MKSystem Hardens the Security and Accelerates the Agility of Social Insurance and Labor Services for 8.32 Million People by Shifting to AWS

MKSystem provides business support services, including its in-house developed Shalom cloud service, to social insurance consultants, insurance administration associations, and general corporations, enabling businesses to calculate and report insurance premiums, determine salaries, manage employment, and distribute pay slips.

2,729 social insurance consultants—about 10 percent of the total Japanese sector—use the services. As of May 2023, these consultant agencies service around 570,000 businesses, or 15.5% of all domestic companies, meaning that MKSystem reaches over 8 million people.

Many of the company’s services use on-premises IT environments. Handling information on social and labor insurance, salary, and social security numbers for so many citizens makes security a top priority, and MKSystem enforces strict measures in its on-premises environments. However, there are limits to the strength of on-premises security measures.

According to Tatsuo Miwa, General Manager of the Digital Architecture Design Department, “We tried to harden our security products with security appliances, but rack space and other problems prevented us from updating them in a timely manner; we struggled to keep up with constantly evolving cyberattacks.”

Meanwhile, business growth meant the on-premises environment was approaching performance and availability limits, and operational management work had become a burden. Some of the services therefore moved to the cloud for easier infrastructure scalability.

In June 2023, MKSystem discovered ransomware in its on-premises servers. As a result, many systems shut down and the company was unable to provide normal services. “We took restorative measures as soon as possible to ensure the end customers of our clients could calculate payroll,” says Noboru Miyake, President and CEO of the enterprise.

After starting to rebuild its service platform, MKSystem considered two options: restore the on-premises environment or migrate to the cloud. The company chose the latter and selected AWS based on recovery speed, security, and cost.

Replacing Microsoft RemoteApp—an application delivery service used in on-premises environments—with Amazon AppStream 2.0—a fully managed application streaming service allowing us to restore service to customers as quickly as possible—was the deciding factor,” says Hiroshi Kiyama, Executive Officer and Head of Development.

“We were also impressed with the AWS services we were already using, the comprehensive migration support partner ecosystem, and Security Assessment System (ISMAP) accreditation for government information systems.”

The decision to adopt AWS passed on June 21, 2023. Construction of the environment and data migration work commenced immediately, and major services resumed from June 30.

“When we announced our migration to AWS, many people said that AWS alleviates security concerns as governments, financial institutions, and large companies use its services,” explains Miyake.

“Our shareholders, banks and other stakeholders are positive about the shift and appraisals are exceptional.”

MKSystem implemented the company-wide migration project at a rapid pace, and hard work from partners restored services in the shortest possible time.

“Few other companies were using Amazon AppStream 2.0 in the way we are, so we modified applications to avoid restrictions; we encountered some unexpected errors but overcame them by having AWS personnel contact the US technical team,” says Kiyama.