Based on an assessment of its internal applications, ATN analysts identify a set of risks. One such risk is associated with the myTrendek application that was adopted from OTC, a company ATN recently acquired.

This application includes a feature that analyzes telephone and Internet usage, and enables a multi-user mode that grants varying access rights.

Administrators, supervisors, auditors, and regular users can therefore be assigned different privileges. The application's user-base encompasses internal users and external users, such as business partners and contractors.

The myTrendek application poses a number of security challenges pertaining to usage by internal staff:

authentication does not require or enforce complex passwords
communication with the application is not encrypted

European regulations (ETelReg) require that certain types of data collected by the application be deleted after six months

ATN is planning to migrate this application to a cloud via a PaaS environment, but the weak authentication threat and the lack of confidentiality supported by the application make them reconsider.

A subsequent risk assessment further reveals that if the application is migrated to a PaaS environment hosted by a cloud that resides outside of Europe, local regulations may be in conflict with ETelReg.

Given that the cloud provider is not concerned with ETelReg compliance, this could easily result in monetary penalties being assessed to ATN.

Based on the results of the risk assessment, ATN decides not to proceed with its cloud migration plan.

Answer the following questions in a substantive manner:

Do you agree with ATN's decision not to proceed with the cloud migration for the myTrendek application?

Can the following risks be mitigated: no complex passwords; no encryption; data must be deleted after six months. Please explain.