Kiteworks recently unveiled some interesting findings from its Data Security and Compliance Buyer Behavior Survey. The study offers insight on why regulated industries are gravitating toward a Private Data Network as their solution of choice for mission-critical security and compliance challenges.
The Survey found that security is the dominant factor in vendor selection decisions. This focus on security comes at a critical time, as Google’s 2024 Zero-Day Exploitation Analysis Report found that 44 percent of zero-day vulnerabilities targeted enterprise data exchange systems, such as Managed File Transfer (MFT) platforms.
Additional findings show that organizations are increasingly prioritizing regulatory compliance capabilities when selecting vendors, with 31 percent of respondents identifying compliance as a decisive factor in their final vendor selection. This focus is driven by the need to navigate complex regulations like GDPR, HIPAA, CMMC 2.0, the EU Data Act, and the EU AI Act. The importance of compliance is further highlighted by several key findings:
- 56 percent of respondents rate security certifications as “extremely important” during the vendor discovery phase.
- More than half struggle to obtain adequate security information during vendor evaluations.
- 63 percent of respondents actively seek detailed security and compliance information before even engaging with potential vendors.
- Nearly one-quarter reject vendors over security concerns often tied to compliance failures.
Kiteworks addresses these pain points with a robust compliance framework, including FedRAMP Moderate Authorized, FedRAMP High Ready, SOC 2 Type II, ISO 27001, ISO 27017, ISO 27018, and IRAP validations, ensuring seamless adherence to global standards.
As threats continue to evolve, the need for unified compliance solutions becomes even more critical. This trend aligns with the Verizon 2025 Data Breach Investigations Report, which shows third-party breaches have doubled to 30 percent, particularly through attacks on legacy file sharing and transfer solutions.
Kiteworks’ own annual survey reinforces this concern, finding nearly 60 percent of organizations lack comprehensive governance tracking and controls for their third-party data exchanges. Meanwhile, vendor reputation and stability remain key factors, with nearly two-thirds of respondents prioritizing these attributes during the vetting process, including 30 percent indicating vendor stability as a high priority.
Integration Capabilities Enhance Value
While security and compliance form the foundation of vendor selection, the survey reveals that practical implementation concerns also heavily influence buying decisions. Seamless integration capabilities prove critical for customer satisfaction and long-term success, with 42 percent of survey respondents identifying integration capabilities as a key value driver.
The importance of this factor is further emphasized by the 39 percent of respondents who reported eliminating potential vendors from consideration specifically due to inadequate integration capabilities.
“Customers demand solutions that deliver robust security and compliance without sacrificing usability or integration capabilities,” said Tim Freestone, Chief Marketing Officer at Kiteworks. “The survey confirms what we hear directly from our customers in regulated industries—that organizations need a unified approach to private data security that addresses the full spectrum of security threats while simplifying compliance and seamlessly integrating with existing workflows. This is precisely why our Private Data Network continues to be the preferred choice for organizations that can’t afford to compromise on data protection.”