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Is encryption necessary?

Is encryption as policy-based storage security a necessary requirement for enterprises deploying networked storage?
The question is not really clear. Encryption is one element of policy-based security. Every SAN may not need to have encryption, whether it is for link level or media level. It would depend on the security policy -- which in turn should be driven by how sensitive is the content of the information. If the content is public knowledge or of low risk to the enterprise, you may need not endure the expense of encryption.

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