Company XYZ provides hosting services for hundreds of companies across multiple industries including healthcare, education, and manufacturing. The security architect for company XYZ is reviewing a vendor proposal to reduce company XYZ’s hardware costs by combining multiple physical hosts through the use of virtualization technologies. The security architect notes concerns about data separation, confidentiality, regulatory requirements concerning PII, and administrative complexity on the proposal. Which of the following BEST describes the core concerns of the security architect?

Company XYZ provides hosting services for hundreds of companies across multiple industries including healthcare, education, and manufacturing. The security architect for company XYZ is reviewing a vendor proposal to reduce company XYZ’s hardware costs by combining multiple physical hosts through the use of virtualization technologies. The security architect notes concerns about data separation, confidentiality, regulatory requirements concerning PII, and administrative complexity on the proposal. Which of the following BEST describes the core concerns of the security architect?
A . Most of company XYZ’s customers are willing to accept the risks of unauthorized disclosure and access to information by outside users.
B . The availability requirements in SLAs with each hosted customer would have to be re-written to account for the transfer of virtual machines between physical platforms for regular maintenance.
C . Company XYZ could be liable for disclosure of sensitive data from one hosted customer when accessed by a malicious user who has gained access to the virtual machine of another hosted customer.
D . Not all of company XYZ’s customers require the same level of security and the administrative complexity of maintaining multiple security postures on a single hypervisor negates hardware cost savings.

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Answer: C