The advantages of storing information in the cloud are extensive. Backing up important data, freeing up space on your servers, and having your information easily available to your employees are just a few. If you have been looking into this route, you probably have many questions about the security of the cloud. If your company deals with sensitive information that belongs to your customers you may need to stay compliant with HIPAA, PCI or Sarbanes-Oxley regulations.

It can be challenging to tell if your cloud storage solution follows these requirements, as many don’t specify in their privacy policies. To help you navigate these difficult waters, let’s look at this topic in more detail below.


Cloud security has become an important issue recently, as increasing numbers of companies turn to online storage solutions, looking for greater simplicity, scalability and affordability. However the cost in both money and reputation for improper handling of customer data can be quite high indeed. If your business should comply to key regulations associated with patient privacy (HIPAA), credit card security (PCI) or the finance-sector strictures of Sarbanes-Oxley, it can be difficult to find out if a service complies with these important restrictions.

Who is responsible

Who’s shoulders does the responsibility fall on? There is no law requiring that cloud service providers divulge the degree of security they maintain. While they probably do have a respectable amount of safety protocols set up, the safest option is to take their privacy policy at face value. In this case, if you wish to stay in compliance with HIPAA, PCI or Sarbanes-Oxley, cloud computing might not be for you. Having said that, if your industry doesn’t require tight regulations, then you could take advantage of the benefits cloud-computing offers. 

In the end, as cloud computing service providers are not required by law to be transparent about their security, the responsibility rests in your hands. If you choose to use the cloud, it’s your responsibility to pick a service provider you trust. Weigh the advantages and disadvantages and make the best decision for your business.

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