As organisations increasingly migrate to public cloud computing environments, protecting personally identifiable information has become a business imperative. With data breaches affecting millions of individuals and regulatory fines reaching unprecedented levels, cloud service providers and their customers need frameworks to protect privacy. Enter ISO/IEC 27018 – the world’s first international standard designed to address privacy concerns in public cloud services.
This standard provides cloud service providers with guidance on implementing measures to protect personally identifiable information while helping organisations demonstrate compliance with regulatory requirements.
Whether you’re a cloud provider seeking certification or a business evaluating cloud services, understanding this international standard is very important.
• ISO/IEC 27018 is the first international standard specifically designed to protect personally identifiable information (PII) in public cloud computing environments, providing cloud service providers with commonly accepted control objectives and specific guidance for privacy protection.
• The standard applies to public cloud service providers acting as PII processors for other organisations, establishing strict requirements for data handling, transparency, breach notification, and secure contract termination to ensure compliance with privacy principles and additional PII protection legislation.
• Achieving ISO/IEC 27018 certification helps organisations enhance customer trust, differentiate themselves in the market, support regulatory compliance (including GDPR), and reduce risks related to data breaches and privacy violations.
ISO/IEC 27018 serves as the international code of practice for the protection of personally identifiable information (PII) in public clouds acting as PII processors. Developed by the International Organisation for Standardisation (ISO) and the International Electrotechnical Commission (IEC), this standard represents the first global framework addressing cloud privacy concerns.
The standard was initially published in 2014 and underwent updates in 2019 to align with evolving privacy regulations and cloud technologies. The 2019 version provides clarity on implementation guidelines and strengthens requirements for protecting personal data in cloud environments.
As an extension of ISO/IEC 27002, this standard builds upon existing information security controls while adding cloud-specific privacy protections. It establishes commonly accepted control objectives that public cloud service providers must implement when handling customer data on behalf of other organisations.
The scope covers public cloud computing environment scenarios where providers act as data processors, handling PII on behalf of their customers (data controllers), defining the applicable obligations under the standard.
The standard targets public cloud service providers that provide information processing services to other organisations. These cloud services must be acting as PII processors, meaning they process personally identifiable information PII on behalf of their customers who serve as data controllers.
Organisations that fall under this international standard include:
• Public cloud providers offering infrastructure, platform, or software services
• Government agencies providing cloud services to other public sector entities
• Non-profit organisations offering cloud-based information processing services
• Private sector companies acting as cloud service providers for external customers
The key requirement is a contractual relationship where the cloud provider processes PII according to customer instructions rather than for their own purposes. This contract context establishes the processor-controller relationship that triggers compliance obligations.
Cloud services subject to these guidelines include:
• Customer relationship management platforms
• Human resources management systems
• Financial data processing services
• Healthcare information systems
• Marketing automation platforms
• Document management solutions
The standard applies regardless of the organisation’s size, profit status, or sector, provided they meet the criteria of processing PII in public clouds on behalf of other organisations.
The IEC 27018 standard establishes privacy principles that govern how PII processors must handle customer data. These principles form the foundation for protecting PII and complying with additional PII protection legislation worldwide.
Cloud service providers must process PII only according to documented customer instructions. This principle allows customers to retain control over their data and prevents processors from using information assets for unauthorised purposes. The standard prohibits any processing beyond what customers explicitly authorise through their contracts.
One of the significant protections involves prohibiting the secondary use of customer data. Cloud providers cannot use personally identifiable information for marketing, advertising, or commercial purposes beyond the contracted services. prohibits cloud providers from using PII for any purposes beyond what is explicitly authorised in the service contract..
Providers must maintain transparency about:
• Sub-processor relationships and data sharing arrangements
• Geographic locations where PII is stored and processed
• Security measures protecting customer information
• Processes for handling data subject requests
• Procedures for managing data breaches and incidents
The standard requires cloud providers to implement measures supporting data subject rights, including:
• Access to personal information
• Correction of inaccurate data
• Erasure capabilities when legally required
• Data portability mechanisms
• Objection handling processes
Providers must establish incident response procedures that include notification to customers about security breaches affecting PII. These notifications must provide sufficient detail for customers to assess potential risks and take appropriate action.
When service contracts end, providers must securely return or destroy customer data according to predetermined procedures. This requirement prevents PII from remaining accessible after the business relationship concludes.
The 2019 version of ISO IEC 27018 comprises 18 main clauses, supported by annexes that provide implementation guidelines for protecting personally identifiable information in cloud environments. This structure complements existing information security controls while addressing cloud-specific privacy risks.
The standard organises security controls into several key areas:
Information Security Policies
• Privacy-specific policy requirements
• Roles and responsibilities definition
• Regular policy review and updates
Organisation of Information Security
• Management commitment to privacy protection
• Privacy officer designation requirements
• Third-party relationship management
Human Resource Security
• Personnel screening procedures
• Confidentiality agreements
• Privacy training programs
Asset Management
• PII classification schemes
• Information handling procedures
• Asset disposal requirements
Access Control
• User access management for PII
• Privileged access controls
• Access review procedures
Cryptography
• Encryption requirements for PII
• Key management procedures
• Cryptographic controls implementation
Physical and Environmental Security
• Data centre access controls
• Environmental monitoring
• Equipment protection measures
Operations Security
• Change management procedures
• Backup and recovery processes
• Logging and monitoring requirements
Communications Security
• Network access controls
• Information transfer protection
• Electronic messaging security
System Acquisition and Maintenance
• Security requirements in development
• System testing procedures
• Technical vulnerability management
Supplier Relationships
• Sub-processor assessment requirements
• Supply chain security measures
• Supplier agreement management
Information Security Incident Management
• Incident response procedures
• Breach notification processes
• Evidence collection requirements
Business Continuity Management
• Continuity planning for PII processing
• Disaster recovery procedures
• Testing and maintenance requirements
Compliance
• Legal and regulatory compliance
• Privacy impact assessments
• Internal audit procedures
The standard guides each control, including:
• Objective statements explaining the purpose
• Implementation guidance detailing how to achieve compliance
• Other information providing context and considerations
These guidelines help organisations understand not just what they must do, but how to implement privacy protections in their cloud environments.
The relationship between ISO/IEC 27018 and the General Data Protection Regulation (GDPR) is significant for organisations operating in or serving European markets. The standard provides a framework for demonstrating compliance with GDPR Article 28, which requires data processors to implement appropriate technical and organisational measures.
GDPR Requirement | ISO/IEC 27018 Response |
Processing only on documented instructions | Section 6.3 – Customer control requirements |
Personnel confidentiality | Section 7.2.1 – Confidentiality agreements |
Security measures implementation | Multiple sections – Comprehensive security controls |
Sub-processor management | Section 15.1.1 – Supplier relationship management |
Data subject rights assistance | Section 18.1.4 – Rights facilitation procedures |
Breach notification | Section 16.1.2 – Incident reporting requirements |
International transfer safeguards | Section 13.2.1 – Information transfer controls |
Deletion/return of data | Section 18.1.5 – Contract termination procedures |
GDPR’s accountability principle requires organisations to demonstrate their compliance efforts. ISO/IEC 27018 certification provides evidence of implementing technical and organisational measures. This certification can serve as documentation during regulatory investigations or audits.
When transferring PII across borders, GDPR requires safeguards. ISO/IEC 27018 certification can strengthen adequacy decisions and support standard contractual clauses by demonstrating privacy protections equivalent to European standards.
The standard’s emphasis on transparency and control aligns with GDPR’s data subject rights framework, making it easier for cloud customers to fulfil their obligations to individuals whose data they process.
Several leading cloud service providers have obtained ISO/IEC 27018 certification, demonstrating their commitment to protecting personally identifiable information in accordance with international standards. These certifications undergo third-party audits and require annual recertification to maintain validity.
Microsoft has achieved ISO/IEC 27018 certification for multiple cloud services, including:
• Microsoft Azure infrastructure and platform services
• Microsoft 365 (formerly Office 365) productivity suite
• Dynamics 365 customer relationship management platform
• Power Platform business application services
Microsoft’s implementation includes privacy controls, detailed audit trails, and customer tools for managing data location and access. Their certification covers both processing activities and the underlying infrastructure supporting these services.
Google maintains ISO/IEC 27018 certification for Google Cloud Platform services and Google Workspace (formerly G Suite). Their certification encompasses infrastructure services, data analytics platforms, and productivity applications used by millions of organisations worldwide.
Google’s approach emphasises automated security controls, encryption by default, and customer transparency tools that help organisations understand how their data is being processed and protected.
While AWS has not publicly emphasised ISO/IEC 27018 certification as prominently as other providers, it maintains various privacy and security certifications that address similar requirements. Organisations should verify the current certification status directly with AWS for specific services.
Organisations can verify provider certifications through:
• Provider trust centres and compliance documentation
• Direct certificate requests from cloud providers
• Third-party audit reports (such as SOC 2 Type II reports)
• Independent certification body databases
These verification processes allow organisations to confirm their chosen cloud providers maintain current, valid certifications covering the specific services they intend to use.
Organisations pursuing ISO/IEC 27018 certification gain competitive advantages and risk management benefits in today’s privacy-conscious market. These benefits extend beyond compliance to encompass broader business value and customer trust.
In a crowded cloud services market, ISO/IEC 27018 certification serves as a differentiator. Potential customers can identify providers committed to privacy protection, often making certification a requirement in procurement processes. This standard helps cloud providers stand out from competitors who lack formal privacy certifications.
Privacy concerns represent one of the primary barriers to cloud adoption. Certification demonstrates a provider’s commitment to protecting customer data according to internationally recognised standards. This assurance helps customers overcome privacy objections and accelerates sales cycles by reducing due diligence requirements.
Implementing ISO/IEC 27018 controls reduces organisational risk from data breaches and privacy violations. The standard’s comprehensive approach to security controls helps prevent incidents that could result in:
• Regulatory fines and penalties
• Customer churn and reputation damage
• Legal liability and litigation costs
• Operational disruption and recovery expenses
The standard provides a framework for meeting multiple regulatory requirements simultaneously. Rather than implementing separate controls for different regulations, organisations can use ISO/IEC 27018 as a foundation for compliance with:
• European Union General Data Protection Regulation (GDPR)
• California Consumer Privacy Act (CCPA)
• Brazil’s Lei Geral de Proteção de Dados (LGPD)
• Australia’s Privacy Act
• Other national and regional privacy laws
The implementation process drives improvements in operational practices and risk management processes. Organisations often discover inefficiencies and gaps in their existing procedures while working toward certification. These discoveries lead to better documentation, clearer processes, and more effective risk management.
Many cyber insurance providers recognise ISO/IEC 27018 certification as evidence of privacy practices. This recognition can result in lower premiums, higher coverage limits, or simplified claims processes when privacy incidents occur.
Successfully implementing ISO/IEC 27018 requires planning, resources, and ongoing commitment to maintaining compliance. Organisations should understand the investment required and develop timelines for achieving certification.
Implementation costs typically include:
• Consulting services for gap analysis and implementation planning
• Internal resources for project management and control implementation
• Technology investments for security tools and privacy management systems
• Training programs for personnel handling PII
• Audit and certification fees for third-party assessment
• Ongoing maintenance costs for annual audits and continuous monitoring
Organisations should budget for both initial implementation and ongoing maintenance costs, as certification requires annual recertification audits to remain valid.
Typical implementation timelines range from 6 to 18 months, depending on:
• Organisation size and complexity
• Existing security control maturity
• Resource availability and commitment
• Scope of services included in certification
The process generally follows these phases:
1. Gap analysis – Assessing current practices against standard requirements
2. Planning – Developing an implementation roadmap and resource allocation
3. Implementation – Deploying controls and updating processes
4. Internal assessment – Testing and validating control effectiveness
5. External audit – Third-party certification assessment
6. Certification – Receiving formal certification upon successful audit
Organisations should consider how ISO/IEC 27018 relates to other privacy and security standards:
• ISO/IEC 27001 – Often required as a foundation for 27018 certification
• ISO/IEC 27017 – Provides cloud security controls complementing privacy protections
• ISO/IEC 27701 – Offers a privacy management framework
• Industry-specific standards – Such as HITRUST for healthcare or PCI DSS for payment processing
For organisations evaluating cloud services, consider these factors when selecting providers:
• Current certification status and scope of covered services
• Audit frequency and transparency of results
• Sub-processor management and due diligence practices
• Data location controls and international transfer safeguards
• Customer tools for monitoring and managing data protection
• Incident response capabilities and communication procedures
Cloud service providers should begin their ISO/IEC 27018 journey by conducting a gap analysis against the standard’s requirements. This assessment will reveal current strengths and areas that require improvement, enabling effective planning and resource allocation.
Organisations using cloud services should prioritise providers with current ISO/IEC 27018 certification when making procurement decisions. This preference supports compliance obligations and drives market demand for privacy-conscious cloud services.
The digital economy demands privacy protections, and ISO/IEC 27018 provides the roadmap for achieving them. Whether you’re providing cloud services or consuming them, understanding and implementing this international standard is important for success in today’s privacy-regulated world.
ISO/IEC 27018 is designed to provide a code of practice for public cloud service providers acting as processors of personally identifiable information (PII). Its primary purpose is to establish commonly accepted control objectives and provide specific guidance to protect PII in cloud environments, thereby ensuring privacy and regulatory compliance.
This standard applies primarily to public cloud service providers that process PII on behalf of other organisations under contractual agreements. It is relevant for providers offering infrastructure, platform, or software services, regardless of their size or sector, including government agencies, private companies, and non-profit organisations.
ISO/IEC 27018 aligns with privacy principles and regulatory requirements such as the GDPR by providing guidelines for processing PII only under customer instructions, managing sub-processors, supporting data subject rights, and ensuring breach notification. Certification helps demonstrate that cloud providers have implemented appropriate technical and organisational measures to protect personal data.