Right now, attacks on data as it passes between virtual machines are pretty much theoretical. We have not had a major public attack that we can point to as a clear example.
It raises questions when we talk about security in the cloud. Without any proof of any major attacks, the discussion about cloud security can seem like FUD.
Still, the perception about security is what in large part slows the cloud's adoption in the enterprise. But it can also have a counter effect by spurring security development for the network. That's where the focus needs to be as cloud computing becomes more predominant.
Tom Mornini co-founded Engine Yard. He wrote a commentary piece for ZDnet that compares cloud security to the Maginot Line:
"Reasonable security standards
A large number of data breaches occur because of issues with internal security and protocols. Security concerns are the number one roadblock to enterprise adoption of cloud computing, yet most security breaches occur on-premise. Whether it's a code glitch, unencrypted network traffic within a secure data center, a disgruntled employee, or a thief on your payroll, enterprise data may well be more secure in the cloud.
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