EDITION CLOUD REPORT HEALTHCARE AND LIFE SCIENCES LEAD IN FINDING AND PREVENTING SENSITIVE DATA LOSS

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1 Fall 205 WORLDWIDE EDITION CLOUD REPORT HEALTHCARE AND LIFE SCIENCES LEAD IN FINDING AND PREVENTING SENSITIVE DATA LOSS

2 Report Highlights Healthcare and life sciences enterprises account for 76.2 percent of DLP policy violations for both content en route to or at rest in cloud apps. Within this industry group, 2. percent of files in sanctioned apps constitute a DLP policy violation. Protected health information (PHI) is the most common DLP policy violation type, accounting for 68.5 percent of all such violations. Personally-identifiable information (PII) accounts for 3.7 percent. Technology and IT services have the highest cloud app consumption, with an average of,57 apps per enterprise. Overall, the average number of cloud apps per enterprise has increased from 75 in our last report, to percent of these apps are not enterpriseready, lacking in the areas of security, audit and certification, service-level agreement, legal, privacy, financial viability, and vulnerability remediation. Data-exposing activities such as share and download are alive and well in Cloud Storage apps and beyond, with download as the fourth most common activity in HR apps and share as the top activity in Business Intelligence apps. JOHN SMITH PATIENT NO

3 EXECUTIVE SUMMARY In this Netskope Cloud Report, we ve compiled the most interesting trends on cloud app adoption and usage based on aggregated, anonymized data from the Netskope Active Platform. Report findings are based on usage seen across millions of users in hundreds of accounts in the global Netskope Active Platform, and represent usage trends from June through August 3, 205. For the first time, this report breaks down trends by industry group, focusing on five key groupings with similar usage characteristics. They are: Healthcare and life sciences; Financial services, banking, and insurance; Retail, restaurants, and hospitality; Manufacturing; and Technology and IT services A key area of focus for this report is Data Loss Prevention (DLP) in the cloud. Healthcare and life sciences enterprises have the highest number of DLP policy violations in content at rest in sanctioned apps, with 2. percent of files scanned matching at least one DLP profile, such as personally-identifiable information (PII), payment card industry information (PCI), protected health information (PHI), source code, profanity, and confidential or top secret information. The second highest is Technology and IT services, with 4.2 percent. Healthcare and life sciences enterprises account for the vast majority of total DLP policy violations (for both content at rest and en route to and from cloud apps), at 76.2 percent of the total. Not surprisingly, when we drill deeper into violation type, PHI makes up the bulk of such violations in cloud apps, at 68.5 percent. That is followed by PII, at 3.7 percent. We saw the average number of cloud apps per enterprise climb from 75 in the last report to percent of those apps are not enterpriseready, lacking in the areas of security, audit and certification, service-level agreement, legal, privacy, financial viability, and vulnerability remediation that enterprises require for safe enablement. Technology and IT services saw the highest number of cloud apps, with an average of,57 apps per enterprise. Healthcare and life sciences is a close second, with an average of,07. The top five cloud app activities include send, post, login, download, and view. Activities associated with data leakage or exposure, such as share and download, are alive and well in key app categories such as Cloud Storage, HR, and Business Intelligence. In Cloud Storage, for every login, there are four shares. Within HR, download is the fourth most common activity. And within Business Intelligence, share an activity many don t expect even to be available in this category is the top activity. Finally, the top activities that constituted a policy violation in the Netskope Active Platform were download, upload, post, view, and login. We were encouraged to see login in the number five spot (versus at the top). To us, this means that IT is getting more granular and addressing risky behavior rather than blocking apps. 3

4 HEALTHCARE AND LIFE SCIENCES ACCOUNTS FOR THREE-QUARTERS OF DLP POLICY VIOLATIONS In this report, we drill down into Data Loss Prevention (DLP) policy violations in the cloud. In the Netskope Active Platform, we identify such violations by discovering sensitive content at rest in sanctioned cloud apps and en route to or from a variety of sanctioned and unsanctioned ones. Enterprises discover cloud content against predefined and custom DLP profiles such as personally-identifiable information (PII), payment card industry information (PCI), protected health information (PHI), source code, profanity, and confidential or top secret information. Healthcare and life sciences enterprises have the highest number of DLP policy violations in content at rest in sanctioned apps, with 2. percent of files scanned matching at least one DLP profile, such as PII, PCI, PHI, source code, profanity, and confidential or top secret information. The second highest is technology and IT services, with 4.2 percent. Overall, 9.4 percent of all scanned files in sanctioned apps have triggered a DLP policy violation, down from 7.9 percent in last season s report. Anecdotally, organizations are becoming more proactive about both detecting and protecting sensitive data in the cloud using a combination of e-discovery, encryption, and quarantine workflows, so this dip in violations is expected. Healthcare and life sciences enterprises (accounting for 27.6 percent of the user base in the Netskope Active Platform) account for the vast majority Percent of DLP violations in content at rest in sanctioned apps, by industry group Healthcare & Life Sciences Technology & IT Services Financial Services, Banking, & Insurance Retail, Manufacturing Restaurants, & Hospitality 4

5 of total DLP policy violations (for content that s both at rest and en route to and from cloud apps), at 76.2 percent of the total. That s a high number, considering this industry group only makes up 27.6 percent of the user base in the Netskope Active Platform. Retail, restaurants, and hospitality enterprises (accounting for 6.5 percent of users) are next in the DLP policy violation line-up, accounting for 6.7 percent of all violations. Not surprisingly, when we drill deeper into violation type, PHI makes up the bulk of such violations in cloud apps across our population, at 68.5 percent. That is followed by PII, at 3.7 percent. include Collaboration, Customer Relationship Management and Salesforce Automation (CRM and SFA), Social, Electronic Signatures, and Business Intelligence. The most common activity associated with such violations is download, followed by upload, send, and post. We believe that, as enterprises get their arms around the first-order concern about unmanaged file sharing in the cloud, they will begin to turn their attention more to detecting and protecting sensitive data in line-of-business apps like Human Resources (HR), Finance/Accounting, and more. In what app categories do cloud DLP violations occur? 94.2 percent of such violations occur in Cloud Storage, with an additional 4.6 percent occurring in Webmail. Other categories PHI 68.5% PII 3.7% PCI 7.5% Confidential, top secret, or other regular expression 5.9% Source Code 4.4% 5

6 TECHNOLOGY AND IT SERVICES LEAD IN CLOUD APPS PER ENTERPRISE The average number of cloud apps per enterprise rose from 75 in the last report to 755 in this season s report. Because the majority of enterprises on the Netskope Active Platform have deployed the solution in-line, this figure is more reflective of true enterprise user cloud app activity. This is different from reports based entirely on firewall or proxy log data, in which app counts are over-reported because they detect advertising platforms and other services activated when users visit websites, view videos, or download content. 9.2 percent of the cloud apps that remain in use are not enterprise-ready, lacking in the areas of security, audit and certification, service-level agreement, legal, privacy, financial viability, and vulnerability remediation that enterprises require for safe enablement. Technology and IT services saw the highest number of cloud apps, with an average of,57 apps per enterprise. Healthcare and life sciences came in a close second, with an average of,07. In addition to the consumer and prosumer apps that organizations expect to find in use such as Twitter and Evernote line-of-business apps are actually the most prevalent. Marketing remains the most prevalent app category, followed by Collaboration, Finance/Accounting, HR, and Productivity. Below are the top 0 categories in terms of number of apps per enterprise. The vast majority of these apps are not enterpriseready, with 9.2 percent scoring a medium or below in Netskope Cloud Confidence Index (CCI), an objective measure of cloud apps security, audit and certification, service-level agreement, legal, privacy, financial viability, and vulnerability remediation attributes that has been adapted from the Cloud Security Alliance ,57, CLOUD APP CATEGORY Marketing Collaboration Finance / Accounting Human Resources AVERAGE APPS per ENTERPRISE % that are not ENTERPRISE-READY 97.% 86.0% 94.2% 97.2% 600 Productivity % Technology & IT Services Healthcare & Life Sciences Retail, Restaurants, & Hospitality Financial Services, Banking, & Insurance 48 Manufacturing Cloud Storage CRM and SFA Infrastructure Software Development IT / Application Management % 90.% 88.2% 92.7% 83.3% The Netskope Cloud Confidence Index is a database of thousands of cloud apps that are evaluated on 40+ objective enterprise-readiness criteria adapted from the Cloud Security Alliance, including security, audit and certification, service-level agreement, legal, privacy, financial viability, and vulnerability remediation. The results of the evaluation are normalized to a 0 00 score and mapped to five levels ranging from poor to excellent. 6

7 TOP USED CLOUD APPS What are the top-used cloud apps? As in past reports, Cloud Storage and Social apps dominate the top 20. Other categories represented in the top 20 include Webmail, Productivity, Collaboration, CRM and SFA, and Finance/Accounting. We define usage as number of distinct app sessions. 2 2 A session is a distinct time period in which a user logs into an app, performs a series of activities, and then ceases to work in the app for a period of time. Existing usage metrics (e.g., HTTP sessions) are often inaccurate because users don t always log out following active usage. Netskope has developed a proprietary heuristic to measure a more accurate period of activity, which we define as a session. Usage is defined as number of discrete sessions. 7

8 TOP CLOUD ACTIVITIES IN THE NETSKOPE ACTIVE PLATFORM The top 0 activities in the Netskope Active Platform include send, post, login, download, view, share, upload, edit, create, and delete. There was no marked difference in activities across regions, so we did not separate them. Netskope normalizes these activities across apps within categories and even across categories, so whether a user shares a file from a Cloud Storage app or a report from a Business Intelligence one, each of those are recognized as a share activity. Finally, we looked at Business Intelligence apps. Many people forget that apps beyond Cloud Storage enable sharing, but in fact, 49 out of the 55 app categories we track have apps that enable sharing. Within Business Intelligence, we found that: Share is also the most common activity For every data upload, there are.6 shares There are as many downloads as there are views Looking at activities such as download or share within the context of category can reveal findings about the risks of data exposure or leakage in business-critical cloud apps. One such category is Cloud Storage, where we found that: Share is the most common activity For every login, there are 4.0 shares For every upload, there are.8 downloads Another category is HR apps. Line-of-business apps like HR are often overlooked, while organizations focus on the risk in Cloud Storage and Webmail. That said, HR apps house some of the most sensitive data in an organization, including employee PII, PHI, salary information, performance reviews, and even disciplinary actions. Within HR apps, we found that: Download is the fourth most common activity There are nearly as many downloads as uploads Share is a top-ten activity The activities are listed here from highest to lowest in occurrence, overall and for the top five categories. SEND POST LOGIN DOWNLOAD VIEW SHARE UPLOAD EDIT CREATE DELETE 8

9 TOP POLICY VIOLATIONS IN THE NETSKOPE ACTIVE PLATFORM Beyond measuring usage and activity, we also look at policy violations within cloud apps. Policies can be enforced based on a number of factors, including user, group, location, device, browser, app, instance, category, enterprise-readiness score, DLP profile, activity, and more. Through data abstraction and normalization of those factors, we re able to discern the apps, categories, and activities surrounding a violation. Policies observed include: blocking the download of personally-identifiable information from an HR app to a mobile device, to alerting when users share documents in Cloud Storage apps with someone outside of the company, to blocking unauthorized users from modifying financial fields in Finance/Accounting apps. The five cloud app categories with the highest volume of policy violations 3 include Cloud Storage, Social, Webmail, Collaboration, and CRM and SFA. The top activities that constituted a policy violation are download, upload, post, view, and login. We were encouraged to see activities other than login in the top four spots, indicating that IT is enforcing policy to mitigate risky behavior rather than blocking apps, which often has the unintended consequences of driving users to even lower-quality apps, not to mention making it harder for them to get their jobs done. Below are the top activities globally that constituted a policy violation per cloud app category, with DLP violations noted where they apply. Just as activities can vary between apps, policy violations involving those activities can vary. For example, a policy violation involving downloading from a Cloud Storage app can be the improper downloading of a non-public press release, whereas in a CRM/SFA app could signal theft of customer data by a departing employee. APP CATEGORY Cloud Storage Collaboration CRM and SFA Finance/ Accounting HR Productivity Social Software Development Webmail Download Upload Post View Login Send Share View All Indicates highest occurrence of policy-violating activity for the category Delete Edit Policy violation included in data loss prevention profile 3 Volume of policy violations is measured as number of times a defined policy or set of policies are triggered by that combination of parameters being met, e.g., a sales user on a mobile device tries to upload content that matches the PCI DLP profile. 9

10 THREE QUICK WINS FOR ENTERPRISE IT Based on this report s findings, here are some quick wins for enterprise IT to enable cloud apps while minimizing risk: THREE THREE quick wins FOR enterprise IT 2 3 Discover and secure sensitive content both at rest in and en route to your cloud apps. Focus on most common DLP violations that carry penalties and can result in negative press, including PHI, PII, and PCI. In defining cloud app policies, consider not just popular Cloud Storage, Social, and Webmail apps, but also focus on business-critical apps like HR, Finance/Accounting, and Business Intelligence. Go beyond coarse-grained allow or block decisions on cloud apps, and enforce contextual policies on risky activities such as download (e.g., to mobile), share (e.g., outside of the company), or delete (e.g., if you re not in the enterprise directory group HR Directors ). 205 Netskope, Inc. All rights reserved. Netskope is a registered trademark and Netskope Active, Netskope Discovery, Cloud Confidence Index, and SkopeSights are a trademarks of Netskope, Inc. All other trademarks are trademarks of their respective holders. 0/5 RS-95-0

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