Welcome!

Agile Computing Authors: Elizabeth White, Liz McMillan, AppNeta Blog, William Schmarzo, Sematext Blog

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
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...