Yes, in Cloud Computing we are using resources that are owned by the Cloud provider. Due to this our data resides on the servers that can be shared by other users of Cloud.
There are regulations and laws for handling user data. We have to ensure that these regulations are met while selecting and implementing a Cloud computing strategy.
Similarly, if we are in a contract with a client to provide certain Service Level Agreement (SLA) performance, we have to implement the cloud solution in such a way that there is no breach of SLA agreement due to Cloud provider’s failures.
For security there are laws that have to be followed irrespective of Cloud or Co-located Data center. This is in the interest of our end-customer as well as for the benefit of business continuity.
With Cloud computing architecture we have to do due diligence in selecting Security and Encryption options in Cloud.