The Risks of an All-Cloud-Based Security System & The Case for Hybrid Approaches

Many companies are moving toward cloud-based security solutions due to convenience, scalability, integration capabilities and lower upfront costs. However, going all-in on the cloud without a local backup or hybrid approach presents serious vulnerabilities. Let’s explore the rationale, risks, and best practices for mitigating these issues.

Why Companies Choose Cloud-Based Security

Cloud-based security systems—whether for access control, surveillance, or alarms—offer:

• Remote Accessibility: Security teams can monitor and manage access from anywhere.
• Scalability: Easy to expand without extensive hardware installations.
• Reduced On-Site Infrastructure: No need for expensive local servers or storage.
• Automatic Updates & AI Enhancements: Cloud providers handle firmware updates and security patches.
• Subscription-Based Pricing: Avoid large capital expenditures in favor of manageable operational costs.

While these benefits are attractive, the over-reliance on cloud systems introduces serious points of failure that many companies fail to address.

What Happens When Cloud-Based Security Fails?

A. Internet Downtime Leads to a Total System Failure

If a security system is 100% cloud-reliant and the internet connection drops, all security functions dependent on the cloud become non-operational which means:

• Access control panels stop verifying credentials (employees may be locked out or doors fail open).
• Cameras stop recording if they are not designed with local storage (edge recording).
• Alarms and alerts may fail, leaving the premises vulnerable to break-ins or security breaches.

Even in locations with high-speed fiber internet, service providers experience outages. Events like DDoS attacks, network congestion, or even simple ISP maintenance can create critical security gaps.

B. Single Points of Failure in Cloud Servers

• If the security provider's cloud service experiences downtime or cyberattacks, all security functions relying on that cloud are compromised.
• High-profile cloud outages from Amazon AWS, Microsoft Azure, and Google Cloud have shown that even the most robust cloud services can fail.

Example: In 2021, AWS had a major outage that affected cloud-based security providers. Organizations with purely cloud-dependent access control were unable to unlock doors remotely, causing major disruptions.

C. Latency Issues in Emergency Situations

• Cloud-dependent alarms and surveillance systems introduce delays if internet connectivity is poor.
• Real-time response teams may face a lag in viewing footage or receiving alerts.
• AI-based anomaly detection systems in the cloud might take longer to process threats, reducing reaction time.

3. How Cloud-Only Security Affects Company Policies

Many organizations fail to adjust their security policies when transitioning to cloud-based systems, leading to gaps in responsibility and response.

A. No Clear Failover Plan

• Many security teams assume "the cloud never fails," which is false. If cloud-based access control fails, what is the fallback?
• Best practice: Companies should define local override procedures, such as manual key access, emergency credentials, or local authentication fallback.

B. Lack of Compliance with Certain Regulations

• Data retention laws (GDPR, HIPAA, CCPA) require secure storage of video footage.
• Cloud-based video storage policies often delete old footage after 30-90 days unless upgraded storage plans are purchased.
• Best practice: A local storage copy (hybrid NVR) ensures compliance and prevents accidental data loss.

C. Overlooked Cybersecurity Risks

• Default cloud settings may leave data vulnerable to breaches.
• Third-party cloud vendors can be hacked, exposing access logs, video footage, or security credentials.
• Best practice: Companies should ensure end-to-end encryption and require Multi-Factor Authentication (MFA) for all cloud security access.

4. Hybrid Security: The Best of Both Worlds

A hybrid approach combines cloud-based security features with on-premise redundancies to ensure continuous operation even during outages.

A. Local Backup of Critical Security Functions

• Access Control Failover: If the cloud goes down, local access panels should retain recent credential data so employees can still enter.
• Local Storage for Cameras: Cameras should have SD card slots or hybrid NVR systems that store footage even when the cloud is unavailable.
• On-Site Alarm Systems: Alarm triggers should work independently of cloud connectivity.

B. Intelligent Cloud Syncing

• Data should sync to the cloud but not rely solely on it.
• Use "edge computing" for AI-based analytics—let local servers process immediate security threats without waiting for the cloud.

C. Prioritize On-Premise Controls for Mission-Critical Systems

• Building entry, emergency exits, and intrusion alarms should never be 100% cloud-reliant.
• Use hybrid access control that stores credentials locally while syncing cloud updates periodically.

5. The Future: Edge AI & Decentralized Security

The best emerging security solutions integrate cloud-based intelligence with on-site processing.

• AI-enhanced cameras with edge computing analyze security footage locally, sending only key data to the cloud.
• Decentralized access control systems store permissions locally while syncing with cloud databases.
• Blockchain-based security records ensure access logs remain tamper-proof without needing a central cloud service.

Don't Ignore Older Tech

There is still a value of in-house old school security systems as well. Including local storage systems with battery backups that are not online not attached to any networking for true redundancy and mitigation of internal threats fortifying against overall system failure can provide information to capture internal threats and will defend against outside attacks on internet that could bring down the whole house. Depending on your company profile, security needs this could provide an option.

Final Thoughts

Over-reliance on cloud-based security without on-premise redundancies introduces severe risks to system reliability and resilience. While cloud solutions provide scalability, automation, and remote accessibility, they should not serve as the sole foundation of an organization’s security strategy.

To mitigate these risks, companies must:

1. Adopt a hybrid model – Combine cloud intelligence with local failover solutions.
2. Ensure continuous operations – Implement offline authentication and local backups for critical security functions.
3. Utilize edge AI and local storage – Reduce dependency on external servers to enhance real-time threat detection.
4. Reinforce compliance and cybersecurity policies – Ensure adherence to regulations while securing sensitive data.

Cloud security should be seen as an enabler, not a replacement, for resilient security frameworks. A balanced hybrid approach offers the best of both worlds—leveraging the power of cloud intelligence while maintaining on-site reliability to achieve long-term security stability.

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