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If there is one business move where the stakes are higher than ever, it’s migrating to the cloud. The process involves transferring huge volumes of sensitive and deeply personal data into third-party environments.
The operational benefits of cloud migration are tempting, but businesses need to be careful not to go overboard. In other words, there is also the temptation to exploit customer data for profit.
In a rush to innovate and stay competitive, some companies push ethical boundaries. To enter the cloud with a disciplined approach, you need to have a customer-first mindset. This article will share three tips that will help you use customer data ethically during cloud migration.
Be Transparent About Data Collection and Usage
In a survey conducted between December 2022 and January 2023, 66% of respondents said they trust a company that is transparent about data usage. 55% also stated that reducing unnecessary data collection would be a bonus.
Businesses that do not prioritize transparency may do so due to a complex interplay of factors like perceived costs and regulatory hurdles. Sadly, such reasons are sorry excuses for trading customer trust and risking reputational damage.
If matters get worse still, legal action becomes imminent. Take the example of video game companies like Activision Blizzard and Epic Games. TorHoerman Law shares that parents are suing these companies for the harm their games caused to children’s mental health.
The video game addiction lawsuit alleges that developers deliberately include addictive features like loot boxes and reward systems to keep players hooked. How can matters become this serious if not for the non-disclosure of data collection and usage?
Such companies collect massive amounts of player behavioral data, from how long they play to when they spend money. Players are often unaware that such data is being gathered. The developers then fine-tune game mechanics to maximize engagement.
Is it worth it only to land in court, where high-value cases may exceed $250,000? Your safest bet is to keep ethical lines as distinct as possible by –
- Informing users of what data is being collected and how it will be used
- Using clear language instead of complicated jargon
- Asking for explicit, informed consent before data collection
- Limiting data collection to the necessary information
- Using the data strictly for the purposes disclosed while collecting it
- Avoiding systems that exploit psychological vulnerabilities
Ensure Robust Data Security and Compliance
A prime concern associated with cloud migration is that of data security and compliance. This is a legitimate concern because the global average cost of a data breach in 2024 was $4.88 million. 40% of all breaches tend to involve data stored in multiple environments.
However, what’s interesting to note is that breached data stored in public clouds incurred the highest losses. These figures are no match for the loss of customer trust from which a business may never fully recover.
In light of such serious outcomes, you must believe that companies would naturally give top billing to data security and compliance. Unfortunately, that isn’t true for several reasons, including a lack of cloud expertise, complex compliance requirements, and misconfiguration risks.
In most cases, companies are in such a rush that they skip a step or two of security and compliance. Even the slightest negligence can cost heavily, as Toyota discovered in 2023. A misconfigured cloud environment exposed the data of over 2 million customers to unauthorized parties for nearly a decade.
The misconfiguration was likely a result of trying to cut corners on security assessments and risk management. This incident led to a massive review of the company’s cloud practices and worldwide reputational damage. In light of how serious the aftermath of negligence can be, you must maintain robust data security and compliance by –
- Understanding the shared responsibility model of cloud migration
- Conducting regular audits and risk assessments
- Encrypting data at rest and in transit
- Implementing strong access controls
- Choosing a compliance-conscious cloud provider
Respect User Control and Consent
Just like transparency, user autonomy should be central to any cloud migration strategy. We live in a world where certain businesses are willing to thrive at the expense of their customers.
The good news is that customers are increasingly aware of this. For instance, it was recently disclosed that neurotech companies collect a customer’s most sensitive data and may even sell it. Unlike personal data, there are no strict regulations yet on the collection/circulation of neural data.
The scariest part is that such data, captured directly from the human brain, may reveal emotional states and cognitive patterns. That’s strategically sensitive and something over which customers should have full control.
User control and consent are often violated during cloud migration when usage terms are changed without re-consent. This may also happen if the user was unaware of the migration or if third parties gained access due to a lack of restrictions. You can prevent all that from happening by –
- Maintaining transparent communication before cloud migration
- Requesting fresh, informed consent before moving user personal data
- Offering opt-out or data deletion options
- Updating privacy policies with complete transparency
- Using privacy-first cloud vendors
- Giving users access and portability rights
Migrating to the cloud is no less than moving an invaluable legacy overseas. Every piece of customer data you own is a fragile artifact. It cannot be treated like cargo that is traded for short-term profit.
Remember that in today’s day and age of technology, trust is the true currency. When companies anchor their practices in ethics and user respect, they stay relevant and gain a competitive edge.
