Gladinet, the cloud desktop application for Windows, recently introduced AES 128-bit encryption for files backed up to Windows Azure. What this means is that if you use the program to back up your data, it will be encrypted before before being stored online on Azure in encrypted form.
To perform a secure backup like this, you’ll need to select a folder for encryption within Gladinet’s Management Console. You then select Windows Azure from your list of target locations. The first time an encrypted folder is added, you’ll get a prompt to create a password that will be used to generate the encryption key. From that point forward, everything you upload to Azure will be encrypted.
This option is a part of the new Gladinet Desktop 2.0, an update to the program that brings a completely revamped Management Console, features like a new cache manager and new task manager, improved transfer speeds, and additional cloud services integration.
The backup manager is a part of the professional edition of the program. You can download it or the free version from here.
(via the Gladinet blog)