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Deutsche Telekom Partners with CipherCloud to Provide Enterprise Cloud Services

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Deutsche Telekom is reaching out to organizations nervous about cloud adoption by partnering with startup CipherCloud, the companies announced Wednesday. CipherCloud encrypts data before transferring it to a cloud server, providing data security both in transmission and storage.

The venture capital arm of Deutsche Telekom is an investor in CipherCloud and is funding the project, which will kick off with a demonstration of Salesforce data at CeBIT 2014 between March 10th and 14th.

Deutsche Telekom’s T-Systems will offer servers running CipherCloud to corporate customers, which the companies’ claim will help not only with security and data privacy, but also with compliance in cases where high standards of data protection must be met, as in Germany.

“The acceleration of cloud consumption by enterprises has created a unique role for trust. Without it, adoption would stall,” CipherCoud chief trust officer Bob West said. “I look forward to helping our customers and partners remove the privacy, regulatory, and residency barriers to transforming their business in the cloud.”

CipherCloud claims over 2.5 million customers to date, and says that data structure and operations are unaffected by their encryption technology, which functions equally in private, public, and hybrid clouds.

In January, CipherCloud acquired SaaS security provider CloudUpNetworks.

Data security has become a national political issue in Germany, where local storage is a hot enough concept to draw significant investment and a “secure email” offering from companies including Deutsche Telekom provoked controversy in the summer of 2013.

Concerns over data security persist as one of the main barriers to cloud adoption, according to an Internap study released in January.

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