Cloud computing could put European businesses at risk

Cloud computing is one of the biggest trends in the IT landscape, but adopting a cloud solution may be a risky endeavor, particularly for European companies.

A new study conducted by Skyhigh Networks analyzed data from more than 1 million European cloud users to identity the risks they face when adopting the technology. The study found that more than 90 percent of cloud services could pose “medium to high security risks” for European companies.

The research discovered that many of the most popular cloud services contained gaps in security features. Among the cloud applications examined in the study, fewer than 10 percent were said to be at “enterprise-grade” levels of security, and the majority were not certified for ISO 27001 standards. This is the security management that can be applied to a broad range of systems, as reported by the International Organization of Standardization.

The report also noted that nearly 75 percent of European cloud service providers manage their data servers in the U.S., a disconnect that could signify possible incompatibilities between a company’s practices and policies between different countries.

Rajiv Gupta, Skyhigh Network’s CEO, said that the underlying problem is a pervasive lack of awareness.

“Of the services that we analyzed, 72 percent stored data in the US – which could have legal and compliance implications for certain organizations in Europe,” Gupta said. “The bottom line is that businesses need to get smarter about the cloud.”

It’s possible that this trend could change at some point given the successful performance of industry mainstays. TechRadar reports that Microsoft and its cloud-based products have won approval by the EU. This makes it the first company outside of the area to gain this level of recognition. It might be a sign that other companies based outside of this region could be ready to conform with European standards.

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