The revised Network and Information Systems Directive (NIS2) signifies the European Union’s strengthened commitment to enhancing cybersecurity measures across the region. Scheduled to take effect in October 2024, NIS2 broadens the scope of its predecessor, the original NIS Directive from 2016. It imposes stricter requirements to elevate the overall information security and posture in Europe.

As a cornerstone of the digital economy, Software-as-a-Service (SaaS) providers must thoroughly examine the implications of NIS2 and take timely action to ensure compliance.

What is the NIS2 Directive? 

NIS2 is designed to build upon the foundation laid by the original NIS Directive. It aims to foster greater collaboration between entities and harmonize cybersecurity standards across all European Union member states. At its core, NIS2 emphasizes a risk-based approach, proactive monitoring, and corporate accountability.

The directive introduces more stringent reporting obligations, enforcement measures, and management training requirements. Non-compliance with NIS2 can result in substantial fines of up to €10 million or 2% of global turnover, whichever is higher.

These penalties underscore the importance of adhering to the directive’s mandates and prioritizing cybersecurity.

Who does NIS2 apply to?

The NIS2 Directive targets “essential” and “important” entities operating within critical sectors such as digital infrastructure, healthcare, energy, and transport. This comprehensive scope extends to many SaaS providers, even if they do not have a physical presence within the European Union, as long as they offer digital services to EU customers.

Given the nature of SaaS models, which typically involve handling sensitive data and ensuring continuous availability, these providers are significantly affected by NIS2’s risk management measures and business continuity planning provisions. As remote work trends increase reliance on cloud-based solutions, SaaS providers need to understand and address the potential implications of NIS2 implementation.

NIS2 for SaaS: its scope and impact

Due to its expanded scope and rigorous requirements, NIS2 will substantially impact SaaS providers. The Directive mandates that providers implement comprehensive risk management measures, including regular risk analysis and continuous monitoring, to detect and mitigate cyber threats. Providers must also establish robust incident response procedures to address any security incidents swiftly.

NIS2 enforces stricter reporting obligations, requiring SaaS providers to promptly notify relevant authorities and customers during a significant cyber incident. This enhances transparency, trust, and accountability within the digital ecosystem.

Additionally, NIS2 emphasizes the importance of cybersecurity training and awareness programs for management and staff. SaaS providers must invest in ongoing education to ensure their teams are prepared to handle evolving cyber threats and maintain compliance with the directive.

Why NIS2 compliance matters

Ensuring compliance with NIS2 is not just about avoiding penalties; it is a critical step toward enhancing your SaaS operations’ overall security and resilience. Here are key reasons why compliance with the European Directive is vital:

• Protects sensitive data. SaaS providers often manage large volumes of sensitive and personal data. Compliance with NIS2 helps protect this data against cyber threats, reducing the risk of data breaches and the associated financial and reputational damage.

• Maintains customer trust. Customers expect their data to be handled securely. By complying with NIS2, SaaS providers demonstrate a commitment to high standards of information security, thereby maintaining and potentially increasing customer trust and loyalty.

• Avoids financial penalties. Non-compliance with NIS2 can result in hefty fines. Ensuring compliance helps avoid significant financial penalties and their negative impact on your business.

• Enhances competitive advantage. In a market where information security is a significant concern, compliance with NIS2 can provide a competitive edge. SaaS providers prioritizing compliance can differentiate themselves by offering more secure and reliable services.

• Ensures business continuity. NIS2 mandates robust risk management measures and incident response procedures. By adhering to these requirements, SaaS providers can minimize downtime and ensure continuous service availability, which is crucial for maintaining operations and customer satisfaction.

• Strengthens corporate accountability. NIS2 emphasizes the role of senior management in cybersecurity. Compliance ensures that executives know their responsibilities and actively manage and mitigate cyber risks, leading to better governance and oversight.

• Mitigates supply chain risks. With NIS2’s focus on the supply chain, compliance ensures that all third-party services and partners adhere to high-security standards. This reduces the risk of vulnerabilities introduced through external parties.

• Aligns with global standards. As information security threats become increasingly global, aligning with the NIS2 Directive positions SaaS providers to meet international security standards, facilitating smoother operations across different regions and markets.

Compliance with NIS2 is a proactive measure that goes beyond regulatory obligations. Building a robust, secure, and trustworthy digital infrastructure that can withstand the constantly evolving cyber threats environment is essential.

By prioritizing compliance, SaaS providers safeguard their operations and contribute to enhancing cybersecurity across the European Union.

Challenges of the NIS2 Directive for SaaS providers

As SaaS providers prepare to implement NIS2, they may encounter several challenges that require careful planning and strategic action. Below there is a list of potential hurdles that providers should be aware of:

• Complex compliance requirements: Navigating the extensive and detailed requirements of NIS2 sectors can be challenging, especially for smaller SaaS providers with limited resources

• Enhanced reporting obligations: Meeting the directive’s stringent reporting requirements may require significant changes to existing processes and systems

• Increased costs: Implementing the necessary security measures and training programs can be costly, impacting the provider’s budget and resource allocation

• Risk management: Establishing effective risk management measures involves continuous monitoring, regular assessments, and timely updates to security protocols

• Corporate accountability: Ensuring that senior management is adequately trained and aware of their responsibilities under NIS2 can be demanding

• Data sovereignty & localization: Adhering to data sovereignty and localization requirements, especially for providers operating across multiple jurisdictions, adds another layer of complexity

• Supply chain vulnerabilities: Managing and securing the supply chain to ensure that all third-party services comply with NIS2 can be a daunting task

Prepare your SaaS for NIS2 compliance

To help SaaS providers navigate the complexities of NIS2 compliance, we have outlined a list of essential steps.

1. Conduct a comprehensive risk assessment

Perform a thorough risk analysis to identify potential vulnerabilities and threats within your network and information systems. Regularly update this assessment to reflect new risks and changes in the threat landscape.

2. Implement robust security measures

Ensure that your security measures align with NIS2 requirements, including Always-On VPN and Multi-Factor Authentication (MFA) for secure access, as well as dynamic firewalls and network segmentation to isolate environments and enforce least privileged access.

3. Establish incident response procedures

Develop and implement a robust incident response plan that includes procedures for detecting and responding to security incidents and clear communication protocols for notifying authorities and affected parties.

4. Invest in continuous monitoring

Utilize advanced monitoring tools such as cloud-delivered Intrusion Prevention Systems (IPS), Intrusion Detection Systems (IDS), and Web Application Firewalls (WAF) for continuous surveillance and protection.

5. Train management & staff

Provide regular cybersecurity training for management and staff to ensure their awareness of their responsibilities under NIS2 and their ability to respond effectively to cyber threats and security incidents.

6. Ensure data sovereignty & localization

Adhere to data sovereignty and localization requirements by using dedicated servers with fixed IP addresses to ensure data remains within the specified jurisdiction.

7. Engage expert compliance consultants

Consider partnering with compliance consultants to strategize and validate your NIS2 preparedness and ensure thorough attention to all aspects of the Directive.

Embracing the future of cybersecurity

As we move towards an increasingly digital future, the importance of robust cybersecurity cannot be overstated. Implementing NIS2 represents a significant transition in approaching security across the European Union, setting a new standard for resilience against cyber threats.

This directive is both a challenge and an opportunity for SaaS providers. By embracing NIS2’s requirements, providers protect their operations and build trust with their customers, enhance their competitive edge, and contribute to a safer digital ecosystem.

Compliance with NIS2 is more than a regulatory obligation; it is a commitment to excellence in cybersecurity. As cyber threats evolve, staying ahead requires proactive measures, continuous improvement, and a dedication to safeguarding data and infrastructure.

Take this opportunity to transform your SaaS business’ security practices, fortify your defenses, and create a secure digitalized environment.

How NordLayer can help

As a network security provider, NordLayer offers tools and services to help SaaS providers achieve NIS2 compliance by:

• Access control policies. Implement strong Network Access Control (NAC) policies using NordLayers Virtual Private Gateways with a dedicated IP address. Additionally, adopt advanced features like Cloud Firewall for granular network segmentation, and Device posture security to ensure only known and compliant devices can enter the company’s network. Elevate your network protection with multi-layered authentication methods such as 2FA (SMS & TOTP) and biometrics to access your network.

• Effective incident handling. Utilize threat prevention features like traffic encryption, IP masking, DNS filtering, and Always-On VPN to mitigate various threats that can infect your network. Improve threat detection with Device Posture Security and activity monitoring to maintain a resilient network infrastructure.

• Solid cryptography policies. Utilize NordLayer’s VPN gateways with quantum-safe encryption of data in transit. Provide a secure environment for browsing online and accessing sensitive resources or hybrid networks.

With NordLayer, SaaS providers can simplify infrastructure security management and demonstrate compliance with some of the stringent requirements of the NIS2 Directive.

Founded in 1997, Distilled emerged as a pioneering real estate platform designed to simplify the property search for buyers in Ireland. Over the years, the company expanded through acquisitions and partnerships, such as Daft.ie, DoneDeal.ie and Adverts.ie, and became part of the international group, Adevinta. Today, Distilled focuses on managing these major brands within Ireland, offering comprehensive real estate and classified advertisement services.

Being established in the 90s means that the technological stack is based on bespoke applications not fully compatible with all types of modern security platforms. The dedicated team had to manually configure, maintain, and upgrade the company’s physical infrastructure whether it was holidays, weekends, or after-hours. Transitioning to a modern company mindset, Distilled had to change its approach — IT Operations Manager Joe O’Brien shared how it happened.

The challenge

Complex infrastructure support for remote teams

As the global pandemic shifted work from office to home, Distilled faced significant challenges with their legacy applications, which were accessible only through an office IP address.

This setup granted employees access to essential systems, enabling productivity across dispersed locations. However, working with legacy applications required extra labor to support them, expanding the work scope for the IT team.

The situation called for a revision of the existing technology stack. It was necessary to exchange complex applications with solutions that are easy to use and don’t require hands-on presence. These changes enabled remote teams to access the company network securely.

The solution

Focus on a simple and secure solution

Distilled turned to NordLayer to address their connectivity and security challenges. By implementing NordLayer’s dedicated server option, the company secured a fixed IP address, simplifying remote access without the need for complex and unreliable VPN setups.

The integration with Distilled’s Identity and Access Management solution ensured that only company-managed devices could access these systems, enhancing overall security.

Distilled has a layered security strategy, one of which is based on fixed IP addresses to confirm and control user access. This way the IT team can coordinate permissions, manage employee accounts, and ensure that the company network is under a sufficient security layer.

Moreover, the company settled for 2 dedicated servers so they can rest assured that if the primary server goes down or is overloaded, the backup server will help maintain service levels unimpacted.

Why choose NordLayer

NordLayer was selected for its simplicity, reliability, and ease of integration. Unlike other solutions that required additional infrastructure, NordLayer offered a straightforward, out-of-the-box solution.

It allowed the IT team at Distilled to deploy a secure access system in minutes, significantly reducing the administrative overhead associated with managing traditional VPN solutions.

A hardware-free solution to securely connect to the company network

Distilled was looking for an easy way to give all their end users a single fixed IP address for the whole company. Other systems they looked at required adding additional infrastructure into their offices, which the team had to manage themselves. With NordLayer, it’s all included.

The outcome

Removing the complexity for the user and IT team

The adoption of NordLayer has led to a more flexible and secure remote working environment at Distilled. Employees now enjoy seamless access to critical applications without the hassles of a traditional VPN.

The solution has proven reliable, with no significant downtime reported, allowing the IT team to focus on more strategic tasks rather than maintaining complex network infrastructures.

Moreover, the IT Operations Manager got a lot of positive feedback from users that the app runs in the background, it doesn’t interfere with their work and he himself has nothing to worry about.

Pro cybersecurity tips

In cybersecurity, you have to know the drill. How to practise security, prevent data breaches, and stay out of the bad actors’ radar. To achieve it you don’t have to climb mountains, just be cautious and aware. Here are some tips on how Joe O’Brien, Distilled IT Operations Manager, practices security on a daily basis and you are welcome to join these activities.

Through strategic use of technology and a focus on security, Distilled has not only adapted to remote work challenges but has also positioned itself as a leader in using cybersecurity solutions to enhance business operations.

With 27% of the US workforce operating remotely, companies need efficient and secure ways to connect users and central servers.

Microsoft’s Remote Desktop Protocol has become a go-to option for flexible working. More than 50% of companies report using RDP in the past year, and it’s not hard to see why. RDP allows fast connections and seamless remote work.

But is RDP a secure option for your workforce? As always, the answer depends on your security setup.

This blog will explore how RDP works and some of the main RDP vulnerabilities. As we will see, remote access creates significant security risks. However, these risks can be managed if you follow our RDP security tips and implement smart remote access solutions. Let’s find out more.

What is RDP?

Businesses use the Remote Desktop Protocol (RDP) to communicate with and control external devices. Created by Microsoft, RDP enables seamless remote work via Windows systems.

RDP functions by creating sessions between clients and servers. Clients request access. Servers authenticate requests and transmit a graphical interface to the remote client. This interface replicates the desktop contained on the server and functions just as if installed on the client.

The Remote Desktop Protocol supports this setup by carrying data about mouse movements, clicks, and keyboard presses. The protocol converts activity into data packets, which the server converts into graphical updates.

In the process, a lot of information passes across the RDP connection. RDP access handles document printing, audio, and video communications, collaborative editing, and file transfers. Much of this information could be very valuable in the wrong hands.

Why use RDP?

RDP allows remote workers to access resources located in central data centers. Workers can run applications and manipulate files just as they would in on-premises offices. Users do not need to install apps locally or download documents for local use. Everything stays on-site.

RDP also enables technicians to access remote devices. On-site specialists can diagnose problems, deliver security patches, assess device postures, and monitor remote operations. Managers and security teams can easily train remote workers.

Technicians favor the RDP protocol due to its reliability and speed. Windows compatibility is another attractive feature, making it convenient for most organizations. However, there is a downside: RDP security issues.

What are the main RDP security issues?

RDP is a transfer protocol, and protocols are almost always vulnerable to external attacks. That’s not all. Attackers can also target the servers and applications used to enable RDP access.

Attacks range from mild irritants to serious threats that put workloads and data at risk. Companies using RDP for remote work need plans to handle these threats and keep data safe.

Security planning starts with awareness of common RDP threats. Here are some of the most common (and damaging) vulnerabilities:

• Unsecured ports. RDP always uses port 3389 to establish connections. This is an external and open port. Malicious actors can impose themselves between users and port 3389 to steal credentials via on-path attacks. Attackers can then use the open port to access servers or devices.

• Credentials theft. Weak credentials are a critical RDP security issue. Users often reuse passwords for RDP and email and access web applications. Attackers obtaining these user credentials can implant ransomware via workloads or servers. Even slightly different passwords are vulnerable to brute-force attacks.

• Server exploits. In the past, Microsoft’s RDP services have fallen victim to remote code execution vulnerabilities. Hackers use flaws in servers or protocol codes to gain unauthorized access. For instance, an exploit called BlueKeep once exposed millions of RDP servers to external attacks. Microsoft resolved the BlueKeep issue, but exploits can emerge at any time.

• Protocol tunneling. In tunneling attacks, hackers implant malicious code within protocol traffic. RDP traffic appears to be legitimate but carries malware or other harmful agents. Even worse, many standard firewalls struggle to detect this type of attack.

• Session hijacking. Attackers can gain access to active remote desktop access sessions. In these situations, attackers can explore any resources available to legitimate remote users. Until they are detected, they can implant malware, extract data, and disrupt operations.

• DDoS attacks. Attackers often use protocols to flood networks with traffic and take systems offline. RDP is vulnerable to DDoS-style attacks because it uses an open port, and servers generally do not enforce rate limits. The protocol is also relatively resource intensive, meaning attackers must unleash less traffic to achieve results.

How to secure RDP

Securing your Remote Desktop Protocol setup should be an urgent task. RDP is involved in 90% of cyberattacks, and the consequences of attacks are severe. RDP is a critical vector for ransomware, and attackers can use exposed work environments to steal confidential data.

There is some good news. Properly secured remote desktop protocol implementations are hard to infiltrate and secure. Let’s run through some best practices to create a secure remote desktop environment.

• Use stronger passwords. Brute-forcing attacks are much harder to mount against complex passwords. Avoid any words related to individuals or the company, and always avoid recycling passwords from other logins. Use password managers to generate strong passwords that are impossible to guess.

• Change your RDP port. Changing your listening port from 3389 helps make RDP secure by limiting external access. Changing the port is a sensible first step, as it blocks many automated port attacks.

• Use access controls. Administrator accounts can change RDP settings or use their privileges to access other network resources. Use access management tools to apply the principle of least privilege. Provide access to administrators when they need it for specific tasks. Otherwise, allow the fewest possible permissions for all remote users.

• Apply firewall protection. Strengthen your defenses by casting Windows Firewall protection around RDP environments. Windows Firewall rules for RDP connections block external traffic but allow authorized users to access network resources.

• Use Network-Level Authentication (NLA). Network-level authentication is native to RDP systems and adds an extra layer of authentication for every session. Users seeking RDP access must supply an additional form of identification, such as smart cards, one-time passcodes, or biometrics.

• Implement lockout policies. Lockout policies block users after a certain number of unsuccessful logins. This is a good starting point for blocking brute-force attacks.

• Monitor user sessions. Track user activity during RDP sessions to detect suspicious behavior. Monitoring should check for spikes in resource usage. This could suggest a DDoS-style attack. Technicians should also monitor access to sensitive files and limit access to essential resources.

• Add Virtual Private Network (VPN) protection. VPNs ensure secure remote access by creating encrypted shields around remote connections. Users log onto a VPN gateway before accessing RDP servers. This adds an extra barrier for hackers and effectively anonymizes traffic.

• Update RDP tools regularly. Promptly apply security updates for remote desktop applications and Windows Server. Ensure VPNs, multi-factor authentication tools, and firewalls are up to date. Regular updates cut the risk of exploits, making life much harder for would-be attackers.

• Train staff in RDP security. Never allow remote workers to use RDP connections without security training. Ensure workers know how to use passwords, VPNs, and multi-factor authentication. Outline security and compliance policies.

Eliminate RDP vulnerabilities using NordLayer

RDP is among the most common secure remote access solutions available. Yet, it is not necessarily the best way to ensure secure remote access—at least not on its own.

The solution lies in combining Microsoft’s security features with external security tools. On-board tools like NLA, port settings, and user monitoring all help. However, NordLayer’s Smart Remote Access ensures secure RDP connections with end-to-end encryption.

NordLayer provides secure remote access solutions to meet your remote device access needs. Create virtual LANs around every network endpoint and protect remote users via VPN coverage. Cloud LAN enables secure file sharing from device to device, troubleshooting others’ devices, and using remote devices as virtual machines for work.

Benefit from the flexibility and efficiency remote work provides while avoiding security nightmares. To find out more, contact the NordLayer team today.