Edited transcript of a podcast and video panel presentation from the RSA Conference on bringing security best practices to cloud-based computing models.Listen to the podcast. Find it on iTunes/iPod  and Podcast.com. Download  the transcript. View the video. Sponsor: Akamai  Technologies.To view a full video of the panel discussion on cloud-based security, please go to the registration page.
Dana Gardner:  We're in San Francisco at the 
RSA Conference to  talk about 
security and 
cloud computing.  I'm 
Dana Gardner,  Principal Analyst at 
Interarbor  Solutions, your host and moderator for today's special sponsored  podcast and 
video presentation.
We're going to look at the  intersection of 
cloud computing, security, Internet services, and 
 Internet-based  security
Internet-based  security practices to uncover differences between perceptions and  reality.
Today's headlines point toward more  
sophisticated and large-scale and malicious online activities. For some folks,  the consensus seems to be that the cloud model and vision are  
not up to the task when it comes to security.
We're going to examine why security concerns count, not only as a risk, but also as an amelioration  of risk. We're going to talk about why security is not just part of the cloud -- or part of the enterprise -- but cuts across 
all aspects of IT.
When we think about security, we're not focused on 
distributed defenses only. We're not  talking about the edge only. We need to talk about 
best practices across  
all aspects of IT.
And so join me in welcoming our panel. Here to look  at the reality versus the perception is 
Chris Hoff, Director of Cloud and Virtualization Solutions at 
Cisco Systems.
Chris  Hoff: Thanks, Dana. Great to be here.
Gardner: And 
Jeremiah Grossman,  the founder and Chief Technology Officer at 
WhiteHat Security.
Jeremiah  Grossman: Thank you very much for having me.
Gardner: Andy Ellis, the Chief  Security Architect at 
Akamai Technologies.
Andy Ellis:  Great to be here, Dana.
Gardner: As I mentioned, we're  looking at security across a wider spectrum. People have honed in on the  cloud and said, "Wow, that can't be secure. I can't put data and  applications there and expect it to be mission-critical and reliable. I  can't expect people won't be able to get to it if they want to, if they  tried hard enough."
Is there a gap here between perception and reality,  or are we not looking at the problem in the wrong context?
Huge gapEllis: There's a huge gap in what  people think is secure and what people are doing to

day  in trusting in the security in the cloud. When we look at our customer  base, over 90 of the top 100 retailers on the Internet are using our  cloud-based solutions to accelerate their applications--and what's more  mission-critical than expecting money from your customers?
At  Akamai, we see that where people are saying, "The cloud is not secure,  we can't trust the cloud." At the same time, business decision makers  are evaluating the risk and moving forward in the cloud.
A lot of that  is working with their vendors to understand their security practices and  comparing that to what they would do themselves. Sometimes, there are  shifts. Cloud gives you different capabilities that you might be able to  take advantage of, once you're out in the cloud.
Gardner:  So, 12, 15 years ago, people were saying, "I can't use my credit card  on the Web. I can't do 
ecommerce safely. I can't do retail sales." We've seen  quite a bit of that. Tell us a little about Akamai and what you do and  why that was relevant to the web then, and perhaps is relevant to the  cloud now.
Ellis: At Akamai  we have 
a network of over 61,000 servers, distributed in about 950  different networks around the world. Our customers use those servers to  deliver content, accelerate their applications to their end users, and  take advantage of the cloud-based computing inherent in our servers to  gain capabilities they wouldn't have otherwise.
For instance,  recently 
we added our 
web application  firewall, which permits our customers, just at the click of a  button, to have an application firewall running all the way out at the  edge of their network. We look at that and say, "This is a great  opportunity for our customers to quickly scale, deal with the cloud, and  gain those advanced capabilities."
People, as you noted, used to  say, "Oh, credit cards aren't secure on the Web. I will never do that."  At the same time, you saw people using credit cards online. People  weren't necessarily as happy about it until they gained a level of  comfort. I think that's an area where people are a little resistant to  change.
We see cloud computing, and everybody jumps to big  heavyweight cloud computing, that virtualized servers are out at the edge.  There is a whole spectrum of capabilities in between virtualized servers  and just delivering some content that people can take advantage of and are  doing today.
Gardner: Do you think that cloud computing is  the problem, the solution, or 
both to security?
Ellis: I  don't think it's either the problem or the solution. It's a piece of the  solution. It's a piece 

of the  problem. People look at how to 
secure applications. Sometimes, people  get very comfortable with a given security model. They say, "This is how  I've done business for the last year. This is how I will secure it."
You  say, "Well, you could do business in a different fashion." Often,  that's driven by a business owner inside a company. They see an  opportunity to accelerate their revenues and reduce their cost, but it  has to change the model that people think about. I don't see that as a  problem of security. I think the bigger problem is that sometimes we're  resistant to change.
Gardner:  Jeremiah, 
WhiteHat Security  takes it upon itself to find what's wrong with the security in certain  organizations and you focus on it. First, tell us 
about WhiteHat and  then also tell us what people should be worried about, when it comes to  cloud computing. Is this a different problem set when it comes to  security?
Assessing securityGrossman: WhiteHat Security is in the 
website  vulnerability management business. Our job is 

to  assess the security of a website, as it exists in an operational  environment, to get the same point of view that a hacker would if they  tried to break in.
Our job is to find those vulnerabilities ahead  of time and help our customers fix those issues before they become  larger problems. And if you look at any security report on the Web right  now, as far as security goes, it's a web security world. Bad guys have  broken into website after website after website and stolen everything  that they possibly can. Our our job is to help stop that and measure the  security of the web.
Gardner: What's different about  cloud computing? As people look to do more applications and  infrastructure in the cloud, should they be thinking about the same  level of security that they would with their website -- or is this a  different problem?
Grossman: An interesting paradigm  shift is happening. When you look at website attacks, things haven't  changed much. An application that exists in the enterprise is the same  application that exists in the cloud. For us, when we are attacking  websites and assessing their security, it doesn't really matter what  infrastructure it's actually on. We break into it just as same as  everything else.
What's different among our customer base is that  they can't run to their comfort zone. They can't run to secure their  enterprise with 
firewalls, 
intrusion detection systems, and 
encryption.  They have to focus on 
the application. That's what's really different  about cloud, when it comes to web security. You have to focus on the  apps, because you have nothing else to go on.
Gardner:  Chris Hoff, not only are you active in cloud solutions at Cisco, but you  are a founding member of the 
Cloud Security Alliance  (CSA). So, this is something you have been focused on. When we look  at cloud services, we're talking about the livelihood of the cloud  provider. If they don't do security well, they're not going to last very  long.
Is there a different level of competency, a higher bar, for a  cloud provider than for a typical enterprise? And is that part of the  solution?
Hoff: That's an interesting question, because in  many cases we use the term 
cloud and 
cloud computin g
g  synonymously. Depending upon the conversation you're having, cloud  computing could be a noun, a verb, or an adjective. Why that's important  is that there is no such thing as 
the cloud. There's not a single thing  to which you could point to suggest that there is a common  implementation and deployment model for cloud computing, which is an  operational model, not a technology.
The reason that's important  to your point is that, when you look at a cloud provider, they could be  in the business of providing 
software-as-a-service  (SaaS), which, in many cases, has emerged from plain old web  apps that don't have many of the technical characteristics that one  would associate with cloud computing -- elasticity, dynamism,  self-service. They are just Internet connected web apps, SaaS. But then,  there's a new generation of SaaS that's actually based on a lot of this  flexible infrastructure that powers these very dynamic environments.
In  that case, where a vendor who is a SaaS supplier manages the entire  stack infrastructure, applications, and content, we have over time come  to put a great deal of trust in the sanctity of the operations security,  confidentiality, integrity, and availability of those services. There's  not a whole lot new in that business.
For example, if you're  trusting your sales figures context, and you have for years, that  provider, whether they're cloud-based or not, has a particular set of 
service  level agreements (SLAs) that they strive to hit, regardless of  whether they brand themselves cloud or not.
Business' responsibilityThe further down the stack you go, to platform and 
infrastructure-as-a-service  (IaaS) providers, in many cases, those providers are in the  business of maximizing availability, and give you the most robust,  scalable, high performance, and available set of resources. But,  confidentiality and integrity, the applications and data that Andy and  Jeremiah were speaking to, are really still the responsibility of the  business owner.
Those cloud providers -- cloud service and cloud  computing providers -- are in the business of making sure that they can  offer you really robust delivery. At this time, they focus there. We  have a challenge to take everything we have done previously, in all  these other different models, still do that, and deal with some of the  implementation and operational elements that cloud computing,  elasticity, dynamism, and all this fantastic set of capabilities bring.
We  in the security industry in some way try to hold the cloud providers to  a higher standard. I'm not sure that the consumer, who actually uses  these services, sees much of a difference in terms of what they expect,  other than it should be up, it should be available, and it should be  just as secure as any other Internet-based service they use.
So  we get wrapped around the axle many times in discussions about cloud,  where a lot of what we are talking about still needs to be taken care of  from an infrastructure and application standpoint.
Gardner:  I want to focus on this notion of things being done differently now  with cloud computing and its various permutations. You alluded to this  as well, Andy, in terms of a paradigm shift.
Now, they have to tackle a really sticky wicket. Do you  have a safe  application wherever it lives?
As I understand  it, if you're a SaaS provider, you have full control over the entire  stack and you can control and manage security appropriately. If you're  an enterprise, similarly, you have complete control over what happens  inside your firewall, you can manage your perimeter. But now we're  talking about cloud computing as a hybrid, where some aspects of what  you are doing may be on-premises and other aspects might be on a single  provider or a variety, and the network is the go-between.
What’s  different now, Andy, about managing this from a security perspective?  Who is in charge? Who can be in a 
governance role to  oversee that spectrum across such a hybrid affair?
Ellis:  Ultimately, the data owner, the business who is actually using whatever  the compute cycles are. As Chris alluded to, it used to be that people  would  fall back on certain types of security to deal with their issues.  Jeremiah also alluded to that as well.
That’s the challenge for  people who are moving out to the cloud. That area may be in the purview  of the provider. While they may trust the provider, and the provider has  done the best they can do in that arena, when they still see risks,  they can no longer say, "I'll just put in a firewall. I'll just do  this." Now, they have to tackle a really sticky wicket. Do you have a  safe application 
wherever it lives?
That’s where people run into a  challenge: "It’s cloud. Let me make the provider responsible." But, at  the end of day, the overall risk structure is still the responsibility  of 
the business.
Gardner: At WhiteHat, if you were to look  at the application, would you be able to go back and say to the service  provider, "Listen, you don’t want to let that application in, because  it hasn’t been architected properly." Do you think that the providers of  cloud services need to be taking a governance role in deciding what  applications should or shouldn’t be allowed to live in their  environments, too?
It's not yoursGrossman: To piggyback on what Andy said, something  has been lost. When you host an application internally, you can build  it, you can deploy it, and you can test it. Now, all of a sudden, you've  brought in a cloud provider, on somebody else’s infrastructure, and you  have to get permission to test it. It’s not 
yours anymore.
Actually,  one of the big things [to attend to] out there is a 
right to test. You have no right  to test these infrastructure systems. If you do so without permission,  it's illegal. So, you have lost visibility. You've lost technical  visibility and security of the application.
When the cloud provider  changes the app, it changes the risk profile of the application, too, but you  don’t know when that happens and you don’t know what the end result is.  There's a disconnect between the consumer, the business, and the cloud  computing provider or whatever the system is.
Gardner:  Chris, are we talking about more of a higher level of complexity, the  complexity being how you secure a cloud-based activity versus  on-premises activity? Is that complexity something that plays into risk,  and therefore people should be more concerned about cloud-based  activities? Are we getting ahead of ourselves?
Hoff: Going  back to the statement I made about getting wrapped around the axle,  what’s been interesting over the last year is that we as an industry, or  just in general, have been so focused on 
what is cloud computing that  we have forgotten the more important point, which is, 
how can we use  cloud computing?
You alluded to a hybrid model -- on-premises,  off-premises, enterprise, self-governance of controls, at the perimeter  or the edge, and then outsourcing things with hosting and collocation  and SaaS. The last time I checked, we have been doing that for about 10,  15 years, probably more.
Cloud  computing has become a fantastic forcing function, because what  its  done to the business and to IT.
To your question, the  complexity has come about when we've tried to adapt new or relevant  advances in technology and associate them in some sort of branding. I  like to say that if your security stinks before you move to the cloud,  you will be pleasantly unsurprised by change, because it’s not going to  get any better -- or probably not even necessarily any worse -- when you move  to cloud computing.
It's important to really take a look at what  you already do, in terms of practices; extranets, how you integrate  business partners, and the hybrid model of access -- the blurring, with  consumerization of IT. "Is this a 
work device, is this a 
home device?" Where do I access it from, how am I using the information?
Cloud  computing has become a fantastic forcing function, because what its done  to the business and to IT. We talked about paradigm shifts and how  important this is in the overall advancement of computing.
The  reality is that cloud causes people to say, "If the thing that’s most  important to me is information and protecting that information, and  applications are conduits to it, and the infrastructure allows it to  flow, then maybe what I ought to do is take a big picture view of this. I  ought to focus on protecting my information, content, and data, which  is now even more interestingly a mixture of traditional data, but also  voice and video and mixed media applications, social networks, and  mashups."
Fantastic interconnectivity
The complexity comes about, because with  collaboration, we have enabled all sorts of fantastic 
interconnectivity  between what was previously disparate, little mini-islands, with mini-perimeters that we could secure relatively well.
The application  security and the information security, tied in and tightly coupled with  an awareness of the infrastructure that powers it, even though it’s  supposed to be abstracted in cloud computing, is really where people  have a difficult time grasping the concepts between where we are today  and what cloud computing offers them or doesn’t, and what that means for  the security models.
Gardner: It sounds as if the  emphasis on security is being elevated. We used to look at securing  components or parts, or maybe a stack -- if we were really good. Now, we're  talking about securing a 
process. We're looking at security from a  different vantage point and elevation. That might be a good thing. That  might give us better security, because we are thinking about it as a  function of a cloud-based activity. Does that make sense, Andy?
Ellis:  Absolutely. There's a great initiative going on right now called 
CloudAudit, which is aimed at  helping people think through this security of a process and how you  share controls between two disparate entities, so we can make those  decisions at a higher level.
If I am trusting my cloud provider  to provider some level of security, I should get some insight into what  they're doing, so that I can make my decisions as a business unit. I can  see changes there, the changes I am taking advantage of, and how that  fits my entire software development life cycle.
Cloud computing, depending on who you  talk to, encompasses almost  everything; your kitchen blender, any  element that you happen to connect  to your enterprise and your home  life.
It’s still nascent. People are still changing their  mindset to think through that whole architecture, but we're starting to  see that more and more -- certainly within our customer base -- as people  think, "I'm out in the cloud. How is that different? What can I take  advantage of that’s there that wasn’t there in my enterprise? What are  the things that aren’t there that I am used to that now I have to shift  and adapt to that change?"
Gardner: So, we're here at RSA,  perhaps 
the premier security show. We've been talking about 
a lot of  interesting things this week. One of the things that jumped out at me  was an 
announcement from the CSA that prodded enterprises to be thinking  differently about security.
One of the things that really  grabbed me was to help secure other forms of computing, being  cloud-based in your security emphasis. How does that work? How is it  that you can focus on cloud-based security and have it trickle down, if  you will, and make you more secure across all of your IT activities?
Hoff:  As I alluded to previously, cloud computing, depending on who you talk  to, encompasses almost everything; your kitchen blender, any element  that you happen to connect to your enterprise and your home life.
Two viewsThere are really two views, when it comes to defining  cloud computing, as it relates to your question. There is the technician  and the clinician’s view, which is very empirical, has lots of layer,  stacked models, things that IT professionals can relate to in ways that  allow us to break things down and be very analytical. They have delivery  models, service models, and essential characteristics. It's a great  thing to sit there and debate on 
Twitter.
What’s really  interesting is the juxtaposition of the consumers' view, which basically  and simply stated says that anything that connects to the Internet on  any device that interacts with my information of data in any way is also  cloud computing.
So, you look at those two things, you  juxtapose, and you are not going to tell a your customer that they're  wrong. You could try. It’s like 
jousting with windmills. But trying to  reconcile those two things is very important, because, when we think  about the opportunities here, the reality is that cloud computing offers  us a tremendous set of benefits from the perspective of 
flexibility and  agility. In some cases there are cost savings. Sometimes, it might cost  more. That is just diametrically opposed.
Anything with the word  dynamism in it, that’s dynamic, doesn’t compute quite literally, as it  relates to how we think about security today. So, what’s happening  ultimately is an adjustment on focusing in on the information.
Regardless  of how I use the information, cloud computing, could secure other  forms. Take your 
smartphone, for example. You think of that now as an  amazingly rich and capable platform for a computing experience, which it  is. Is that cloud computing? In many cases, people would say, yes,  absolutely.
Consumers could care  less whether it's running on a blade server,  distributed in 1,000  countries, or in outer space. What they care is  that the services are  available.
We focus a lot on the backside -- moving parts of  data centers, IaaS, and we get wrapped around the axle on how it's  important to IT. Consumers could care less whether it's running on a  blade server, distributed in 1,000 countries, or in outer space. What  they care is that the services are available.
What we're learning  today is that if we secure our information and applications properly  and the infrastructure is able to deal with the dynamism, you will, by  default, start to see derivative impacts and benefits on security,  because our models will change. At least, our thinking about security  models will change.
Gardner: So the expectation of the  consumer is perhaps the starting point and you need to back up from  there. The consumer’s expectation has been, "I want to be able to do  everything I can possibly do on this mobile device, no matter where I  am, and I don’t care what's between me and that application, that's  somebody else’s problem." Here we are on the IT side, thinking, "Now we  have to adapt to that."
Jeremiah, is there going to be a market  advantage for companies that accept as their reality and their vision? Do we need to look at security through a different lens, to  look at cloud computing as the future, recognize the expectations of the  consumer and the business and channel partners that we deal with? If we  do that right, are we going to be able to leapfrog our competition?
To view a full video of the panel discussion on cloud-based security, please go to the registration page.
Awareness  of break-insGrossman:  What I've seen in the last couple of years is that what drives security  awareness is break-ins. Whether 
the bad guys are nation- or  state-sponsored actors or whether they are organized criminals after  credit card numbers, breaches happen. They're happening in record  numbers, and they're stealing everything they can get their hands on.
Breaches  make headlines. Headlines make people nervous, whether it's businesses  or consumers. When a business outsources things to the cloud or a SaaS  provider, they still have this nervous reaction about security, because  their customers have this nervous reaction about security. So they start  asking about security. "What are you doing to protect my data?"
All  of a sudden, if that cloud provider, that vendor, takes security  seriously and can prove it, demonstrate it, and get the market to accept  it, security becomes a differentiating factor. It becomes an enabler of  the top line, rather than a cost on the bottom line.
Gardner:  Trust is a very important business advantage. We've seen that 
in the  auto industry to a disadvantage recently. If you are in the Internet  services side of things, trust is going to be perhaps assimilated with  your brand for better or worse. Andy, what should our audience know  about cloud-based security solutions in order for them to take advantage  of these, but without being subjected to the risk?
Ellis: I  like to look at security as being a business-enabler in three areas.  The obvious one, we all think, is 
risk reduction. How can I reduce my  risk with cloud-based security services? Are there ways which I can get  out there and do things safer? I'm not necessarily going to change  anything else about my business. That's great and that's our normal  model.
There are a lot of  services available through the cloud that can be used  to protect your  brand and your revenue against loss, but also help you  grow revenue.
Security  can also be a 
revenue-enabler and it can also be a 
protection of  revenue. Web application firewalls is a great example of fraud mitigation  services. There are a lot of services available through the cloud that  can be used to protect your brand and your revenue against loss, but  also help you grow revenue. As you just said, it's all about trust.  People go back to brands that they trust, and security can be a key  component of that.
It doesn't always have to be visible to the  end user, but as you noted with the car industry, people build the  perception around incidents. If you can be incident-free compared to  your competition, that's a huge differentiator, as you go down into more  and deeper activities that require deep trust with your end users.
Gardner:  Let's get to the heart of the matter here. What is it that really  should concern people, risk-wise, about moving to a cloud model? What is  it technically that is different? And, if it's not technical, what is  it about this 
paradigm shift of doing things differently that needs to  engender some kind of a change? What is it that we are facing?
Hoff:  What's interesting about cloud computing as a derivative set of  activities that you might have focused on from a governance perspective,  with outsourcing, or any sort of thing where you have essentially given  over control of the operation and administration of your assets and  applications, is that you can outsource responsibility, but not  necessarily accountability. That's something we need to remember.
Think  about the notion of risk and 
risk management. I was on a panel the  other day and somebody said, "You can't say risk management, because  everyone says risk management." But, that's actually the answer. If I  understand what's different and what is the same about cloud computing  or the cloud computing implementation I am looking at, then I can make  decisions on whether or not that information, that application, that  data, ought to be put in the hands of somebody else.
No  one-size-fits-allIn some  cases, it can't be, for lots of real, valid reasons. There's no  one-size-fits-all for cloud. Those issues force people to think about  what is the same and what is different in cloud computing.
Previously,  you introduced the discussion about the CSA. The thing we really worked  on initially were 15 areas of concerns, and they're now consolidated to  
13 areas of concern. What's different? What's the same? How do I need  to focus on this? How can I map my compliance efforts? How can I assess,  even if there are technical elements that are different in cloud  computing? How can I assess the operational and cultural impacts?
As  an industry, the security industry, we come about with novel and  interesting ways every once in a while. Sometimes they're big, sometimes  small, revolutionary/evolutionary, incremental ways to solve some of  these problems. As we're forced into these new models, we will continue  to do so.
Businesses have the challenge of what this means to  their staff -- how they transfer things and interact with legal and 
HR  and their contractors. Some of it you've still got to build in, and some  of it you use 
RFP and contracting. That’s an interesting dynamic that  has been moved more and more to a model where you are distributing your  applications and content.
Gardner: Is it fair to say that a  security problem is fundamentally a 
management and organizational  problem?
From a cloud  computing standpoint, all the attacks are largely the same,  whether one  application is here or in the cloud.
Hoff: It ought  to be treated or thought about that way. Part of the problem is that we  don’t. We, as an industry, and in many cases those that are responsible  for what they think is securing assets, immediately drop down into kind  of a realm of technology. It becomes a discussion about tools, and  that’s problematic, because for the business, the consumer, it's a  different language. They don’t care. They just want to know that their  information is safe.
Gardner: Jeremiah at WhiteHat  Security, let's put on a 
black hat for a minute. Say you're a bad guy.  Maybe you're a foreign organization, military, or government, or  competitor. You want to get inside. You want to find out what's going on  or steal some intellectual property. Maybe you want to get access to  some email. People are doing cloud-based activities. Where are you going  to go to look for those cracks, those weaknesses?
Grossman:  Fortunately or unfortunately, from a cloud computing standpoint, all  the attacks are largely the same, whether one application is here or in  the cloud. You attack it directly, and all the methodologies to attack a  website are the same. You have things like 
cross-site  scripting, 
SQL  injection, 
cross-site  request forgery. They are all the same. That’s one way to access  the data that you are after.
The other way is to get on the other  half of web security. That’s 
the browser. You infect a website, the  user runs into it, and they get infected. You email them a link. They  click something. You infect them that way. Once you get on to the host  machine, the client side of the connection, then you can leverage those  credentials and then get into the cloud, the back-end way, the right  way, and no one sees you.
They can't see youThat’s the interesting thing from a black hat  perspective. They can't see you. When it's in a cloud operating model,  they lose visibility. There are no intrusion detection systems. You  really don’t know who accessed your data and, when there is no  visibility, even though they think they deleted their data, they really  didn’t. There is a great big 
undelete button in a lot of these systems.  That’s what we're looking at.
Gardner: If we look at that  now not through not a technical lens, but that organizational and  management lens, when you're probing around as a bad guy, what's going  to make it likely that you are going to find what you want? Is that  going to be a lapse of best practices, or is it technology, both? How do  you protect yourself?
Grossman: It's going to be that  visibility question. It's how can the provider tell you or inform you  when things change? What the security posture is of the organization?  When somebody accesses my hosted email account, can you tell me when? Or  even on the insider threat side, can they tell you how many people have  access to your data in their organization; because they are just at  risk to comprise on their desktops as you are. So those are all going to  be very important questions to get visibility, not only at the point in  time, but all the time.
Gardner: Andy Ellis, as a network  services provider at Akamai, what is that you can do or perhaps take on  a different role so that you can look out for your customers in such a  way that those cracks, those weaknesses, are less likely?
Ellis:  A lot of what we try to do is build a wrapper in a sandbox around each  customer to give them the same, consistent level of security. A big  challenge in the enterprise model is that for every application that you  stand up, you have to build that security stack from the ground up.
The weak point is often the  browser. Compromise the client, and you get  access to the data.
One  advantage cloud does give you is that, if you are working with somebody  who has thought about this is, you can take advantages of practices  that they have already instituted. So, you get some level of  commonality. Then, if a customer sees something and says, "You should  improve this," that improvement can affect an entire customer base.  Cloud has a benefit there to match some of the weaknesses it may have  elsewhere.
Historically, in the enterprise model, we think about  data in terms of being tied to a given application. That’s not really  accurate. The data still moves around inside an enterprise. As Jeremiah  noted, the weak point is often the browser. Compromise the client, and  you get access to the data.
As people move to cloud, they start  to change their risk thinking. Now, they think about the data and  everywhere it lives and that gives them an opportunity to change their  own risk model and think about how they're protecting the data and not  just a specific application it used to live in.
Gardner:  Some of the thinking out there, as I observe, is around the idea that  this data is stuff I can put in the cloud, because it's not that  important to me, but that is very sensitive data, and I am going to keep  that on-premises. Is that the wrong way to look at things?
Not  thinking in depthEllis:  I often think it is, because sometimes that shows people aren’t  thinking about it in-depth. As we noted earlier, a large fraction of the  Internet retailers are using cloud for their most mission-critical  things, their financial data, coming through every time somebody buys  something.
If you are willing to trust that level of data to the  cloud, you are making some knee-jerk reaction about an internal web  conference between 12 people and a presentation about something that  frankly most people aren’t going to care about, and you are saying,  "That’s too sensitive to be in the cloud." But your revenue stream  could be in the cloud. Sometimes it shows that we think parochially  about security in some places.
Gardner: We maybe break it  up between transactions and data when we should be thinking about  securing it generally?
Ellis: Yes.
Gardner:  James Fallows, in a recent 
Atlantic magazine, points out that many security experts like yourselves,  expect 
the equivalent of a 9/11 in terms of cyber security. Should there  be such a breach that creates some sort of a reckoning or rethinking,  will people gravitate toward cloud for security or away from it, in your  opinion, Chris?
Hoff: I was asked actually to comment on  that article. I wondered if the author has actually read the 
Verizon  Breach Report, because there are mini 9/11s every single day.
Everyone  likes to talk about catastrophe, Armageddon, and apocalypse. It's fun.  It creates headlines. We have seen the emergence of everything, as  Jeremiah pointed out, from nation, state-sponsored espionage, laded with  political intrigue and geopolitical overtones. Is that not important?  Is that not a 9/11? How do you measure the impact? Is that death? Is it  millions of pieces of personal information released? Is it millions of  credit cards? Because if it's any of those, that happens everyday.
Will there be a single event?  Perhaps. Will it do much to change people  moving to or from cloud  computing? Probably not.
Gardner: Let’s say it's  something that really grabs the attention or the imagination of the  general public?
Hoff: Will there be a single event?  Perhaps. Will it do much to change people moving to or from cloud  computing? Probably not. What are you going to move to or back to?  Depending upon your definition of cloud computing, you probably are  engaged in many different variations of it and I can't fathom the  economic cost of what it would mean to abandon an entire computing model.
What  it might do is drive 
awareness. We're actually doing a very good job,  especially given the innovation shown typically by the U.S. government,  which in many cases you don’t think of as an early adopter, pushing the  boundaries, pushing the thought processes, where a mistake, as it  relates to security and information, could mean death. It could mean the  comprise of national security.
If they're looking at the model,  working backward from the worst sets of outcomes, and thinking about  how, when applying risk, they should or shouldn’t move things, then the  notion that translates back to the rest of the community. We're talking  about how we secure a paradigm closer to its arrival on the scene than  we ever have in any other model. We're much better prepared to deal with  and solve some of these problems than we ever have been before.
So,  I don’t believe that we will suffer a catastrophe that will cause  people to completely abandon cloud. I think that’s ludicrous.
Gardner:  Jeremiah, do you think that this notion of an awareness-event of some  kind will change perceptions, or do you think that if it's good enough  for the U.S. government and military, it should be good enough for  
corporate 2000 businesses and therefore it is going to continue to be  good enough?
No singular eventGrossman: That's an interesting question. I don't  think there is going to be a singular cyber event that's going to cause  massive physical world destruction and loss of life. I am not a believer  on that one. If that were to occur, it would probably be a precursor to  actual war. A computer and cyber attack is just a weapon. There would  have to be something that goes along with it.
It's not to say  that security events or lapses in application security or application  quality haven't caused loss of life before. Mistakes and bugs have done  that, but from an organized crime standpoint, there is no money in that.  They're not looking to down systems and lose control. They want  control. They want visibility. They want it to stay up. They even want  us to make money, because they will capture some of it.
Gardner:  More of a parasite than an attack, right?
Grossman: Yeah,  absolutely.
Gardner: The host needs to be well enough for  the parasite to survive?
Grossman: They will grab as much  as they can, but they are not looking to destroy the system. Even  nation- and state-sponsored activities want 
command and control, they  don't want destruction, at least not initially.
Every day there are attacks and every day  there are challenges and every  day people face them. That's a great  sign.
Gardner: So, this notion of moderate risk,  managed risk, acceptable risk ... Andy, are we there and will we continue  to be there, and will cloud computing allow for that risk to be always  an acceptable risk?
Ellis: In some cases, we are there,  and in some cases, we are not. We're moving and we're definitely getting  better. As Chris noted, cloud computing changes the model for  people and, in some ways, it forces them to think differently. That  helps them look at what they're doing today. Maybe we were accepting  risk that was unacceptable before, and cloud computing just opens our  eyes to that level of risk, and we say, "Let's do something a little  different."
As for the question of that giant event that will  change the way we think about risk? I often think that's wishful  thinking, as macabre as that may sound, on the part of people who have  had a hard time getting others to look at risk differently. They sort of  hope that maybe people will change their mind if something really bad  happens. But, the reality is that we can't wait for that, and in fact,  we don't want that to happen. It's our job to make that harder for an  adversary to do.
We don't want that and we don't want to wait for  that to change people's minds. It's our job as a community to help  people grow and to help them manage the risks that are appropriate to  them, in appropriate fashion.
Gardner: So, where to get  started? If you're thinking about security differently, if you recognize  that the cloud is here to stay, that it has significant productivity  benefits to you as an organization, that your end users, your consumers,  are expecting this, and that their expectations are actually increasing  rather than decreasing around what the cloud can provide, where do you begin? How do you change in order to keep up with this risk?
Understand your own businessEllis: The first thing you have to do is to  understand your own business. That's often the first mistake that  security practitioners may make. They try to apply a common model of  security thinking to very unique businesses. Even in one industry,  everybody has a slightly different business model.
You have to  understand what risks are acceptable to your business. Every business is  in the practice of taking risk. That's how you make money. If you don't  take any risk, you're not going to make money. So, understand that  first. What are the risks that are acceptable to the business, and what  are the ones that are unacceptable?
Security often lives in that  
gray area in between. How do we take risks that are neither fully  acceptable nor fully unacceptable, and how do we manage them in a  fashion to make them one or the other? If they're not acceptable, we  don't take them, and if they are acceptable, we do. Hopefully we find a  way to increase our revenue stream by taking those risks.
Gardner:  Jeremiah, same question. Where do you start? How do you get the right  balance and keep it?
Grossman: Andy is absolutely right.  You have to understand your business and where the value is. One of the  things to look at is what assets you hold. What is it worth to you? And,  you begin from there.
How do we  take risks that are neither fully acceptable nor fully  unacceptable,  and how do we manage them in a fashion to make them one or  the other?
What's  interesting about security spending versus infrastructure spending or  just general IT spending is that it seems security is diametrically  opposed to the business. We spend the most money on applications and our  data, but the least amount of security risk spend. We spend the least  on infrastructure relative to applications, but that's where we spend  the most of our security dollars. So you seem to be diametrically  opposed.
What cloud computing does, and the reason for this talk,  is that it flattens the world. It abstracts the cloud below and forces  us to realign with the business. That's what cloud will bring in a good  way. It's just that you have to do it commensurate with the business.
Gardner:  Cloud computing forces you to consider security from soup to nuts, from  the beginning, the middle, and an ongoing value for your business, not  just your IT.
Grossman: Exactly.
Gardner:  Interesting. So. the question also to you, Chris, where do you get  started? How do you keep risk managed and keep it there?
Giving up  controlHoff: Cloud  computing ultimately is about gracefully giving up control. Control is  not the same thing as trust, and is not the same thing as security, in  terms of definition. When you look at the notion of trust, which is  really what we talk about when we talk about any situation where you  don't have ultimate ownership, or you don't have the ability to point to  a particular location and say, that's where my app and data lives,  trust is really made up of security, control, compliance, and service  levels.
One things that we haven't brought up here, but that I  think is critical, is that in many cases, when you basically give up  control and you have the ability to enable self-service, the business  has a capability to not even have to talk to you, if you are in  security.
They can take your credit card, they can run and pull  up a web browser, and they can go instantiate potentially hundreds of  images on a public-facing cloud provider, using a shared image that  doesn't use any of your security controls, never been vetted, was  uploaded as a community service by somebody, and start instantiating  your data on applications they had built or that they downloaded from  somewhere, and you would never know.
So, the point here from  where you get started, is that, when you talk about knowing your  business, what that means is understanding whether you are a barrier to  their ability to actually conduct business. Were you to tell them, "No,  you can't use cloud computing," first of all, how would you stop them  and how would you know? Getting engaged from a business and  organizational perspective is very critical.
Cloud computing is not a destination. It's another tick  along the time  axis.
The way that I've seen success start to  propagate its way through a company is when the CEO picks up 
The Wall  Street Journal and says, "Oh, cloud computing. Andy, make that happen  tomorrow. Why aren't we doing this? Everybody else is. Saves us money.  It's green. It's whatever." This really gains a shared understanding of  what cloud computing is.
The CSA guidance is fantastic. I've been  in meetings with product managers, application architects, the  development staff, the CIO, the CTO, and, believe it or not, business  unit leaders, who say, "We're thinking about this cloud thing. What do  we do? What does this mean to us? Anybody knows the pragmatic  discussions of what they do today, how they do it, whether they think  it's moving, what kinds of data, what kind of apps? And here is the  risk. Do you have a risk assessment framework? Yes, we do. Great, use  it."
Look at the guidance and understand what this means. Quite  honestly, the end message in these briefings that I have with these  customers is that cloud computing is 
not a destination. It's another  tick along the time axis.
We think we are going to arrive at some  point where we just stop, where cloud computing and whatever we have  today is the end. It's simply not going to happen that way.
One  of the things I like to draw attention to is that I try to time things  and discussions in business terms, value terms, about three or four  years ahead of the curve. We try to have discussions about where things  are headed.
In my keynote at the CSA, I was asked to talk about  the future of cloud, and I thought it was kind of absurd since we are  barely in the present. But, what I talked about was the notion that  where we are massively recentralizing data and applications in these  very huge mega 
data  centers and cloud providers, we are at the same time massively  decentralizing applications and content on smartphone platforms, on  Netbooks, on things like new iPad delivery devices.
You have two  completely different security models you have to deal with. If folks  don't understand that what's important again is the information or the  content and how that affects the business, they're not going to be able  to make rational decisions. Security won't make rational decisions.  We'll end up in a car crash, and ultimately, the arbiter of all of this,  the thing we haven't talked about yet, is compliance.
So, if the  regulators don't understand, if the auditors don't understand it, as  much as you might do a good job and be able to use cloud computing to  your benefit, when they come in to do an audit and they don't understand  the business value in what you have done, you can't show them you  understand it ... game over.
That's a huge issue for us right now.  We're measured not on security and how well we do security, but how we  comply to standards, because we haven't done well in security, and  that's fundamentally changing.
Gardner: Perhaps a  distillation of that is to know yourself, and know yourself the way  you're going to be tomorrow, because you are going to change and the  world around you is going to change.
Hoff: Absolutely.
Gardner:  Very good. We've been talking about cloud computing and security. We're  here at the RSA Conference in San Francisco. I would like to thank our  panelists; Chris Hoff, director of Cloud and Virtualization Solutions at  Cisco Systems.
Hoff: Thanks very much.
Gardner:  I appreciate your input. We have also been joined by Jeremiah Grossman.  He is the founder and Chief Technology Officer at WhiteHat Security.
Grossman:  Thank you very much for having me.
Gardner: Thank you.  And also Andy Ellis, the Chief Security Architect at Akamai  Technologies.
Ellis: Thanks Dana.
Gardner:  I'm Dana Gardner, Principal Analyst at Interarbor Solutions. Thanks for  joining this special sponsored video podcast. Come back next time for  more information on cloud computing.
To view a full video of the panel discussion on cloud-based security, please go to the registration page.
Listen  to the podcast. Find it on iTunes/iPod  and Podcast.com. Download  the transcript. View the  video.  Sponsor: Akamai  Technologies.Edited transcript of a podcast and  video panel presentation from the RSA Conference on bringing security  best practices to cloud-based computing models. Copyright Interarbor  Solutions, LLC, 2005-2010. All rights reserved.
You may also be interested  in: