We believe that cloud computing services are foundational to the integration and management of the many moving parts of a threat-management program. A cloud-based model can deliver computational power to monitor and analyze all digital interactions and create a unified repository of information to generate actionable intelligence in real time. A cloud-centric solution may not be the choice of all businesses— some may opt to implement and run an on-premise threat- management solution. And there are concrete advantages to this approach. For one, organizations own on-premise solutions, and that allows them to fully customize and integrate systems to accommodate individual business needs. It can also give organizations complete control in compliance with government and industry regulations. And because data and applications are stored on servers in house, cybersecurity teams always know where data is stowed. Despite the advantages, on-premise threat management entails complex challenges and internal resource requirements. Chief among them: Businesses must hire and retain key talent with niche skills to manage large amounts of unstructured threat information and process it so that it can be leveraged effectively. An on-premise solution also requires the resources to hire and retain highly skilled cyberthreat-intelligence analysts to review data and take immediate action on that information. Finally, organizations must have an agile technology ecosystem that can scale to a large set of both internal and external threat information as needed. Whether on-premise or on the cloud, implementation of a threat- management system will be a challenge for even the most highly resourced organizations. But those that tackle this initiative will be better prepared to proactively monitor for threats, identify compromises, quickly respond to incidents and share threat intelligence. Ultimately, these capabilities will help build competitive advantages by protecting customer data, business assets and brand reputation. 4 Key findings from The Global State of Information Security® Survey 2017 © 2016 PwC