Welcome!

Agile Computing Authors: Pat Romanski, Elizabeth White, ManageEngine IT Matters, Liz McMillan, Yeshim Deniz

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Cloud Security, @BigDataExpo, SDN Journal

@CloudExpo: Article

Best Practices to Ensure Security in the Private Cloud

A private cloud environment significantly reduce risks by providing secure, multi-layer segmentation of client access and data

As regulatory oversight across the financial landscape continues to drive greater transparency and stricter penalties, outsourcing to the private cloud has become an integral resource for hedge fund and private equity managers. Cloud infrastructure services are now synonymous with increased efficiency, decreased costs and added security. However, security in particular remains a key concern for many financial services firms. The costs a cloud services provider can incur in dealing with a security breach, both financially and to its reputation, can be devastating.

Infrastructure providers, particularly those catering to financial services firms such as hedge funds, must have strict policies in place and employ best practices to ensure that their clients receive the same level of security as they would achieve with an on-site network. While most participants in the financial services industry are familiar with the benefits that cloud computing offers in terms of efficiency, scalability and cost savings, two of the features that seem to be forgotten are increased security protection and risk mitigation.

The key differentiator between launching an in-house network as opposed to outsourcing to a hosted services provider is that service providers offer economies of scale that enable them to deploy institutional strength security services to ensure the client's environment is protected and secure. A large portion of spending by cloud providers goes directly into measures that ensure the highest levels of security and data protection. This will typically include services such as advanced intrusion detection, traffic monitoring, forensic analysis and incident history/investigation. These systems and processes can range into the hundreds of thousands and even millions of dollars in some cases. Therefore they are usually not deployed by a hedge fund or private equity firm's in-house IT staff.

One of the major advantages of a private cloud environment is that it can significantly reduce risks by providing secure, multi-layer segmentation of client access and data. When examining cloud providers, financial service firms should keep in mind a few key factors. The first factor is the location of your data. Clients will always have questions about where their data is being stored, who can gain access to it and how it is secured from being accessed. This may be the most important factor for cloud computing providers, but it is also something that is commonly overlooked when potential clients are reviewing data security. Most data breaches do not take place via cyber-attacks, but instead they will occur when hard disks or backup tapes are misplaced or stolen. A common best practice backup procedure for an on-site server is to rotate the tapes off-site.

Consideration must also be given to the concept of physical servers versus a shared environment. In a service provider's data center, multiple companies will share services on the same infrastructure, which in some cases may raise a red flag in the mind of a CFO or CTO. When resources in a data center are shared, security and segregation must be guaranteed at every layer, from the server to the network to the storage.

Network is the next factor that must be considered. Methods such as data encryption - where files may be encrypted prior to transmission - can prevent data from being used should it be compromised at any point during transmission. The hosted service provider is responsible for supplying the firm with a storage solution that provides secure data segmentation and enables rapid resource allocation. The hosted storage provider should provide high data availability and disaster recovery, particularly after what Wall Street firms experienced during Hurricane Sandy in October 2012. Service providers must also be able to offer data replication for off-site backup and archiving in the case of an emergency. Protecting the firm against all possible natural disasters and intrusions is now a major deciding factor for financial decision-makers.

Another factor that is now emerging as a standard business practice due to the amount of executives that are constantly on the go is the management of mobile devices. In today's fast-paced business environment, mobile devices essentially serve as an extension of a firm's offices, so they should be incorporated into all security measures. A service provider should take the necessary steps to actively manage these resources, including implementing and managing a password policy and being able to remotely wipe the device's memory of all information if it is lost /stolen.

The bottom line is that companies considering a move to the private cloud need assurance that service providers offer security standards and best practices that are better than what they can received from on-site or internal technology services. By taking into consideration the various components discussed throughout this piece, firms can ensure up front that a service provider has taken the necessary steps to provide a robust and secure platform environment for their business technology.

More Stories By Viktor Tadijanovic, CTO, Abacus Group LLC

Viktor Tadijanovic is a Founding Member & CTO of the Abacus Group. He is the principal architect for Abacus's Hosted IT Platform. Previously, he was a Senior Systems Architect at the Gerson Lehrman Group (GLG). Prior to GLG, he was a Technical Director at Eze Castle Integration where he was responsible for managing technology delivery to all hedge fund clients in New York City and Connecticut. Viktor possesses accreditations from NetApp, Cisco, VMware, Citrix and Microsoft. He received a degree in Network Engineering and Data Communications from the Chubb Institute in New York.

Comments (1)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...