The Cyber Defense eMagazine November Edition for 2023

operating systems of sorts for their customers. They create a massive amount of opportunity for
developers, by reducing barriers to entry and providing access to large pools of customers. In turn,
developers enable these platforms to offer a broad array of complementary services, increase average
revenue per user (ARPU) and drive more customer retention.
The rise of digitalization
Cloud platforms and ecosystems are part of an increasingly connected globe driven by the proliferation
of technology. Many countries and governments are recognizing this and are accelerating the
digitalization of their economies as quickly as possible. This shift means more opportunities for platforms
and developers alike, especially as new markets open up. However, it also means greater demands
stemming from increased regulation, competition and cybersecurity risks.
As part of this digitalization shift, more and more business and transaction data is moving online, exposing
the data to a greater risk of cybersecurity-related issues - especially as malicious actors are getting more
sophisticated and using AI. Smaller organizations are especially vulnerable and often don’t have the
resources or expertise to invest in and maintain their own cybersecurity. Developers are recognizing this
too: a recent survey published by small business cloud-accounting platform, Xero, shows more than half
(56%) said data privacy and security are top of mind, and that 15% reported having faced cybersecurity
challenges in the 12 months prior. As cybersecurity incidents rise, it’s clear more developers are focused
on data security and protecting customer data appropriately.
Government and financial institutions are responding by introducing new regulatory and policy
requirements that help protect consumers and businesses. Additionally, platforms themselves are also
setting their own policies on key topics like responsible data use and API security standards. These
policies set the expectation of how the platforms will operate internally and externally, and by extension
any third-parties that they connect with – including developers.
For those looking to take advantage of the digitalization wave, navigating the additional cybersecurity,
regulatory and platform requirements can be burdensome - especially for those looking to scale quickly.
While cloud platforms are applying some of their own standards and policies, they also carry the distinct
advantage of scale and resources. They can not only invest in security and keep up with regulatory
changes, but can also provide additional paths to market and access to technology at a lower cost and
with greater reliability. Developers seeking to build solutions that help businesses run their operations
and handle their financial information can leverage the scalable and secure environments that platforms
provide. Regulatory standards and cybersecurity features can be developed into apps and solutions from
the ground up, providing assurance to end-users.
Building to enable building.
For some smaller developers the combination of both internal and external standards can be an extra
burden and a barrier to entry. Whether it be a platform policy decision to migrate an ecosystem from
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