There’s no question that when hosting critical IT infrastructure, security and compliance are top priorities. Highly regulated industries, such as financial, pharmaceutical, energy, ecommerce and healthcare have to maintain daily vigilance to maintain the integrity of both.
Depending on the classification of data processed by and stored on servers, the consequences of a breach or non-compliance range from operational disruption through to large fines, or in some scenarios, the jeopardisation of safety. Even the most compliance-light organisations require stringent data security protocols capable of managing the mountains of data that are a necessary bi-product of digital transformation.
This is especially evident when myriad or high-value transactions are a part of daily operations. Businesses must suitably demonstrate necessary compliance with PCI DSS (or Payment Card Industry Data Security) and are turning to PCI DSS compliant colocation facilities to help achieve this.
Keep reading for more about PCI DSS and how colocation completes the picture.
Demonstratable Compliance and Protection
So, what exactly is PCI DSS? In short, it’s the gold standard certification for card processing compliance. PCI DSS constitutes the set of policies and procedures that protect card transactions, therefore safeguarding cardholders’ personal information. This includes cybersecurity and physical security, the latter of which many organisations struggle to implement to standard or guarantee from their third parties.
Being PCI DSS compliant means that a business can securely manage all transactions, protecting the money, identities and integrity of its customers and supply chain partners. Compliant organisations can demonstrate that their customers are not at risk of having sensitive data stolen and are thus at a competitive advantage.
Consequences of a Breach in Payment Card Compliance
Organisations are under incredible pressure to ensure that transaction security is watertight and demonstrable, or otherwise risk losing their PCI DSS marker.
The consequences of not having card security under tight lock and key are:
- Data loss or financial theft
- Card company penalties – which can rise to as high as $100,000!
- Reputational harm
- Nosedive in customer confidence leading to revenue loss
- Loss of licence or investigation
- Disruption to the supply chain or services, and subsequent liabilities
How Does Colocation Ensure PCI DSS Standards are Met?
PCI compliance for data centres is broadly split into 3 sections – process (i.e., how data is collected, stored and managed), cybersecurity (such as firewalls, antispyware) and physical security. Colocation services take care of the physical aspect of PCI DSS.
In today’s modern commercial ecosystem, organisations must mitigate digital and physical threats. Firewalls, encrypted storage and backup are requisites to a secure digital perimeter, but what about access to hardware, like servers?
Let us ask you a question: what’s stopping someone from gaining access to your onsite server and siphoning off valuable data? It only takes one determined and daring person, someone a sound understanding of IT infrastructure, and your entire data security and governance can be compromised. Similarly, could you list what you know about your hosting provider’s physical setup?
Physical security is considered the most difficult to govern – think hosting your servers on a public cloud platform where you have zero control, visibility, or proof over physical access. It’s also the costliest to implement – on-premises 24/7 CCTV, guards, biometrics and other means of protection take a significant chunk of budget.
PCI Compliant Colocation facilities have these security measures in place as standard. This goes some way to explaining why secure colocation, either standalone or as part of hybrid infrastructure, is growing in popularity amongst regulation-heavy sectors.
the Security Benefits of Implementing Colocation for PCI DSS
Colocation facilities that meet PCI DSS security standards are clearly an attractive option for organisations and businesses that are responsible for managing abundant transactions.
These facilities enable their tenants to benefit in the following ways:
1. Potentially achieve PCI DSS compliance.
Implementing physical security is a large obstacle but an essential component of achieving payment card compliance. If you’ve checked off the process and cybersecurity boxes, deploying servers from a PCI DSS compliant data centre will complete the picture, and make you eligible for PCI DSS status by proxy. All without swallowing additional cost.
2. The transfer of risk.
Secure Colocation services are responsible for maintaining their side of the PCI DSS bargain. In short, an organisation can absorb the risk of implementing and maintaining physical security obligations -a huge weight off leadership shoulders that can free up valuable cost, time and manpower resources.
3. Close the card compliance loop.
End-to-end colocation providers offer seamless, connected access to a whole host of cybersecurity solutions and consultancy services. Accessing all the necessities of PCI DSS compliance under one roof drives management efficiency and reduces visibility risks across your supply chain.
Don’t Neglect to Manage Your IT Security and Compliance!
Node4’s mid-market report found that 83% of IT leaders believe managing compliance will be more complicated in 2022. From Brexit affecting data sovereignty, to hybrid networks expanding and a BYOD resurgence as we get back on the road, it’s time to think carefully about how transactions are secured by your technology infrastructure.
To learn more about how colocation contributes to payment data security, book a fact-finding call with a consultant here. Or, click the link here to download Node4’s latest mid-market IT priorities report.