Time To Move Away from Big Data: Why Private Cloud and On-prem Solutions are More Secure for Your Data than Public CSPs

Big Data has been a significant buzzword in the tech industry for the past few years. Recent headlines about high-profile data breaches have many organizations scrambling to re-evaluate their information security strategy. Organizations are facing a push from Government regulations to prove their systems are secure. And now, it is time to move away from Big Data and toward private cloud and on-prem solutions that are more secure for data.

Perhaps the era of Big Data is coming to an end. That is not to say that data is not still necessary, but how people collect, store, and use it is changing. The rise of cloud computing, 5G, the Internet of Things (IoT), and the number of connected devices has

created a need for more real-time and contextual data. This scenario has led to a shift of data from traditional data warehouses to newer, more distributed data architectures (Ross et al., 2013). Simultaneously, concerns about data privacy and security have reached a fever pitch. It has led many organizations to re-evaluate their data storage and processing strategies. One solution that is gaining popularity is private cloud and on-premise solutions, ultimately because they are more secure for your data than public CSPs (cloud service providers). 

"There are two categories of clouds for a growing business, private and public cloud. The public cloud is run by the cloud service provider that rent their space for their customers, usually small businesses that only pay as they are using the services. At the same time, private cloud is usually used by a big enterprise to have their own control in the term of management and customization" (Netpluz, 2019). Organizations that are in the defense contracting business are being forced to prove compliance with Certification; one example is the Cybersecurity Maturity Model Certification, which is needed to work with CUI (Controlled Unclassified Information or ITAR (International Traffic in Arms Regulations) data.

Big Data is collecting metadata from organizations' daily internet interactions and lifestyles; with the popularity of Big Data, organizations and businesses are increasingly tracking and monitoring internet users and the clients using their services. They do this by collecting metadata, which is data about data. Metadata can include information such as the time and date of an internet user's activity, the type of activity, the user's location, etc.

They use this information to create profiles of internet users or organizations for marketing or other purposes. Businesses and government agencies collect metadata to understand better how people use the internet and their internet habits. This data is then used for targeted ads, improving marketing, and other purposes. It can be handy for businesses and organizations who want to understand people's interests and how they use the internet. Big Data collection is tied to the increasing costs of public Clouds like AWS (Amazon Web Services). "The total cost of public cloud is rising because of the additional services or functions, data feeds, and costs that the three hyper-scale cloud providers assess on the estates that reside on their platforms. This is partly because they offer valuable new services that they charge for, which in some cases are used or not by the customer. They also now charge for throughput rates on data" (Bendor-Samuel, 2021).

The metadata collection has raised concerns among privacy advocates, who argue that organizations can use it to infringe on users' privacy rights or, on a larger scale, collect data on an organization. What do the statistics say? Here are some alarming statistics from some of the authentic sources that prove why organizations are moving back to private cloud and on-prem solutions. Look at the graph below as per an article published in Forbes.com according to an IDC survey. You will be surprised to know that data will be increasingly stored in the public cloud by 2025, but a large part of data still remains within enterprise boundaries, i.e., on-premise or private cloud (Gartner, 2021).

                                                                                        Photo By (Coughlin, 2018)

Right now, there is almost an equal amount of data stored on the cloud compared to Enterprise on-prem environments. As organizations are forced to comply with more regulations and are mandated to implement more technical controls to be within compliance, the cost of on-prem infrastructure versus FedRAMP (Federal Risk and Authorization Management Program) compliant cloud platforms are in close competition. Including the technical skills needed for secure cloud architecture and the flexibility of on-prem solutions, organizations are moving back to on-prem.

So, who benefits from Big Data? Big Data has become increasingly important for digital giants like Google, Facebook, and Amazon. Through the collection and the analyzing of large amounts of data, establishments can gain valuable insights into their customers and operations (Kobielus, 2018). The process allows them to improve their products and services and target their marketing efforts better. Big Data finds tremendous use in improving customer service. For instance, Amazon uses Big Data to recommend products to consumers based on their earlier purchases and search history. Facebook uses Big Data to show users relevant ads and content. Google uses Big Data to improve search results and provide more personalized services. A significant share of the success of these organizations is attributable to the fact that they have the necessary infrastructure to collect and store large amounts of data.

However, the more significant questions remain, do these companies only do what they say they do with your data? Often big companies will ask for your consent and collect your personally identifiable information (PII) or protected health information (PHI), companies ask for permission because there are multiple global and local regulations around data security and privacy. For example, California Consumer Privacy Act (CCPA) and General Data Protection Regulation (GDPR) are some regulations controlling how organizations manage their customer or employee data (Bonta, 2022). As an organization needs to meet compliance with CCPA or GDPR, it can be a time-consuming and financial challenge. The data must be collected and "processed lawfully, fairly, and in a transparent manner in relation to the data subject" (Intersoft Consulting, 2022). 

Many organizations are deciding to go with Cloud based architecture, trusting third party clouds like Amazon and Microsoft with their data and their customers data (Newman, 2021). As a result, if the Cloud provider faces a data breach, it can lead to malicious actors misusing your organization's additional confidential and sensitive data for their nefarious purposes. Once you have accepted the Clouds terms and conditions, as an organization, you do not have complete control over the privacy and security of your data, which may include sensitive information in most cases. And as an organization, you may be liable for regulatory fines, reputational damage, financial losses, or lawsuits if the customer, client, or employee data is compromised. You may face penalties if you have collected more than the needed data, missed on consent part, or did not follow the data lifecycle per enterprise standards or local or global data privacy regulations.

The move away from Big Data and the benefits of keeping data within enterprise boundaries is prevalent. Companies that are currently making a decision to either migrate to the cloud or stay on-prem face a difficult decision, and key decision-makers need to consider the difficulties of migrating back from the cloud to on-prem. "While most organizations prefer to move their systems and data to a private, public, or hybrid IT solution, there is a growing trend to move back to on-premises solutions due to cost, performance, and security considerations. Migration can be complicated by technical and workflow issues like compatibility and business continuity, so you need to have an effective strategy in place" (Cloudian, n.d).

While Big Data can be a powerful tool for organizations, big establishments often misuse it. This misuse can take many forms but usually includes using Big Data to make a decision that may not be in the customers' best interest. Additionally, large brands may use Big Data to track and target customers intrusively and non-transparently. Consequently, many customers are now opting out of Big Data collection. They are moving away from establishments that misuse Big Data, as evident from the information below.

With Big Data, security and privacy concerns are paramount. A private cloud allows organizations to control who has access to their data and how someone will use it. Additionally, the private cloud provides the most flexibility in configuring and managing data. Organizations can choose exactly how their data is stored, processed, and analyzed. This factor is essential for Big Data because organizations must quickly and easily access relevant data to make decisions. Another reason the private cloud is best for Big Data is that it can be scaled to meet the organization's needs.

Organizations might migrate from the public to the private cloud for many reasons. One of the primary reasons is improved security. In a public cloud environment, security is often shared among all tenants, resulting in increased risk. In a private cloud environment, security is much more robust, and the organization can tailor it to its specific needs. Additionally, private cloud environments often have better control over access and data management, which can further improve security.

Private clouds can offer much higher performance levels than public clouds since they do not share resources with other users. They can offer much higher computing power and storage capacity levels, which can be a significant advantage for businesses requiring high performance. Additionally, you can customize private clouds to meet specific business needs, further improving performance. An organization can better tailor its infrastructure to meet specific requirements with a private cloud. An example is an organization that may want to use a private cloud to store sensitive data that it does not want to be accessible to the public or needs to be stored in a specific or compliant manner.  

Cloud repatriation, which refers to moving data and applications from a public cloud back to an organization's on-premise environment, is a growing trend. There are several reasons why reverse cloud migration is an increasing trend now (Climer & Czerniak, 2019). One reason is that organizations realize that the public cloud is not always the most cost-effective option. Public cloud providers often charge for services on a pay-as-you-go basis, which can be expensive for organizations with a lot of data to store or process (Openmetal, 2022).

Another reason is that public cloud providers may not always be able to offer the same security and privacy levels as organizations can provide for themselves. Finally, some organizations prefer more control over their data and infrastructure. There is an impending move away from third-party data on a large scale. The reason for this shift is that third-party data is becoming increasingly difficult to obtain and is also becoming less reliable. Additionally, new privacy regulations make using this type of data more difficult. As a result, organizations are starting to turn to first-party data, which is data that they collect themselves.

First-party data is more reliable because it comes directly from the source, and one can easily control it. Additionally, first-party data can be more easily segmented and targeted. However, one of the challenges with first-party data is that databasing and capturing it can be more difficult to do internally.

Private cloud and on-prem solutions have many advantages over public cloud ones that make them more secure. With a greater level of access controls, you have greater visibility and transparency into your data with a private cloud or on-prem solution. Private cloud and on-prem solutions allow you to customize and implement your own security controls at various enterprise levels, which CSPs may not allow. On-premise solutions allow you to harden and secure your servers and make sure that the data that you want to keep physically separated are on different physical machines. Private cloud and on-prem solutions do not have to follow the exact compliance and regulatory requirements as public CSPs. In fact, private cloud and on-prem give you the flexibility to address local regulations more effectively, as you have control over your resources. Besides, private cloud and on-prem solutions are faster and provide more flexibility in configuration. They offer highly adaptive information technology solutions.

There has been a growing awareness of how multinational corporations collect and use data in recent years. It has led to many people taking steps to claim back their data and achieve independence from such corporations. There are several key things that individuals can do to take back their data and achieve independence from multinationals.

One of the most critical and essential things is knowing how data is collected and used. It implies reading the terms and conditions of websites, apps, and digital solutions before using them. It helps ensure that you only share the data you want to share. It means being careful about confidential and sensitive information that one shares online. Individuals can also take steps to limit the amount of data collected.

In conclusion, as data privacy concerns continue to mount, organizations must re-evaluate their data storage and security strategies. Public cloud providers may be convenient and cost-effective, but they are not always the most secure option for storing sensitive data. Private cloud and on-premise solutions may require more upfront investment, but they offer greater data security and privacy control. As data privacy becomes increasingly important to consumers and businesses alike, it is time to move away from Big Data and public cloud providers and towards private cloud and on-premise solutions.

 References

Bendor-Samuel, P. (2021, August 10). Why is cloud migration reversing from public to on-premises private clouds? Forbes. https://www.forbes.com/sites/peterbendorsamuel/2021/08/10/why-is-cloud-migration-reversing-from-public-to-on-premises-private-clouds/?sh=224c626363cc 

Bonta, R. California Consumer Privacy Act (CCPA). State of California - Department of Justice - Office of the Attorney General website: https://oag.ca.gov/privacy/ccpa

Climer, S. & Czerniak, M. (2019, November 26). What is cloud repatriation and why are businesses doing it? A cloud report. Mindsight. https://gomindsight.com/insights/blog/what-is-cloud-repatriation-cloud-report/

Cloudian. N.d. Cloud Migration Reversed: Migrating off the cloud. https://cloudian.com/guides/hybrid-it/cloud-migration-reversed/

Coughlin, T. (2018, November 29). 175 zettabytes by 2025. Forbes. https://www.forbes.com/sites/tomcoughlin/2018/11/27/175-zettabytes-by-2025/?sh=599eb7a15459

Gartner. (2021, May 19). Gartner Says 70% of Organizations Will Shift Their Focus From Big to Small and Wide Data By 2025. https://www.gartner.com/en/newsroom/press-releases/2021-05-19-gartner-says-70-percent-of-organizations-will-shift-their-focus-from-big-to-small-and-wide-data-by-2025

Intersoft Consulting. (2022, October 23) General Data Protection Regulation (GDPR) – Official Legal Text. from General Data Protection Regulation (GDPR) website: https://gdpr-info.eu/

Kobielus, J. 2018. Five Ways to Move Your Big Data Projects Into the Cloud. Wired. https://www.wired.com/insights/2014/10/move-big-data-projects-cloud/ 

Newman, D. (2021, December 8). The Move Away From Third-Party Data Is Imminent: Are You Ready? Forbes. https://www.forbes.com/sites/danielnewman/2021/12/08/the-move-away-from-third-party-data-is-imminent-are-you-ready/?sh=7cb113052093

Netpluz. (2019, November 20). The difference between public VS private cloud.   

OpenMetal. (2022, March). Why Move from Public Cloud to Private Cloud. https://openmetal.io/resources/blog/move-from-public-cloud-to-private-cloud/

Ross, J., Beath, C., & Quaadgras, A. (2013, December). You May Not Need Big Data After All. Harvard Business Review. https://hbr.org/2013/12/you-may-not-need-big-data-after-all