Which of the following accurately describes a Cloud DLP System?

A Cloud DLP (Data Loss Prevention) system is designed to protect sensitive data that is stored and utilized within cloud environments. It encompasses various tools and techniques to monitor, detect, and prevent unauthorized access or sharing of that sensitive information, specifically focusing on data residing in the cloud.

Cloud DLP solutions are inherently designed to manage data in cloud services, leveraging the scalability and flexibility of cloud infrastructure to secure data both at rest and in transit. This means they can apply policies to data stored in environments such as SaaS applications, database services, and other cloud storage solutions, ensuring compliance with regulations and protecting against threats.

The other options do not align with the fundamental characteristics of a Cloud DLP system. For instance, stating that it only works with on-premises data storage contradicts the definition of a Cloud DLP as it is explicitly focused on cloud environments. Likewise, describing it as a hardware device installed on networks mischaracterizes its nature as software services designed for cloud platforms. Finally, monitoring physical access to data centers focuses on physical security rather than the data-centric focus of DLP solutions, which is centered on preventing data breaches regardless of the location of the data.