For most cloud providers, the biggest PR problem is security. Egnyte CEO Vineet Jain has invested years into understanding — and alleviating — common concerns about the cloud.

If the enterprise-focused cloud storage startup is to continue luring customers away from heavyweights like Box and Zetta, it will be due to its commitment to security.

I caught up with Jain at VentureBeat’s CloudBeat 2012 conference to discuss the questions that companies should ask their cloud providers before entering into a contractual agreement.

Considering migrating sensitive information to the cloud? Jain suggests you ask about a vendor’s ability to deal with encrypted data, and their understanding of industry-specific compliance laws.

If the vendor passes these tests, Jain recommends delving into where the data is stored. Recently, an Egnyte customer flew in an IT director from Pittsburgh, PA. to check how physically secure the data centers are and where the servers are located.

These questions will help companies protect themselves from the “vagaries of the Internet,” Jain explained. “These three things are becoming table stakes now,” he said.

For more, check out the video.

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