I'm helping a friend with setting up encryption of data on SQL Server 2008 R2 Standard edition. Upon original research I thought I could use TDE but did not realize that it was only available for Enterprise or DataCenter versions of SQL Servers. Upon further research into SQL Server 2008 R2 features I saw that it does allow for "Data encryption and key management" but I'm not sure what it means or how to implement it.
What is the most efficient and low cost method for data encryption? Should I do something through SQL Server or just use third party tools to encrypt the whole volume where DB and backups are? Also if someone can point to a way to use "Data encryption" that comes as feature in standard edition I would really appreciate. Every time I search for encryption on sql server I keep ending up on how to use TDE and in current scenario it is not feasible for the size of business to purchase Enterprise Edition.
Reason for encryption - HIPAA Compliance. If access is gain to file system for database or backups, data is encrypted and can not be of any use. This could include physical access to the machine or access through local admin.