Industry executives and experts share their predictions for 2024.  Read them in this 16th annual VMblog.com series exclusive.

Data compliance is here to stay; turn it into a business advantage

By Sylvain Kalache, Co-founder of Data Defenders Forum

GDPR was the initial force driving enhanced data protection standards, officially taking effect five years ago. Since then, there has been a substantial evolution in global perspectives on data governance, with the majority of countries around the world implementing various forms of data legislation.

Despite some companies opting to overlook this topic, the significance of data security and compliance is steadily rising and even holds the potential to be turned into a valuable business advantage. In this article, I dig into four trends that will shape the landscape of data security and compliance in 2024.

Data compliance is not going away

Data compliance is not going away and will increasingly become an important topic.

An illustration of this is that 84% of users in the US choose to opt out of app tracking. This opt-out rate underscores a clear preference among consumers to limit the collection and utilization of their data, emphasizing the need for organizations to prioritize data protection.

But the push for more data protection isn't only coming from users. Governments worldwide are increasingly pushing for more data privacy rights as well. As of today, approximately 71% of countries have some sort of legislation in this domain. This surge in regulatory measures is not only to protect individuals but also national interests. Countries are starting to understand that their citizen data has much value, especially with the rise of AI, and that they need to increase their control of it.

The rise of Private SaaS

The escalating data compliance and security requirements are pushing companies to reshape their infrastructure to align with these norms. And the management of data is at the center of that. With the widespread adoption of SaaS, data resides outside a company's infrastructure, sometimes in foreign jurisdictions, and for many companies, this will no longer be possible. 

This challenge is paving the way for a transformative trend: the emergence of Private SaaS. In this paradigm, the control plane of the SaaS is managed by the vendor, but the data plane remains within the confines of the company's infrastructure. This innovative approach allows companies to continue enjoying the benefits of SaaS products while simultaneously offering the ability to safeguard and manage their data in compliance with regulatory standards. I have seen a number of SaaS businesses offering this type of offering; while they may not call it Private SaaS (yet?), the trend is emerging, and it will keep growing.

Data compliance as a business advantage

Companies will increasingly invest in data security and compliance purposes and turn it into a business advantage. By doing so, not only they will reduce the risk of data breaches and regulatory fines, safeguarding the company's reputation. But they will also attract customers who prioritize privacy or must use products with respect to specific standards. 

This shift will not only happen at the engineering level but also at the product level. Products designed with user privacy in mind will become the norm, Apple, arguably one of the most successful consumer tech companies, was among the first to lead the charge. And it is paying off.

The budget for tools will increase

As the need for data compliance rises, regulations tighten, and fines, reaching a total of $2.2 billion in 2023, surge in both quantity and magnitude, companies are anticipated to expand their budget for tools in this domain. This was reflected in the 2023 startup investment market, which remained very active for security startups while crumbling for other industries.

Companies often view staying in compliance as a challenge that slows down their ability to innovate and release products. However, several new tools have emerged to solve these challenges effectively. Shift left data security, applying security standards across a company's tools, or discovering and cataloging all your company data are now much easier things to achieve. CPOs (Chief Privacy Officers) will see their tool budget increase in 2024.

Conclusion

While data compliance might seem overwhelming, various tools are now available to easily comply. By adopting a suitable communication strategy, businesses can even turn compliance into a valuable business asset. As laws and consumer expectations are increasing, embracing data compliance becomes unavoidable.

##

ABOUT THE AUTHOR

Sylvain Kalache is an entrepreneur and software engineer. He was a senior SRE at LinkedIn before co-founding Holberton School, which trains Silicon Valley grade developers worldwide. He currently provides PR services for tech companies.