MBT Webinar: Does the security of your business data keep you up at night?

Technology Evaluation Centers
Does the security of your business data
keep you up at night? Rest easy in the
cloud
Jorge García, Principal Analyst
www.technologyevaluation.com
Manufacturing Business Technology, January 2016

About Security
“Distrust and caution are the
parents of security.”
—Benjamin Franklin
Benjamin Franklin. (Courtesy of the U.S Library of
Congress)

A Very Brief Intro
Manufacturers are under constant
pressure to:
• Increase data/information
accuracy
• Increase production/business
process speed
• Capitalize this internal
intelligence and knowledge to
increase productivity of the
complete manufacturing process
• Make every supplier, distributor,
and service interaction optimal
Down in the Factory, Mike Knlec
Licensed under Creative Commons

A Very Brief Intro
Implementing cloud-based strategies can give manufacturing
companies a way to ease these pressures by enabling access to
systems that are faster to deploy, easier to customize, and, for the
short term, come at a lower cost.

The Value of the Cloud
“If you think you’ve seen this movie before, you are right. Cloud computing is
based on the time-sharing model we leveraged years ago before we could afford
our own computers…
…The idea is to share computing power among many companies and people,
thereby reducing the cost of that computing power to those who leverage it. The
value of time share and the core value of cloud computing are pretty much the
same, only the resources these days are much better and more cost effective.”
– David Linthicum, Cloud Computing speaker and influencer

Cloud Is a Real Trend
• The majority of manufacturers worldwide are currently using public (66%) or
private cloud (68%) for more than two applications.
• 61.6% indicated their company's posture for net new IT services is "cloud
also", and the number is only slightly lower for replacing IT existing
functionality (56.8%).
• IT operations are the primary benefactor today from manufacturers' cloud
strategy, and only 30–35% of respondents indicate operations, supply chain
and logistics, sales, or engineering expect to benefit.
• Cloud services and cloud architecture's share of the annual IT budget
allocation is going to increase 27% in the next two years for manufacturing.
• Cloud computing will become the de facto standard for new operations
(through organic or acquired growth) over the next 10 years for manufacturers
that want to operate and serve customers globally.
IDC study: Worldwide Cloud Adoption in the Manufacturing Industry, 2015

Why the Cloud?
Manufacturers are using the cloud for:
• Deploying cloud-based and two-tier ERP strategies
• Accelerating new product development and production
• Optimizing marketing automation applications
• Integrating and designing connected and embedded services
• Developing and launching supplier, customer, and collaboration portals
• Automating customer service and support
• Deploying cloud-based human resource management (HRM) systems
• Deploying and applying company-wide business intelligence and analytics
initiatives

Main Benefits and Concerns
Benefits Concerns
Cost Savings Cloud Security
Reduced Implementation Time Location of Data
Dynamic Scalability Shared Data Services

Security: On-premises vs Cloud
“ According to 53 percent of our survey respondents, data loss and privacy
risks are the most significant challenges of doing business in the cloud,
followed by intellectual property theft, which was cited as challenging or
extremely challenging. ”
Elevating Business in the Cloud Report, KPMG, 2014

Alert Logic Cloud Security Report,. Spring-2012.

Many factors have to do with security:
• The typical size of a customer/user in each
environment
• The types of workloads found in each
environment
• The diversity of each environment
• The presence of user end-points in the on-
premises environments

“Individual customer
environments skew to a smaller
and simpler footprint as measured
by a number of nodes and
applications, and breadth of
operating systems.
In contrast, on-premises
environments managed by the
typical enterprise span a much
broader array of endpoints,
applications and operating
systems.”
Removing the Cloud of Insecurity
Alert Logic

Service provider environments tend to experience a narrower range of attack vectors.
“It’s not that the cloud is inherently secure or insecure. It’s really about the quality
of management applied to any IT environment.”
Removing the Cloud of Insecurity, Alert Logic
• More standardized system
configurations
• Narrower range of use cases among
service provider customers
• Relative maturity of the IaaS industry.

Myth Reality
On-premises infrastructures are more
secure because they reside on-site
Most breaches are inside jobs, and a
cloud system can actually offer greater
protection from inside and outside
threats
Servers that are physically accessible are
better protected from viruses
Cloud providers can deploy a fully tested
virus response for all customers rapidly
and efficiently, without your IT staff’s
help
On-premises data centers are more
reliable, as we can solve all issues
internally
Cloud data centers are better equipped to
guarantee continuous operation, and
experience fewer service disruptions
On-premises data centers are more
reliable when it comes to data storage and
backup
Cloud data centers are better equipped to
guarantee data storage and backup of
critical information

Additional security advantages of the
cloud:
• Embedded multifactor authentication
• Automated/scheduled security
patching
• Stronger physical security
• Security certifications
• The cloud offers economies of scale

Looking for Balance
“ According to 53% of our survey
respondents, data loss and privacy
risks are the most significant
challenges of doing business in the
cloud, followed by intellectual
property theft, which was cited as
challenging or extremely challenging.”
“Executives feel implementing the
cloud has helped them improve:
• Business performance (73%)
• Improve levels of service
automation (72%)
• Reduce costs (70%)
• Rapidly deploy new solutions
(67%)
Source: Elevating Business in the Cloud Report, KPMG
Cloud adoption is a balancing act:

Cloud Security: Options and Variety

Cloud Security: Options and Variety
Image Source: https://www.simple-talk.com/cloud/development/a-comprehensive-introduction-to-cloud-computing/
- Management
- Cost
- IT Involvement

Cloud Security: A Call to Action
Secure cloud adoption?
A high-level roadmap to implement security best practices consists
of the following phases:
Conduct a full
risk assessment
Secure your
own
information
and identities
Implement a
strong
governance
framework

Before contracting with a cloud provider
Full risk assessment
• Interoperability and portability
• Compliance
• Vendor risk
• Supply chain and ecosystem
• Infrastructure and operations quality
Securing your own
information
• Authentication
• Encryption
• Endpoint security
Implement a strong
governance
framework
• Ensure your provider uses secure data and event
management strategies
• Monitor your own log files for devices you control
• Stipulate in your contracts that SLAs are paired with your
defined metrics and standards
• Centralize within your organization responsibility for
selecting and working with cloud providers
• Plan contingencies for what happens when a breach occurs
or a provider fails.
• Use the Security Content Automation Protocols to verify
that your providers are using the secure configurations you
defined in your risk assessment

Cloud Security: A Call to Action

Thank you!
jgarcia@tec-centers.com
@jgptec

Why the Cloud?
Credits and Links:
• The U.S Library of Congress, http://www.loc.gov/
• Image: Down in the Factory, Mike Knlec. https://goo.gl/6JXLZm licensed under Creative Commons,
https://creativecommons.org/licenses/by/2.0/
• Alert Logic Cloud Security Report, Spring 2012 https://www.rackspace.com/knowledge_center/whitepaper/alert-logic-state-of-
cloud-security-report-spring-2012
• A comprehensive Introduction to Cloud Computing, https://www.simple-talk.com/cloud/development/a-comprehensive-
introduction-to-cloud-computing/
• KPMG, Cloud Survey Report, Elevating Business in the Cloud Report, 2014.
http://www.kpmg.com/US/en/about/alliances/Documents/2014-kpmg-cloud-survey-report.pdf
• TEC 2015 Cloud BI and Analytics Buyer's Guide, http://www.technologyevaluation.com/research/TEC-buyers-guide/TEC-
2015-Cloud-BI-and-Analytics-Buyer-s-Guide.html
• IDC study, Worldwide Cloud Adoption in the Manufacturing Industry, 2015,
https://www.idc.com/getdoc.jsp?containerId=prUS25558515

MBT Webinar: Does the security of your business data keep you up at night?

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to MBT Webinar: Does the security of your business data keep you up at night?

Similar to MBT Webinar: Does the security of your business data keep you up at night? (20)

Recently uploaded

Recently uploaded (20)

MBT Webinar: Does the security of your business data keep you up at night?