Identity Management Services

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1 WHITE PAPER AUGUST 2014 Identity Management Services How Telcos Can Outpace Commoditization in the Application Economy

2 2 WHITE PAPER: IDENTITY MANAGEMENT SERVICES ca.com Table of Contents Executive Summary 3 The Application Economy: The Threats and Opportunities 3 The Urgent Demand for Identity Management 3 Convenience Security The Opportunity: The Telco as Trusted Identity Provider 4 The Requirements: Speed to Market 5 The Takeaway 6

3 3 WHITE PAPER: IDENTITY MANAGEMENT SERVICES ca.com Executive Summary Like every other business, telecommunications service providers are going to have to evolve quickly to compete in the emerging application economy. While the traditional mobile, voice and data services your telco business delivers are more critical than ever, they re also growing increasingly commoditized. To stay ahead of commoditization, your organization will need to deliver new services that offer compelling value in the application economy and identity management services are a critical example of this. As a telco, your organization is uniquely positioned to leverage its infrastructure, expertise and insights to deliver compelling identity management services. This paper explores this opportunity and outlines how you can capitalize on it. While the opportunities emerging are significant, so too are the threats and this is especially true for telcos. The Application Economy: The Threats and Opportunities In the wake of the proliferation of cloud services, mobile devices and social networks, organizations find themselves operating in an entirely new paradigm the application economy. Now, an organization s applications play an increasingly central role in the customer experience, the value of a company s offerings and the organization s prospects. Within this context, businesses will have to undergo a transformation if they are to succeed. While the opportunities emerging are significant, so too are the threats and this is especially true for telcos. While it s the voice and data traffic that increasingly represents the lifeblood of commerce, entertainment and communications, the transport of this traffic is growing increasingly commoditized. In the application economy, it is all about the applications. Therefore, telcos will need to deliver compelling new applications and services on top of their infrastructures or risk being relegated as a commoditized utility player. Instead of maintaining the status quo and watching revenue stagnate, telcos have to respond. The Urgent Demand for Identity Management In the application economy, our online identities are more critical than ever. However, there are two fundamental requirements that aren t being met today: convenience and security. Convenience As we continue to rely on online channels for an increasing array of activities, the number of IDs and passwords continues to proliferate. For many, there are simply too many logins to remember. As a result, users continue to use the same passwords for many online entities both at work and in their personal lives. For example, one study found that more than half (58 percent) of adults who are online

4 4 WHITE PAPER: IDENTITY MANAGEMENT SERVICES ca.com These results make clear that there s a significant opportunity, and your telco business is uniquely equipped to capitalize on it. only use a total of five passwords 1. Even with that, forgotten passwords, password resets and unsuccessful logins still plague the user experience. In fact, nearly half of all consumers in the U.S., Germany and the U.K. were unable to complete an online transaction due to an authentication failure 2. Security Given the reliance on static user names and passwords, fundamental security gaps persist and continue to be exploited. Consider just a couple statistics: Bring your own device (BYOD) activity remains inadequately managed by nearly 80 percent of IT departments 3. In the U.S. economy alone, the overall cost of identity theft is estimated to reach $100 billion annually 4. More robust authentication will be essential to addressing these critical security gaps, which will not only help guard against fraud, but enable new business models and services. The Opportunity: The Telco as Trusted Identity Provider In spite of all the technology, security and social networking organizations involved in managing user identities today, the reality is that none are adequately addressing the security and convenience requirements outlined above. Nevertheless, there seems to be a clear and significant move to rely on digital and social networking vendors to deliver trusted identities a move known as bring your own identity (BYOID). A recent Ponemon research report makes clear that the move to BYOID is pending for many. (To learn more about this report, be sure to visit Eighty-two percent of business respondents have very high or high interest in BYOID for mobile user populations. When asked whether their organizations were considering the use of digital identities produced by trusted identity providers such as Google, Facebook and Yahoo, 30 percent said yes. Further, while only 12 percent have already made this move, more than half, 61 percent, are planning to do so within the next 24 months 5. These results make clear that there s a significant opportunity, and your telco business is uniquely equipped to capitalize on it. Your organization has unique strengths to build upon. Your business can leverage the in-depth subscriber data that you already possess, and build sophisticated identity and access management (IAM) services on top of your existing environments. Telcos have strong registration, authentication and fraud detection technologies and methodologies in place. For example, the SIM cards employed in today s mobile phones already represent one of the most secure methods of 1 Online Registration and Password study by Janrain and Harris, U.K., Nok-Nok Labs Consumer Attitudes on Online Authentication study, Ovum report on BYOD, Credit Sesame, The Staggering Costs of Identity Theft in the U.S. Kimberly Rotter, June 19, 2014, 5 Ponemon Institute, The Identity Imperative for the Open Enterprise: What IT Users & Business Users Think about Bring Your Own Identity (BYOID), July 2014

5 5 WHITE PAPER: IDENTITY MANAGEMENT SERVICES ca.com Your organization has a unique advantage, but it s an advantage that won t persist forever... authentication. The information that telcos manage including user preferences, usage, history and more can be employed to strengthen security and deliver higher levels of personalization. These represent high-value and differentiated assets upon which you can build compelling new services. You can leverage strong IAM capabilities to enhance existing services, deliver new offerings and establish new partnerships that further expand offerings available. Following are a few of the potential services that can be offered: Identity and attribute management. You can leverage aggregated intelligence to create composite identities that provide users with more security and convenience. Enable single sign-on to multiple apps, based not only on federated identity information, but location, usage history and device details. Through these services, you can give consumers more visibility and control over their identities. Content aggregation. Start aggregating content gathered from multiple devices, including mobile phones and devices such as fitness trackers, to provide high-value content aggregation services. For example, when delivering content aggregation combined with strong IAM, you can provide subscribers with central, convenient access to aggregated data and give them more visibility and control over which entities data gets shared with. Service tiers. Strong IAM capabilities can form the basis of managing multiple service tiers. For example, subscribers to a premium service can automatically be provided with higher bandwidth connectivity. By partnering with entertainment providers, these services can include access to high-bandwidth streaming and premium content. Once telcos establish themselves as a trusted identity provider among customers and partners, they can build on this position to deliver increasingly valuable and strategic services that foster improved customer satisfaction and increased revenues. In short, these services provide a means to establish your organization as strategic service provider that plays a central role in the application economy, both today and in the long term. The Requirements: Speed to Market Your organization has a unique advantage, but it s an advantage that won t persist forever, particularly given the highly capitalized vendors operating in the identity management sector today. To maximize your opportunity, your organization needs to establish its presence in the market and become a trusted identity provider and it needs to do so fast. This requires establishing identity management platforms that are highly flexible, easy to deploy and offer comprehensive, robust capabilities. These platforms should offer efficient integration with existing subscriber data stores, and leverage a broad range of data and advanced modeling engines to provide advanced services, such as step-up authentication for high-risk scenarios and transactions. Finally, look for platforms that facilitate fast and efficient identity federation and single sign-on convenience for users by leveraging such standards as Security Assertion Markup Language (SAML ), WS-Federation, WS-Trust, OAuth and OpenID. Through these capabilities, a mobile carrier can provide its subscribers with single sign-on to a range of online properties.

6 6 WHITE PAPER: IDENTITY MANAGEMENT SERVICES The Takeaway The application economy can either be a bane or a boon for your business. By delivering new, value-added, IAM-fueled applications and services, your organization can break away from commoditization and boost relevance and revenues. Visit the CA Service Provider page and find out how your business can quickly and profitably start delivering IAM services that are designed for today s application economy. Connect with CA Technologies at ca.com CA Technologies (NASDAQ: CA) creates software that fuels transformation for companies and enables them to seize the opportunities of the application economy. Software is at the heart of every business, in every industry. From planning to development to management and security, CA is working with companies worldwide to change the way we live, transact and communicate across mobile, private and public cloud, distributed and mainframe environments. Learn more at ca.com. Copyright 2014 CA. All rights reserved. This document is for your informational purposes only, and does not form any type of warranty. CS

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