When you migrate to the cloud, you need to pay attention to the issue of compliance.

The phrase refers to the regulatory standards and local, national and international laws relating to cloud security. They exist to promote safe data handling – and to dole out fines and other penalties if you oversee a data breach.

The issue can seem daunting – partly because of the technical language used. Even if you've done your homework on the basics of cloud migration, you might still be stumped by the blizzard of acronyms.

Cloud compliance doesn't happen automatically – but it also doesn't have to be hard.

So long as you know your responsibilities, have a strong security posture, and partner with a reputable cloud consultant, you should be able to enjoy all the benefits of the cloud without any regulatory headaches.

But before we get into your responsibilities as a business preparing for cloud migration, what is cloud compliance, exactly?

What is cloud compliance?

Cloud usage is governed by different standards, laws and regulations. No one law covers the whole of cloud security. Instead, there's a patchwork of different protections.

Any business using the cloud has to be compliant with local, national and international laws. There are industry standards, too, such as those relating to card payments. Then there are regulatory standards. And your business's internal governance policies. And so on.

It can seem like a lot. But if you work with a cloud consultant to plan and execute your migration, they can identify the laws, regulations and policies that you need to follow.

Why is cloud compliance so important?

In 2022, over 60% of all business data was resting in the cloud. That's double the figure for 2015 – and this growth shows no sign of slowing down. Data continues to multiply, so it needs to be monitored and safeguarded.

The main reason that cloud compliance is important is that you need to do all you can to avoid data breaches.

There are two sides to this. First, you owe it to your customers, suppliers and partners. They're entrusting you with personal data, sometimes of a sensitive nature. Any breach is liable to give your reputation a good kicking.

And secondly, data breaches have consequences. You could be fined – and we're talking big money. In 2022, IBM reported that the average cost of a data breach was a staggering $4.35 million.

Even if you don't get hit with a fine, you could experience downtime when your data processing is audited, suspended or banned.

It's tempting to think that a data breach is something that will never happen to you, like flood, fire or a personal injury.

But it's a far from rare occurrence. In 2021, IDC revealed that 98% of the companies they spoke to had experienced one or more data breaches.

In the USA, a violation of HIPAA – the Health Insurance Portability and Accountability Act – can lead to financial penalties or, in the most serious cases, imprisonment.

And when a US citizen is the victim of a data breach, they can contact the CCPA to pursue statutory damages.

In the EU, there's GDPR, which has set a maximum fine of either £17.5 million or four percent of annual turnover. Alternatively, you could be reprimanded or have your ability to process data suspended or banned altogether.

Whether a fine or downtime, the consequences of non-compliance are serious – and just not worth the trouble.

Cloud compliance, then, is a way of ensuring that you can enjoy the benefits of cloud migration without any compromise to security.

How to achieve cloud compliance

There are several steps you should take to ensure cloud compliance.

Before you migrate, you need to know which regulations and laws you should comply with – and identify any risks or security requirements that apply to you.

You also need to know your responsibilities. It's a common misconception that your cloud provider takes full responsibility for compliance – but, in fact, most providers have a model of shared responsibility.

This means they agree to ensure that their infrastructure is compliant. Your job is to keep your data safe in the cloud.

So before you make the move, make sure you're working with a trusted cloud provider with a clear policy on your – and their – responsibilities.

Help is at hand. A good cloud consultant can help with the above – and this can be indispensable when you're getting ready to migrate. Forewarned, as they say, is forearmed.

Once you've migrated to the cloud, you need a strong security posture. This is largely a question of access.

At bottom, you need a strict policy determining who is granted access to data – and how much of it. Access shouldn't be universal. After all, there's only a limited number of people in a company who need unfettered access to everything.

If your business handles sensitive data, then a hybrid solution can be advisable. This is where you store most of your workflows on the public cloud and your classified information in an on-premise data centre.

Encryption is key. A 2021 study found that 83% of businesses failed to encrypt up to half of their sensitive data – even after they'd experienced a data breach.

Also key is regular auditing and monitoring of your cloud architecture. While your cloud provider will automatically update you with their security improvements, there's no substitute for a strong internal security posture.

The bottom line

Cloud migration is a big deal. There's a reason it's considered part of digital transformation and not, say, digital tweaking. The way you work changes, big-time – and we're far from the only ones who think it's a change for the better.

But as you embrace the change, you need to make sure you're on top of compliance to avoid the nasty consequences of data breaches.

Working with a reputable cloud migration partner will equip you with the facts, so you know exactly what to do with regard to regulations, laws, responsibilities and changes to security. Trust us – you won't look back.

Are you looking for a cloud migration partner? At Ascend Cloud Solutions, we've handled over 400 successful migrations and counting. Get in touch today to find out more.