Importance of Data Classification in Cloud Computing

C.

With multiple tenants within the same hosting environment, any failure to properly classify data may lead to potential exposure to other customers and applications within the same environment.

The correct answer is C. Multitenancy.

Cloud computing allows for multiple tenants to share the same physical resources, such as servers, storage, and network infrastructure. This sharing of resources provides many benefits, including cost savings and scalability. However, it also introduces a new level of complexity and risk to data security.

Multitenancy means that multiple users or organizations share the same infrastructure and application instance. In a multitenant cloud environment, data from different customers may be stored in the same database, on the same server, or on the same storage device. This means that a data breach in one tenant's environment can potentially impact other tenants as well.

In addition, cloud computing often involves the use of third-party service providers, such as cloud storage providers or software-as-a-service (SaaS) vendors. This further increases the risk of data exposure and breaches, as these providers may have access to sensitive data.

Therefore, data classification is even more vital in a cloud environment than in a traditional data center. It is important to ensure that data is properly classified and labeled based on its sensitivity and importance, and that appropriate security controls are in place to protect it. This includes measures such as encryption, access controls, and monitoring for unauthorized access or activity. By properly classifying and securing data, organizations can mitigate the risks associated with multitenancy and third-party providers in the cloud.