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Hybrid Cloud Solutions Offer Enhanced Cloud Protection & Data Security

Storing health care data on a web-based private cloud

By David Canellos
PerspecSys President and CEO

Despite widespread concerns about cloud data security and control, there's been a lot of recent news on the healthcare industry's steady, but cautious foray into cloud computing. In early July, research firm MarketsandMarkets issued a report stating that the healthcare cloud computing market will grow from $1.7 billion in 2011 to $5.4 billion by 2017, an encouraging 20.5% compounded annual growth rate. However, the report points to some key restraints, such as patient data security and cloud compliance that could slow down the market unless mitigated.

In a unique twist, a recent article identifies cloud data security as a primary driver, not an obstacle in the cloud adoption trend. In "Money in a mattress: Why patient records should move to a private cloud", the author expounds on the security weaknesses of traditional hospital client-server systems in which protected data can be easily compromised, and he points to private or hybrid clouds as better solutions.

In client/server environments, data is often stored in unsecure server rooms and frequently downloaded to desktop and laptop devices, which can be stolen or lost. A safer option is to store health care data on a web-based private cloud, using cloud architecture similar to what is now more commonly being used by financial institutions, defense organizations, and intelligence agencies. Designed with cloud encryption and tokenization technology, these types of hybrid cloud data protection solutions let the users define and control what happens to their sensitive data when it's in the cloud. And companies in these industries are finding that the solutions can and do offer the needed protection, opening up enormous financial and strategic benefits offered by the previously "off-limits" cloud.

For health care providers, cloud data protection solutions that incorporate encryption and tokenization help resolve HIPAA cloud data security mandates, which require the organizations to maintain the confidentiality of electronic Protected Health Information (ePHI). A case in point is IEHP's use of encryption technology to help secure sensitive data (PHI) in Oracle's leading cloud-based CRM application, Oracle CRM On Demand. Encryption of ePHI is an acknowledged best practice for HIPAA compliance, and healthcare organizations are now starting to leverage cloud benefits both safely and legally. In many cases, this includes enhanced security over their traditional client-server architectures.

Read the original blog entry...


PerspecSys Inc. is a leading provider of cloud data security and SaaS security solutions that remove the technical, legal and financial risks of placing sensitive company data in the cloud. PerspecSys accomplishes this for many large, heavily regulated companies who rely on cloud compliance by never allowing sensitive data to leave a customer's network, while maintaining the functionality of cloud applications. Based in Toronto, PerspecSys Inc. is a privately held company backed by investors that include Intel Capital and GrowthWorks.

More Stories By David Canellos

David Canellos is a security veteran who is now President and CEO of PerspecSys. An entrepreneur specializing in bringing innovative security and privacy solutions to market, he has been instrumental in establishing PerspecSys as the leader in the Cloud data Protection Gateway market.

Before joining PerspecSys, David held executive positions at Irdeto Worldwide, which acquired the company he led, Cloakware, which was a pioneer in encryption and digital rights management. Before joining Cloakware, he was the General Manager and Vice President of Sales for Cramer Systems (now Amdocs), a UK-based company, where he was responsible for the company’s revenue and operations in the Americas. Prior to his work with Cramer, David held a variety of executive, sales management and business development positions with the Oracle Corporation, Versatility and SAIC.

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