What is Cloud Compliance? Standards, Solutions & More

Cloud compliance refers to the practice of ensuring that cloud-based systems, applications, and data management adhere to industry regulations, security standards, and legal requirements. It preserves data privacy and operational integrity while implementing compliance frameworks like GDPR, FedRAMP, and HIPAA. 

Cloud compliance is a crucial aspect of cloud infrastructure security and governance, helping organizations maintain data privacy, security, and integrity while leveraging the benefits of cloud technologies.

Cloud compliance frameworks provide standardized guidelines to secure cloud environments. Here are the most important cloud security compliance regulations and standards:

• FedRAMP: The U.S. government enforces the Federal Risk and Authorization Management Program (FedRAMP) to standardize cloud security, ensuring consistent protection for federal agencies.
• GDPR: The EU enforces the General Data Protection Regulation (GDPR), protecting personal data and ensuring privacy rights for individuals and organizations.
• ISO 27001: ISO developed ISO 27001 to define global standards for information security management and safeguarding data with minimal risks.
• HIPAA: The United States enforces the Health Insurance Portability and Accountability Act (HIPAA) to protect the confidentiality and security of personal information in the healthcare industry.
• PCI DSS: PCI DSS regulates the payment card industry to secure data by efficiently handling cardholder information and reducing data breaches.

Organizations that neglect cloud compliance risk severe consequences, including data breaches that expose confidential customer and business information. Companies that don’t adhere to legal and industry standards risk hefty regulatory fines, legal action, and reputational damage. Non-compliance can also lead to system vulnerabilities, operational downtime, and disruptions in critical services. 

Furthermore, the lack of proper compliance controls makes it difficult to track data access and ensure transparency, weakening accountability in security and governance practices.

Components of a cloud compliance framework

Cloud compliance frameworks are structured guidelines for ensuring secure and compliant cloud service operations. These frameworks continuously evolve to address emerging security risks and regulatory changes. Below, we’ll explore the key components of such frameworks.

• Policies and procedures – Policies outline how data is handled and processed across cloud environments. They help establish rules for secure cloud operations and ensure compliance with regulations. These procedures minimize risks and provide a structured approach to data management.
• Standards – Standards define the minimum security, privacy, and operational practices requirements in cloud environments. They provide a common baseline that ensures consistency and compliance across all cloud services. Adhering to standards promotes reliability and secure cloud usage.
• Regulatory compliance – Regulatory compliance ensures cloud services adhere to relevant laws and industry regulations, such as GDPR. Organizations must meet specific criteria to protect data and avoid legal repercussions. Compliance frameworks guide organizations through required security and privacy practices.
• Security controls – Security controls protect cloud environments from unauthorized access, breaches, and vulnerabilities. They include encryption, access management, multi-factor authentication, and more to safeguard sensitive data.
• Risk management – Risk management involves identifying, assessing, and mitigating potential security threats in the cloud. Regular risk assessments help organizations stay proactive in addressing vulnerabilities. Effective risk management protects data and supports ongoing compliance efforts.
• Governance – Cloud governance ensures policies, procedures, and controls are adequately implemented across the cloud environment. It involves defining roles and responsibilities to manage resources effectively. Strong governance reduces security risks and ensures compliance with regulations.
• Monitoring and auditing – Continuous monitoring and auditing track all cloud activities and help identify anomalies and compliance issues. This proactive approach helps organizations maintain security and ensure adherence to policies. Regular audits validate compliance and uncover potential gaps.
• Change control – Change control manages modifications to cloud environments to prevent misconfigurations and security breaches. Organizations must document and review all changes for potential impact. Effective change control ensures that the cloud remains secure after each modification.
• Shared responsibility– Training and awareness programs educate employees about their roles in maintaining cloud security. Regular training ensures staff understand compliance requirements and best practices. A knowledgeable team strengthens an organization’s overall compliance posture.

Who is responsible for cloud compliance?

Cloud compliance obligations are typically a shared responsibility between cloud service providers and customers. Cloud service providers focus on maintaining infrastructure security and may assist in compliance efforts to some extent. Meanwhile, customers are responsible for ensuring proper data handling, access management, and adherence to regulatory requirements within their cloud environment.

This division of responsibilities mirrors cloud security models: cloud providers are accountable for security of the cloud (infrastructure, hardware, and core services), while customers are responsible for security in the cloud (data, applications, and user access controls). Similarly, compliance of the cloud falls under the provider’s domain, whereas compliance in the cloud is the customer’s responsibility.

Responsibilities of cloud service providers:

• Infrastructure security: Safeguard data centers and infrastructure from unauthorized physical access and threats.
• Network security: Deploy firewalls, subnet rules, and intrusion detection systems to monitor, restrict access, and defend against external threats.
• Patch management: Continuously update and patch software to fix vulnerabilities of critical components that are usually outside the customers’ control and minimize exposure.
• Data encryption: Ensure the platform provides encryption capabilities for data at rest and in transit using advanced encryption standards like AES-256.

Customer responsibilities for cloud compliance:

• Data classification: Classify and protect sensitive data based on business, legal, and risk criteria, and enforce organization-wide appropriate access control rules to implement this classification.
• Data encryption: Either utilize native encryption support provided by cloud platforms, or leverage homegrown solutions to encrypt data at rest and during transfer.
• Access management: Implement robust and efficient authentication and authorization methods to make it easier to manage ACLs. Leverage policy automation tools and technologies like policy as code for service-to-service communications.
• System configuration: Make sure the systems are configured to process data securely and follow the access control rules.

What is the difference between cloud governance and compliance?

Cloud compliance ensures that an organization adheres to external legal and regulatory standards like GDPR or HIPAA, focusing on data security and privacy. In contrast, cloud governance is about setting internal policies and frameworks to manage cloud resources, ensuring operational efficiency and security while aligning with business goals.

So, in short, cloud governance provides the how and what to manage the cloud, while compliance focuses on ensuring that the how and what meet the necessary standards and regulations. Effective cloud governance is a prerequisite for achieving cloud compliance. Without a well-defined governance framework, it’s extremely difficult to maintain consistent compliance.

Cloud compliance helps secure organizational data by meeting industry-defined regulations. It builds trust and ensures operational reliability among organizations.

Here are the most prominent benefits of cloud compliance:

• Uncompromised security: Compliant clouds protect sensitive data with encryption controls and RBAC roles. These measures minimize breach risks and strengthen defenses. They provide a safe and reliable environment for managing sensitive workloads effectively.
• Legal protection: Meeting industry regulations like GDPR or HIPAA reduces penalties and ensures legal safety. It simplifies audits, ensuring operations comply with necessary laws. This minimizes legal exposure while promoting smoother regulatory interactions.
• Improved reputation and trust: Operating within compliance frameworks enhances credibility with customers and partners. It highlights responsibility and prioritizes long-term trust in your organizational practices.
• Competitive advantage: Using compliant cloud services demonstrates accountability and gives a strategic edge in competitive industries. It aligns with market expectations and provides customers with clear transparency when choosing providers.
• Risk management: Proactively managing compliance reduces operational risks like breaches or fines. It strengthens resilience against potential disruptions. Proper compliance helps safeguard long-term business success.
• Improved reliability: Compliant services include well-structured backups, recovery options, and uptime guarantees. These ensure dependable operations under any circumstances and stable business continuity.
• Cost reduction: Standardized compliance practices reduce costs through automation and efficient management. They help avoid penalties and operational inefficiencies. Optimizing compliance leads to better budget control and resource allocation.
• Scalability: Compliant clouds scale efficiently as your business grows. Security measures evolve to meet expanding needs, ensuring smooth transitions without compromising compliance.
• Rapid deployment: Pre-built compliance features speed up cloud implementation. Organizations can go live faster with pre-configured solutions. This supports timely project delivery without missing regulatory requirements.

Cloud compliance faces challenges such as varying global regulations, data sovereignty issues, shared responsibility complexities, security misconfigurations, and evolving threats.

The table below highlights the main challenges most organizations encounter when ensuring compliance across cloud environments.

Major cloud service providers offer various programs that simplify compliance for organizations. These services include auditing, monitoring, governance, and security tools tailored to meet industry-specific regulatory standards. Here are some examples of compliance solutions from popular public cloud providers:

Cloud compliance in AWS

AWS provides a comprehensive set of compliance programs and tools to help organizations meet regulatory and security requirements in the cloud:

• AWS Config offers continuous monitoring and evaluation of resource configurations against defined compliance policies.
• AWS Security Hub provides a centralized view of security alerts and compliance statuses. You canintegrate multiple AWS services for streamlined security management.
• AWS CloudTrail tracks and logs all account activity to provide clear transparency and detailed audit trails.
• AWS Artifact manages access to compliance documentation and reports to simplify audit processes and regulatory checks.
• Amazon GuardDuty detects unusual activity and potential threats using machine learning.

AWS supports 143 security standards and compliance certifications, including PCI-DSS,  SOC 2, HIPAA/HITECH, FedRAMP, GDPR, FIPS 140-2, and NIST 800-171. 

Microsoft Azure services for cloud compliance

Here’s a breakdown of key Azure services for cloud compliance:

• Azure Policy helps enforce compliance standards by automating resource governance and continuous monitoring of configurations.
• Azure Compliance Hub offers centralized compliance management with access to relevant documentation and assessments for streamlined audits and certifications.
• Azure Security Center delivers advanced threat protection and insights by monitoring workloads and recommending security improvements.
• Azure Monitor tracks resource performance and collects data to ensure compliance through detailed insights and actionable alerts.

Microsoft Azure aligns with various compliance frameworks, such as ISO 27001, SOC 1, SOC 2, HIPAA, and GDPR. 

How Google Cloud supports cloud compliance

Google Cloud supports cloud compliance by offering built-in security controls, compliance certifications, and governance tools:

• Google Cloud Compliance Resource Center provides access to compliance certifications and audit reports to simplify regulatory adherence.
• Cloud Security Command Center monitors, detects, and prioritizes security risks across GCP resources to enhance compliance and safeguard data.
• Cloud Data Loss Prevention identifies, classifies, and protects sensitive data like PII to ensure compliance with data protection regulations.
• Cloud Key Management Service manages encryption keys securely and supports compliance requirements for data privacy.

Google Cloud offers compliance with standards like ISO 27001, SOC 1, SOC 2, PCI DSS, and GDPR. 

These certifications enable organizations to leverage cloud services while adhering to industry-specific regulations and maintaining all security postures.

Ensuring regulatory compliance in the cloud can feel overwhelming, especially because it doesn’t directly contribute to business growth. However, as we’ve explored, maintaining compliance is essential for building trust with users, customers, and regulators. The following best practices can help organizations achieve and sustain compliance while running workloads in the cloud.

1. Identify relevant regulations and frameworks

Understanding the regulatory landscape is the foundation of cloud compliance. Identify applicable laws and frameworks for your industry and map out overlapping requirements to streamline efforts. Prioritizing compliance areas based on business impact ensures a structured approach.

2. Implement robust data protection measures

Regulations often categorize data by sensitivity, with breaches leading to severe penalties. Encrypt sensitive data both at rest and in transit, and implement strong key management practices to prevent unauthorized access. Embedding privacy controls into system design from the outset ensures long-term compliance with evolving data protection laws.

3. Leverage IAM for access management

Identity and Access Management (IAM) plays a critical role in enforcing security and compliance. While the principle of least privilege is widely adopted, overly complex IAM structures can become operational bottlenecks. Streamlining role-based access control (RBAC) and simplifying onboarding procedures helps maintain security while ensuring efficiency.

4. Continuous monitoring and logging

Compliance isn’t a one-time effort —it requires constant oversight. Leverage native cloud monitoring tools or third-party solutions to track real-time activity, detect vulnerabilities, and respond to threats swiftly. Maintaining comprehensive logs not only aids security but also simplifies audit readiness.

5. Conduct regular audits and assessments

Routine audits act as proactive health checks for compliance. Internal audits help identify gaps before they become risks, while third-party assessments provide independent validation of compliance efforts. Periodic assessments ensure your organization is always prepared for regulatory scrutiny.

6. Utilize cloud compliance tools

Major cloud service providers offer compliance-focused services like AWS Config, Azure Policy, and Google Cloud’s Compliance Resource Center. 

The tools incorporated into the cloud providers we reviewed above automate adherence to regulatory requirements, providing real-time insights and reducing manual effort in compliance enforcement.

7. Manage third-party risks

Third-party vendors often have access to critical systems via APIs or other integrations, posing potential compliance risks. Establish a robust vendor risk management framework to assess, monitor, and enforce compliance across external partnerships. In some cases, vendors may also need to meet specific regulatory requirements.

8. Implement policy as code (PaC)

Policy as code (PaC) automates compliance enforcement by embedding policies directly into infrastructure-as-code (IaC) deployments. Defining machine-readable policies ensures consistency across environments, minimizes human errors, and enables compliance checks within the development lifecycle.

By integrating these best practices, organizations can transform compliance from a reactive burden into a proactive advantage—ensuring security, trust, and long-term regulatory alignment in cloud environments.

Spacelift is not exactly a cloud automation tool, but it takes cloud automation and orchestration to the next level. It is a platform designed to manage IaC tools such as OpenTofu, Terraform, CloudFormation, Kubernetes, Pulumi, Ansible, and Terragrunt, allowing teams to use their favorite tools without compromising functionality or efficiency.

Spacelift provides a unified interface for deploying, managing, and controlling cloud resources across various providers. Still, it is API-first, so whatever you can do in the interface, you could do via the API, the CLI it offers, or even the OpenTofu/Terraform provider.

The platform enhances collaboration among DevOps teams, streamlines workflow management, and enforces governance across all infrastructure deployments. Spacelift’s dashboard provides visibility into the state of your infrastructure, enabling real-time monitoring and decision-making. It can also detect and remediate drift.

You can leverage your favorite VCS (GitHub/GitLab/Bitbucket/Azure DevOps), and executing multi-IaC workflows is a question of simply implementing dependencies and sharing outputs between your configurations.

With Spacelift, you get:

• Policies to control what kind of resources engineers can create, what parameters they can have, how many approvals you need for a run, what kind of task you execute, what happens when a pull request is open, and where to send your notifications
• Stack dependencies to build multi-infrastructure automation workflows with dependencies, having the ability to build a workflow that, for example, generates your EC2 instances using Terraform and combines it with Ansible to configure them
• Self-service infrastructure via Blueprints, or Spacelift’s Kubernetes operator, enabling your developers to do what matters – developing application code while not sacrificing control
• Creature comforts such as contexts (reusable containers for your environment variables, files, and hooks), and the ability to run arbitrary code
• Drift detection and optional remediation

If you want to learn more about Spacelift, create a free account today or book a demo with one of our engineers.

Cloud compliance is complex, but it’s a fundamental necessity for businesses operating in the digital space. Beyond meeting regulatory requirements, it plays a crucial role in strengthening security, minimizing risks, and fostering trust among customers, partners, and regulators. Adhering to compliance frameworks isn’t just about avoiding fines — it streamlines operations, enhances data governance, and can even create a competitive edge. 

In this post, we explored how compliance safeguards sensitive information, improves data security, and drives efficiency and resilience in an increasingly regulated landscape.