Cloud Security: Part 1

The advantages of cloud computing are obvious. Not only can you free up needed space on your servers and computers, it is possible to backup important data and effortlessly share it within your company. But when it comes to data sharing and storage for your business, you may have some questions regarding cloud security, particularly if your business requires you to protect consumer data in a way that is compliant with HIPAA, PCI or Sarbanes-Oxley regulations.

Do cloud storage solutions adhere to these regulations? Are they required to? If they haven’t spelled it out in their privacy policies, it is safest to assume they are not compliant. We will explore this more below.


More and more companies are using the cloud for storage. For obvious reasons, it is a very cost effective strategy to use. Even so, improper handling of your client’s information can harm your reputation and result in a loss of business for your company. If your company mandates that client data be handled in a controlled way, you must first learn how secure the cloud service is and what regulations does the cloud service providers comply with. If a company has not specifically said they comply with certain policies, it’s safe to assume they don’t.

Who is responsible

Whose responsibility is the security of the cloud? It’s not presently required that a service provider be explicit regarding their compliance with these regulations. While the safest option is to assume that if they haven’t clearly stated that they’re in compliance in their privacy policy, they are not. This may mean that cloud computing is not for you. However, if your business doesn’t require tight regulations, then the advantages of cloud computing could be an excellent solution for you. 

Currently there’s no law in place that requires a company to divulge this information. Cloud computing services can save your company money while boosting efficiency, but they could also risk noncompliance with privacy laws. This leaves the risk on your shoulders and it is up to you to weigh the advantages and threats for yourself. The topic of cloud security is likely to be one of much debate in coming years. At the moment, the right road to travel is the one which best meets your company’s unique needs.