Cloud Computing and Compliance: What You Need to Know
As organizations continue to adopt cloud computing, compliance remains a top concern. There are important factors to consider regarding how the cloud impacts regulatory compliance. In this article, I will provide an in-depth look at cloud computing and compliance.
Understanding Compliance in the Cloud
Compliance refers to an organization’s ability to adhere to laws, regulations, standards, and specifications that are relevant to their business. Some key compliance frameworks include:
- HIPAA – Health Insurance Portability and Accountability Act
- PCI DSS – Payment Card Industry Data Security Standard
- SOX – Sarbanes-Oxley Act
- GDPR – General Data Protection Regulation
When moving to the cloud, organizations must ensure compliance with applicable regulations. However, compliance in the cloud introduces some unique considerations.
The cloud provider is responsible for lower-level infrastructure and platform compliance. However, the cloud customer is responsible for compliance of what they put into the cloud environment. Understanding the shared responsibility model is crucial.
Key Factors that Impact Cloud Compliance
Migrating legacy systems to the cloud can impact compliance in several ways:
Data Location
- Where data is stored and processed is critical for compliance with regulations like GDPR
- Cloud providers have data centers globally, allowing customers to choose where to host data
- Controls must be in place to prevent unauthorized data movement
Access Controls
- Strict rules around access, encryption and availability must be implemented
- Cloud providers offer robust access controls, but customers must configure them effectively
Auditing and Reporting
- Most regulations require detailed audits and reports
- Cloud platforms provide detailed activity logging for auditing
- Customers are responsible for enabling, capturing and managing these controls
Contracts and SLAs
- Cloud provider commitments around security and compliance must be formalized in contracts
- Pay close attention to service level agreements (SLAs) for uptime, data recovery, etc.
Best Practices for Compliance in the Cloud
Here are some best practices I recommend for maintaining compliance in the cloud:
- Perform due diligence – Research and evaluate provider security and compliance closely
- Know where data resides – Prevent unauthorized data movement or access
- Analyze compliance implications – How does the cloud environment impact specific regulations?
- Classify data sensitivity – Apply appropriate controls and protection levels
- Implement strong access controls – Leverage cloud provider tools for encryption, identity management, etc.
- Validate controls frequently – Schedule recurring internal and third-party audits
Case Study: Healthcare Company’s HIPAA Compliance in AWS
Here is a case study demonstrating how a healthcare company approached HIPAA compliance when migrating to Amazon Web Services (AWS):
- Performed extensive review of AWS HIPAA compliance program
- Executed HIPAA Business Associate Agreement (BAA) with AWS
- Restricted data access to only authorized staff using AWS Identity and Access Management
- Enabled data encryption in transit and at rest using AWS Key Management Service
- Tracked detailed audit logs using AWS CloudTrail
- Scheduled recurring internal audits and third-party assessments
- Documented all HIPAA compliance policies, controls and reports
By leveraging native AWS compliance features and implementing additional safeguards, they were able to fully meet HIPAA requirements.
Key Takeaways
- Cloud compliance shares responsibility between providers and customers
- Data location, access controls, auditing and contracts are key considerations
- Best practices include due diligence, data classification, access management and auditing
- Cloud platforms offer robust tools to support compliance, but customers must implement effectively
Understanding the shared responsibility model and fully utilizing cloud provider compliance capabilities allows organizations to confidently move to the cloud while maintaining compliance. Monitoring new regulations and optimizing controls is an ongoing process.
