When your cloud provider gets breached, whose fault is it?

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The Rackspace breach in March 2025 just raised a question every organization needs to answer: when your cloud provider gets compromised, are you the victim or are you responsible?

Most security teams would say they're the victim. After all, you didn't get breached—your cloud provider did. You followed all the best practices, configured your services correctly, and trusted a reputable vendor to handle the infrastructure security.

But try explaining that to your customers when their data gets exposed. Or to your board when they ask why the organization's most sensitive information was vulnerable to someone else's security failure.

The uncomfortable truth is that cloud provider breaches expose something most organizations don't want to admit: we've outsourced critical business functions to vendors whose security we can't actually control.

You can audit your cloud provider's security certifications, review their compliance reports, and even negotiate security requirements into your contracts. But when they get breached, all that due diligence doesn't bring back your customers' trust or prevent the regulatory fines.

This is the reality of cloud dependency. You get all the operational benefits of not managing infrastructure, but you still get all the business risk when that infrastructure fails.

The shared responsibility confusion

Every cloud provider talks about "shared responsibility." They handle infrastructure security, you handle application security. Simple, right?

Except when your cloud provider gets breached, nobody cares about the shared responsibility model. Your customers don't distinguish between "infrastructure security" and "application security." Your regulators don't give you credit for properly configuring services that were running on compromised infrastructure.

The Rackspace incident highlights the gap between how cloud security is supposed to work and how cloud risk actually works. In theory, you're only responsible for your part of the shared responsibility model. In practice, you're accountable for all the business consequences when any part of the model fails.

This isn't a technical problem you can solve with better cloud configurations or more sophisticated monitoring. It's a business risk management problem that requires understanding how cloud dependencies affect your organization's overall risk posture.

Managing cloud provider risk strategically

Most security professionals approach cloud security like a technical checklist. Configure Identity and Access Management (IAM) correctly, enable logging, encrypt data at rest. But cloud provider breaches require thinking about risk management at the organizational level.

The question isn't whether you've configured your cloud services securely. The question is whether your organization can survive when your cloud provider's security fails—and whether you have the governance frameworks to manage that risk effectively.

You're going to face this challenge whether you're ready or not. Every cloud migration decision, vendor selection process, and business continuity plan reflects your ability to manage organizational risk in cloud-dependent environments.

Are you building these strategic risk management capabilities intentionally, or discovering what you don't know during the next cloud provider incident?

We're running intensive programs specifically designed around this challenge. Our Certified Cloud Security Professional (CCSP) bootcamp and CCSP masterclass, along with our Certified Information Security Manager (CISM) bootcamp and CISM masterclass, address both sides of cloud provider risk—CCSP focuses on the technical cloud security controls and shared responsibility implementation, while CISM covers the organizational risk management and governance frameworks needed to manage cloud dependencies strategically.

Rather than just exam preparation, we focus on the practical application that separates professionals who follow cloud security checklists from those who build organizational resilience around cloud relationships.

The approach works because students learn to manage both the technical and business aspects of cloud provider relationships—something most certification programs never address.

The next cloud provider breach is inevitable. Make sure your organization is prepared for it.

Stay secure,
The DestCert Team

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Cybersecurity and privacy writer.

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