The leak of consumer data, managed by network security provider Omniquad, has been held up as an example of the data breaches that undermine confidence in online business by the Cloud Industry Forum.
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Omniquad claims a vulnerability in third-party software, used to manage helpdesk calls, is responsible for the data breach, according to reports.
IT security needs to be proactive if it is to be effective in keeping hackers at bay or preventing accidental breaches, said the Cloud Industry Forum.
Data breaches of any type or scale can have a devastating impact on consumer confidence to the detriment of vendors and consumers alike, said Andy Burton, chairman of the Cloud Industry Forum (CIF).
The CIF is in the final stages of developing an industry-wide Code of Practice for cloud service providers that will require all suppliers to provide transparency about their business, capabilities and accountability.
"According to our own research, which is due to be published next week, whilst there is overwhelming support for, and interest in, cloud computing, it is the lack of confidence by consumers that is the biggest hurdle to the mainstream adoption of the cloud," said Andy Burton.
Burton said this was followed by major concerns over security, and the combined figure was close to two thirds of the total sample. He added that when breaches of this type take place, the impact is wholly negative, despite the tremendous advances that have been made in increasing the agility of IT operations and reducing costs for customers.
"This is why we have been calling for an industry-wide Code of Practice, so that consumers of cloud based or online services can have a more rational approach to assessing suppliers before they place their confidence in them," said Burton.