The advantages of cloud computing are apparent. Not only can you free up needed space on your servers and computers, you can backup priceless data and easily share it within your company. But when considering data sharing and storage for your business, you may have some questions regarding cloud security, specially if your business requires you to protect consumer data in a manner 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.

Compliance

Security has long been an important issue and as increasingly more companies utilize the cloud for storage solutions the question arises: How secure is the cloud? Storing information in the cloud can be quite economical, yet the cost for improperly handling customer data can be extremely high. If your organization needs to comply with regulations like HIPAA, your main concern is what regulations do cloud services abide by.

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 explained in the privacy policy, that a service provider doesn’t follow these regulations? Even though this is clearly the safest option, it may leave you unable to use cloud computing at all. Many services don’t provide detailed information in their privacy rules, presumably to reduce their liability. The hope is that over time cloud storage and sharing will become better self-regulated and companies will elect to disclose their individual practices to the businesses they serve. While such self-regulation is not required currently, many businesses think it is their duty to display clear warnings, outlining what they don’t provide or guarantee.

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