Insights
Cloud data security best practices: Zero trust & automation
- Date 12 Jan 2026
- Filed under Insights
In 2026, cloud data security is more critical than ever as businesses increasingly rely on cloud services for agility, cost savings, and innovation. This shift from traditional on-premises systems to cloud-native solutions, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), has transformed how businesses operate. However, it also introduces new security challenges that demand robust, proactive solutions to protect APIs, workloads, and accounts.
The evolution from “cloud lift” (migrating on-premises systems to IaaS) to “cloud shift” (leveraging PaaS and SaaS for cloud-native features) has reshaped security needs. The traditional perimeter-based defense model is no longer sufficient. Instead, the zero trust model, which assumes no network is inherently safe, has become the gold standard for cloud data security. This article examines the four primary security challenges in cloud environments. It offers practical solutions, including optimal cloud security for data protection, to help businesses—especially small businesses—secure their data in 2026.
Why cloud security matters in 2026
The rapid adoption of cloud services offers undeniable benefits, including faster implementation, reduced costs, and increased scalability. However, these advantages come with heightened risks.
For instance, the Office of the Australian Information Commissioner (OAIC) has reported 1,113 notifiable data breaches in 2024, a 25% increase from 2023; breach volumes also remained high into 2025, with over 532 notifications in the first half of the year, reflecting a sustained rise in cyber incidents that organisations must contend with.
At the same time, cyberattacks targeting cloud environments have surged globally, with a 2024 IBM report noting a 75% increase in cloud-related data breaches since 2020. For small businesses, which often lack dedicated IT security teams, implementing a cloud data security program is essential to prevent financial losses, reputational damage, and operational downtime.
The shift to cloud-native environments has also expanded the attack surface. APIs, workloads, and user accounts are now prime targets for cybercriminals. A 2025 Cloud Security Alliance report highlights that 60% of cloud security incidents stem from misconfigurations or poor account management. To address these risks, businesses must adopt comprehensive strategies that prioritise public cloud data security and align with modern security frameworks.
Four major cloud security challenges
Cloud environments face unique threats that require tailored solutions. Below are the four primary challenges businesses must address to ensure robust cloud data security in 2026:
1. Lack of architecture and strategy
Without a unified security strategy, companies risk inconsistent security levels across their cloud systems, creating vulnerabilities. A 2025 Forrester study found that 45% of organisations lack a comprehensive cloud security framework, resulting in exploitable vulnerabilities.
Solution: Develop a company-wide security strategy that aligns with business goals, risk profiles, and compliance requirements. Utilise standards from cloud providers (e.g., AWS, Azure, Google Cloud) or third-party frameworks, such as ISO 27001. Regular audits and vulnerability management are crucial for detecting and addressing deviations early.
2. Insufficient account and authentication management
Weak account management—such as dormant accounts, excessive privileges, or stolen credentials—can lead to data breaches, ransomware, or insider threats. A 2024 Verizon Data Breach Investigations Report revealed that 68% of cloud breaches involved compromised credentials.
Solution: Adopt a zero-trust approach with:
- Multi-factor authentication (MFA): Require MFA for all users and systems.
- Least privilege principle: Limit user and system access to only what is necessary.
- Device security scans: Block access from non-compliant devices.
- CIEM (Cloud Infrastructure Entitlement Management): Automatically detect and remove unused accounts or excessive permissions, enhancing public cloud data security.
3. Configuration mistakes and inadequate change management
Misconfigurations, such as exposed APIs or improper settings, are a leading cause of cloud security incidents. A 2025 Ponemon Institute study found that configuration errors were the cause of 55% of cloud breaches.
Solution: Implement continuous scanning to identify and remediate misconfigurations in real time. Tools like CSPM (Cloud Security Posture Management) can automatically validate configurations across IaaS and PaaS environments, while SSPM (SaaS Security Posture Management) focuses on SaaS applications. Encrypt data and manage encryption keys securely to minimise the impact of breaches.
4. System vulnerabilities
Unpatched systems or poorly configured APIs expose cloud environments to external attacks. With cloud systems having multiple internet touchpoints, APIs are particularly susceptible to vulnerabilities. A 2025 OWASP report noted that API-related vulnerabilities accounted for 40% of cloud security incidents.
Solution: Prioritise vulnerability management with:
- Regular patching: Apply updates promptly to address known vulnerabilities.
- API security: Track, configure, and protect APIs using tools like CWPP (Cloud Workload Protection Platform), which secures virtual machines, containers, and serverless functions.
- Automated vulnerability scans: Continuously monitor systems to identify and mitigate risks.
Building the best cloud security for data protection
To address these challenges, businesses must adopt automated, scalable solutions that enhance cloud data security without overwhelming resources. Here are the key tools and strategies for 2026:
1. CIEM for account management
CIEM solutions monitor and manage cloud entitlements, ensuring that users and systems have only the necessary permissions. By detecting dormant accounts or excessive privileges, CIEM reduces the risk of unauthorised access. For small businesses, CIEM is a cornerstone of a cloud data security program, as it automates complex tasks related to privilege management.
2. CSPM and SSPM for configuration management
CSPM tools scan IaaS and PaaS environments for misconfigurations and provide real-time remediation. SSPM extends this capability to SaaS applications, which are crucial for businesses that handle sensitive data. Both solutions support multi-cloud environments, making them ideal for securing public cloud data.
3. CWPP for workload protection
CWPP platforms protect cloud workloads, including virtual machines, containers, and serverless functions. They address misconfigurations, vulnerabilities, and malware, offering a unified approach to securing dynamic cloud environments. A 2025 IDC report predicts that 70% of enterprises will adopt CWPP solutions by 2027 to bolster cloud data security.
4. SIEM and SOAR for monitoring and response
SIEM (Security Information and Event Management) centralises log management and uses correlation analysis to detect threats across cloud environments. SOAR (Security Orchestration, Automation, and Response) automates incident response, integrating with threat intelligence to streamline operations. These tools reduce response times and human error, making them essential for small businesses with limited resources.
Tailoring a cloud data security program for small businesses
Small businesses face unique challenges due to limited budgets and expertise. A cloud data security program for small businesses should focus on:
- Cost-effective tools: Prioritise solutions like CSPM and CIEM, which offer high impact with minimal setup and configuration.
- Automation: Utilise SIEM and SOAR to minimise manual oversight and reduce operational costs.
- Training: Educate employees on basic security practices, such as strong passwords and MFA.
- Security frameworks: Use the ACSC Essential Eight maturity model as a baseline for identity controls, patching discipline and resilience.
- Compliance: Align with privacy regulations, such as the Privacy Act 1988 and the Notifiable Data Breaches (NDB) scheme in Australia, as well as the GDPR or CCPA if you serve customers in the EU or California.
A 2025 Small Business Cybersecurity Report by Cybersecurity Ventures found that 60% of small businesses suffer cyberattacks annually, underscoring the need for robust cloud data security programs tailored to their needs.
Protecting APIs in 2026
APIs are the backbone of cloud-native applications but are also a prime target for attackers. A 2025 Salt Security report found that 80% of API attacks exploit authentication weaknesses. To protect APIs:
- Implement API gateways: Use gateways to monitor and secure API traffic.
- Encrypt data in transit: Use TLS to protect data exchanged via APIs.
- Regularly audit APIs: Use CWPP tools to track and configure APIs, ensuring they meet security standards.
The future of cloud security
As cloud adoption grows, so do the risks. The best cloud security for data protection in 2026 requires a proactive, automated, and zero-trust-based approach. By addressing the four significant challenges—lack of strategy, poor account management, configuration errors, and system vulnerabilities—businesses can safeguard their data and maintain trust.
For small businesses, a tailored cloud data security program leverages tools like CIEM, CSPM, and CWPP to maximise protection with minimal resources. For enterprises, integrating SIEM and SOAR ensures rapid response and scalability. Regardless of size, every organisation must prioritise public cloud data security to thrive in an increasingly cloud-centric world.
Take Action Now: Assess Your Cloud Security Posture Today. Implement automated tools, adopt zero-trust principles, and protect your APIs, workloads, and accounts to stay ahead of cyber threats in 2026.
Note: This article is based on content originally published by NRI Secure and has been adapted for an ANZ audience.
