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

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Cloud Computing

Benefits and Risks

Bill Wells, CISSP, CISM, CISA, CRISC, CIPP/IT

(2)

WHAT IS “CLOUD COMPUTING?”

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Legacy Definition

Internet

Hosting

(4)

Today’s Definition

Virtual Servers App Servers DB Servers Web Hosting

(5)

Private Cloud

Virtual Servers App Servers DB Servers Web Hosting Web Services

(6)

Public Cloud

Virtual Servers App Servers DB Servers Web Hosting Web Services

(7)

Hybrid Cloud

Virtual Servers App Servers DB Servers Web Hosting Web Services

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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]

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BENEFITS OF CLOUD COMPUTING

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Benefits

Reduced Cost

– Lower Cap-Ex – Less hardware – Less headcount

– Less operational overhead

Scalability

– More computing resources – Faster implementation cycles – Pay as you grow

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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

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Benefits

Skilled Practitioners

– Microsoft – Google – Amazon – IBM

– Yahoo!

Free up internal resources

– Increased innovation

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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

(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

(15)

RISKS

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Risks

Compliance

Provider Resiliency

Vulnerability Management

Cloud Management

VM Environment Operations

Encryption Management

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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

(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?

(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

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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)

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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

(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

(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

(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)

(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

(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

(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

(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

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WRAP UP & QUESTIONS

(30)

Risks

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

(31)

References

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