of what transits the cloud. If you have no need for high level security, then it's not an issue, but it's a big issue for high security situations as the data can easily be intercepted while travelling between your location and the cloud server farm.
The oldest form of electronic data intercept is the phone tap, and it also works for most of today's communication systems. Sure you can use encryption, but the signals are still open to interception and then decryption efforts by those who wish to take the time an effort.
Another aspect is the security checking and vetting of the staff who may come into contact with that data at the cloud server farm. If you have to have all who may come into contact with the data checked, who gets to pay for all those extra staff at the service provider?
Don't forget these issues when thinking cloud services.
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