What is the purpose of data encryption in cloud services?

Data encryption in cloud services serves the essential purpose of converting data into a coded form. This process ensures that sensitive information is protected from unauthorized access and remains confidential while stored or transmitted. By transforming readable data into an encrypted format, only those with the correct decryption keys can access and understand the original information. This is particularly crucial in cloud environments, where data is often stored off-site and may be at risk of interception during transfer or while at rest.

The other options do not accurately describe the primary function of data encryption. For instance, enhancing data retrieval speed is not related to encryption, as encryption can actually add a layer of processing that could slow down retrieval. Similarly, reducing data storage costs and compressing data for quicker access pertain to different processes and techniques, such as data deduplication or compression methods, rather than the security focus of data encryption. Thus, the correct answer highlights the key role of encryption in maintaining data security and privacy in cloud computing.