Cloud Computing Laws Explained Essay

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Cloud Security and Privacy

Cloud computing's exponential growth is fueling a corresponding need for greater compliance, governance and regulations to ensure data and knowledge are secured and accessed for intended use. A regulation by definition is a rule or law, and has inherent within its definition support for compliance and enforcement (Halpert, 2011). Regulations differ from legal frameworks or standards in that the former is broadly protective and more focused on protecting shareholder value, ensuring corporate responsibility and also defining disincentives for recklessness or wrongdoing (Halpert, 2011). The purpose of this analysis is to analyze the top five security regulations for business and government.

Analysis of the Top Five Security Regulations for Businesses and Government

The top five security regulations provide laws governing the use of digital assets including cloud computing platforms and applications, with the specific purpose of ensuring personal and corporate data, information and knowledge are protected.

The first of the five regulations is the Federal Information Security Management Act. This Act was passed in 2002 and includes specific laws governing the access and use of U.S. government data at federal agencies (Halpert, 2011). The Act concentrates on how to define, implement and optimize every aspect of system security for U.S. federal agencies.

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What is unique about this Act is that it has a clause that provides for greater funding if the overall readiness of IT systems falls below a specific threshold level. This act predates cloud computing's adoption, however it includes 17 specific families of controls that encompass Access Control to Disaster Recovery, which while they are not directly applicable to cloud computing, they address infrastructure clouds rely in on integrated platforms.

The second most significant security regulation is the Sarbanes-Oxley Act of 2002, often called SOX. This set of regulations define in detail how all American publically-traded companies report their financial results, define their ownership and stakeholders, and report exceptional events that could have a material effect on their financial performance. Companies who are in compliance with these are also by definition of this regulation also in compliance with COSO and COBIT (Halpert, 2011). Cloud-based platforms being used in financial services by firms that are publically traded on American stock exchanges must abide by these laws or face heavy fines from the U.S. Securities Exchange Commission. This is so foundational to building cloud platforms that is an essential element of any design of applications or systems….....

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