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Implications for Cloud Computing & Data Privacy


Diane Mueller
Cloud Evangelist, ActiveState
dianem@activestate.com
http://www.activestate.com/stackato
Founded 1997
2 million developers, 97% of Fortune 1000
Development, management, distribution & cloud
deployment for dynamic languages
Cloud Solution: Stackato – Private PaaS
Some of Our Customers
Drivers for Cloud Computing
US Patriot Act & Data Privacy
Implications for Cloud Computing
Savings of physical IT costs
Faster Deployment Times
Higher Levels of Application Availability
Reliability & Fault Tolerance
Access Anywhere
Capacity scales as needs change
Improved Time to Market
Maintain privacy & confidentiality
Preserve intellectual property rights
Potential for intervention by foreign governments
Manage operational & commercial risks
Comply with industry & jurisdictional regulatory
requirements
Information is
 no longer in your direct custody or control.
 handed over to a third party to manage
 resident in a different jurisdiction or multiple jurisdictions
Mass-market cloud services are subject to “take it
or leave it” service agreements
Information and data may not be “portable” – you
can’t take it with you
Signed into law in October 2001
Extended in May 2011
 grants privileges to access private data in case of
 suspected terrorist threats
 significantly increased the surveillance and investigative
 powers of law enforcement agencies in the United States
http://www.google.com/transparencyreport/governmentrequests/userdata/
https://www.dropbox.com/privacy
New powers of surveillance and search/seizure
extend to records of anyone (including Foreign
Nationals) in the US.

Extends to records in the custody of
 US companies in Foreign Countries
 Foreign-based subsidiaries of US companies
 Foreign-based companies with presence in US
Cloud Computing is premised
  on the concept of infrastructure pooling
  regardless of geographic location.




Users may not
  have visibility in relation to the ultimate location of data.
Data may not
  in fact be pooled in one place
  could be spread across a cloud service provider's network.
Data that is housed or passes through the United States is
          vulnerable to interception by authorities

 applies to:

   Everyone living and visiting the country, including any foreign
   national who spends time on U.S. soil as part of a visa
   arrangement.
   Companies based in the U.S., whether they are
   headquartered there or not
BBC Worldwide HQ in London
also has studios and offices in the U.S
making these U.S.-based offices vulnerable to the Act.
National Security Letters
 can involve a gag order
 prevents the organization from ever disclosing
 receipt of a letter requiring the handover of
 records.
Vendors cannot provide a guarantee that their
customers would be informed
This contravenes the EU Data Protection Directive
which requires organisations to inform users when
personal information is disclosed.
Regulators                   Examples:
 may restrict the             Australia
 international transfer of    Canada
 certain kinds of data,       EU
 even require certain         HIPA
 kinds of data to be kept
 separate and not be
 intermixed with other
 data.
MSFT could not guarantee the sovereignty of European
customers’ data in its data centers

If the US Patriot Act was invoked,
 MSFT would be compelled to hand data over to US authorities
 and would keep the data transfer secret

This contravenes the new EU Data Protection Directive
which requires organizations to inform users when
personal information is disclosed

Extremely difficult for US HQ companies to refuse to
comply with the Patriot’s Act in deference to the EU
Directive
CEO, Reinhard Clemens

"The Americans say that no matter what happens I'll release the data to the government if I'm forced to do so, from anywhere
in the world, certain German companies don't want others to access their systems. That's why we're well-positioned if we can
                 say we're a European provider in a European legal sphere and no American can get to them."
Remains responsible for protecting and
safeguarding information
Needs to make informed choices

Take be a risk-based approach
 What is the sensitivity of the information?
 What is the risk to the data?
 What role does the jurisdiction play in that risk?
If the risk is high and the safeguards cannot be
assured, then don’t use the service provider
Own the infrastructure
Run your own cloud in
your data center
Host your own services
Minimize the number of
layers between you and
the NSL
       Minimizes
     US Patriot Act
         effect
Keep all your data within your own firewalls
 Avoids the Gag Issue
 If the US Gov’t wants information – they have to ask you, not
 some cloud provider
Keep all your data within secure containers
 Multi-tenancy Security by Isolation
 Ensure Privacy within your organization
Encrypt your data when you transmit it beyond your
firewalls
Control & Manage your own resources
Greater oversight & control
Maintaining security of data
Greater control over computational resources
Exclusive to an organization
Managed either by the organization or a third party
Hosted in the organization’s data center or outside
Applications (SaaS)

Application Middleware/Platform
             (PaaS)

      Infrastructure (IaaS)
IaaS Layer:
  Gives you an Elastic Playground
   Pooled Resourcing
   Shared Operating System
   Shared Services

 Security by
   Unix User Separation
PaaS Layer:
 gives your applications individual Playgrounds
   Everyone gets their own Operating system
   No Shared Services
   Security by Isolation
   Secure Multi-tenancy
Applications need more than just infrastructure!
 Applications Need Secure Environments
 Applications need middleware components:
 languages, modules, databases, web servers
 Apps don’t deploy themselves
 A PaaS automatically configures and deploys the
 middleware,
   so your SaaS apps practically deploy themselves
Maintain accountability and ensure security
Keep your & your clients’ data private & secure
Ensure that you are notified requests for
information based US Patriot Act
Still get all the benefits of cloud (elasticity, pooling
resources within your organization, with faster
time-to-market) on a private cloud
Make migration and deployment with private cloud
easier with a private PaaS
Hybrid Clouds
                                 Public Clouds
Private Clouds

                   Your App
www.activestate.com/cloud
    Twitter: @activestate (#stackato)
     Blog: www.activestate.com/blog
    Email: webinars@activestate.com

   #stackato IRC channel on Freenode

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OSCON 2012 US Patriot Act Implications for Cloud Computing - Diane Mueller, ActiveState

  • 1. Implications for Cloud Computing & Data Privacy Diane Mueller Cloud Evangelist, ActiveState dianem@activestate.com http://www.activestate.com/stackato
  • 2. Founded 1997 2 million developers, 97% of Fortune 1000 Development, management, distribution & cloud deployment for dynamic languages Cloud Solution: Stackato – Private PaaS Some of Our Customers
  • 3. Drivers for Cloud Computing US Patriot Act & Data Privacy Implications for Cloud Computing
  • 4.
  • 5. Savings of physical IT costs Faster Deployment Times Higher Levels of Application Availability Reliability & Fault Tolerance Access Anywhere Capacity scales as needs change Improved Time to Market
  • 6. Maintain privacy & confidentiality Preserve intellectual property rights Potential for intervention by foreign governments Manage operational & commercial risks Comply with industry & jurisdictional regulatory requirements
  • 7. Information is no longer in your direct custody or control. handed over to a third party to manage resident in a different jurisdiction or multiple jurisdictions Mass-market cloud services are subject to “take it or leave it” service agreements Information and data may not be “portable” – you can’t take it with you
  • 8. Signed into law in October 2001 Extended in May 2011 grants privileges to access private data in case of suspected terrorist threats significantly increased the surveillance and investigative powers of law enforcement agencies in the United States
  • 11.
  • 12. New powers of surveillance and search/seizure extend to records of anyone (including Foreign Nationals) in the US. Extends to records in the custody of US companies in Foreign Countries Foreign-based subsidiaries of US companies Foreign-based companies with presence in US
  • 13. Cloud Computing is premised on the concept of infrastructure pooling regardless of geographic location. Users may not have visibility in relation to the ultimate location of data. Data may not in fact be pooled in one place could be spread across a cloud service provider's network.
  • 14. Data that is housed or passes through the United States is vulnerable to interception by authorities applies to: Everyone living and visiting the country, including any foreign national who spends time on U.S. soil as part of a visa arrangement. Companies based in the U.S., whether they are headquartered there or not
  • 15. BBC Worldwide HQ in London also has studios and offices in the U.S making these U.S.-based offices vulnerable to the Act.
  • 16. National Security Letters can involve a gag order prevents the organization from ever disclosing receipt of a letter requiring the handover of records. Vendors cannot provide a guarantee that their customers would be informed This contravenes the EU Data Protection Directive which requires organisations to inform users when personal information is disclosed.
  • 17. Regulators Examples: may restrict the Australia international transfer of Canada certain kinds of data, EU even require certain HIPA kinds of data to be kept separate and not be intermixed with other data.
  • 18. MSFT could not guarantee the sovereignty of European customers’ data in its data centers If the US Patriot Act was invoked, MSFT would be compelled to hand data over to US authorities and would keep the data transfer secret This contravenes the new EU Data Protection Directive which requires organizations to inform users when personal information is disclosed Extremely difficult for US HQ companies to refuse to comply with the Patriot’s Act in deference to the EU Directive
  • 19. CEO, Reinhard Clemens "The Americans say that no matter what happens I'll release the data to the government if I'm forced to do so, from anywhere in the world, certain German companies don't want others to access their systems. That's why we're well-positioned if we can say we're a European provider in a European legal sphere and no American can get to them."
  • 20. Remains responsible for protecting and safeguarding information Needs to make informed choices Take be a risk-based approach What is the sensitivity of the information? What is the risk to the data? What role does the jurisdiction play in that risk? If the risk is high and the safeguards cannot be assured, then don’t use the service provider
  • 21.
  • 22. Own the infrastructure Run your own cloud in your data center Host your own services Minimize the number of layers between you and the NSL Minimizes US Patriot Act effect
  • 23. Keep all your data within your own firewalls Avoids the Gag Issue If the US Gov’t wants information – they have to ask you, not some cloud provider Keep all your data within secure containers Multi-tenancy Security by Isolation Ensure Privacy within your organization Encrypt your data when you transmit it beyond your firewalls Control & Manage your own resources
  • 24.
  • 25. Greater oversight & control Maintaining security of data Greater control over computational resources Exclusive to an organization Managed either by the organization or a third party Hosted in the organization’s data center or outside
  • 27. IaaS Layer: Gives you an Elastic Playground Pooled Resourcing Shared Operating System Shared Services Security by Unix User Separation
  • 28. PaaS Layer: gives your applications individual Playgrounds Everyone gets their own Operating system No Shared Services Security by Isolation Secure Multi-tenancy
  • 29. Applications need more than just infrastructure! Applications Need Secure Environments Applications need middleware components: languages, modules, databases, web servers Apps don’t deploy themselves A PaaS automatically configures and deploys the middleware, so your SaaS apps practically deploy themselves
  • 30.
  • 31. Maintain accountability and ensure security Keep your & your clients’ data private & secure Ensure that you are notified requests for information based US Patriot Act Still get all the benefits of cloud (elasticity, pooling resources within your organization, with faster time-to-market) on a private cloud Make migration and deployment with private cloud easier with a private PaaS
  • 32. Hybrid Clouds Public Clouds Private Clouds Your App
  • 33.
  • 34. www.activestate.com/cloud Twitter: @activestate (#stackato) Blog: www.activestate.com/blog Email: webinars@activestate.com #stackato IRC channel on Freenode

Editor's Notes

  1. Diane Mueller is Director, Enterprise Product Management at ActiveState, the dynamic language experts. She has been designing & implementing financial applications at Fortune 500 corporations for over 20 years. Diane has been actively involved in development efforts of XBRL Open Standard (http://www.xbrl.org) since 1999 and served on the XBRL Board of Directors, Best Practice Committee and chaired the XBRL-INT Technical working groups on Rendering and Global Ledger. Why is this important? XBRL is the semantic XML tagging standard for financial data both here in the US and around the globe; and is used around the globe by financial regulator (such as Federal Reserve Board, FDIC, SEC…) who are notoriously fanatical about data privacy and sovereignty issues.
  2. Is the US Patriot Act & Data Privacy issues causing you to hesitate on leveraging the cloud in your enterprise? Do you want to leverage the power of cloud computing but unsure what the security and privacy implications are for sensitive corporate data?
  3. What is cloud computing? Distributed computing architecture in which data and applications reside on servers separate from the user and are accessed via the Internet. Applications and data are generally accessible from anywhere, provided you have a net connection.Cloud computingis premised on the concept of infrastructure and resource pooling And with Enterprises today very focused on minimising their capital investments, there are real economic drivers to looking at the cloud. Cloud computing offers flexibility in infrastructure planning while improving time to market. Capacity can be scaled as needs change, leaving companies to pay only for what they need. Another driver is the demand for access anywhere, meaning more and more people with the need to access business files and data from remote locations. It’s also not uncommon for companies to deal with external and internal users – external users may include customers or business partners, while internal users are regular or temporary employees or contractors.
  4. http://blog.privacylawyer.ca/#uds-search-results
  5. The Patriot Act has been signed into law in October 2001 as a response to 9/11 and it was extended in May 2011. The Act grants the US government sweeping privileges to access private data in case of suspected terrorist threats. http://www.luborp.com/2011/08/cloud-and-asymmetric-patriot-act.htmlU.S. — In the United States, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, allows the FBI to seize and review data stored in or transmitted within the United States. The FBI, CIA or the U.S. Department of Defense can issue National Security Letters to an organization, requiring that they provide data records pertaining to an individual. This can involve a gag order, which prevents the organization from ever disclosing receipt of a letter requiring the handover of records.The clumsily-titled Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act, or USAPA) introduced a plethora of legislative changes which significantly increased the surveillance and investigative powers of law enforcement agencies in the United States. The Act did not, however, provide for the system of checks and balances that traditionally safeguards civil liberties in the face of such legislation.Legislative proposals in response to the terrorist attacks of September 11, 2001 were introduced less than a week after the attacks. President Bush signed the final bill, the USA PATRIOT Act, into law on October 26, 2001. Though the Act made significant amendments to over 15 important statutes, it was introduced with great haste and passed with little debate, and without a House, Senate, or conference report. As a result, it lacks background legislative history that often retrospectively provides necessary statutory interpretation.The Act was a compromise version of the Anti-Terrorism Act of 2001 (ATA), a far-reaching legislative package intended to strengthen the nation's defense against terrorism. The ATA contained several provisions vastly expanding the authority of law enforcement and intelligence agencies to monitor private communications and access personal information. The final legislation included a few beneficial additions from the Administration's initial proposal: most notably, a so-called sunset provision (which provides that several sections of the act automatically expire after a certain period of time, unless they are explicitly renewed by Congress) on some of the electronic surveillance provisions, and an amendment providing judicial oversight of law enforcement's use of the FBI's Carnivore system.However, the USA PATRIOT Act retains provisions appreciably expanding government investigative authority, especially with respect to the Internet. Those provisions address issues that are complex and implicate fundamental constitutional protections of individual liberty, including the appropriate procedures for interception of information transmitted over the Internet and other rapidly evolving technologies.http://www.govtrack.us/congress/billtext.xpd?bill=h112-67
  6. Requests for information about Google users from U.S. government authorities jumped 29 percent in the first six months of the year, according to a recent report issued by the online search company.The report showed that 5,950 requests for information were made by U.S. government authorities during the first six months of this year, compared with 4,601 requests during the last six months of last year -- an increase of 29 percent."The number of requests we receive for user account information as part of criminal investigations has increased year after year," the report explained. "The increase isn't surprising, since each year we offer more products and services, and we have a larger number of users."Of the near 6,000 requests for user information, which affected 11,057 accounts, Google fully or partially complied with 93 percent of them.There can be many reasons why Google will or will not comply with a request for information from a government, according to the company. Google said it complies with valid legal requests. Generally, requests must be in writing, signed by an authorized official of the requesting agency and issued under an appropriate law. Google's "Transparency Report" is prepared every six months and details requests by countries around the world made to the company to take down information from its websites, including YouTube, or to obtain information about user accounts.
  7. Dropbox™ is a proprietary data backup and sharing service that uses servers in the ‘cloud’ to enable users to share data between devices, be they computers in an office or a smartphone anywhere in the world. The US law enforcement agencies can get your private data by requesting access to Dropbox servers because suspected terrorists might be allegedly using Dropbox to plan their activities.Dropbox™ uses Amazon’s S3 data centers, which are scattered throughout the US and world. Anyone with physical or remote access to those buildings has access to data stored with Dropbox™. Under the Stored Communications Act of 1986 as well as the Patriot Act, Dropbox™ is required to turn over your data when asked by law enforcement.Encryptionhelps..to a pointOf Course, Dropbox™ uses AES-256 encryption when they “store” your data, which is the same as the government uses for information designated as “top secret.”Dropbox™ manages these keys to your data on your behalf. The system only allows access to the keys once you’ve put in your password, but from a technical sense there’s nothing stopping Dropbox™ from decrypting your data except their internal company policies against doing so, which have wide exceptions for they need to comply with federal law.So you could encrypt all your data BEFORE you upload it to Dropbox..And then Dropbox™ employees would only have access to the encrypted data, and that would be all they could turn over to the government.BUT how many of you (or your employees are actually doing this today)?This is why it’s so important for data to be encrypted when living in the cloud. http://drmtlaw.com/areas-of-practice/general-practice/dropbox/
  8. The think to remember…The cloud is not an abstract concept; rather it’s a collection of physical data centers. It was previously widely assumed that the location of the data centerwas crucial in determining national sovereignty of data. in the past corporations compliance officersfocused on data location, but now they moving on to consider broader multinational implications about data protection.
  9. http://blog.privacylawyer.ca/#uds-search-resultsI, for example, am an American living in Canada, working for a Canadian company, I spend significant time in the US and other countries, I use a whole host of cloud services from the afore mentioned dropbox to salesforce to google docs to linkedin to evernote – much to the chagrin of our IT manager I’m sure. Data about me, my company is scattered across the globe as Corporate emails fly from my iphone to my office on a daily basis residing temporarily on different “clouds” It’s not where you live that matters, it’s where your data lives.
  10. As a U.S. law, the Patriot Act applies to everyone living and visiting the country, including any foreign national who spends time on U.S. soil as part of a visa arrangement. The Act also applies to companies based in the U.S., whether they are headquartered there — such as Apple, Google or Microsoft — or are a subsidiary of a larger non-US company.For example, although the BBC has its headquarters in London, it also has studios and offices in the U.S., making these U.S.-based offices vulnerable to the Act.
  11. As a U.S. law, the Patriot Act applies to everyone living and visiting the country, including any foreign national who spends time on U.S. soil as part of a visa arrangement. The Act also applies to companies based in the U.S., whether they are headquartered there — such as Apple, Google or Microsoft — or are a subsidiary of a larger non-US company.For example, although the BBC has its headquarters in London, it also has studios and offices in the U.S., making these U.S.-based offices vulnerable to the Act.http://www.bbcworldwide.com/media/19346/bbc%20worldwide%20annual%20review%202009-10.pdf
  12. The FBI, CIA or the U.S. Department of Defense can issue National Security Letters to an organization, requiring that they provide data records pertaining to an individual. This can involve a gag order, which prevents the organization from ever disclosing receipt of a letter requiring the handover of records.Remember: Any data which is housed, stored or processed by a company, which is a U.S. based company or is wholly owned by a U.S. parent company, is vulnerable to interception and inspection by U.S. authorities. 
  13. Taking this one step further, industry regulators in many international jurisdictions may restrict the international transfer of certain kinds of data, and in some cases even require certain kinds of data to be kept separate and not be intermixed with other data. Examples of existing regulation that may impact on cloud service providers include:Australia — the National Privacy Principles contained in the Privacy Act 1988 (Cth), regulate collection, use and disclosure of personally identifiable information pertaining to individuals, and impose conditions on the transfer of personal information to foreign jurisdictions. In addition, Australian Financial Institutions are further subject to Australian Prudential Regulatory Authority standards. These include APRA 231, which regulates the way in which Australian Financial Institutions outsource material business activities and focus on risk management, including risks relating to the transfer of data. Recent discussion papers suggest further reform, including in the area of cross-border transfer of data;EU — the Stored Communications Act in the European Union (EU) places strict limits on the way data relating to EU citizens is collected and stored; U.S. — In the United States, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, allows the FBI to seize and review data stored in or transmitted within the United States. Australiathe National Privacy Principles contained in the Privacy Act 1988 (Cth), regulate collection, use and disclosure of personally identifiable information pertaining to individuals, and impose conditions on the transfer of personal information to foreign jurisdictions. In addition, Australian Financial Institutions are further subject to Australian Prudential Regulatory Authority standards. These include APRA 231, which regulates the way in which Australian Financial Institutions outsource material business activities and focus on risk management, including risks relating to the transfer of data. Recent discussion papers suggest further reform, including in the area of cross-border transfer of data;EU— the Stored Communications Act in the European Union (EU) places strict limits on the way data relating to EU citizens is collected and stored;
  14. In principle the best way to think about data privacy and liability for maintaining that privacy is ask yourself who is the original custodian?The original custodianRemains responsible for protecting and safeguarding the personal informationNeeds to make informed choices about how to handle the data, including what services and service providers to use for its processingTake be a risk-based approachWhat is the sensitivity of the information?What is the risk to the data?What role does the jurisdiction play in that risk?If the risk is high and the safeguards cannot be assured, then don’t use the cloud service provider
  15. http://www.aidanfinn.com/?p=11187A private cloud is one in which the computing environment is operated exclusively for an organization. It may be managed either by the organization or a third party, and may be hosted within the organization’s data center or outside of it. A private cloud gives the organization greater control over the infrastructure and computational resources than does a public cloud.customizable cloud of computing and storage resources that can be configured and re-configured when and as you wishGet all the benefits of cloud (elasticity, pooling resources within your organization, with faster time-to-market) on a private cloud
  16. http://resource.onlinetech.com/benefits-of-private-cloud-computing-compliant-cost-effective/Think about what 12% would mean to your bottom lineAccording to a 2011 study by the Aberdeen Group, the private cloud saves a total of 12% combined annual cost savings over public clouds on a per-application basis. When it comes to computing costs, everything adds up fast – including personnel and training, process and technology, hardware, software, services and support.Companies that implemented private clouds also incurred 38 percent fewer costs related to security and compliance events in the past year compared to public cloud users. Public cloud users suffered from an overall 25 percent of incidents related to audit deficiencies, data loss or data exposure, and unauthorized access.
  17. all the benefits of cloud (elasticity, pooling resources within your organization, with faster time-to-market) on a private cloudA private cloud computing platform is a stack of network, server and storage hardware dedicated to you for the purpose of cloud computing on which you deploy an cloud computing infrastructure platforms such as OpenStack, CloudStack, vCloud, or Hyper-VWhen a cloud computing infrastructure platform is utilized, the stack of hardware becomes a customizable cloud of computing and storage resources that can be configured and re-configured when and as you wish. Giving you the ability to elasticallyconfigure and re-configure your server resources with a  private cloud computing platformIn the old school of computing, what you needed to do is watch the server, storage and network resources. When one application or service appeared to be causing a bottleneck, provide it more resources. You also hadto remember to reduce the number of resources allocated to a server that doesn’t need it. If you don’t, it sits idle and unavailable for another server that might demand it.With cloud computing resources are automatically allocated to change the cloud configuration in real-time so resources are where they need to be when they need to be there! In the blink of an eye and automatically, it needs to turn cloud servers off that aren’t being used and turn them back on when they are needed. This means that a small, extremely smart piece of software constantly monitors your server, storage, memory and network resources and compare that to work-loads. It estimates and forecast which servers need more resources. After estimating, it then needs to automatically, in real-time, re-allocate resources so that you are always using your cloud computing resources in the most efficient manner. Costthe ultimate savings of idle capacity can be passed on to you instead of some 3rd party cloud provider.The cost for a well designed private cloud computing platform is less than a dedicated server on a per server basis. So, not only is it more flexible and can deliver a lower total cost of ownership, a managed Private Cloud can be outright cheaper. That’s the benefit of private cloud computing.
  18. From Gartner: PaaS is a common reference to the layer of cloud technology architecture that contains all application infrastructure services, which are also known as "middleware" in other contexts. PaaS is the middle layer of the software stack "in the cloud."