Infrastructure in the Cloud:

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1

2 Infrastructure in the Cloud: Getting the Right Deal By Marc Lindsey

3 Agenda Cloud Computing Overview Infrastructure, Risks and Responsibilities Deal Tips Closing Thoughts Open Discussion and Questions

4 Overview

5 Defining Cloud Computing The essential characteristics Made available to users remotely via an IPbased network Employs virtualization technology High elasticity and scalability Automated self-service provisioning tools Metered usage

6 Defining Cloud Computing SPI Service Delivery Framework Obtained via Creative Commons license

7 Defining Cloud Computing Deployment models Public Multi-tenancy with shared resources available over the Web Private Data center infrastructure dedicated to a single company that uses virtualization technology, and provisioning/self-service automation Community A special purpose private cloud serving multiple organizations. Public-Private Hybrid Private cloud used to host business critical applications and sensitive data Public cloud for non-core applications and generic data

8 Hybrid Cloud Illustration Public Cloud Computing Services Public Cloud Public Cloud Computing Services Database service Storage Database service Storage Enterprise IAM Apps Servers Database Storage

9 Public Cloud Drivers Done right, public cloud computing can yield Reduced implementation effort and cost No lump sum licensing fees or equipment purchases Rapid transition to new technologies and processes Lower total cost of usage Better resource elasticity and scalability Improved availability of applications to mobile/remote workers More efficient and effective management of technology resources by vendors with specialized skills Fewer IT management-maintenance-upgrade hassles

10 Enterprise Use Cases SaaS CRM & ERP (e.g., Salesforce.com, Netsuite, RightNow) UC & Collaboration (e.g., Microsoft Office 365, Vz UUCaaS, Cisco WebEx) Service management (e.g., SecureWorks, RightScale) (e.g., Microsoft and Google) PaaS (e.g., Force.com, Google App Engine, Microsoft Azure, VMForce) Organizations develop, test and put into production custom apps Iasi Sharing computational workloads during peak usage Hosting third-party, custom applications and ecommerce sites On-line storage Application development and testing

11 Some Leading Infrastructure Providers Public Iasi Amazon Innovator that leads the back Struggling to win over large enterprises Verizon / Terremark Service offerings and processes are evolving rapidly Demonstrated willingness to make deals to win enterprise business Rackspace AT&T (Synaptic Compute) Long-term experience with enterprise hosting Telco deal approach is less than nimble and flexible GoGrid IBM (Iasi for development and test, mostly) Savvis/CenturyLink Private Cloud (too many to list) VCE Joynet CSC (BizCloud) IBM

12 Public Iasi Risks & Responsibilities

13 Risks Familiar IT risks apply to services in the cloud Some risks are heightened Vendor lock-in / lack of standards Security and privacy

14 Vendor Lock-In Three primary concerns Data portability Application portability Infrastructure interoperability

15 Vendor Lock-In Data portability Customer controls logical access to the applications, database and storage so data access isn t a problem But vendor tools and assistance to extract and transfer data are still desirable Application portability Applications are customer-provided, but server VM images may be locked-up or configured uniquely for the vendor s infrastructure Infrastructure interoperability How portable are the server VM images, and how unique is your vendor s virtualization layer? Can you bring your own server software and licenses?

16 Information Security Linking control and responsibility can be challenging Start with solution/vendor selection and evaluation Specify obligations and consequences in the contract Incident monitoring and management Auditing, validation testing, and process improvements Three layers to consider Infrastructure Application Data

17 Information Security Primary Threats Infrastructure Logical Host and network intrusion, DDoS, etc. Physical Unauthorized access or destruction Applications Programming errors, back doors, poor patch management, hackers, viruses Data Unauthorized access or disclosure Loss or corruption Impaired data lineage (where has it been?) Concerns about data processing accuracy (provenance) Data remnants (gone but not forgotten)

18 Information Security Typical Countermeasures Business continuity and DR processes Resiliency is implied, but caveat emptor Continuity processes should satisfy business requirements Incident avoidance, detection and mitigation tools Mature service management Automation orchestration occurs in the cloud Streamline (but don t ignore) change management Secure code design, and periodic code review Data encryption but it has limits Data clearing and sanitizing Avoid placing sensitive data in public clouds Solid identity and access management (IdAM)

19 Information Security Infrastructure Responsibilities Vendor secures from virtualization layer down Customer is typically responsible for logical host security Monitoring the O/S and application for intrusions and attacks Encrypting in-transit and stored data Some Iasi vendors offer optional security services

20 Information Security Application and Data Responsibilities Applications Customer fully owns all aspects of app and database security management But some vendors offer security management options for common apps Extra concerns when providers have application-layer access Data Customer is primarily responsible for data security, but clearing and sanitizing infrastructure components is a vendor responsibility

21 Information Security User Access and Authentication Key identity and access management (IdAM) tasks Identification and authentication Role based authorization Monitoring and auditing access Federated single sign on (SSO) is IAM nirvana Standards and best practices are emerging, e.g., SAML and WS Federation for ID and authentication XACML for access IdAM as a Service (e.g., Ping Identity, Symplified) Application management appliances (e.g., VMware s Horizon App Manager)

22 Privacy and Information Security Compliance You can assign privacy responsibility to vendors, but you can t delegate accountability through contracts Extend the enterprise security / compliance program to the cloud Identify and classify information assets / data, and risk levels Identify / develop appropriate key controls Map controls to vendor (and vendor sub) responsibilities Key controls are derived from various sources Monitoring, management and audit Impose limits on subcontractors (watch out for stealth subs) Regionalize solutions as required Don t let the contract fine print undermine the program

23 Public IaaS Deal Tips

24 Term and Commitments Term There is no need to commit to a term, but vendors may try to make a term financially attractive Anything longer than 1-year should be scrutinized Renewals at the customer s option Revenue or resource minimum commitments There shouldn't be any, but Vendors offer better unit pricing in exchange for minimum subscription levels over fixed terms Commitments may be hidden in termination fees

25 Pricing Pricing model Per resource / per hour, day, month Charges for upgraded support, and perhaps implementation Subscription levels with penalties Change charges Standard self-service changes / provisioning incur fixed charges Non-standard changes are ICB The difference is often defined in the vendor s on-line service catalog, which it can change at any time Expect an uplift for expedites Should you include a benchmarking clause?

26 Service Levels Public IaaS cloud deals must include SLAs Key SLA metrics System availability/uptime Management portal/tools availability/uptime Incident response and resolution times Resource deployment timeliness Configuration change timeliness Back up success rate, and restoration times after a data loss event Service restoration times in response to disasters

27 Standard Terms of Use Cloud providers often try to push click-wrap agreements onto individual end users that access the cloud (EULAs) Who do they bind? What about subsequent changes to the EULA? Taking service via click-wrap and a credit card It is not the value of the services that matters; beware the seduction of the free trial offer Use enterprise agreements whenever real information assets or consumer data will touch -- or be accessible from -- the cloud

28 Intellectual Property Matters 3rd party consents for customer-provided software Infringement indemnifications Geographic limits on covered claims Carve-outs for combinations and modifications Exclusion from limits on liability Incorporation of third-party licenses for vendor-provided software Try to avoid entering into direct contracts with the vendor s suppliers Vendors will attempt to disclaim responsibility for their third-party licensors

29 Closing Thoughts

30 Cloud Roadmap Involve cross-disciplinary teams Identify use cases that are right for your business Match use cases to delivery / deployment models Lay out practical milestones Treat in-house IT resources, managed services, and outsourcing as competitive alternatives Employ sourcing, service management and security programs tuned for the cloud s unique challenges

31 Questions?

32 Speaker Information Marc Lindsey Levine, Blaszak, Block & Boothby, LLP (202)

33

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