Fresh off its initial public offering, cloud file synch share and storage company Box has a new Enterprise Key Management (EKM) offering out this week that analysts say could ease customer concerns with using a cloud-based service.

Box’s EKM uses Amazon Web Services’ Hardware Security Module (HSM), a device that sits on customers premises to hold keys to encrypted data. Previously, customers relied on Box to encrypt their data and Box held the keys; now, customers get to hold the keys on their own premises.

“Yes this is significant news,” says Adrian Sanabria, a security analyst at 451 Research Group. “I’d say that client-side encryption has been a major obstacle to increased cloud/EFSS (Enterprise File Synch and Share) adoption.” Read more