By Louise Taylor, Senior Counsel, Taylor Wessing
Cloud security remains a key concern for SMEs, and is still often cited as a chief impediment to moving to the cloud. This is understandable, as security breaches can have major negative repercussions for a business.
However, the risks need not be insurmountable for SMEs, nor outweigh the benefits of cloud services. It’s also important to remember that while most SMEs are not specialists in data security, cloud vendors need to be: they have a vested interest in maintaining the security of customer data.
Below are seven steps which SMEs should follow when considering a cloud service, selecting a cloud provider and managing a cloud contract.
1. Audit your data
2. Do your homework
As the cloud market is maturing, there are now many service providers and types of service on offer. This means you can shop around to find the cloud provider that best meets your security and other needs. Asking the right questions before you select a provider is key.
If you are transferring personal data to the cloud, you are likely to be viewed as a ‘data controller’ of the data under EU data protection laws and will be responsible for ensuring that any processing of personal data is secure - even where that processing is carried out by a cloud provider on your behalf. You will therefore need to choose a cloud provider that gives sufficient written assurances in respect of security.
A good starting point for SMEs is the Information Commissioner’s Office (ICO) guidance on the use of cloud computing (2012). The guidance outlines the different types of cloud models, including the risks associated with them, and raises questions to take into account during a cloud selection process. For example:
· How is data stored by the cloud provider (e.g. is it co-mingled with other customers’ data)?
· Does the provider have any industry accreditations (e.g. ISO 27001)?
· Can it give you copies of any independent security audits or other evidence of its security track record?
· How does it monitor, report and deal with security breaches?
· Is encryption used/permitted?
EU data protection law regulates the transfer of personal data outside the European Economic Area, so - if you’re shifting personal data to the cloud - it’s also important to ask where the provider’s servers are located and what safeguards are in place there. Cloud providers should be transparent about this. Some providers offer ‘Europe-only’ solutions, or US clouds operating within the confines of the Federal Trade Commission enforced ‘Safe Harbor’ regime, but whether these (or other) solutions are appropriate - or necessary - for you will depend on your particular circumstances. If in doubt, seek legal advice.
3. Look at the contract
The flexibility and pricing benefits of public cloud solutions come at a cost: most SMEs will be presented with standard terms on a ‘take it or leave it’ basis for such solutions. You will need to shop around to find the best terms for your business, remembering that - as data controller of any personal data in the cloud - you must retain sufficient control over the personal data to meet your legal obligations. The contract should, for example:
· state that the provider will act only on the customer’s instructions;
· give assurances as to the security of your data;
· specify the limited circumstances in which the provider can access the data;
· clarify the customer’s rights to access and delete the data; and
· set out how security is monitored and breaches are dealt with.
4. Encrypt data where necessary
Place encryption around any personal data ‘in transit’ between your IT infrastructure and the cloud provider’s to limit the risk of unauthorised access or exposure of the data, and ensure that the encryption used meets industry recognised standards. The ICO also advises businesses to consider whether the encryption should be used on data ‘at rest’ (e.g. where sensitive personal data is stored in the cloud).
6. Manage your contract
To maintain control of your data throughout its lifecycle, monitor and review your cloud provider’s security measures on a regular basis to ensure that they are meeting the expected standards, and check whether any updated security audit reports are made available.
7. Train your staff
Security measures are only as good as the people implementing them. Ensure relevant staff understand their responsibilities; e.g. to keep their authentication details safe, maintain the security of encryption keys and adhere to access controls.
The steps above are simply starting points for a SME considering a cloud service, or a quick checklist for those who have already shifted data to the cloud.
Regardless of what stage you’re at though, bear in mind that a careful consideration of the security risks in the early stage of planning and the implementation of sound risk management strategies are central to a successful cloud project.