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An encryption key management system and method implements enterprise managed encryption key for an enterprise using encryption for cloud-based services. In some embodiments, the enterprise deploys a key agent on the enterprise data network to distribute encryption key material to the network intermediary on a periodic basis. The network intermediary receives the encryption key material from the enterprise and stores the encryption key material in temporary storage and uses the received encryption key material to derive a data encryption key to perform the encryption of the enterprise's data. In this manner, the enterprise can be provided with the added security assurance of maintaining and managing its own encryption key while using cloud-based data storage services. The encryption key management system and method can be applied to ensure that the enterprise's one or more encryption keys do not …