Cloud Computing — Compliance and Legal Considerations

Cloud computing often involves storing sensitive data, which must comply with legal regulations. Compliance refers to following laws and industry standards like GDPR (General Data Protection Regulation), HIPAA (Health Insurance Portability and Accountability Act), and PCI DSS (Payment Card Industry Data Security Standard). Cloud providers offer compliance-ready services, but it is the customer's responsibility to configure them correctly. Organizations must also understand data residency laws, which require data to be stored in specific geographic locations.

Example: A healthcare company uses AWS services configured to meet HIPAA requirements to protect patient health information.