CipherCloud, the cloud encryption startup, has acquired CloudUp Networks, a provider of SaaS applications security that helps people secure contact information from Salesforce and other cloud environments. Terms of the deal were not disclosed.

CloudUp Networks, a bootstrapped startup, has built technology for things like data classification, data tagging and data loss prevention. It tracks the data from a platform such as Salesforce.om as it is moved across different cloud platforms. For example, Salesforce.com contact  information could be tagged and tracked to see who modifies or downloads it.

CipherCloud , founded in 2011, has $30 million in funding from Andreessen Horowitz for its cloud application security technology. The company’s technology uses a gateway that allows the capability to move data without the original information ever leaving the enterprise. The real data gets cached while the data moving outside is in a form that is structurally similar but not the same as what is kept internally.

With CloudUp Networks, the data gets uploaded and then can be called by the end user. The company may also get the data encrypted by uploading it and then downloading it with the tags and data classification in place.

CipherCloud competes with the likes of Symantec and McAfee. CipherCloud uses a single key encryption that is used for the entire enterprise while more traditional providers encrypt at the browser level.

The examples of cloud security breaches are numerous but SaaS provides such an easier way of doing business that the need for encryption will only increase.