Hackernoon logoUnderstanding The Importance of SOC2 Compliance for Data Centers by@narendrasahoo

Understanding The Importance of SOC2 Compliance for Data Centers

Narendra Sahoo Hacker Noon profile picture

@narendrasahooNarendra Sahoo

Narendra Sahoo (PCI QSA, PCI QPA, CISSP, CISA, and CRISC) is the Founder and Director of VISTA InfoSec.

Infrastructure & Data Security has always been the foremost requirement for Data Centers. After all, most companies rely on them and their ability to secure their business-critical data within their facility. For these reasons, SOC2 Compliance for Data Centers is essential and the most crucial requirement for the industry.

Moreover, the growing number of cyber-attacks and increased volumes of compromised data in recent years has further emphasized the need for strong data protection measures. Having said that, customers would definitely want to be assured that their sensitive information is secure, and stored in a resilient environment.

Whether businesses choose to manage their data in-house or choose to outsource to a third-party  Data Center service provider, staying compliant
with the latest industry standards is critical for business operations.

In today’s article, we explain why Data Centers need to be SOC2 Compliant. We have also explained why selecting a SOC compliant Data Center Service provider should be the core of your security strategy. Reading this article will help organizations make a more informed decision about their Data Center services.

SOC2 Compliance for Data Centers

The SOC2 Attestation Report is an essential document intended to meet the needs of a broad range of users and clients of Data Center service providers. It is an essential document that provides information and assurance on controls and security measures in place at a Service Provider. The report assures the effectiveness of controls against security, availability, and processing integrity of the systems the service organization
uses to process user’s data and the confidentiality and privacy of the
information processed in their Data Center facility.

Understanding their scope and controls is essential for users to make an informed decision on working with the Data Center service providers. It plays a crucial role in developing a long-term IT strategy that involves extensive outsourcing of services for users/customers.

Benefits of a SOC2 Audit Report

The SOC2 Audit Report plays a crucial role in providing:

  • Oversight of the organization security measures
  • Vendor Management Programs
  • Internal Corporate Governance and Risk Management processes
  • Regulatory oversight

The Importance of The SOC2 Audit for Data Centers

Businesses rely on Data Center SOC2 Audit Reports for critical business decisions concerning outsourcing services. The report helps in building a sense of trust and confidence in the service provider’s ability to operate, control, and secure environments in which their business depends. Additionally, the audit helps in ensuring compliance with the standard and other similar laws or regulations.

Developed by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants, the attestation standard provides credibility to service provider’s internal processes and security controls. SOC2 audit for Data Centers is a rigorous process that requires them to report in detail regarding their internal controls, access authorization, security practices, monitoring, and notification processes.

The standard helps enforce industry best data protection practices for meeting standard requirements and implementing relevant security controls, and procedures. The standard aims to improve the Data Center’s security measures and monitoring of critical systems and activities.  Abiding by the standard will not just ensure compliance, but also ensure the implementation of precautionary measures against breaches and fraudulent actions. Taking security measures to the next level, the standard helps set a foundation for Data Center organizations to
protect, monitor, and control activities around sensitive data. 

Why is There a Growing Trend for SOC2 Compliance Data Centers?

Entities or parties including clients, users of reports, and other stakeholders interested in the SOC2 Audit report seem more educated, and aware of the benefits of the SOC2 framework and the five Trust Services Principles. Organizations who are getting audited for SOC2 would be either want to host their servers in SOC2 Compliant Data Centers or risk having the Data Centers also included in the scope of their attestations.

This means customers utilizing Data Center services are requesting their service providers to supply SOC2 reports for proof of compliance. The growing trend among customers requesting SOC 2 reports from the Service Providers will continue pushing Data Centers to perform SOC2 Audit.

Knowing that the SOC2 framework is an excellent platform for testing and validating security controls and other critical areas within a Data Center makes it today a popular demand among customers of service providers. This has in turn spiked the trend of SOC2 Compliance for Data Centers in the industry today.

Conclusion

SOC 2 reports are one of the most critical and essential compliance
attestations that a Data Center can provide for its customers. Far more
useful than a mere checklist of different standards they comply with, the SOC2 Audit Report provides documented evidence that the Data Center has appropriate security controls in place.

Moreover, it also works as evidence of your track record of successful compliance. Although achieving compliance is expensive and challenging, yet Data Centers should consider it absolutely essential, especially if they were to go by the industry trends of an increasing number of clients requesting a SOC2 Audit and attestation document.

Narendra Sahoo Hacker Noon profile picture
by Narendra Sahoo @narendrasahoo. Narendra Sahoo (PCI QSA, PCI QPA, CISSP, CISA, and CRISC) is the Founder and Director of VISTA InfoSec.Read my stories

Tags

Join Hacker Noon

Create your free account to unlock your custom reading experience.