Prediction 2: Privacy debt is the new technical debt.
By 2020 it’s estimated that the average cost of a data breach will be over $150 million, with the global annual cost forecast to be $2.1 trillion. New laws such as GDPR and CCPA are creating the demand for enterprises to tighten their data privacy practices.
“While many tech companies were architected to collect data, they were not necessarily architected to safely store data. Today there’s not just a rift, but a chasm between where data privacy technology, processes, and regulations should be and where they are, thus creating massive amounts of “privacy debt,” wrote Partner Alex Ferrara in his Data Privacy Engineering Roadmap.
“Like technical debt, privacy debt requires reworking internal systems to adapt and build to the newest standards, which will not only make consumers happier but also make companies better.”
We’re seeing a new category of technology dedicated to helping enterprises, large and small, comply with global privacy regulations and help protect consumer data. For example, last year Bessemer invested in BigID’s Series C, a data intelligence platform that finds, analyzes, and de-risks identity data, allowing enterprises to understand where their sensitive data lives, at scale.