How Cloud Security Standards Are Evolving: What Businesses Need to Know

As more and more companies move to cloud-based systems, securing the environment firmly is now at the forefront. Cloud security expenditure globally hit nearly $7 billion in 2024, showing heightened priority on protecting digital assets.

Nevertheless, problems still exist, and with expanding cloud usage, new threats emerge. This underscores the urgent need for new cloud security standards to control loopholes and ensure data protection.

The Shift Toward Zero Trust and Proactive Security Measures

Traditional security models often relied on perimeter-based security, assuming threats originated from outside a company’s network. However, as cloud adoption has accelerated and cyberattacks have evolved, this is no longer sufficient.

Zero Trust Architecture (ZTA) has emerged as a required response to modern threats, fundamentally changing the way businesses protect their digital assets.

Contrary to older models, Zero Trust assumes that no user or device should be implicitly trusted, regardless of location or network. Instead, there is ongoing verification and strict access controls. Several key drivers compel this shift:

• Growth in Remote Working & Cloud Computing – The corporate network perimeter has dissolved, and companies must now secure users, devices, and applications in many environments.
• Increasing Cyber Threats – Ransomware, phishing, and supply chain attacks continue and are on the rise, with most exploiting implicit network trust.
• Regulatory Pressure – Compliance standards, like NIS2, demand stronger access controls and security policies, where Zero Trust is an essential strategy.

In response to these evolving threats, organizations must introduce strong security controls enabling Zero Trust principles:

• Multi-Factor Authentication (MFA) – Prevents unauthorized access even when login credentials are compromised.
• Least Privilege Access – Provides users with access to only the data and systems necessary for their role.
• Microsegmentation – Limits lateral movement within a network, containing the impact of potential breaches.
• Continuous Monitoring & Threat Detection – Detects anomalous activity in real time to prevent breaches.
• Endpoint Security & Encryption – Protects devices and data from unauthorized access or malware intrusion.

Compliance Frameworks Reshaping Cloud Security

As businesses grow more reliant on cloud infrastructure, cybersecurity threats have evolved, and regulatory bodies have started to apply more stringent compliance regimes. Regulations are intended to standardize security norms, protect sensitive data, and reduce vulnerabilities in the cloud environment. Businesses that fail to comply with these standards risk legal liabilities, financial losses, and loss of reputation.

The need for stronger compliance was born out of high-profile cyberattacks, data breaches, and the growing adoption of cloud computing in critical industries. Due to these concerns, several necessary frameworks have been established to ensure security, transparency, and accountability in the cloud:

• ISO 27001 – A globally adopted standard that outlines best practices for information security management systems (ISMS). It requires organizations to take a risk-based approach to information security, such as data encryption, access controls, and incident response. Many cloud service providers choose ISO 27001 certification to demonstrate their commitment to cybersecurity.
• SOC 2 – A must for cloud and SaaS providers, this framework deals with the security, availability, processing integrity, confidentiality, and privacy of customer data. It calls for rigorous internal security controls, with firms having to undergo third-party audits to verify adherence.
• GDPR (General Data Protection Regulation) – This EU regulation imposes strict data privacy and security measures to protect personal data. Cloud providers must comply with data encryption standards, access controls, and breach notifications, providing users full control over their personal data.
• NIS2 Directive – An updated EU directive that expands cybersecurity obligations, particularly for cloud service providers. Organizations must possess risk management measures, secure supply chains, and report cyber incidents within 24 hours. Compliance with the NIS2 Directive is now a key factor in strengthening cloud security, ensuring businesses take a proactive approach to risk mitigation and regulatory alignment.
• CCPA (California Consumer Privacy Act) – A United States law that focuses on providing consumers with greater control over personal data. Cloud services operating in California must provide clear data collection policies, allow consumers to opt out of data sharing, and implement improved security controls to prevent unauthorized access.

The Role of AI and Automation in Strengthening Cloud Security

As more sophisticated cyber attacks are discovered, traditional security measures are struggling to keep up with the speed and level of sophistication found in modern attacks.

AI and automation are transforming cloud security through real-time threat identification, enhanced response rates, and proactive risk management. Instead of mere human monitoring, organizations now use AI-driven solutions to analyze vast volumes of security data, detect anomalies, and predict probable threats before they actually become incidents.

AI is particularly valuable in cloud security because it can:

• Detect and respond to threats in real-time – Machine learning algorithms inspect network traffic, noticing suspicious patterns, which could be indicative of malicious access, malware, or insider threats. This allows security teams to respond before damage can be caused.
• Automate routine security tasks – AI-driven automation reduces human error by taking care of patching, access controls, and compliance monitoring, securing cloud environments with minimal human interaction.
• Enhance fraud detection and authentication – Advanced AI algorithms strengthen identity verification, multi-factor authentication (MFA), and biometric security, reducing the likelihood of unauthorized access.
• Improve incident response – AI-powered security systems can remotely isolate threats, quarantine the infected accounts, and recommend remediation steps, lowering downtime and exposure of data.

Addressing Supply Chain Vulnerabilities and Third-Party Risks

Cloud security is not just about protecting internal systems—it also involves protecting the entire supply chain, including third-party vendors, service providers, and outside integrations. Several high-profile breaches have exploited weaknesses in third-party systems, which have allowed attackers to penetrate entire networks. With companies relying on cloud services for data storage, processing, and collaboration, supply chain security has become a number-one concern.

Key Supply Chain Vulnerabilities:

• Third-party access threats – Cloud vendors grant vendors increased access to systems, which if not monitored, can become a doorway for cyber attackers.
• Software supply chain attacks – Hackers exploit third-party software, APIs, or cloud-based tools vulnerabilities, and inject malicious code that spreads throughout various organizations.
• Lack of visibility – A majority of companies do not have full visibility into their third-party suppliers’ security procedures, thus it is hard to gauge risks.

How to Mitigate Third-Party Risks?

• Prevent third-party risks through regular vendor security audits – Institute robust security controls in suppliers that include compliance with frameworks like NIS2, ISO 27001, and SOC 2.
• Limit third-party access – Implement least privilege access controls to maintain unnecessary exposure at low levels.
• Monitor supply chain activity – Use threat detection with artificial intelligence to spot anomalies and threats.
• Require end-to-end encryption – Maintain robust encryption techniques across all third-party data transfers.
• Implement incident response plans – Create a unified security plan that encompasses vendors to contain and counter potential attacks promptly.

Conclusion

With advancing technology, the level of cloud security must be consistent with the growing threats. With no longer feasible dependence on ancient security trends, organizations have to embrace tighter controls on access, real-time threats, and pre-emptive risk management.

Compliance frameworks must be applied to enforce foundational guidelines, but long-term security depends on continuous enhancement, enhanced visibility for third-party threats, and convergence of AI-driven solutions.

Staying ahead of emerging threats requires a dedication to strong security hygiene, compliance with regulations, and cybersecurity culture. In the midst of an ever-changing digital landscape, securing cloud environments is not merely about meeting standards—it is about creating enduring resilience and trust.

Related Articles:

1. Security in the Cloud: Enhancing Cloud Security for Businesses (3 Tips)
2. How to Conduct a Cloud Security Assessment? – 5 Steps
3. How Terraform Modules Help Ensure Multi-Cloud Infrastructure Security
4. Security in Cloud Gaming: Protecting User Data and Privacy
5. SaaS Security: Balancing Compliance and Breach Prevention in the Cloud