Cloud Computing. Benefits and Risks. Bill Wells, CISSP, CISM, CISA, CRISC, CIPP/IT

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1 Cloud Computing Benefits and Risks Bill Wells, CISSP, CISM, CISA, CRISC, CIPP/IT 10/3/2012 1

2 Let s make sure we re all talking about the same thing. WHAT IS CLOUD COMPUTING? 2

3 Legacy Definition Hosting Internet Hosting Apps Storage 3

4 Today s Definition Virtual Servers App Servers DB Servers Web Hosting Web Services 4

5 Private Cloud Virtual Servers App Servers DB Servers Web Hosting Web Services 5

6 Public Cloud Virtual Servers App Servers DB Servers Web Hosting Web Services 6

7 Hybrid Cloud Virtual Servers App Servers DB Servers Web Hosting Web Services 7

8 Textbook Definitions (a la Wikipedia.com) Public cloud Public cloud applications, storage, and other resources are made available to the general public by a service provider. These services are free or offered on a pay-per-use model. Generally, public cloud service providers like Amazon AWS, Microsoft and Google own and operate the infrastructure and offer access only via Internet (direct connectivity is not offered). [28] Community cloud Community cloud shares infrastructure between several organizations from a specific community with common concerns (security, compliance, jurisdiction, etc.), whether managed internally or by a third-party and hosted internally or externally. The costs are spread over fewer users than a public cloud (but more than a private cloud), so only some of the cost savings potential of cloud computing are realized. [4] Hybrid cloud Hybrid cloud is a composition of two or more clouds (private, community or public) that remain unique entities but are bound together, offering the benefits of multiple deployment models. [4] By utilizing "hybrid cloud" architecture, companies and individuals are able to obtain degrees of fault tolerance combined with locally immediate usability without dependency on internet connectivity. Hybrid cloud architecture requires both on-premises resources and off-site (remote) server-based cloud infrastructure. Hybrid clouds lack the flexibility, security and certainty of in-house applications. [51] Hybrid cloud provides the flexibility of in house applications with the fault tolerance and scalability of cloud based services. Private cloud Private cloud is cloud infrastructure operated solely for a single organization, whether managed internally or by a third-party and hosted internally or externally. [4] Undertaking a private cloud project requires a significant level and degree of engagement to virtualize the business environment, and it will require the organization to reevaluate decisions about existing resources. When it is done right, it can have a positive impact on a business, but every one of the steps in the project raises security issues that must be addressed in order to avoid serious vulnerabilities. [52] They have attracted criticism because users "still have to buy, build, and manage them" and thus do not benefit from less hands-on management, [53] essentially "[lacking] the economic model that makes cloud computing such an intriguing concept". [54][55] 8

9 Cha-Ching! Show me the money! BENEFITS OF CLOUD COMPUTING 9

10 Benefits Reduced Cost Lower Cap-Ex Less hardware Less headcount Less operational overhead Scalability More computing resources Faster implementation cycles Pay as you grow 10

11 Benefits Flexibility Ability to use services previously too costly Ability to set up and tear down as needed Use in-house or external providers Greater mobility Data and apps available anywhere the users are Administrative functions available anywhere the admins are Typically higher degree of mobile technology 11

12 Benefits Skilled Practitioners Microsoft Google Amazon IBM Yahoo! Free up internal resources Increased innovation Increased workload bandwidth 12

13 Benefits Quality of service 24/7 support Rapid response to emergencies Skilled IT staff always on-hand Resiliency and redundancy Backup and recovery services Hot-failover Fault tolerance 13

14 Business Loves the Cloud What s not to love? Reduced operational costs and lower capital spending Capability to repurpose skilled staff from business support to business innovation and growth Ability to use a pay-as-you-grow model for IT spend Greater agility to rapidly adjust to changing market conditions Expanded access to business systems and data for employees and business partners Enhanced business resiliency in the face of natural and man-made disasters 14

15 Wait a minute did you say it could put us out of business?! RISKS 15

16 Risks Compliance Provider Resiliency Vulnerability Management Cloud Management VM Environment Operations Encryption Management Identity Management 16

17 Compliance Risks SOX, HIPAA, PCI, BASEL Accords, and others require demonstrated compliance Do not assume provider is required to comply or will be liable Read provider privacy and security policy Customer is sole owner of responsibility for compliance Encryption not a default for data at rest and data in flight Understand position on provider's 3rd party relationships 17

18 Provider Resiliency Risks Provider s position in the market Major player or small operation? Core business or on the menu? Subject to acquisition or liquidation Financial statements Media buzz Service level monitoring Service level agreement in place? How are service levels monitored? 18

19 Provider Resiliency Risks Backup and recoverability Included in contract? Tape restore or hot site? Maximum allowable downtime Recovery Time Objective Recovery Point Objective BC/DR Plans up to date? Logging and monitoring capability in co-located facilities with other providers' customers Are audit log files available upon request? Provided in usable electronic format? 19

20 Vulnerability Management Risks Unauthorized access to management interface Shared Multiple admins Management Access Management interface shared Typically web-based Subject to common web-based attacks Internet protocol vulnerabilities Well-known ports and protocols Well-known technologies (e.g., web-based) Vulnerability scanning prohibited 20

21 Cloud Management Risks Metering and billing evasion Manipulation of billing data Billing evasion Security metrics not adapted to cloud Standardized cloud-specific metrics do not exist Difficult to assess, audit and determine accountability 21

22 VM Environment Operational Risks Customer technical staff Inadequate skills to manage specifications Inadequate skills to assess & identify risks Virtualized networks' insufficient controls IP-based zoning typically not available VM's share hardware VM's typically use a template Attacker may be able to analyze Attacker may rent the service himself 22

23 VM Environment Operational Risks VM replication May lead to data leakage via cloning Keys may be inadvertently cloned Data recovery vulnerability Resources are subject to reassignment Next user might be able to retrieve prior user's data 23

24 Encryption Management Risks Cryptographic vulnerability Weak random number generation Entropy of unique numbers Poor key management Many keys are typically required Lack of fixed hardware infrastructure may limit key management methods, such as hardware security module (HSM) 24

25 Identity Management Risks Insecure user behavior Weak passwords Indiscriminate data sharing One-factor authentication Typical cloud offerings limited to username & password Subject to account lockout and DOS against that feature Weak credential-reset mechanism Method needs to be understood Password recovery, reuse and reset 25

26 Identity Management Risks Insufficient or faulty authorization checks HTTP is stateless Transaction integrity and security may be weak URL obfuscation may not be used Coarse authorization control Duty separation may not be possible May not be able to honor "business need to know" Insufficient logging & monitoring Shared audit logfiles May not be able to filter/prune sufficiently May lead to inability to monitor system activity 26

27 Assessing the Risks Compliance Legal, Compliance and Security should jointly review contracts with the business owner Provider Resiliency BCP/DR Staff should review provider s ability to recover Vulnerability Management Network and Applications staff should review vulnerability management processes Cloud Management IT Cost management and Info Security staff should review for means of understanding value tracking and security monitoring 27

28 Assessing the Risks VM Environment Operations Infrastructure architects, engineering and support staff should review architecture and integration design Encryption Management Information security and security staff should review for appropriateness Identity Management Identity management, entitlement review, segregation of duties and information security teams should review 28

29 /fire_hose put-down WRAP UP & QUESTIONS 29

30 Risks Maybe next time you ll do the risk assessment BEFORE you start using it 30

31 Questions 31

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