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I'm curious about data security. It says it is encrypted with AES. But is it encrypted locally and the encrypted files are transferred? I.e. does Amazon ever see the encryption keys?

Or is the only way to encrypt it yourself, and then transfer it?

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AFAIK the keys are managed by Amazon, just like S3. It's more for compliance reasons rather than real security. Encryption still has to be done yourself to protect the data.

It does protect you against situations where Amazon loses disks or tapes, or disposes of them improperly, or they are stolen.

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