ERP Horror Story Interview January 30: Ransomware Attack Cripples Manufacturer’s On-Premise ERP System

View Our Posts

First a failed migration. Then, a cyberattack. This mid-sized manufacturing/distribution company was unable to access its data, and operations stopped. No ability to invoice, ship, or pay vendors for weeks, easily losing six figures per day.

Truly an ERP horror story.

But Western Computer was able to rescue this company. Not only to restore operations on a secure Microsoft Dynamics 365 Cloud ERP system but also to recover their data.

Why should you care? If you work with your company’s ERP system, you can learn from their experience and know what mistakes to avoid so that your ERP implementation never becomes a horror story.

Join this interview to get answers to questions like these.

  • Are on-premises ERP systems more vulnerable to attack?
  • How can data be recovered and operations restored after a cyberattack?
  • What factors can stall an ERP deployment?
  • How could an ERP implementation that was taking two years get done in two months?
  • What key skills do you need to look for in a Microsoft Dynamics 365 partner to improve your ERP project results?

Watch On-Demand Now

Are On-Premises ERP Systems More Vulnerable to Cyberattacks than Cloud ERP Systems?

The vulnerability of on-premises ERP (Enterprise Resource Planning) systems compared to cloud ERP systems is influenced by various factors, and it's important to note that the security posture of any system depends on how well it is implemented and maintained. However, there are some general reasons why on-premises ERP systems might be considered more vulnerable to cyberattacks than their cloud counterparts:

Limited Resources for Security Maintenance:

On-premises ERP systems require organizations to manage and maintain their own infrastructure, including servers, networking equipment, and security measures. Organizations with limited resources may struggle to keep up with regular security updates and patches, making their systems more susceptible to known vulnerabilities.

Delay in Patching and Updates:

Applying security patches and updates is crucial for protecting systems from newly discovered vulnerabilities. In on-premises systems, organizations might experience delays in implementing these updates due to the need for extensive testing and coordination. Cloud ERP systems, on the other hand, often benefit from automated and more frequent updates managed by the cloud service provider.

Expertise and Skill Gaps:

Managing the security of an on-premises ERP system requires a certain level of expertise in networking, server administration, and cybersecurity. Small to mid-sized businesses may lack the necessary resources or expertise, making their on-premises systems more susceptible to misconfigurations and security oversights.

Physical Security Risks:

On-premises ERP systems are hosted within an organization's physical premises, which introduces additional risks related to physical security. Unauthorized access to data centers or server rooms could compromise the entire system. Cloud providers typically invest heavily in physical security measures, such as biometric access controls and surveillance, reducing these risks.

Scalability and Elasticity:

Cloud ERP systems often provide better scalability and elasticity, allowing organizations to adjust resources based on demand. This can enhance security by ensuring that the system is appropriately sized to handle fluctuations in workload, and it allows for rapid deployment of additional security measures during times of increased threat.

Centralized Security Management:

Cloud ERP systems benefit from centralized security management provided by the cloud service provider. This includes features like identity and access management, encryption, and monitoring. Centralized management can be more challenging to achieve and maintain for on-premises systems.

It's essential to recognize that both on-premises and cloud ERP systems can be secured effectively with the right measures in place. The decision to choose between on-premises and cloud ERP often involves a careful consideration of an organization's specific needs, resources, and security capabilities.

According to one security firm, “Ransomware attacks have risen by 13% in the last five years, with an average cost of $1.85 million per incident. By 2031, statistics predict a ransomware attack every two seconds and there were around 236.7 million ransomware attacks globally in the first half of 2022.”

If you are using, or thinking of using Microsoft Dynamics 365 and want to know more about how to protect your ERP system, register to watch the next “ERP Horror Stories” interview.

Watch On-Demand Now

By ERP Software Blog Writers,

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Show Buttons
Hide Buttons