5 Best Practices to Meet Cloud Compliance Challenges

Switching to the cloud sounds smart, but it comes with additional security and compliance concerns. In the simplest terms, the cloud offers ways to easily and cost-effectively increase IT capabilities and also scale up as the company grows. There is, however, one little secret about the cloud which companies do not realize — it is nothing more than someone else’s computer. Cloud service providers are just companies that have invested in server farms and rent out space and processing power on those server farms.

When a business is putting its data on the cloud, all it is really doing is renting a part of another computer. And it is up to the business to ensure the service provider they choose has clearly defined policies around security and compliance. After all, it is their data on the line (pun intended). What they may not know is that even though their data is on somebody else’s servers, they are still liable for that data and must maintain compliance regarding that data according to the law. 

By and large, all cloud vendors provide Payment Card Industry Data Security Standard (PCI DSS), the U.S. government healthcare data protection standard (HIPAA), or SOC2 (a general technology auditing standard from the AICPA) compliance which has become a critical part of the business landscape. 

Understand Your Data Liability Risks in Cloud  

Though the proprietary data is housed on cloud platforms like AWS or Microsoft Azure, companies are still liable for that data and must maintain compliance regarding that data according to the law. The question is — which law? For example, there is the GDPR (General Data Protection Regulation) which is enforced in the European countries and the business is based in, say, Australia. Does the GDPR apply to that Australian business? The short answer is yes, it can. If the Australian business has any European clients’ data or if the cloud service used has any connection with Europe, then the Australian business must comply with the GDPR.

Since cloud-based data and services are considered a part of the company, it is also responsible for compliance madates. 

Learn More: IBM Eyes Cloud Compliance With Security Startup Spanugo

Five important points to consider for meeting cloud compliance mandates: 

1. Asset management

Anything which is put on the cloud is a company asset. Some of the key questions to consider are — are those assets being managed properly? Are those assets secure? Where are those assets stored? Do those assets have disaster recovery plans? Can those assets be scaled up or down as needed? These are all questions that need to be answered when starting out with cloud services.

2. Security

Security is always an important part of a business and cloud services are not immune to it. In fact, most data breaches happen because cloud services are not properly secured. It is not the cloud service provider’s responsibility to ensure the company’s data is following best security practices.  

3. Data center locations

As the internet allows world wide access, the data center installations can be anywhere in the world. So when a company uses a cloud provider, they should know where that data is being stored. This applies to sensitive data and backups as well. As data location will be governed by laws applying to that region, the company will also be held liable in case of breaches. 

Learn More: Role of Cloud Data Lake Platforms in Enabling TCO Optimization

4. Threat management

Just because a company’s data is out on the cloud providers’ servers, doesn’t mean that it is safe from attack. As cloud providers have multiple customers and store huge amounts of data, this makes them an easy target for malicious operators. The most dangerous form of threat is advanced persistent threats (APT). Like water can turn stone into sand, APV can chip away at the company’s security defenses and eventually achieve the goal of stealing data. So on top of the normal security practices, it is also a wise move for a company to use threat detection and mitigation for when a breach does occur.

5. Education

For many businesses, the cloud services available to them are relatively new, so they are not entirely sure how to use them or use them effectively. For this, education is key and research into what is available and what capabilities can help businesses — not just the policymakers either. The employees who use those cloud services also need to be educated on the do’s and don’ts.

6. Shadow IT 

So many people use cloud services on their personal devices and never realize the implications it can have for a business. Traditionally, a company had its IT department, and that was in complete control of all things computer-related in that company. With the abundance of mobile computers in everyone’s possession, there is now, more than ever, an unofficial IT movement in companies. This is often called a shadow IT, and it is where company departments other than IT create their own little computing substructure.

They often do this to work around restrictions put in by the IT department simply to make their work easier. This can involve using VPNs to get around internet restrictions, using personal cloud (i.e., Google Drive and others) to store and share company data and even simply using unverified devices to access company data (e.g., mobile phones). All of these actions, and more, performed by shadow IT can lead to a potential data breach. Some of the most damaging data breaches have happened because of shadow IT.  

Learn More: Why Your Cloud Security Needs to Mature for the ‘New Normal’

Moving to Cloud Presents Shadow IT Risks (And How to Manage Them) 

The only way to limit the impact of this Shadow IT is via education. However, other departments may not be aware of IT policies and understand why employee compliance is a must to avoid data leakages. A company’s compliance with data regulations, whether it be local or cloud-based, does not rest on the shoulders of  IT departments alone. It has to be a holistic approach and part of the company’s culture where every employee and manager is aware of what needs to be done to ensure data compliance. 

Not just the company itself, any third party the company deals with which has any direct or indirect access to the company’s data also needs to follow the same compliance practices. Failure to do so can result in a security breach and loss of sensitive data.   

What’s your take on cloud compliance challenges? Comment below or let us know on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We would love to hear from you!