As connected devices continue to expand across industries, securing them has become a critical priority for modern organizations. Growing organizations strengthen their security posture by using endpoint security services , with Endpoint Security USA supporting businesses as they protect devices, minimize risk, and maintain secure, dependable operations across evolving digital environments.. IoT Endpoint Security focuses on protecting internet-enabled devices that often operate outside traditional network controls, making them attractive targets for cyber threats.
The rapid adoption of smart devices in healthcare, manufacturing, and smart buildings has introduced new vulnerabilities. cybersecurity These devices often lack built-in security, requiring organizations to implement dedicated strategies to protect data and maintain operational integrity.
IoT Endpoint Security ensures that connected devices such as sensors, cameras, and industrial systems are monitored and protected from unauthorized access. These endpoints can serve as entry points for attackers if not properly secured.
Unlike traditional endpoints, IoT devices often operate with limited processing power and unique protocols. This requires specialized security solutions that can adapt to their constraints while still providing effective protection against threats.
Endpoint Security USA delivers tailored strategies that address the complexities of securing connected devices. Their approach combines advanced monitoring with practical implementation to ensure that IoT ecosystems remain resilient against evolving cyber risks.
Visibility is a major challenge in IoT environments, as many devices operate silently in the background. Effective security solutions provide comprehensive insight into device activity, enabling organizations to detect anomalies and potential threats early.
protection
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Network segmentation plays a key role in protecting IoT devices.
Authentication and access control are essential for preventing unauthorized interactions with IoT devices. Strong identity management ensures that only approved users and systems can communicate with connected endpoints.
Encryption is crucial for safeguarding data transmitted between devices and networks. IoT Endpoint Security ensures that sensitive information remains protected from interception and unauthorized access during communication.

Continuous monitoring is necessary to detect suspicious behavior in real time. By analyzing device activity, organizations can identify unusual patterns that may indicate compromised devices or malicious activity.
Automation enhances the efficiency of IoT security operations.
Integration with existing cybersecurity frameworks is vital for a unified defense strategy. IoT Endpoint Security works alongside traditional security tools to provide comprehensive protection across all systems and environments.
Compliance requirements often extend to IoT deployments, particularly in regulated industries. Organizations must ensure that connected devices meet security standards and do not introduce vulnerabilities into their networks.
Regular updates and patch management are critical in maintaining device security.
The diversity of IoT devices presents unique challenges in standardization and management. Organizations must implement flexible security solutions that can accommodate a wide range of devices and operating environments.
User awareness is also important in maintaining IoT security. Employees must understand how to interact with connected devices safely and recognize potential risks associated with improper usage.
Threat intelligence integration provides valuable insights into emerging risks targeting IoT systems. By staying informed, organizations can proactively adjust their defenses and mitigate potential threats.
Incident response planning ensures that organizations are prepared to handle security breaches involving connected devices.
Scalability is essential as IoT deployments continue to grow. Security solutions must be capable of protecting increasing numbers of devices without compromising performance or reliability.
As technology continues to evolve, the number of connected devices will only increase. Organizations must remain proactive in securing their IoT environments to prevent exploitation by cybercriminals.
Ultimately, IoT Endpoint Security is essential for maintaining the integrity and reliability of connected systems.
A cybersecurity regulation comprises directives that safeguard information technology and computer systems with the purpose of forcing companies and organizations to protect their systems and information from cyberattacks like viruses, worms, Trojan horses, phishing, denial of service (DOS) attacks, unauthorized access (stealing intellectual property or confidential information) and control system attacks.[1] While cybersecurity regulations aim to minimize cyber risks and enhance protection, the uncertainty arising from frequent changes or new regulations can significantly impact organizational response strategies.[1]
There are numerous measures available to prevent cyberattacks. Cybersecurity measures include firewalls, anti-virus software, intrusion detection and prevention systems, encryption, and login passwords.[2] There have been attempts to improve cybersecurity through regulation and collaborative efforts between the government and the private sector to encourage voluntary improvements to cybersecurity.[1][2][3] Industry regulators, including banking regulators, have taken notice of the risk from cybersecurity and have either begun or planned to begin to include cybersecurity as an aspect of regulatory examinations.[2]
Recent research suggests there is also a lack of cyber-security regulation and enforcement in maritime businesses, including the digital connectivity between ships and ports.[4]
In 2011 the United States Department of Defense (DoD) released a guidance called the Department of Defense Strategy for Operating in Cyberspace which articulated five goals: to treat cyberspace as an operational domain, to employ new defensive concepts to protect DoD networks and systems, to partner with other agencies and the private sector in pursuit of a "whole-of-government cybersecurity Strategy", to work with international allies in support of collective cybersecurity and to support the development of a cyber workforce capable of rapid technological innovation.[3] A March 2011 Government Accountability Office (GAO) report "identified protecting the federal government's information systems and the nation's cyber critical infrastructure as a governmentwide high-risk area" noting that federal information security had been designated a high-risk area since 1997.[5] As of 2003 systems protecting critical infrastructure, called cyber critical infrastructure protection of cyber CIP has also been included.[6]
In November 2013, the DoD put forward the new cybersecurity rule (78 Fed. Reg. 69373), which imposed certain requirements on contractors: compliance with certain National Institute of Standards and Technology (NIST) IT standards, mandatory reporting of cybersecurity incidents to the DoD, and a "flow-down" clause that applies the same requirements to subcontractors.[7]
A June 2013 Congressional report found there were over 50 statutes relevant to cybersecurity compliance. The Federal Information Security Management Act of 2002 (FISMA) is one of the key statutes governing federal cybersecurity regulations.[7]
There are few federal cybersecurity regulations and the ones that exist focus on specific industries. The three main cybersecurity regulations are the 1996 Health Insurance Portability and Accountability Act (HIPAA), the 1999 Gramm-Leach-Bliley Act, and the 2002 Homeland Security Act, which included the Federal Information Security Management Act (FISMA). The three regulations mandate that healthcare organizations, financial institutions, and federal agencies should protect their systems and information.[3] For example, FISMA, which applies to every government agency, "requires the development and implementation of mandatory policies, principles, standards, and guidelines on information security." However, the regulations do not address numerous computer-related industries, such as Internet service providers (ISPs) and software companies.[4] Furthermore, the regulations do not specify what cybersecurity measures must be implemented and require only a "reasonable" level of security. The vague language of these regulations leaves much room for interpretation. Bruce Schneier, the founder of Cupertino's Counterpane Internet Security, argues that companies will not make sufficient investments in cybersecurity unless the government forces them to do so.[5] He also states that successful cyberattacks on government systems still occur despite government efforts.[6]
It has been suggested that the Data Quality Act already provides the Office of Management and Budget the statutory authority to implement critical infrastructure protection regulations by the Administrative Procedure Act rulemaking process. The idea has not been fully vetted and would require additional legal analysis before a rulemaking could begin.[8]
State governments have attempted to improve cybersecurity by increasing public visibility of firms with weak security. In 2003, California passed the Notice of Security Breach Act, which requires that any company that maintains personal information of California citizens and has a security breach must disclose the details of the event. Personal information includes name, social security number, driver's license number, credit card number or financial information.[7] Several other states have followed California's example and passed similar security breach notification regulations.[8] Such security breach notification regulations punish firms for their cybersecurity failures while giving them the freedom to choose how to secure their systems. Also, the regulation creates an incentive for companies to voluntarily invest in cybersecurity to avoid the potential loss of reputation and the resulting economic loss that can come from a successful cyber attack.[9]
In 2004, the California State Legislature passed California Assembly Bill 1950, which also applies to businesses that own or maintain personal information for California residents. The regulation dictates for businesses to maintain a reasonable level of security and that they required security practices also extend to business partners.[9] The regulation is an improvement on the federal standard because it expands the number of firms required to maintain an acceptable standard of cybersecurity. However, like the federal legislation, it requires a "reasonable" level of cybersecurity, which leaves much room for interpretation until case law is established.[10]
The US Congress has proposed numerous bills that expand upon cybersecurity regulation. The Consumer Data Security and Notification Act amends the Gramm-Leach-Bliley Act to require disclosure of security breaches by financial institutions. Congressmen have also proposed "expanding Gramm-Leach-Bliley to all industries that touch consumer financial information, including any firm that accepts payment by a credit card."[11] Congress has proposed cybersecurity regulations similar to California's Notice of Security Breach Act for companies that maintain personal information. The Information Protection and Security Act requires that data brokers "ensure data accuracy and confidentiality, authenticate and track users, detect and prevent unauthorized activity, and mitigate potential harm to individuals."[12]
In addition to requiring companies to improve cybersecurity, Congress is also considering bills that criminalize cyberattacks. The Securely Protect Yourself Against Cyber Trespass Act (SPY ACT) was a bill of this type. It focused on phishing and spyware bill and was passed on May 23, 2005, in the US House of Representatives but died in the US Senate.[9] The bill "makes unlawful the unauthorized usage of a computer to take control of it, modify its setting, collect or induce the owner to disclose personally identifiable information, install unsolicited software, and tamper with security, anti-spyware, or anti-virus software."[13]
On May 12, 2011, US president Barack Obama proposed a package of cybersecurity legislative reforms to improve the security of US persons, the federal government, and critical infrastructure. A year of public debate and Congress hearings followed, resulting in the House of Representative passing an information sharing bill and the Senate developing a compromise bill seeking to balance national security, privacy, and business interests.
In July 2012, the Cybersecurity Act of 2012 was proposed by Senators Joseph Lieberman and Susan Collins.[14] The bill would have required creating voluntary "best practice standards" for protection of key infrastructure from cyber attacks, which businesses would be encouraged to adopt through incentives such as liability protection.[15] The bill was put to a vote in the Senate but failed to pass.[16] Obama had voiced his support for the Act in a Wall Street Journal op-ed[17], and it also received support from officials in the military and national security including John O. Brennan, the chief counterterrorism adviser to the White House.[18][19] According to The Washington Post, experts said that the failure to pass the act may leave the United States "vulnerable to widespread hacking or a serious cyberattack." [20] The act was opposed by Republican senators like John McCain who was concerned that the act would introduce regulations that would not be effective and could be a "burden" for businesses.[21] After the Senate vote, Republican Senator Kay Bailey Hutchison stated that the opposition to the bill was not a partisan issue but it not take the right approach to cybersecurity.[22]The senate vote was not strictly along partisan lines, as six Democrats voted against it, and five Republicans voted for it.[23] Critics of the bill included the US Chamber of Commerce,[24] advocacy groups like the American Civil Liberties Union and the Electronic Frontier Foundation,[25] cybersecurity expert Jody Westby, and The Heritage Foundation, both of whom argued that although the government must act on cybersecurity, the bill was flawed in its approach and represented "too intrusive a federal role."[26]
In February 2013, Obama proposed the Executive Order Improving Critical Infrastructure Cybersecurity. It represents the latest iteration of policy but is not considered to be law as it has not been addressed by Congress yet. It seeks to improve existing public-private partnerships by enhancing timeliness of information flow between DHS and critical infrastructure companies. It directs federal agencies to share cyber threat intelligence warnings to any private sector entity identified as a target. It also tasks DHS with improving the process to expedite security clearance processes for applicable public and private sector entities to enable the federal government to share this information at the appropriate sensitive and classified levels. It directs the development of a framework to reduce cyber risks, incorporating current industry best practices and voluntary standards. Lastly, it tasks the federal agencies involved with incorporating privacy and civil liberties protections in line with Fair Information Practice Principles.[10]
In January 2015, Obama announced a new cybersecurity legislative proposal. The proposal was made in an effort to prepare the US from the expanding number of cyber crimes. In the proposal, Obama outlined three main efforts to work towards a more secure cyberspace for the US. The first main effort emphasized the importance of enabling cybersecurity information sharing. By enabling that, the proposal encouraged information sharing between the government and the private sector. That would allow the government to know what main cyber threats private firms are facing and would then allow the government to provide liability protection to those firms that shared their information. Furthermore, that would give the government a better idea of what the US needs to be protected against. Another main effort that was emphasized in this proposal was to modernize the law enforcement authorities to make them more equipped to properly deal with cyber crimes by giving them the tools they need in order to do so. It would also update classifications of cyber crimes and consequences. One way this would be done would be by making it a crime for overseas selling of financial information. Another goal of the effort is to place cyber crimes prosecutable. The last major effort of the legislative proposal was to require businesses to report data breaching to consumers if their personal information had been sacrificed. By requiring companies to do so, consumers are aware of when they are in danger of identity theft.[11]
In February 2016, Obama developed a Cybersecurity National Security Action Plan (CNAP). The plan was made to create long-term actions and strategies in an effort to protect the US against cyber threats. The focus of the plan was to inform the public about the growing threat of cyber crimes, improve cybersecurity protections, protects personal information of Americans, and to inform Americans on how to control digital security. One of the highlights of this plan include creating a "Commission on Enhancing National Cybersecurity." The goal of this is to create a Commission that consists of a diverse group of thinkers with perspectives that can contribute to make recommendations on how to create a stronger cybersecurity for the public and private sector. The second highlight of the plan is to change Government IT. The new Government IT will make it so that a more secure IT can be put in place. The third highlight of the plan is to give Americans knowledge on how they can secure their online accounts and avoid theft of their personal information through multi-factor authentication. The fourth highlight of the plan is to invest 35% more money that was invested in 2016 into cybersecurity.[12]
In July 2023, the SEC adopted rules that require public companies to report “material” cybersecurity incidents on Form 8-K and to describe risk management and governance practices in periodic reports; the incident disclosure is due four business days after a registrant determines materiality. Most registrants began complying in December 2023.[13][14]
At the state level, the New York Department of Financial Services amended its cybersecurity regulation (23 NYCRR Part 500) with a second set of changes that became effective on 1 November 2023. The amendments expand requirements for governance and incident handling, and introduce heightened obligations for larger “Class A” firms.[15]
The Federal Trade Commission amended the Safeguards Rule to add a breach-notification obligation for certain non-bank financial institutions. The requirement is now in effect and calls for notification to the FTC as soon as practicable and no later than 30 days after discovery when an incident involves the information of at least 500 consumers.[16][17]
In health care, the HIPAA Security Rule has been the subject of a modernization proposal. The U.S. Department of Health and Human Services released a notice of proposed rulemaking in late 2024 with publication in the Federal Register on 6 January 2025, seeking updates to strengthen requirements for safeguarding electronic protected health information. [18][19]
Following the 2021 Colonial Pipeline incident, the Transportation Security Administration issued and later revised pipeline cybersecurity Security Directives. A redacted version of SD Pipeline-2021-02E was posted in July 2024, and the agency maintains a page listing current security directives for pipelines and other modes.[20][21]
In addition to regulation, the federal government has tried to improve cybersecurity by allocating more resources to research and collaborating with the private sector to write standards. In 2003, the President's National Strategy to Secure Cyberspace made the Department of Homeland Security (DHS) responsible for security recommendations and researching national solutions. The plan calls for cooperative efforts between government and industry "to create an emergency response system to cyber-attacks and to reduce the nation's vulnerability to such threats "[27] In 2004, the US Congress allocated $4.7 billion toward cybersecurity and achieving many of the goals stated in the President's National Strategy to Secure Cyberspace.[28] Some industry security experts state that the President's National Strategy to Secure Cyberspace is a good first step but is insufficient.[29] The President's National Strategy states that the purpose is to provide a framework for the owners of computer systems to improve their security rather than the government taking over and solving the problem.[30] However, companies that participate in the collaborative efforts outlined in the strategy are not required to adopt the discovered security solutions.
In the United States, the US Congress is trying to make information more transparent after the Cyber Security Act of 2012, which would have created voluntary standards for protecting vital infrastructure, failed to pass through the Senate.[22] In February 2013, the White House issued an executive order, titled "Improving Critical Infrastructure Cybersecurity," which allows the executive branch to share information about threats with more companies and individuals.[22][23] In April 2013, the House of Representatives passed the Cyber Intelligence Sharing and Protection Act (CISPA), which calls for protecting against lawsuits aimed at companies that disclose breach information.[22] The Obama administration said that it might veto the bill.[22]
In the light of the hacking of the website of the Indian Space Agency's commercial arm in 2015, Antrix Corporation and government's Digital India programme, a cyberlaw expert and advocate at the Supreme Court of India, Pavan Duggal, stated that "a dedicated cyber security legislation as a key requirement for India. It is not sufficient to merely put cyber security as a part of the IT Act. We have to see cyber security not only from the sectoral perspective, but also from the national perspective."[24]
More on India, Their cyber-security framework is built primarily on the Information Technology Act, 2000 (IT Act) and its 2008 amendments, which give legal recognition to electronic records and digital signatures and create offenses for unauthorized access, data tampering and certain forms of online content. The Act also designates the Indian Computer Emergency Response Team (CERT-In) as the national agency for incident response under section 70B, with functions that include collecting and analyzing incident information, issuing advisories and coordinating technical response. [25][26]
Under the IT Act, a series of rules and notifications provide more detailed obligations. The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 place due diligence requirements on “intermediaries” such as social media and messaging services, including provisions on content take down and for certain categories of content, traceability of the originator.[27]
In April 2022, CERT-In issued binding directions under section 70B that require service providers, intermediaries, data centers, virtual asset service providers and virtual private network (VPN) providers to report specified cyber incidents to the agency within six hours of detection and to retain certain system logs for 180 days. The directions also call for maintaining accurate subscriber or customer information that can be furnished to authorities on request.[28]
China has developed a comprehensive framework of laws and regulations that govern cyber security, data and personal information. The core instruments are the Cybersecurity Law, which entered into force in 2017, the Data Security Law, effective in 2021, and the Personal Information Protection Law (PIPL), effective in November 2021. Together they regulate network operators, “critical information infrastructure operators”, the classification and protection of data, and the processing of personal information, with an explicit emphasis on national security and public interest.[29]
The Cybersecurity Law requires operators of critical information infrastructure to adopt technical and organizational security measures, undergo security reviews for certain network products and services, and, in many cases, store personal information and “important data” generated within mainland China on domestic servers unless a security assessment is passed for cross-border transfers.[29] The Data Security Law introduces a layered system for classifying and protecting data, including the concept of “important data”, and links data handling obligations to potential risks for national security, the public interest and individual rights.[29]
The Personal Information Protection Law sets out principles for lawful, fair and transparent processing of personal information, defines the rights of individuals over their data, and establishes duties for personal information handlers that are similar to those imposed on data controllers in other jurisdictions. It has extra territorial effect in certain situations where organizations outside China handle the personal information of individuals in China for providing products or services or for analyzing their behavior, and it imposes additional requirements such as security assessments, standard contracts or certification for transferring personal information abroad.[30]
Detailed rules issued by the Cyberspace Administration of China, including the Measures for Security Assessment of Cross Border Data Transfers that took effect in 2022, further specify when data exporters must apply for an official security assessment, for example when exporting important data or large volumes of personal information. Business groups and legal commentators have highlighted the compliance burden and uncertainty created by overlapping definitions and approval procedures, especially for multinational companies that need to move operational or research data out of China.[31][32][33]
These data transfer rules have also affected international scientific cooperation. In 2025 several major European public research funders announced pauses or changes to co-funded programs with Chinese partners, citing concerns that China’s data protection regime, particularly under the Data Security Law, makes it difficult to share research data across borders while remaining compliant.[34]
Cybersecurity standards have been of great prominence in today's technology driven businesses. To maximize their profits, corporations leverage technology by running most of their operations by the internet. Since there are a large number of risks that entail internetwork operations, such operations must be protected by comprehensive and extensive regulations. Existing cybersecurity regulations all cover different aspects of business operations and often vary by region or country in which a business operates. Because of the differences in a country's society, infrastructure, and values, one overarching cyber security standard is not optimal for decreasing risks. While US standards provide a basis for operations, the European Union has created a more tailored regulation for businesses operating specifically within the EU. Also, in light of Brexit, it is important to consider how the UK has chosen to adhere to such security regulations.
Three major regulations within the EU include the ENISA, the NIS Directive and the EU GDPR. They are part of the Digital Single Market strategy.
Regarding standards, the Cybersecurity Act / ENISA Regulation does not refer directly to standards. Nevertheless, ENISA recognises on its website that "EU’s cybersecurity strategy underscores support for greater standardisation via the European standardisation organisations (CEN, CENELEC and ETSI) as well as ISO.[35]"
ISO/IEC Standards, as well as European Standards from CEN, CENELEC and ETSI can be used on a voluntary way to support the requirements in the EU legislation. An updated list of ISO/IEC and CEN/CENELEC standards on the topic of Cybersecurity can be followed up via the free and publicly available information website Genorma.com.[36]
The European Union Agency for Cybersecurity (ENISA) is a governing agency that was originally set up by the Regulation (EC) No 460/2004 of the European Parliament and of the Council of 10 March 2004 for the Purpose of Raising Network and Information Security (NIS) for all internetwork operations in the EU. ENISA currently runs under Regulation (EU) No 526/2013,[37] which has replaced the original regulation in 2013. ENISA works actively with all member states of the EU to provide a range of services. The focus of their operations are on three factors:
ENISA is made up of a management board that relies on the support of the executive director and the Permanent Stakeholders Group. Most operations, however, are run by the heads of various departments.[39]
ENISA has released various publications that cover all major issues on cybersecurity. ENISA's past and current initiatives include the EU Cloud Strategy, Open Standards in Information Communications Technology, a Cyber Security Strategy of the EU and a Cyber Security Coordination Group. ENISA also works in collaboration with existing international standard organizations like the ISO and the ITU.[40]
On July 6, 2016, the European Parliament set into policy the Directive on Security of Network and Information Systems (the NIS Directive).[41]
The directive went into effect in August 2016, and all member states of the European Union were given 21 months to incorporate the directive's regulations into their own national laws.[42] The aim of the NIS Directive is to create an overall higher level of cybersecurity in the EU. The directive significantly affects digital service providers (DSPs) and operators of essential services (OESs). Operators of essential services include any organizations whose operations would be greatly affected in the case of a security breach if they engage in critical societal or economic activities. Both DSPs and OES are now held accountable for reporting major security incidents to Computer Security Incident Response Teams (CSIRT).[43] While DSPs are not held to as stringent regulations as operators of essential services, DSPs that are not set up in the EU but still operate in the EU still face regulations. Even if DSPs and OES outsource the maintenance of their information systems to third parties, the NIS Directive still holds them accountable for any security incidents.[44]
The member states of the EU are required to create a NIS directive strategy, which includes the CSIRTs, in addition to National Competent Authorities (NCAs) and Single Points of Contact (SPOCs). Such resources are given the responsibility of handling cybersecurity breaches in a way that minimizes impact. In addition, all member states of the EU are encouraged to share cyber security information.[45]
Security requirements include technical measures that manage the risks of cybersecurity breaches in a preventative manner. Both DSP and OES must provide information that allows for an in depth assessment of their information systems and security policies.[46] All significant incidents must be notified to the CSIRTs. Significant cybersecurity incidents are determined by the number of users affected by the security breach as well as the longevity of the incident and the geographical reach of the incident.[46]
The NIS2 Directive (Directive (EU) 2022/2555) broadened the sectors covered by EU network and information security rules and updated incident reporting and oversight. Member States were required to transpose NIS2 by 17 October 2024, and the earlier NIS Directive was repealed on 18 October 2024. [47]
Only 23 Member States have fully implemented the measures contained with the NIS Directive. Infringement proceedings against them to enforce the Directive have not taken place, and they are not expected to take place in the near future.[48] This failed implementation has led to the fragmentation of cybersecurity capabilities across the EU, with differing standards, incident reporting requirements and enforcement requirements being implemented in different Member States.
The Cyber Resilience Act (Regulation (EU) 2024/2847) sets horizontal cybersecurity requirements for products with digital elements. It was adopted on 23 October 2024. Application is staged, with certain provisions applying in 2026 and full application from 11 December 2027, as set out in Article 71. [49] ENISA will have a key role in setting up and maintaining the European cybersecurity certification framework.[50]
The EU General Data Protection Regulation (GDPR) was set into place on 14 April 2016, but then the date of enforcement has been changed to 25 May 2018.[51] The GDPR aims to bring a single standard for data protection among all member states in the EU. Changes include the redefining of geographical borders. It applies to entities that operate in the EU or deal with the data of any resident of the EU. Regardless of where the data is processed, if an EU citizen's data is being processed, the entity is now subject to the GDPR.[52]
Fines are also much more stringent under the GDPR and can total €20 million or 4% of an entity's annual turnover, whichever is higher.[52] In addition, like in previous regulations, all data breaches that effect the rights and freedoms of individuals residing in the EU must be disclosed within 72 hours.
The overarching board, the EU Data Protection Board, EDP, is in charge of all oversight set by the GDPR.
Consent plays a major role in the GDPR. Companies that hold data in regards to EU citizens must now also offer to them the right to back out of sharing data just as easily as when they consented to sharing data.[53]
In addition, citizens can also restrict processing of the data stored on them and can choose to allow companies to store their data but not process it, which creates a clear differentiation. Unlike previous regulations, the GDPR also restricts the transfer of a citizen's data outside of the EU or to a third party without a citizen's prior consent.[53]
On the 16 January 2023, the EU Parliament and Council adopted the 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148 (NIS Directive)[54]. This new Directive aims to extend the scope of obligations on entities required to take measures to increase their cybersecurity capabilities. The Directive also aims to harmonise the EU approach to incident notifications, security requirements, supervisory measures and information sharing.[55] The National Cyber Security Bill 2024 will transpose NIS2 into Irish law once enacted.[56]
Against the backdrop of increasing dependence on digital technologies, the COVID-19 pandemic highlighted how sensitive digitised societies can be to unexpected risks.[57] In light of this evidence, the European Commission reviewed the existing NIS (Network and Information Security) Directive and identified the following critical points:
Following various rounds of consultations, the final NIS 2 Directive[58] was adopted by the EU Commission on 14 December 2022.
The directive requires the member states of the European Union to adopt a national cybersecurity strategy. Furthermore, national computer security incident response teams (CSIRTs) must be designated, responsible for handling risks and incidents. A so-called single point of contact (SPoC) is intended to ensure a secure cross-border cooperation between the authorities of the Member States.
The NIS 2 Directive imposes stricter requirements on national authorities than the previous NIS Directive and aligns sanction possibilities across Member States. The directive introduces stricter supervisory measures for national authorities, stricter enforcement requirements, and harmonisation of sanction regimes in all Member States.
Unlike, for example, in the ordinance issued in 2016 under the German BSI Act to protect critical infrastructures (BSI-KritisV),[59] culture and media, local public transport and wholesale of medicines are not covered by the NIS 2 Directive, but new areas such as space, top-level domain registrars and trust service providers were added.[60] The increase in affected institutions is mainly due to the fact that the thresholds known from the BSI-KritisV no longer apply here. In addition, there are several gradations: a distinction is now made between so-called essential entities and important entities, primarily based on the number of employees or turnover. As before, there are also critical entities.[61]
DORA creates a regulatory framework on digital operational resilience whereby all firms need to make sure they can withstand, respond to and recover from all types of ICT-related disruptions and threats. These requirements are homogenous across all EU member states. The regulation will apply from 17 January 2025 for relevant financial entities and ICT third-party service providers.[62]
The Cyber Resilience Act (Regulation (EU) 2024/2847) sets horizontal cybersecurity requirements for products with digital elements. It was adopted on 23 October 2024. Application is staged, with certain provisions applying in 2026 and full application from 11 December 2027, as set out in Article 71.[63][64][65]
The Criminal Justice (Offences Relating to Information Systems) Act 2017 was introduced in May 2017 to consolidate laws on computer crime.[66][67]
The Product Security and Telecommunications Infrastructure (PSTI) regime introduced mandatory security requirements for consumer “connectable” products in the UK. It came into force on 29 April 2024 and includes measures such as banning default or easily guessable passwords, publishing a point of contact for vulnerability reporting, and providing transparency about security updates. [68][69]
Outside binding law, the NIST Cybersecurity Framework was updated to version 2.0 in February 2024. The update added a new Govern function that emphasizes governance and supply-chain risk and is intended to inform how organizations implement the other functions. [70][71]
While experts agree that cybersecurity improvements are necessary, there is disagreement about whether the solution is more government regulation or more private-sector innovation.
Many government officials and cybersecurity experts believe that the private sector has failed to solve the cybersecurity problem and that regulation is needed. Richard Clarke states that "industry only responds when you threaten regulation. If industry does not respond [to the threat], you have to follow through."[31] He believes that software companies must be forced to produce more secure programs.[32] Bruce Schneier also supports regulation that encourages software companies to write more secure code through economic incentives.[33] US Representative Rick Boucher (D–VA) proposes improving cybersecurity by making software companies liable for security flaws in their code.[34] In addition, to improving software security, Clarke believes that certain industries, such as utilities and ISPs, require regulation.[35]
On the other hand, many private-sector executives and lobbyists believe that more regulation will restrict their ability to improve cybersecurity. Harris Miller, a lobbyist and president of the Information Technology Association of America, believes that regulation inhibits innovation.[36] Rick White, former corporate attorney and president and CEO of the lobby group TechNet, also opposes more regulation. He states that "the private-sector must continue to be able to innovate and adapt in response to new attack methods in cyber space, and toward that end, we commend President Bush and the Congress for exercising regulatory restraint."[37]
Another reason many private-sector executives oppose regulation is that it is costly and involves government oversight in private enterprise. Firms are just as concerned about regulation reducing profits as they are about regulation limiting their flexibility to solve the cybersecurity problem efficiently.
Specifically around the CRA, concern is expressed over the breadth of impact by prominent free and Open source software organizations: Eclipse Foundation, Internet Society, and Python Software Foundation. These organizations highlight consequences unstated in the regulation, that they conclude fundamentally damage the Open source movement. They offer changes that would allow Open source to be used in the EU without being regulated in the same manner as would be on commercial software developers.[72][73][74][75]
Cloud computing is defined by the International Organization for Standardization (ISO) as "a paradigm for enabling network access to a scalable and elastic pool of shareable physical or virtual resources with self-service provisioning and administration on demand".[1] It is commonly referred to as "the cloud".[2]
In 2011, the National Institute of Standards and Technology (NIST) identified five "essential characteristics" for cloud systems.[3] Below are the exact definitions according to NIST:[3]
By 2023, the International Organization for Standardization (ISO) had expanded and refined the list.[4]
The history of cloud computing extends to the 1960s, with the initial concepts of time-sharing becoming popularized via remote job entry (RJE). The "data center" model, where users submitted jobs to operators to run on mainframes, was predominantly used during this era. This period saw broad experimentation with making large-scale computing power more accessible through time-sharing, while optimizing infrastructure, platforms, and applications to improve efficiency for end users.[5]
The "cloud" metaphor for virtualized services dates to 1994, when it was used by General Magic for the universe of "places" that mobile agents in the Telescript environment could "go". The metaphor is credited to David Hoffman, a General Magic communications specialist, based on its long-standing use in networking and telecom.[6] The expression cloud computing became more widely known in 1996 when Compaq Computer Corporation drew up a business plan for future computing and the Internet. The company's ambition was to supercharge sales with "cloud computing-enabled applications". The business plan foresaw that online consumer file storage would likely be commercially successful. As a result, Compaq decided to sell server hardware to internet service providers.[7]
In the 2000s, the application of cloud computing began to take shape with the establishment of Amazon Web Services (AWS) in 2002, which allowed developers to build applications independently. In 2006 Amazon Simple Storage Service, known as Amazon S3, and the Amazon Elastic Compute Cloud (EC2) were released. In 2008 NASA's development of the first open-source software for deploying private and hybrid clouds.[8][9]
The following decade saw the launch of various cloud services. In 2010, Microsoft launched Microsoft Azure, and Rackspace Hosting and NASA initiated an open-source cloud-software project, OpenStack. IBM introduced the IBM SmartCloud framework in 2011, and Oracle announced the Oracle Cloud in 2012. In December 2019, Amazon launched AWS Outposts, a service that extends AWS infrastructure, services, APIs, and tools to customer data centers, co-location spaces, or on-premises facilities.[10][11]
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Cloud computing can shorten time to market by offering pre-configured tools, scalable resources, and managed services, allowing users to focus on core business value rather than maintaining infrastructure. Cloud platforms can enable organizations and individuals to reduce upfront capital expenditures on physical infrastructure by shifting to an operational expenditure model, where costs scale with usage. Cloud platforms also offer managed services and tools, such as artificial intelligence, data analytics, and machine learning, which might otherwise require significant in-house expertise and infrastructure investment.[12][13][14]
While cloud computing can offer cost advantages through effective resource optimization, organizations often face challenges such as unused resources, inefficient configurations, and hidden costs without proper oversight and governance. Many cloud platforms provide cost management tools, such as AWS Cost Explorer and Azure Cost Management, and frameworks like FinOps have emerged to standardize financial operations in the cloud. Cloud computing also facilitates collaboration, remote work, and global service delivery by enabling secure access to data and applications from any location with an internet connection.[12][13][14]
Cloud providers offer various redundancy options for core services, such as managed storage and managed databases, though redundancy configurations often vary by service tier. Advanced redundancy strategies, such as cross-region replication or failover systems, typically require explicit configuration and may incur additional costs or licensing fees.[12][13][14]
Cloud environments operate under a shared responsibility model, where providers are typically responsible for infrastructure security, physical hardware, and software updates, while customers are accountable for data encryption, identity and access management (IAM), and application-level security. These responsibilities vary depending on the cloud service model—Infrastructure as a Service (IaaS), Platform as a Service (PaaS), or Software as a Service (SaaS)—with customers typically having more control and responsibility in IaaS environments and progressively less in PaaS and SaaS models, often trading control for convenience and managed services.[12][13][14]
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The decision to adopt cloud computing or maintain on-premises infrastructure depends on factors such as scalability, cost structure, latency requirements, regulatory constraints, and infrastructure customization.[15][16][17][18]
Organizations with variable or unpredictable workloads, limited capital for upfront investments, or a focus on rapid scalability benefit from cloud adoption. Startups, SaaS companies, and e-commerce platforms often prefer the pay-as-you-go operational expenditure (OpEx) model of cloud infrastructure. Additionally, companies prioritizing global accessibility, remote workforce enablement, disaster recovery, and leveraging advanced services such as AI/ML and analytics are well-suited for the cloud. In recent years, some cloud providers have started offering specialized services for high-performance computing and low-latency applications, addressing some use cases previously exclusive to on-premises setups.[15][16][17][18]
On the other hand, organizations with strict regulatory requirements, highly predictable workloads, or reliance on deeply integrated legacy systems may find cloud infrastructure less suitable. Businesses in industries like defense, government, or those handling highly sensitive data often favor on-premises setups for greater control and data sovereignty. Additionally, companies with ultra-low latency requirements, such as high-frequency trading (HFT) firms, rely on custom hardware (e.g., FPGAs) and physical proximity to exchanges, which most cloud providers cannot fully replicate despite recent advancements. Similarly, tech giants like Google, Meta, and Amazon build their own data centers due to economies of scale, predictable workloads, and the ability to customize hardware and network infrastructure for optimal efficiency. However, these companies also use cloud services selectively for certain workloads and applications where it aligns with their operational needs.[15][16][17][18]
In practice, many organizations are increasingly adopting hybrid cloud architectures, combining on-premises infrastructure with cloud services. This approach allows businesses to balance scalability, cost-effectiveness, and control, offering the benefits of both deployment models while mitigating their respective limitations.[15][16][17][18]
One of the primary challenges of cloud computing, compared with traditional on-premises systems, is maintaining data security and privacy. Cloud users entrust their sensitive data to third-party providers, who may not have adequate measures to protect it from unauthorized access, breaches, or leaks. Cloud users also face compliance risks if they have to adhere to certain regulations or standards regarding data protection, such as GDPR or HIPAA.[19]
Another challenge of cloud computing is reduced visibility and control. Cloud users may not have full insight into how their cloud resources are managed, configured, or optimized by their providers. They may also have limited ability to customize or modify their cloud services according to their specific needs or preferences.[19] Complete understanding of all technology may be impossible, especially given the scale, complexity, and deliberate opacity of contemporary systems; however, there is a need for understanding complex technologies and their interconnections to have power and agency within them.[20] The metaphor of the cloud can be seen as problematic as cloud computing retains the aura of something noumenal and numinous; it is something experienced without precisely understanding what it is or how it works.[21]
Additionally, cloud migration is a significant challenge. This process involves transferring data, applications, or workloads from one cloud environment to another, or from on-premises infrastructure to the cloud. Cloud migration can be complicated, time-consuming, and expensive, particularly when there are compatibility issues between different cloud platforms or architectures. If not carefully planned and executed, cloud migration can lead to downtime, reduced performance, or even data loss.[22]
According to the 2024 State of the Cloud Report by Flexera, approximately 50% of respondents identified the following top challenges when migrating workloads to public clouds:[23]
Applications hosted in the cloud are susceptible to the fallacies of distributed computing, a series of misconceptions that can lead to significant issues in software development and deployment.[24]
In a report by Gartner, a survey of 200 IT leaders revealed that 69% experienced budget overruns in their organizations' cloud expenditures during 2023. Conversely, 31% of IT leaders whose organizations stayed within budget attributed their success to accurate forecasting and budgeting, proactive monitoring of spending, and effective optimization.[25]
The 2024 Flexera State of Cloud Report identifies the top cloud challenges as managing cloud spend, followed by security concerns and lack of expertise. Public cloud expenditures exceeded budgeted amounts by an average of 15%. The report also reveals that cost savings is the top cloud initiative for 60% of respondents. Furthermore, 65% measure cloud progress through cost savings, while 42% prioritize shorter time-to-market, indicating that cloud's promise of accelerated deployment is often overshadowed by cost concerns.[23]
Typically, cloud providers' Service Level Agreements (SLAs) do not encompass all forms of service interruptions. Exclusions typically include planned maintenance, downtime resulting from external factors such as network issues, human errors, like misconfigurations, natural disasters, force majeure events, or security breaches. Typically, customers bear the responsibility of monitoring SLA compliance and must file claims for any unmet SLAs within a designated timeframe. Customers should be aware of how deviations from SLAs are calculated, as these parameters may vary by service. These requirements can place a considerable burden on customers. Additionally, SLA percentages and conditions can differ across various services within the same provider, with some services lacking any SLA altogether. In cases of service interruptions due to hardware failures in the cloud provider, the company typically does not offer monetary compensation. Instead, eligible users may receive credits as outlined in the corresponding SLA.[26][27][28][29]
Cloud computing abstractions aim to simplify resource management, but leaky abstractions can expose underlying complexities. These variations in abstraction quality depend on the cloud vendor, service and architecture. Mitigating leaky abstractions requires users to understand the implementation details and limitations of the cloud services they utilize.[30][31][32]
Service lock-in within the same vendor occurs when a customer becomes dependent on specific services within a cloud vendor, making it challenging to switch to alternative services within the same vendor when their needs change.[33][34]
Cloud computing poses privacy concerns because the service provider can access the data that is in the cloud at any time. It could accidentally or deliberately alter or delete information.[35] Many cloud providers can share information with third parties if necessary for purposes of law and order without a warrant. That is permitted in their privacy policies, which users must agree to before they start using cloud services. Solutions to privacy include policy and legislation as well as end-users' choices for how data is stored.[35] Users can encrypt data that is processed or stored within the cloud to prevent unauthorized access.[35] Identity management systems can also provide practical solutions to privacy concerns in cloud computing. These systems distinguish between authorized and unauthorized users and determine the amount of data that is accessible to each entity.[36] The systems work by creating and describing identities, recording activities, and getting rid of unused identities.
According to the Cloud Security Alliance, the top three threats in the cloud are Insecure Interfaces and APIs, Data Loss & Leakage, and Hardware Failure—which accounted for 29%, 25% and 10% of all cloud security outages respectively. Together, these form shared technology vulnerabilities. In a cloud provider platform being shared by different users, there may be a possibility that information belonging to different customers resides on the same data server. Additionally, Eugene Schultz, chief technology officer at Emagined Security, said that hackers are spending substantial time and effort looking for ways to penetrate the cloud. "There are some real Achilles' heels in the cloud infrastructure that are making big holes for the bad guys to get into". Because data from hundreds or thousands of companies can be stored on large cloud servers, hackers can theoretically gain control of huge stores of information through a single attack—a process he called "hyperjacking". Some examples of this include the Dropbox security breach, and iCloud 2014 leak.[37] Dropbox had been breached in October 2014, having over seven million of its users passwords stolen by hackers in an effort to get monetary value from it by Bitcoins (BTC). By having these passwords, they are able to read private data as well as have this data be indexed by search engines (making the information public).[37]
There is the problem of legal ownership of the data (If a user stores some data in the cloud, can the cloud provider profit from it?). Many Terms of Service agreements are silent on the question of ownership.[38] Physical control of the computer equipment (private cloud) is more secure than having the equipment off-site and under someone else's control (public cloud). This delivers great incentive to public cloud computing service providers to prioritize building and maintaining strong management of secure services.[39] Some small businesses that do not have expertise in IT security could find that it is more secure for them to use a public cloud. There is the risk that end users do not understand the issues involved when signing on to a cloud service (persons sometimes do not read the many pages of the terms of service agreement, and just click "Accept" without reading). This is important now that cloud computing is common and required for some services to work, for example for an intelligent personal assistant (Apple's Siri or Google Assistant). Fundamentally, private cloud is seen as more secure with higher levels of control for the owner, however public cloud is seen to be more flexible and requires less time and money investment from the user.[40]
The attacks that can be made on cloud computing systems include man-in-the middle attacks, phishing attacks, authentication attacks, and malware attacks. One of the largest threats is considered to be malware attacks, such as Trojan horses. Recent research conducted in 2022 has revealed that the Trojan horse injection method is a serious problem with harmful impacts on cloud computing systems.[41]
The CLOUD Act allows United States authorities to request data from cloud providers, and courts can impose nondisclosure requirements preventing providers from notifying affected users.[42] This framework is in legal tension with Article 48 of the European General Data Protection Regulation (GDPR), which restricts the transfer of personal data in response to foreign court or administrative orders unless based on an international agreement. As a result, cloud service providers operating in both Europe and the U.S. may face competing legal obligations.[43]
According to Laura K. Donohue writing for the Harvard Journal of Law and Public Policy, cloud service providers also fall within the broader category of service providers subject to Section 702 of the Foreign Intelligence Surveillance Act (FISA), which has had documented effects on cloud providers and their customers.[44]
The National Institute of Standards and Technology recognized three cloud service models in 2011: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).[3] The International Organization for Standardization (ISO) later identified additional models in 2023, including "Network as a Service", "Communications as a Service", "Compute as a Service", and "Data Storage as a Service".[4]
Infrastructure as a service (IaaS) refers to online services that provide high-level APIs used to abstract various low-level details of underlying network infrastructure like physical computing resources, location, data partitioning, scaling, security, backup, etc. A hypervisor runs the virtual machines as guests. Pools of hypervisors within the cloud operational system can support large numbers of virtual machines and the ability to scale services up and down according to customers' varying requirements. Linux containers run in isolated partitions of a single Linux kernel running directly on the physical hardware. Linux cgroups and namespaces are the underlying Linux kernel technologies used to isolate, secure and manage the containers. The use of containers offers higher performance than virtualization because there is no hypervisor overhead. IaaS clouds often offer additional resources such as a virtual-machine disk-image library, raw block storage, file or object storage, firewalls, load balancers, IP addresses, virtual local area networks (VLANs), and software bundles.[45]
The NIST's definition of cloud computing describes IaaS as "where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, and deployed applications; and possibly limited control of select networking components (e.g., host firewalls)."[3]
IaaS-cloud providers supply these resources on-demand from their large pools of equipment installed in data centers. For wide-area connectivity, customers can use either the Internet or carrier clouds (dedicated virtual private networks). To deploy their applications, cloud users install operating-system images and their application software on the cloud infrastructure. In this model, the cloud user patches and maintains the operating systems and the application software. Cloud providers typically bill IaaS services on a utility computing basis: cost reflects the number of resources allocated and consumed.[46]
The NIST's definition of cloud computing defines Platform as a Service as:[3]
The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages, libraries, services, and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly configuration settings for the application-hosting environment.
PaaS vendors offer a development environment to application developers. The provider typically develops toolkit and standards for development and channels for distribution and payment. In the PaaS models, cloud providers deliver a computing platform, typically including an operating system, programming-language execution environment, database, and the web server. Application developers develop and run their software on a cloud platform instead of directly buying and managing the underlying hardware and software layers. With some PaaS, the underlying computer and storage resources scale automatically to match application demand so that the cloud user does not have to allocate resources manually.[47][need quotation to verify]
Some integration and data management providers also use specialized applications of PaaS as delivery models for data. Examples include iPaaS (Integration Platform as a Service) and dPaaS (Data Platform as a Service). iPaaS enables customers to develop, execute and govern integration flows.[48] Under the iPaaS integration model, customers drive the development and deployment of integrations without installing or managing any hardware or middleware.[49] dPaaS delivers integration—and data-management—products as a fully managed service.[50] Under the dPaaS model, the PaaS provider, not the customer, manages the development and execution of programs by building data applications for the customer. dPaaS users access data through data-visualization tools.[51]
The NIST's definition of cloud computing defines Software as a Service as:[3]
The capability provided to the consumer is to use the provider's applications running on a cloud infrastructure. The applications are accessible from various client devices through either a thin client interface, such as a web browser (e.g., web-based email), or a program interface. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings.
In the software as a service (SaaS) model, users gain access to application software and databases. Cloud providers manage the infrastructure and platforms that run the applications. SaaS is sometimes referred to as "on-demand software" and is usually priced on a pay-per-use basis or using a subscription fee.[52] In the SaaS model, cloud providers install and operate application software in the cloud and cloud users access the software from cloud clients. Cloud users do not manage the cloud infrastructure and platform where the application runs. This eliminates the need to install and run the application on the cloud user's own computers, which simplifies maintenance and support. Cloud applications differ from other applications in their scalability—which can be achieved by cloning tasks onto multiple virtual machines at run-time to meet changing work demand.[53] Load balancers distribute the work over the set of virtual machines. This process is transparent to the cloud user, who sees only a single access-point. To accommodate a large number of cloud users, cloud applications can be multitenant, meaning that any machine may serve more than one cloud-user organization.
The pricing model for SaaS applications is typically a monthly or yearly flat fee per user,[54] so prices become scalable and adjustable if users are added or removed at any point. It may also be free.[55] Proponents claim that SaaS gives a business the potential to reduce IT operational costs by outsourcing hardware and software maintenance and support to the cloud provider. This enables the business to reallocate IT operations costs away from hardware/software spending and from personnel expenses, towards meeting other goals. In addition, with applications hosted centrally, updates can be released without the need for users to install new software. One drawback of SaaS comes with storing the users' data on the cloud provider's server. As a result,[citation needed] there could be unauthorized access to the data.[56] Examples of applications offered as SaaS are games and productivity software like Google Docs and Office Online. SaaS applications may be integrated with cloud storage or File hosting services, which is the case with Google Docs being integrated with Google Drive, and Office Online being integrated with OneDrive.[57]
Serverless computing allows customers to use various cloud capabilities without the need to provision, deploy, or manage hardware or software resources, apart from providing their application code or data. ISO/IEC 22123-2:2023 classifies serverless alongside Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) under the broader category of cloud service categories. Notably, while ISO refers to these classifications as cloud service categories, the National Institute of Standards and Technology (NIST) refers to them as service models.[3][4]
"A cloud deployment model represents the way in which cloud computing can be organized based on the control and sharing of physical or virtual resources."[4] Cloud deployment models define the fundamental patterns of interaction between cloud customers and cloud providers. They do not detail implementation specifics or the configuration of resources.[4]
Private cloud is cloud infrastructure operated solely for a single organization, whether managed internally or by a third party, and hosted either internally or externally.[3] Undertaking a private cloud project requires significant engagement to virtualize the business environment, and requires the organization to reevaluate decisions about existing resources. It can improve business, but every step in the project raises security issues that must be addressed to prevent serious vulnerabilities. Self-run data centers[58] are generally capital intensive. They have a significant physical footprint, requiring allocations of space, hardware, and environmental controls. These assets have to be refreshed periodically, resulting in additional capital expenditures. They have attracted criticism because users "still have to buy, build, and manage them" and thus do not benefit from less hands-on management,[59] essentially "[lacking] the economic model that makes cloud computing such an intriguing concept".[60][61]
Cloud services are considered "public" when they are delivered over the public Internet, and they may be offered as a paid subscription, or free of charge.[62] Architecturally, there are few differences between public- and private-cloud services, but security concerns increase substantially when services (applications, storage, and other resources) are shared by multiple customers. Most public-cloud providers offer direct-connection services that allow customers to securely link their legacy data centers to their cloud-resident applications.[63][64]
Several factors like the functionality of the solutions, cost, integrational and organizational aspects as well as safety & security are influencing the decision of enterprises and organizations to choose a public cloud or on-premises solution.[65]
Hybrid cloud is a composition of a public cloud and a private environment, such as a private cloud or on-premises resources,[66][67] that remain distinct entities but are bound together, offering the benefits of multiple deployment models. Hybrid cloud can also mean the ability to connect collocation, managed or dedicated services with cloud resources.[3] Gartner defines a hybrid cloud service as a cloud computing service that is composed of some combination of private, public and community cloud services, from different service providers.[68] A hybrid cloud service crosses isolation and provider boundaries so that it cannot be simply put in one category of private, public, or community cloud service. It allows one to extend either the capacity or the capability of a cloud service, by aggregation, integration or customization with another cloud service.
Varied use cases for hybrid cloud composition exist. For example, an organization may store sensitive client data in house on a private cloud application, but interconnect that application to a business intelligence application provided on a public cloud as a software service.[69] This example of hybrid cloud extends the capabilities of the enterprise to deliver a specific business service through the addition of externally available public cloud services. Hybrid cloud adoption depends on a number of factors such as data security and compliance requirements, level of control needed over data, and the applications an organization uses.[70]
Another example of hybrid cloud is one where IT organizations use public cloud computing resources to meet temporary capacity needs that can not be met by the private cloud.[71] This capability enables hybrid clouds to employ cloud bursting for scaling across clouds.[3] Cloud bursting is an application deployment model in which an application runs in a private cloud or data center and "bursts" to a public cloud when the demand for computing capacity increases. A primary advantage of cloud bursting and a hybrid cloud model is that an organization pays for extra compute resources only when they are needed.[72] Cloud bursting enables data centers to create an in-house IT infrastructure that supports average workloads, and use cloud resources from public or private clouds, during spikes in processing demands.[73]
Community cloud shares infrastructure between several organizations from a specific community with common concerns (security, compliance, jurisdiction, etc.), whether it is managed internally or by a third-party, and hosted internally or externally, the costs are distributed among fewer users compared to a public cloud (but more than a private cloud). As a result, only a portion of the potential cost savings of cloud computing is achieved. [3]
According to ISO/IEC 22123-1: "multi-cloud is a cloud deployment model in which a customer uses public cloud services provided by two or more cloud service providers". [74] Poly cloud refers to the use of multiple public clouds for the purpose of leveraging specific services that each provider offers. It differs from Multi cloud in that it is not designed to increase flexibility or mitigate against failures but is rather used to allow an organization to achieve more than could be done with a single provider.[75]
According to International Data Corporation (IDC), global spending on cloud computing services has reached $706 billion and is expected to reach $1.3 trillion by 2025.[76] Gartner estimated that global public cloud services end-user spending would reach $600 billion by 2023.[77] According to a McKinsey & Company report, cloud cost-optimization levers and value-oriented business use cases foresee more than $1 trillion in run-rate EBITDA across Fortune 500 companies as up for grabs in 2030.[78] In 2022, more than $1.3 trillion in enterprise IT spending was at stake from the shift to the cloud, growing to almost $1.8 trillion in 2025, according to Gartner.[79]
The European Commission's 2012 Communication identified several issues which were impeding the development of the cloud computing market:[80]: Section 3
The Communication set out a series of "digital agenda actions" which the Commission proposed to undertake in order to support the development of a fair and effective market for cloud computing services.[80]: Pages 6–14
As of 2025, the three largest cloud computing providers by market share, commonly referred to as hyperscalers, are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.[81][82] These companies dominate the global cloud market due to their extensive infrastructure, broad service offerings, and scalability.
In recent years, organizations have increasingly adopted alternative cloud providers, which offer specialized services that distinguish them from hyperscalers. These providers may offer advantages such as lower costs, improved cost transparency and predictability, enhanced data sovereignty (particularly within regions such as the European Union to comply with regulations like the General Data Protection Regulation (GDPR)), stronger alignment with local regulatory requirements, or industry-specific services.[83]
Alternative cloud providers are often part of multi-cloud strategies, where organizations use multiple cloud services—both from hyperscalers and specialized providers—to optimize performance, compliance, and cost efficiency. However, they do not necessarily serve as direct replacements for hyperscalers, as their offerings are typically more specialized.[83]
The goal of cloud computing is to allow users to take benefit from all of these technologies, without the need for deep knowledge about or expertise with each one of them. The cloud aims to cut costs and helps the users focus on their core business instead of being impeded by IT obstacles.[84] The main enabling technology for cloud computing is virtualization. Virtualization software separates a physical computing device into one or more "virtual" devices, each of which can be easily used and managed to perform computing tasks. With operating system-level virtualization essentially creating a scalable system of multiple independent computing devices, idle computing resources can be allocated and used more efficiently. Virtualization provides the agility required to speed up IT operations and reduces cost by increasing infrastructure utilization. Autonomic computing automates the process through which the user can provision resources on-demand. By minimizing user involvement, automation speeds up the process, reduces labor costs and reduces the possibility of human errors.[84]
Cloud computing uses concepts from utility computing to provide metrics for the services used. Cloud computing attempts to address QoS (quality of service) and reliability problems of other grid computing models.[84]
Cloud computing shares characteristics with:
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