ORGANIZATIONS CONTINUE TO EXPERIENCE DAMAGING LOSSES DUE to data breaches. These losses include legal costs, costs to reimburse customers and employees, lost stakeholder value, and reduction of goodwill. The estimate of these financial losses range into the billions of dollars every year. This paper discusses compliance regulations, standards for protecting data with encryption, and how Microsoft provides for the encryption of sensitive data in its flagship SQL Server database system. Townsend Security’s Alliance Key Manager provides a cost effective, easy-to-deploy, and compliant solution for Microsoft customers whether their data is in the Cloud, VMware, or a traditional IT data center.