Application Hosting: The Risks of Giving System Access to Third-Parties

Application Hosting: The Risks of Giving System Access to Third-Parties

Efficiency is essential in today’s competitive business environment. This requires thorough integration of a company’s internal operations. However, many businesses achieve still greater efficiencies by integrating interactions with their supply chains. For example, it’s becoming common practice to give vendors access to inventory data. Close monitoring of your inventory gives them a heads-up on when you’ll need a resupply shipment. With careful timing, their shipment can arrive at your door when your inventory reaches its critical resupply level.

However, the benefits of allowing third-party access to your system come with a number of serious security risks. This problem blows up when granting access to multiple third parties. Relying on the honor system that your vendors and other business partners will limit their activities to accessing only the data allotted to them is inviting trouble.

You have no control over who is logging into your system. Any employee of these third parties could have access. Cyber criminals could target your vendors with spear-phishing campaigns to get their passwords for access to your system. This leaves both your sensitive data and that of your customers vulnerable to unauthorized and/or criminal access.

Another problem is these third parties could inadvertently expose your system to any malware that has infected their networks. In addition, if the networks of any of these third-parties have been hacked, then the hackers have a backdoor entrance into your system. Although you could in principle work with your vendors and business partners on improving their security, it becomes impractical when dealing with many such partners.

One solution to this dilemma is pushing out the data that your third-parties require to a web application designed for this purpose. The application would be hosted elsewhere with a third-party service that has the expertise and technology to cope with this security issue.’s application hosting can meet the challenge. To learn more about this service and our managed security services, please contact us.

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