A Composable CDP is your secret weapon for Data Security
4min • Aug 9, 2024
Nils Hasselmark
Product Manager
Imagine this. You’re running a successful marketing campaign, your customer engagement is through the roof, and your data-driven strategies are paying off. Suddenly, a data breach hits. Sensitive customer information is exposed, and you're facing millions in potential losses.
According to Secureframe, in 2023 alone, the average cost of a data breach soared to $4.45 million, and mega breaches, affecting millions of records, cost an average of $332 million. With such figures, it’s clear that data security isn’t just a technical issue; it’s a critical business concern.
This article explores why adopting a Composable Customer Data Platform such as DinMo can be your secret weapon regarding data governance, and compliance to privacy regulations, compared to traditional CDPs.
Key advantages of composable CDPs for data governance
Compared to traditional CDPs, a Composable CDP such as DinMo will not store any data on its end. Instead, it will directly process and activate your customer data from your company’s data warehouse.
💡 We are certified Google Cloud BigQuery Ready and Snowflake Technical partner, ensuring that we integrate seamlessly into their cloud environment.
Here’s why this is a significant advantage for data privacy and governance:
Enhanced Data Security
Minimized Data Movement: By processing data directly from the data warehouse, a composable CDP reduces the need to move data across different platforms. This minimizes the risk of data breaches during transit, a common vulnerability point in traditional CDP setups.
No duplication of your customer data: Unlike traditional CDPs, composable CDPs will not create a new target point for attackers to steal your customer’s data, since this data will not be duplicated outside of your data warehouse.
Centralized Control: Keeping data within your data warehouse allows for centralized security controls and policies. You maintain complete oversight of your data environment, ensuring that security measures are consistently applied.
Improved Compliance and Governance
Storage location: Several data regulations require companies to store and process their customer data in a specific area, such as Europe for GDPR. Composable CDPs such as DinMo will neither duplicate nor process your customer data outside of your data warehouse, giving you full control to comply with these regulations. You can choose where your data will be processed during your DinMo syncs.
Regulatory Compliance: Data regulations like GDPR and CCPA require control over data access and storage.
💡 Penalties for not adhering to the GDPR are severe, penalties ranging up to €20m or 4% of the previous year's sales, whichever is greater. Penalties for non-compliance with the CCPA are generally less severe, but still significant ($7,500 for each breach).
A composable CDP’s approach aligns with these requirements by avoiding redundant data copies and ensuring that all data processing adheres to the same governance rules as your primary data warehouse.You can therefore require your marketers to only use data from people who have opted in for the different categories of communication/solicitation. Anyone who opts out will automatically be removed from the DinMo segments.
Auditability: With all data operations centralized, auditing data usage and access becomes more straightforward. This transparency is crucial for compliance reporting and for demonstrating adherence to data protection laws.
Flexibility and Scalability
Modular Architecture: A composable CDP’s modularity allows you to customize the system to meet your specific needs. You can integrate components tailored to your marketing strategies without being locked into a monolithic system.
Scalable Solutions: As your business grows, so does your data. Composable CDPs can scale efficiently with your existing data warehouse infrastructure, ensuring that your data management capabilities expand in line with your needs without the overhead of migrating data across platforms.
Why DinMo will increase your data security
DinMo stands out as a leading composable CDP, offering several features that significantly enhance data security:
No data storage: DinMo was designed from day one to run inside your data infrastructure. We perform sensitive operations (validation, transformation, etc.) leveraging your own execution engine. This ensures that DinMo is “secure by design”
Security Certifications: DinMo completed security-design reviews and audit, such as the SoC 2 Type 2 certification, ensuring it adheres to the highest standards of security, availability, and confidentiality. Safeguarding our customers’ personal data is our fundamental responsibility, so we regularly audit our policies and processes to ensure compliance with high standards.
GDPR and CCPA Compliance: It is fully compliant with GDPR and CCPA, ensuring your data practices meet the data protection regulations in your location.
Data Hashing: Sensitive data being sent to destinations is hashed using standard AES-256 encryption algorithms, adding an extra layer of protection.
Access Control Management: Robust access control features allow you to manage who can access and process data, ensuring only authorized personnel have access.
Least Privilege Configuration: Users can configure which parts of the data in the data warehouse are usable by DinMo, adhering to the principle of least privilege to minimize risk.
Fixed Set of IP Addresses: DinMo communicates with your infrastructure using fixed IP addresses that you can whitelist, significantly reducing your infrastructure's exposure to external threats.
Secure User Authentication: Authenticate with DinMo using Single Sign-On (SSO), allowing users to access the platform with a single set of credentials managed by your organization’s identity provider, enhancing security and simplifying access.
By leveraging these features, DinMo not only ensures enhanced security but also streamlines compliance with data protection laws, making it an invaluable tool for marketers looking to protect their customer data while maximizing their marketing efforts.
Conclusion
In an era where data breaches are not just costly but also damaging to brand reputation, composable CDPs like DinMo offer a robust solution.
By processing data directly from your data warehouse, they enhance security, ensure compliance, provide flexibility, and drive cost efficiency. For marketers, embracing a composable CDP is a strategic move towards a more secure and efficient data management future.
If you want to learn more about our data security, feel free to reach us at hello@dinmo.com. We’ll be happy to discuss it with you.
If you are an existing customer or are considering using DinMo, feel free to reach out to us (hello@dinmo.com) to get our SOC 2 audit report!
