How to Evaluate Cloud Service Provider Security 

Businesses rely on cloud services to drive growth, streamline operations, and manage data. However, securing that data is not just an IT concern—it’s a business imperative. Cloud service provider security is the system of controls that providers use to safeguard your critical assets. 

In 2024, with increasing threats and regulatory demands, knowing how to evaluate cloud service provider security is essential for protecting sensitive data and ensuring smooth operations.

In this blog, you’ll learn:

• Critical security standards like ISO-27001 and SOC 2
• How to ensure robust data encryption and identity management
• Key factors to evaluate in your service level agreements (SLAs)
• Common red flags when vetting cloud providers

Continue reading to ensure your cloud investments remain secure and reliable.

1. Why Understanding the Shared Responsibility Model is Crucial

When evaluating cloud service provider security, understanding the shared responsibility model is critical. This model defines which security responsibilities lie with the cloud provider and which remain with the customer. Typically, the provider manages security of the cloud, which includes infrastructure, physical security of data centers, and network protection. The customer is responsible for security in the cloud, such as securing data, managing access controls, and configuring services correctly.

A common misconception is that using a trusted provider guarantees complete security. However, misconfigurations, weak access controls, or poor internal practices can still expose sensitive data. 

For example, data breaches often occur because customers fail to secure their applications or data within the cloud environment properly.

Businesses can better safeguard their operations by understanding this division of responsibilities. They will ensure that they and their cloud provider take the necessary steps to protect sensitive information and meet compliance standards.

Click here to DOWNLOAD the FREE CHECKLIST.

2. Key Security Standards and Frameworks to Look For

When learning how to evaluate cloud service provider security, it’s essential to verify their adherence to recognized security standards. ISO-27001 is one of the most widely accepted standards, ensuring that the provider has a strong information security management system (ISMS) in place. This framework helps businesses mitigate risks and safeguard sensitive data.

SOC 2, developed by the American Institute of CPAs (AICPA), focuses on the controls related to security, availability, confidentiality, and privacy, providing assurances that the cloud provider is operationally secure.

The NIST framework, particularly its Special Publications (SP) 800 series [4], offers guidelines for improving cybersecurity and risk management, which are critical for ensuring robust cloud security measures.

For compliance, businesses must check if the provider meets GDPR, HIPAA, and PCI DSS standards. GDPR protects personal data in the EU, HIPAA secures healthcare information, and PCI DSS safeguards payment card data—ensuring that the cloud provider complies with these regulations helps mitigate legal risks and security breaches.

3. Data Encryption and Identity Management (IAM) | Core Security Measures

One critical aspect of how to evaluate cloud service provider security is assessing their data encryption and identity management practices. Data encryption ensures that sensitive information remains protected, even if it’s intercepted. For data-at-rest (stored data), encryption protects the information within cloud storage. For data-in-transit (moving data), encryption secures data as it travels between networks or systems. Using strong encryption protocols like AES-256 helps mitigate risks of unauthorized access.

Identity and Access Management (IAM) is essential for controlling who has access to cloud resources. A robust IAM system defines user roles, ensuring that only authorized personnel can access sensitive data. Combined with multi-factor authentication (MFA), which requires additional verification (like a code or biometric scan) beyond just a password, IAM reduces the risk of unauthorized access.

Pro Tip: Third-party integrations, such as enhanced IAM solutions like Okta or Azure AD, further strengthen security by providing customizable access controls and real-time monitoring. These integrations can fill security gaps left by standard offerings from cloud providers, especially when businesses need more granular control over user permissions and monitoring for insider threats.

4. Evaluating Physical and Digital Security

A thorough approach to how to evaluate cloud service provider security requires assessing both physical and digital security. Physical security protects the data centers where cloud infrastructure is housed. Leading providers implement strict measures such as biometric access controls, 24/7 surveillance, and secure locations to prevent unauthorized physical access. These precautions ensure that only authorized personnel can enter sensitive areas, reducing the risk of physical breaches.

Digital security focuses on protecting data and systems from cyberattacks. Essential components include firewalls, which block unauthorized traffic, and intrusion detection systems (IDS) that monitor for unusual activity. Effective incident response protocols ensure swift action when a breach occurs, limiting damage and exposure.

For example, in 2019, Capital One suffered a data breach when a misconfigured firewall allowed a hacker to access sensitive customer data [3]. This incident highlights the importance of combining strong physical and digital security measures to safeguard sensitive information.

This incident demonstrates the importance of having strong cyber security. Learn more about our cyber security services here.

5. Importance of Service Level Agreements (SLAs) and Avoiding Vendor Lock-In

SLAs are crucial when determining how to evaluate cloud service provider security. An SLA outlines the security guarantees, including uptime commitments, data availability, and shared responsibility between the cloud provider and the customer. Key components include guaranteed uptime (often 99.9% or higher), response times for incidents, and clear definitions of who handles what in terms of security. A well-structured SLA ensures accountability and helps protect your data, systems, and business continuity.

Vendor lock-in occurs when it’s difficult to switch from one cloud provider to another due to technical dependencies or high costs. This can limit flexibility and leave businesses stuck with a provider, even if their needs change. To avoid vendor lock-in, businesses should plan exit strategies by ensuring data portability and negotiating contract terms that allow them to easily migrate to another provider if necessary. A flexible SLA supports this process by clearly defining how data and services can be transferred.

Click here to DOWNLOAD the FREE CHECKLIST.

6. Backup, Disaster Recovery, and Data Storage Locations

Backup and disaster recovery are essential when evaluating cloud service provider security. A reliable provider should have robust disaster recovery plans to ensure that your data and services remain accessible during outages or incidents. These plans typically include regular data backups, recovery time objectives (RTOs), and recovery point objectives (RPOs) that define how quickly services can be restored and how much data loss is acceptable. Providers like AWS and Azure offer automated backup solutions that minimize downtime, which is crucial for business continuity.

Data sovereignty plays a significant role in security and compliance. The location of a provider’s data centers affects the legal frameworks governing your data. For instance, data stored in the EU must comply with GDPR regulations, while data in the US may fall under different privacy laws. Global providers often store data in multiple regions, and businesses should ensure their cloud provider’s data storage locations align with local and international regulations.

7. How Leading Companies Secure Their Cloud Environments

When learning how to evaluate cloud service provider security, examining how industry leaders approach security can be insightful. 

For example, Kellogg’s uses AWS to manage e-commerce platforms and handle sensitive supply chain data [2]. They rely on AWS’s Identity and Access Management (IAM) to control who accesses their data, along with encryption to protect data-at-rest and data-in-transit. 

Similarly, Airbnb uses AWS for its global operations, using encryption and strict Service Level Agreements (SLAs) to ensure uptime and security. 

These companies demonstrate how using IAM, encryption, and clear SLAs can effectively secure complex cloud environments.

Similarly, we helped build a HIPAA-compliant infrastructure for a healthcare portal, ensuring the highest levels of security and compliance. You can read the full case study here.

8. Red Flags to Avoid in a Cloud Service Provider

Knowing how to evaluate cloud service provider security also involves identifying red flags. 

– One major concern is unreliable network performance, which can lead to frequent downtime and business disruptions. 

– A lack of certifications like ISO-27001 [1] or the absence of regular third-party audits signals poor commitment to security. 

– If a provider charges high-security costs for basic features like encryption or multi-factor authentication, it may not be a cost-effective choice.

– Be cautious of providers who lack transparency in their security processes or refuse to provide clear documentation of their security measures and compliance efforts. This can indicate hidden risks.

Protect Your Data and Operations with Nova Cloud’s Expertise

When it comes to securing your cloud environment, it’s not just about choosing a provider—it’s about making sure your data is safe, accessible, and compliant. 

At Nova Cloud, we understand how to evaluate cloud service provider security, ensuring your business has the best protection. 

From encryption to identity management and disaster recovery, we cover every aspect to keep your operations running smoothly.

Ready to strengthen your cloud security? Visit Nova Cloud to learn how we can help protect your data and operations with the expertise you can rely on.