How Secure is Cloud Security? Part 1

There are numerous benefits to cloud computing. Backing up important data makes it easily accessible to everyone in your company and frees up space on your servers. You most likely have many concerns about cloud security and might be pondering if cloud security will protect your client’s data and adhere to HIPAA, PCI or Sarbanes-Oxley regulations.

It can be hard to tell if your cloud storage solution adheres to these requirements, as many don't state in their privacy policies. To help you navigate these difficult waters, let's look at this topic in depth below.


More and more companies are using the cloud for storage. For obvious reasons, it is a very affordable strategy to use. Even so, improper handling of your client’s information can harm your reputation and lead to a loss of business for your company. If your company mandates that client data be handled in a regulated way, you need to 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 regulations, it’s safe to assume they do not.

Who is responsible

Cloud security is vital when handling your sensitive data, but whose responsibility is it? Should you assume that if it is not spelled out in the privacy policy, that a service provider doesn't follow these regulations? While this is clearly the safest option, it may leave you unable to use cloud computing at all. Many services fail to provide detailed information in their privacy rules, possibly to lower their liability. The hope is that with time cloud storage and sharing will become better self-regulated and corporations will elect to disclose their individual practices to the businesses they serve. While such self-regulation is not required at this time, many businesses believe it is their duty to display clear warnings, explaining what they don't provide or guarantee.

Ultimately, as there is no current law that states that companies must divulge how tight their security is, the responsibility is in your hands. You must weigh the advantages and disadvantages of cloud storage to decide if it’s right for your business.