Ask Slashdot: How Would You Implement Site-Wide File Encryption?

Recently-leaked CIA documents prove that encryption works, according to the Associated Press. But how should sys-admins implement site-wide file encryption? Very-long-time Slashdot reader Pig Hogger writes:
If you decide to implement server-level encryption across all your servers, how do you manage the necessary keys/passwords/passphrases to insure that you have both maximum uptime (you can access your data if you need to reboot your servers), yet that the keys cannot be compromised… What are established practices to address this issue?
Keep in mind that you can’t change your password once the server’s been seized, bringing up the issue of how many people know that password. Or is there a better solution? Share you suggestions and experiences in the comments. How would you implement site-wide file encryption?


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