Enterprise customers of LogMeIn’s password management service, LastPass, will now be able to store their encrypted vault data within Australia. Today, the company added local servers to existing infrastructure in the US and EU as it expands into the enterprise market.

John Bennett, General Manager of LogMeIn’s Identity and Access Management business told Which-50 the product’s adoption rate in Australia had surprised the company and now trails only the U.S and Europe.

Increasingly, Bennett says, those customers are asking for their data to remain onshore, rather than on U.S or European servers.

“It helps organisations and companies to comply with current or future regulations or internal policies … There’s a heightened sense of responsibility of enterprises and government and organisations of dealing around protecting customers’ data and also seeing where it resides.”

John Bennett, LogMeIn, General Manager Identity and Access Management. Supplied.

According to Bennett, Australian organisations are also preparing now for any potential changes to privacy and data regulations in the future by developing stronger governance practices and internal policies, including the requirement data remains in Australia.

“IT professionals and organisations are looking at what is occurring in Europe with GDPR, what’s occurring in other markets, globally,” Bennet said.

“It’s becoming a growing area of focus; having the ability to know where your end user, where your customer data resides.”

LastPass is used by over 43,000 businesses and 13.5 million individual users, according to the company. The app stores and manages encrypted passwords (the company says it has no visibility of the actual passwords), allowing users to have strong passwords without the need to memorise them. For enterprise customers there is an additional layer of admin controls and integration features, with single sign on for more than 1200 pre-integrated apps.

Those features give admins more control and can help reel in shadow IT and poor security practice, according to Bennett.

He said the company had seen “record growth” in the adoption of its business and enterprise products in Australia, despite not having done a great job at explaining or marketing the offerings.

LastPass will look to change that by ramping up its marketing efforts and offering more local support. Bennet said there is a commitment to double the size of the local LastPass office over the next four years.

The company said the growth in the region and a local demand for data sovereignty prompted the new data centres. It also argues local storage can help its customers foster more trust with consumers in an environment where data breaches are increasingly being disclosed through new data breach laws.

The Notifiable Data Breach Scheme managed by Australian privacy watchdog, The OAIC, has produced a surge in data breach reporting, since its inception in 2018. Many of those breaches stem from poor password management, according to LastPass, which argues the incidents are eroding consumer trust.

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