Cloud Computing and Data Security

We cannot attribute the beginning of cloud computing to a particular person or time. It evolved with the evolution of Internet and enterprise computing. We may be able to trace its roots all the way back when Dr. Larry Roberts developed the ARPANET in 1969. (Whitman & Mattord, 2016)

While the evolution of ARPANET, to Ethernet and then to Internet happened, enterprises were discovering new ways to compute from mainframes to multi-tier computing. During the early stages of enterprise computing, enterprises were purchasing hardware and software to host internally. Though not in the form that we see today, enterprises had an early version of cloud in the form of networked mainframe systems with dumb terminals. They then slowly began to outsource their information systems to Internet Service Providers (ISPs) and Application Service Providers (ASPs).

The concept of using computing, as a utility was probably first proposed by Professor Noah Prywes of the University of Pennsylvania in the Fall of 1994 at a talk at Bell Labs. “All they need is just to plug in their terminals so that they receive IT services as a utility. They would pay anything to get rid of the headaches and costs of operating their own machines, upgrading software, and what not.” (Faynberg, Lu, & Skuler, 2016). It came to fruition when Amazon launched its limited beta test of Elastic Cloud Compute Cloud (EC2) in 2006. Meanwhile, has already mastered how to deliver an enterprise application using a simple website. Continue reading “Cloud Computing and Data Security”

Security Must Haves in a SaaS Provider

The past year was a learning curve on Cloud Computing, especially on SaaS providers. More and more ASPs are coming back rebranded as SaaS provider. As a security practitioner, it would be good to have a must have check list that we need to use to assess them.

I prepared the following must have check list based on Cloud Computing Alliance Guide (v1.0) document. “SaaS Provider” mentioned is the vendor providing the cloud computing service and “Consumer” is the client or end user of the “SaaS Provider”.

Governance and Enterprise Risk Management

  1. SaaS Provider must provide at least SAS 70 Type II or equivalent certifications (e.g. Agreed Upon Procedures) SAS70 Type 2 is a mandatory requirement if the service is a SOX critical or within financial statement audit scope.  If Credit card information is involved, PCI DSS compliant certification is required.
  2. SaaS Provider must provide Consumer listings of all third party relationships that it have; and similar audit assurance requirements as above are applicable.  The vendor is expected to obtain such audit assurance from 3rd party subcontractors and provide to service consumer upon request.
  3. SaaS Provider must divulge policies, procedures and processes comprising its Information Security Management System (ISMS)


  1. Consumer must have authority to define Service Level Agreements with SaaS Provider
  2. SaaS Provider must incur all costs for both an expected and unexpected termination of the relationship and for an orderly return or secure disposal of Consumer assets.
  3. All of Consumer’s data must be destroyed from the SaaS Provider systems and environments upon the termination of the contract/services and upon completion of the transition and conversion to Consumer’s chosen platform and receipt of confirmation of the same from Consumer’s executive sponsor and/or legal counsel.
  4. Consumer information assets must not be used for secondary purpose including use of Consumer asset as test data.
  5. SaaS Provider must host all Consumer information assets in a country that Consumer is confortable with (based on regulations that Consumer is subjected to).
  6. SaaS Provider must accept all costs related to data breaches if possible including recovery costs
  7. SaaS Provider must not share Consumer information assets with a third party or government entity without prior consent.
  8. Consumer must have escrow arrangement of SaaS Provider software and applications

Electronic Discovery

  1. Consumer must have authority to define roles and responsibilities related to Electronic Discovery, including such activities as litigation hold, discovery searches, who provides expert testimony.
  2. Compliance and Audit
  3. Consumer must have authority to define type of control that will be applied to locations where data will be stored.
  4. Consumer must have authority to audit SaaS Provider on demand
  5. Consumer must have authority to perform external risk assessments, including a Privacy Impact Assessment on the SaaS Provider

Information Lifecycle Management

  1. SaaS Provider must retain and destroy Consumer information asset per Consumer security policies and standards.
  2. Consumer must have authority to perform regular backup and recovery tests to assure that logical segregation and controls are effective
  3. All regular backup must be received at a data warehouse owned by Consumer.
  4. SaaS Provider must have logical segregation of duties of personnel.

Portability and Interoperability

  1. Consumer must receive regular data extractions and backups to a format that is not proprietary and is reusable by Consumer
  2. Traditional Security, Business Continuity and Disaster Recovery
  3. Consumer must have authority to define business continuity and disaster recovery requirements
  4. Consumer must have authority to perform onsite inspections of SaaS Provider’s facilities whenever required
  5. Consumer must have authority to inspect SaaS Provider disaster recovery and business continuity plans

Continue reading “Security Must Haves in a SaaS Provider”

ASP to SaaS

In my quest to understand the evolution of SaaS, I started going back a little bit. A few years back, companies use to call a similar delivery model as ASP (Application Service Provider) which is confused with SaaS model. Senior management in the IT world who are used to ASP model started questioning – “So, what’s the difference?”.

According to a research by Alexander Factor, who later published a book called “Analyzing Application Service Providers”, ASP is a business that (1) delivers application services over the network, (2) delivers services to many customers with a wide range of requirements, (3) charges rental or subscription-based fees, and (3) provides customer-specific service guarantees.

So ASP services could be delivered over any type of network, not just through the internet, to many customers with the unique rental fee per customer-specific Service Level Agreements (SLA). We could track this model way back to the days when Mainframes were accessed via dumb terminals.

Now, how is this different from SaaS? To understand the difference, we must first go to the basics of Cloud Computing.

According to Cloud Security Alliance (CSA), Cloud Computing is defined as the set of disciplines, technologies, and business to render IT capabilities as an on-demand, scalable, elastic service.

There are some unique characteristics that could be attributed to Cloud Computing:

1. Abstraction of Infrastructure – The compute, network and storage infrastructure resources are abstracted from the application and information resources as a function of service delivery model.

2. Resource Democratization – Provides the capability for pooled resources to be made available and accessible to anyone or anything authorized to utilize them using standardized methods for doing so.

3. Service Oriented Architecture – Provides a service-oriented-architecture where resources may be accessed and utilized in a standard way. In this model, the focus is on the delivery of service and not the management of infrastructure.

4. Elasticity/Dynamism – Capability to rapidly expand or contract resource allocation to service definition and requirements using a self-service model that scales to as-needed capacity. Since resources are pooled, better utilization and service levels can be achieved.

5. Utility Model of Consumption & Allocation – Provide an “all-you-can-eat” but “pay-by-the-bite” metered utility-cost and usage model. This facilitates greater cost efficiencies and scale as well as manageable and predictive costs.

There are three major types of cloud computing services – SaaS, PaaS and IaaS

Software as a Service (SaaS) – These are applications running on a cloud infrastructure and accessible from various client devices through a thin client interface such as Web browser (e.g. web-based email). Technologies such as SOA and Web 2.0 enable this model. Some of the typical solution includes desktop publishing, sales, financials, CRM, HR, and collaboration.

Platform as a Service (PaaS) – This service will help deploy consumer-created applications using programming languages and tools supported by the provider (e.g. java, python, .Net). Application Servers and ESB tools enable this model which are used in solutions such as Business Intelligence and application development.

Infrastructure as a Service (IaaS) – Consumer of this service could rent processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. Some of the basic ASP enabling technologies high bandwidth network, redundant storage, and multi-core CPUs enable this model. Consumers use this model for solutions such as storage and high computing demand.

SaaS is the comprehensive cloud computing model that includes Paas and Iaas. It differs from ASP in its characteristics.

While the infrastructure of an ASP is unique and customized for the consumer, infrastructure is abstracted and is common to all SaaS consumers.

Unlike an ASP, all resources except consumer information or data are common to all consumers. ASP consumers usually have their resources customized for their unique needs.

In the ASP model, the ASP buys third-party software on behalf of the consumer, customize it and host it on behalf of the consumer. However, in SaaS model, the SaaS provider develops their own application that will not be available in the retail market. The developed applications built by SaaS providers are usually based on industry standards so that they can be widely available through multiple interfaces.

A consumer of an ASP always has the luxury to dictate Service Level Agreements with the ASP provider that is unique and based on their needs. This is not applicable to a SaaS provider. SLAs are usually common and are non-negotiable in SaaS model.

Both ASP and SaaS providers charge their consumers for renting their space and resources. However, the rental fee paid to an ASP provider is usually a flat amount agreed upon for the entire term of the contract for the allocated space and resource. In the SaaS model, the consumer pays the provider based on the usage of the space and resources. For the first month, you may end up paying more for using large space and computing resources and for the later months, your payment may decrease as the usage decreases. In the ASP model, you pay the same amount every month, no matter how whether you use the resource to the maximum allocated or not.

Acknowledgment – Thanks to Jim Reavis at Cloud Security Alliance for validating my illustration.