The document discusses the significance of cloud computing for enterprises, highlighting its potential for cost savings and increased flexibility amidst widespread skepticism regarding security and trust in cloud solutions. It identifies major user sectors, emphasizes the necessity for security governance, and outlines key risks and challenges associated with cloud adoption, particularly in handling sensitive data and regulatory compliance. Recommendations for evaluating cloud providers and addressing security concerns are also provided to ensure businesses effectively manage their cloud computing strategies.

1. What an Enterprise Should Look for
in a Cloud Computing Provider
Tom Cecere
Director, Novell Cloud Security Service
March 23, 2010

2. Takeaways for Today
• Cloud computing offers the potential for big savings and huge
increases in flexibility for enterprise IT
• Large enterprises are telling analysts, researchers and
cloud providers that it’s hard to trust cloud-based solutions
• But don’t let that fool you – people are using them like mad,
with 20-40% growth in 2009 in some sectors
• Security is a primary concern, but it comes in many guises
• Regulations and finances are driving use and risk, leaving you
with security holes you never had before
• Security is the responsibility of both you and your vendors of
choice
2 © Novell, Inc. All rights reserved.

3. Cloud Computing:
What Is It, Why and How Much Do We Use It?

4. Forrester Definition:
Cloud Computing: A standardized
IT capability (services, software, or
infrastructure) delivered via the
Internet in a pay-per-use,
self-service way
4 © Novell, Inc. All rights reserved.

5. Breaking It Down a Bit
SaaS … Salesforce.com, Netsuite,
Web-based Services Software-as-a-service Ultimate, Taleo, LinkedIn, Facebook
Software-platform-as-a-service Google App Engine, Azure, Force
Virtual-infrastructure-as-a-service Sun, IBM, Azure
IaaS … Amazon, Go-Grid,
Physical-infrastructure-as-a-service OpSource, COLT, etc.
Source: Forrester Research. August 2008 “Future View: The New Tech Ecosystems of Cloud, Cloud Services,
and Cloud Computing”
5 © Novell, Inc. All rights reserved.

6. Cloud Computing
Really Is the Next Big Thing
Who are your two largest users of cloud services?
FIGURE 12. The two largest users of cloud services
MID TIER ENTERPRISE
SAAS PROVIDERS
SMB
DEVELOPERS Note: mid-tier sector
ENTERPRISE (250-1000 employees
and revenue between
ISV'S
$50m and $1b)
OTHER PAAS
OTHER
SOHO
0% 10% 20% 30% 40% 50% 60%
Gartner predicts that the market for total
cloud services will reach $150B by 2013
Source: Tier 1 research “Cloud Infrastructure Services – Managed Hosters”, based on poll of top 50 managed
hosters in US and Europe
6 © Novell, Inc. All rights reserved.

7. Early Cloud Examples
US Army — Testing troop vulnerability
application on cloud platform
Eli Lilly — Drug research
Nasdaq — Market Replay service
USA.gov — Public information portal
that flexes with traffic fluctuations
Starbucks — My Starbucks Ideas
online customer collaboration built on
Force.com
Indy500.com — Streams live race
footage and statistics
Harvard Medical School — Genetic
testing models and simulations
7 © Novell, Inc. All rights reserved.

8. Enterprises Cite Flexibility and On Demand
over Cost Reasons for IaaS
“How important were the following in your firm's decision to adopt pay-per-use hosting of virtual servers
(also known as cloud computing)?”
8 © Novell, Inc. All rights reserved.

9. SaaS Adoption Growing As Model
Matures: $8B in ’09 to $14.7B in ‘12
With Customer Relationship Management and
Content/Communication and Collaboration
leading the way
9 © Novell, Inc. All rights reserved. Source: Gartner Saas Trends 2007-2012

10. Ok, If It’s So Great,
Why Not Use the Cloud for Everything?

11. Security is the Top Challenge for
Customers Moving to Cloud Services
What are the top two most critical challenges for customers looking to move to a utility/cloud?
FIGURE 15. Top challenges for customers moving to cloud services
NERVOUS ABOUT SECURITY
CULTURAL/ORGANIZATIONAL
(RESOURCE OWNERSHIP)
ON PREMISE SOFTWARE/LEGACY
INFRASTRUCTURE
PRODUCT/SERVICE OPTION AVAILABLE
SHARED RESOURCES
REGULATION/COMPLIANCE
AVAILABLILITY/UPTIME
SOFTWARE LICENSING
CxO SPONSORSHIP
0% 10% 20% 30% 40% 50%
Source: Tier 1 research “Cloud Infrastructure Services – Managed Hosters”, based on poll of top 50 managed
hosters in US and Europe
11 © Novell, Inc. All rights reserved.

12. The Two Largest Users of Cloud Services:
Mid-tier Enterprise and SaaS Providers
Who are your two largest users of cloud services?
FIGURE 12. The two largest users of cloud services
MID TIER ENTERPRISE
SAAS PROVIDERS Note: mid-tier sector
(250-1000 employees
SMB and revenue between
$50m and $1b)
DEVELOPERS
ENTERPRISE
ISV'S
OTHER PAAS
OTHER
SOHO
0% 10% 20% 30% 40% 50% 60%
Source: Tier 1 research “Cloud Infrastructure Services – Managed Hosters”, based on poll of top 50 managed
hosters in US and Europe
12 © Novell, Inc. All rights reserved.

13. Security Worries for Enterprises
Physical Security GRC Manageability
• Physical data location • Identity, compliance • Responsive provisioning/de-
• Physical data security • Manageability of resources provisioning users across
in the cloud multiple services
• Multiple identities to • How to apply roles / policies
manage across multiple services
• Compliance enforcement • Cloud workload
management
• Usable for a broader set of
workloads
Financial Contractual
• Audit • Software licensing problems
• Need to rewrite internal • SLAs, proof of 99.99+%
applications uptime
• How to leverage existing • Intellectual property
investments in the data concerns
center • References
13 © Novell, Inc. All rights reserved.

14. Security Worries for Enterprises
Physical Security GRC Manageability
• Physical data location • Identity, compliance • Responsive provisioning/de-
• Physical data security • Manageability of resources provisioning users across
in the cloud multiple services
• Multiple identities to • How to apply roles / policies
manage across multiple services
• Compliance enforcement • Cloud workload
management
• Usable for a broader set of
workloads
Financial Contractual
• Audit • Software licensing problems
• Need to rewrite internal • SLAs, proof of 99.99+%
applications uptime
• How to leverage existing • Intellectual property
investments in the data concerns
center • References
14 © Novell, Inc. All rights reserved.

15. What Are the Key Risks?

16. Summary
The Cloud Amplifies IT Challenges and Opportunities
• Data that is safe for you to store inside your firewall is now outside
• Access to compute resources that your company is paying for is
available with simple user name/password authentication
• Your compute jobs may be running on many machines; may be
backed up on many storage networks, and may be exported
without your knowledge
Identity, authorization and audit for employees,
customers, patients and workloads is the future
of computing security!
16 © Novell, Inc. All rights reserved.

17. What Do Enterprises Have To Do?

18. Attach the Same Governance and Access
Policies to the Cloud as We Have Internally
Internal Cloud External Cloud
(on-premise) (off-premise)
Business Service Management
Software
IT Service Management as a Service
Platform
as a Service
Internal Internal External
Capacity Capacity Capacity Infrastructure
Legacy Abstracted and Managed as a Service
disaggregated Outsource
IT resources Provider
Telco
Amazon EC2
Governance and Compliance
Firewall
18 © Novell, Inc. All rights reserved.

19. Action Items
• Do a Cloud Computing Discovery project
– Don’t forget to ask Accounting how many purchase orders and
credit card reimbursements you have to Amazon Web Services!
– Software usage analysis will discover SaaS products being
used at your site
• Ask your CISO (or if you are one, your team ☺) to
prepare a report card on the security issues we’ve
discussed
• Every new cloud computing provider should be
evaluated both in terms of positives and in terms of
security impact
19 © Novell, Inc. All rights reserved.

20. Sample Cloud Computing Report Card
Acme Platform Services
Physical Security GRC Manageability
• Physical data location • Identity, compliance • Responsive provisioning/
• Physical data security • Manageability of de-provisioning users
resources in the cloud across multiple services
• Multiple identities to • How to apply roles/policies
manage across multiple services
• Compliance enforcement • Cloud workload
management
• Usable for a broader set of
workloads
Financial Contractual
• Audit • Software licensing
• Need to rewrite internal problems
applications • SLAs, proof of 99.99+%
• How to leverage existing uptime
investments in the data • Intellectual property
center concerns
• References
20 © Novell, Inc. All rights reserved.

21. Action Items (cont)
• Make a plan to solve the worst 3 problems in 2010
• Prohibit any more cloud providers until their offerings
easily snap into YOUR access and governance policies
– Consider a portal where you can control (or even require
multiple authentication methods for) access to Cloud resources
• Insist on audit information you can use from your
current providers
• Investigate managed clouds from trusted MSPs
21 © Novell, Inc. All rights reserved.

22. What Should I Expect from
My Cloud Vendors?

23. Vendors
SAS 70
Other transparency
Identity protection and user-controlled
access/authorization
Audit trail
Trusted Cloud Initiative
23 © Novell, Inc. All rights reserved.

24. SAS 70 Certification
• Created by American Institute of Certified Public
Accountants
Represents that a service organization has been
through an in-depth audit of their control objectives and
control activities, which often include controls over
information technology and related processes
• Independent “service auditor” issues opinion on
servicer’s controls, useable by servicer and their
customers
• Type I: a snapshot on a specific date, self reported
• Type II: Opinion delivered about ongoing controls
24 © Novell, Inc. All rights reserved.

25. Other Transparency Issues
• Who can reach data?
• What level of encryption is available? Practical?
• Where is data located?
• Where is computer located?
• SLA terms (Microsoft requires an NDA to even see
their SLA model agreement!)
25 © Novell, Inc. All rights reserved.

26. Identity Protection
• What is the process for:
– Provisioning identities?
– Guarding them?
– De-provisioning with role changes?
• Does vendor support multi-factor authentication?
• Do they support standards-based federation?
26 © Novell, Inc. All rights reserved.

27. Audit/GRC
• How do you find out what’s going on inside your
vendor’s data center?
• How do you check up on SLA terms?
• Can you reconcile information you do receive with
the rest of your GRC inspection regime?
• Is sensitive data moving through scale-out or
through backup?
27 © Novell, Inc. All rights reserved.

28. Trusted-Cloud Initiative
Novell/CSA partnership
initiative now prominently
displayed to CSA members
28 © Novell, Inc. All rights reserved.

29. Responsibility
Physical Security GRC Manageability
• Physical data location • Identity creation • Responsive provisioning/
• Physical data security • Manageability of de-provisioning users
resources in the cloud across multiple services
• Simplify identity • How to apply roles/policies
management across multiple services
• Compliance enforcement • Cloud workload
management
• Ability to move workloads to
different vendor(s)
Financial Contractual
• Audit • Software licensing
• Avoid re-writing internal problems Vendor
applications • SLAs, proof of 99.99+%
Enterprise
• Leveraging existing uptime
investments in the data • Intellectual property Joint
center concerns
• References
29 © Novell, Inc. All rights reserved.

30. Questions

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