir critical product data at risk. Stories about intellectual property theft\nand hacking are common occurrences, and manufacturers are rightly concerned. The\nthreat is real whether company data resides inside their firewall or with a web\nservices provider. There is always risk, regardless of the deployment approach.\nBut risk is something that can be managed by taking a thoughtful approach to\nit.<\/p>\n\n\n\n

Evaluating the Security \u2013 Cloud Benefits Tradeoff <\/strong><\/p>\n\n\n\n

Companies need to know how to make a logical tradeoff\nbetween the value of the cloud and the increased risk it brings. But is that\nthe question to be asking? Is the risk higher on the cloud? It depends on many\nfactors, but in most cases, it\u2019s not the appropriate question.<\/p>\n\n\n\n

It\u2019s true that the cloud is a more attractive target, particularly\nwhen data consolidated from multiple companies. Similar to a bank, it\u2019s a more\nattractive target because there is typically more to steal from one location.\nBut, like a bank, it\u2019s likely to have better protection than one person or\ncompany could provide on their own. Web services companies can afford dedicated\nresources that many companies could never attract, afford, and retain. They\nalso have specialists to cover different security disciplines, for example, encryption\nor intrusion detection. In addition, web service providers give companies someone\nto turn to in the unfortunate event something does happen. Many companies we\nspeak to consider security to be a positive feature of the cloud as opposed to\nan issue.<\/p>\n\n\n\n

Managing Risk<\/strong><\/p>\n\n\n\n

Whether or not the risk is greater or not, the cloud changes\nthe risk profile and must be managed. Fortunately, the IT community has gained\nsignificant experience in procuring and operating cloud solutions. Companies\ntoday can leverage best practices developed from experience.<\/p>\n\n\n\n

Some best practices are general, while others are more\nspecific to product IP. One common approach to protect design data is to store\nonly partial data in one place. It\u2019s not uncommon for companies to keep some\nvery special trade secrets in a separate location, or undocumented. For\nexample, they may choose to share the 3D specifications for a part but not\nshare the manufacturing techniques required to achieve the desired quality. Or,\nthey may choose to store tolerances at lower precision. <\/p>\n\n\n\n

Other security best practices work across multiple types of solutions. These include practices like using industry standards and audit procedures. In some cases, customers or industries mandate specific techniques. Our research shows that although companies are concerned about the risk, those companies that have implemented standards and audits see the security risk as less critical than those that haven\u2019t implemented them (figure). These companies don\u2019t face lower risk, necessarily, but they have chosen to mitigate the risk proactively.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

The Bottom Line on the Security \u2013 Cloud Benefits Tradeoff<\/strong><\/p>\n\n\n\n

Companies are beginning to realize that their critical\nproduct data is probably just as safe, if not safer, on the cloud due to the\nenhanced security measures afforded by shared resources. But security is an\nimportant issue, and companies should evaluate it carefully. To be more\ncomfortable making the cloud transition and take advantage of the available\nbenefits, manufacturers should:<\/p>\n\n\n\n