Kim Cameron recently went to a conference where he heard a cloud computing vendor utter these, and judging on the blogosphere almost legendary, words:
One of the vendors shook me to the core when he said, “If you have the right physical access controls and the right background checks on employees, then you don’t need encryption”.
Kim admitted he almost choked. I can understand him. We are in for some rough times if there are cloud computing vendors out there who think like that.
On the other hand I would like to take this opportunity to make sure you know that encryption in itself does not mean security. You can apply encryption all over the place, using keys that have a gazillion bits, and still have a unsecure, dumb solution.
Any vendor who replies “We use 256 bit AES encryption” when answering the question “How do you secure transmission of data?” is as dumb as the vendor who says “physical access controls and the right background checks on employees make encryption not necessary”.