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Why encryption doesn't solve the data sovereignty debate

JB

There is a long-standing argument that encrypting all data sent to the cloud could make the data sovereignty debate irrelevant, enabling Australian companies to make use of cheaper, offshore clouds.

The basis of the argument is that data, once encrypted, is random and cannot be read, so the problem is shifted toward the issue of key management — which can be solved by ensuring that keys remain onshore.

But security vendors Trend Micro and Sophos, and systems integrator CSC, have argued that encrypting everything isn't necessarily the answer for everyone, and that doing so would come at too high a cost.

At a media briefing, Trend Micro vice president for Data Centre and Cloud Security Bill McGee stated that encryption brings about additional challenges that have flow-on effects in terms of scaling a cloud solution, and the financial implications that brings.