Data safety is a common concern for today’s businesses—and it should be. According to a report by Tech.co, data breaches in 2022 were prolific, forcing US businesses to pay millions in damages. Combatting such data disasters is challenging, but it is possible with the right ERP solution. Midmarket businesses must decide between on-premises and cloud-based ERP systems, each with its own security implications.

Cloud vs. On-Premises ERP Systems

On-premises ERP systems require businesses to purchase, maintain, and store hardware on-site. This setup involves substantial upfront and recurring costs, including hiring IT staff to manage upgrades and security. On-premises systems can be stressful as IT teams strive to stay ahead of sophisticated cyberattacks.

In contrast, cloud-based ERP solutions, like Acumatica, allow businesses to offload maintenance and security concerns to the vendor. These vendors maintain servers in secure data centers, provide automatic updates, upgrade hardware as needed, and protect data from the latest cyber threats. Businesses pay a subscription fee for these services, eliminating the significant initial costs associated with on-premises solutions.

Cloud ERP Security Capabilities

A cloud ERP solution ensures end-to-end data security—from authentication to data entry, transmission, and database protection. For example, cloud ERP solutions hosted on platforms like Amazon Web Services (AWS) automatically encrypt data and provide tools to comply with industry regulations such as PCI DSS, HIPAA, and GDPR.

Cloud-based solutions also continuously monitor for security threats, conduct frequent testing, and perform regular backups. If vulnerabilities occur, the ERP vendor is responsible for addressing them. This responsibility incentivizes vendors to maintain high security standards to avoid monetary losses and reputational damage.

Enhancing Data Security with Acumatica

Acumatica’s modern cloud ERP solution offers comprehensive security features that protect business data at every level. Here’s how Acumatica safeguards your data:

1. Access Security:

   • Object-level access controls enable role-based access to specific screens, inquiries, fields, and reports.
   • Federated security through Single-Sign-On (SSO) and Multi-Factor Authentication (MFA) options protects user accounts.

2. Data Security and Integrity:

   • Access permissions for user accounts, customers, and financial accounts are enforced across all screens and reports.
   • Data entered by users or through API integrations is validated through Acumatica’s business logic before acceptance.

3. Application Security:

   • Application code and verification logic are managed on Acumatica servers, with new code introduced via industry-standard procedures.
   • A NextGen Web Application security solution continuously monitors and protects against malicious attacks.

4. Transmission Security:

   • Acumatica encrypts all data connectivity via web browser and API integrations using Advanced Encryption Standard (AES) and TLS 1.2 encryption algorithms.

5. Storage Security:

   • Data stored in Acumatica databases, whether on hosted SaaS or on-premises servers, is encrypted.
   • Sensitive data is accessible only through Acumatica business logic.

6. Physical Security:

   • Acumatica servers, housed in professionally secured data centers, run all application code.

How Businesses Can Safeguard Their Own Data

While implementing a cloud ERP solution like Acumatica is a significant step towards enhanced security, businesses must also adopt best practices to safeguard their data. This includes establishing access management systems, setting appropriate user permissions, training employees on data security, and using Multi-Factor Authentication (MFA) to secure accounts.

Businesses should also regularly review the security of third-party applications and establish protocols for safely sharing information within their supply chains, as many security incidents stem from third-party vulnerabilities.

Acumatica in Action: A Case Study

Erickson International, a company transitioning from Sage 100 to Acumatica, experienced significant security and operational benefits. CFO Elena Mheidze highlighted the relief from maintenance headaches and security concerns. With Acumatica and AWS, Erickson International now enjoys automatic backups and robust security measures, ensuring data safety and operational efficiency.

Mheidze noted, “With Sage 100, we had to maintain a server, and that server had a lot of associated costs. Removing the headache to maintain the on-premises system was the number one reason we chose to go with Acumatica. Now, all I need is a solid internet connection to get to the ERP [solution] from anywhere.”

Conclusion

For midmarket businesses, choosing the right ERP system is critical for ensuring data security and operational efficiency. Acumatica’s cloud ERP solution offers robust security features that protect data from modern cyber threats, providing peace of mind for businesses.

If you want someone who knows security inside of Acumatica ERP, you need to deal with AcuPower LTD. With their expertise, you can ensure that your business's data is protected and your ERP system operates at its best.