2009 Enc and Key Mgmt Industry Benchmark Report 201009

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    2009 Encryption and Key Management

    Industry Benchmark Report

    Ariskmanagementbenchmarkfordataprotection

    Author:KimberlyGetgen,Principal,TrustCatalyst

    October20,2009

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    Page2 2009EncryptionandKeyManagementIndustryBenchmarkReport

    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    Foreword:RiskManagementforDataProtectionDeardatasecurityprofessional,

    Wheredoes

    your

    organizations

    risk

    management

    strategy

    stand

    when

    it

    comes

    to

    data

    protection?Despiteagrowingemphasisonencryptionandrelatedissues,feworganizations

    havehadtheharddataneededtobenchmarktheirriskmanagementeffortsagainstindustry

    standards.Untilnow.

    Asaleaderinencryptionandkeymanagement,Thaleswantedtoprovidetheindustrywitha

    muchneededbenchmark.WeengagedTrustCatalyst,aresearchfirm,toconductasurveyof

    industryprofessionalsandreportthefindings.Ifoundtheresulting2009EncryptionandKeyManagementIndustryBenchmarkReportfascinating.Ithinkyouwill,too.Butmoreimportantly,itsatoolyourorganizationcanusetolearnwhereitstandsinrelationtoindustry

    standards

    and

    emerging

    trends.

    Afterreadingthereport,Iwasstruckbytwothingsinparticular:Organizationshavemadegreat

    stridesinprotectingsensitivedataandthereismoretodo,especiallywithregardtomanaging

    encryptionkeysandprotectingbackuptapes.

    Thenextgreathurdleinencryptionisprotectingallsensitivedatanotjustsomeofit.Manyof

    therespondentstothesurveyareprogressinginthatdirection,whileothersareadvancing

    moreslowly.Eitherway,weallhavetheopportunitytolearnfromtheircollectiveexperiences.

    Iwanttothankallofyouwhoparticipatedinthesurveyforsharingyourtimeandinsights.I

    alsowant

    to

    thank

    the

    Thales

    customers

    and

    partners

    who

    have

    helped

    to

    make

    us

    an

    industry

    leader.AtThales,wearepleasedtobeabletosponsorthisreport,andwehopethatallofyou

    willfindittobeavaluablebenchmarkingtool.

    Bestregards,

    BrytaSchulz

    VicePresident,ProductMarketing

    ThalesInformation

    Systems

    Security

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    Page3 2009EncryptionandKeyManagementIndustryBenchmarkReport

    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    TableofContentsForeword:RiskManagementforDataProtection........................................................................................ 2

    ExecutiveSummary....................................................................................................................................... 4

    KeyFindings.............................................................................................................................................. 4

    SectionI:DataEncryptionTrendsandObstacles......................................................................................... 7

    EncryptionTrends..................................................................................................................................... 7

    ObstaclestoEncryption............................................................................................................................ 9

    Cost..................................................................................................................................................... 10

    DataAvailability.................................................................................................................................. 10

    KeyManagementTrends.................................................................................................................... 12

    SectionII:RegulationsandComplianceDrivers......................................................................................... 15

    EncryptionBudget

    Allocated

    for

    Compliance

    .........................................................................................

    15

    ComparingtheTopFiveRegulationsintheUSandEMEA................................................................. 16

    HowSurveyRespondentsExpectRegulationstoChange...................................................................... 17

    TheNewConnectionBetweenKeyManagementandCompliance....................................................... 18

    Conclusion............................................................................................................................................... 19

    SectionIII:CloudComputing....................................................................................................................... 21

    Conclusion............................................................................................................................................... 23

    AppendixA:ResearchMethodology.......................................................................................................... 28

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    ExecutiveSummaryDataprotectionisanexerciseinriskmanagement.Adequatelyprotectingdataandmanaging

    compliancemustbebalancedwithoperatingefficiencyandprofitablegrowth.Gettingthiscombination

    rightismoreimportantthanever.ThesecondannualEncryptionandKeyManagementIndustryBenchmarkReportinvestigateshowITsecuritymanagersareaddressingthesechallengesandprovidesrecommendationstohelpyoureassessyourstrategyinlightofthenewdataprotectionimperative.

    Sincepublicationofthe2008EncryptionandKeyManagementIndustryBenchmarkReport,demandstoprotectdatahaveonlygrown.Newdatabreachnotificationlawsandthecodificationofindustry

    specificstandardshavemadetheprotectionofdataanevenhigherpriority.

    IntheUS,HITECH(HealthInformationTechnologyforEconomicandClinicalHealthAct)rulesintroduce

    databreachnotificationrequirementsnationallyforhealthcaredata.USstaterulesinMassachusetts

    (MA201CMR17)andCalifornia(CASB1386)aremandatingtheuseofencryptiontoprotectdata.

    NevadasNVSB227wentevenfurtherbymandatingcompliancefortheindustrydevelopedPayment

    CardIndustry

    Data

    Security

    Standard

    (PCI

    DSS)

    for

    those

    accepting

    credit

    cards.

    In

    Germany,

    the

    Federal

    DataPrivacyActmandatesdatabreachnotificationforthefirsttime.AndintheUK,aggressiveactionby

    theInformationCommissionerOffice(ICO)andFinancialServicesAuthority(FSA)hasmadedatabreach

    notificationdefactolaw.

    Overthenext12months,regulationrequiringtheprotectionofdataandmandatorybreachnotification

    willonlycontinuetogrow.Atthesame,manyorganizationswillcontinuetoexperiencedamaging,

    costly,andverypublicdatabreaches.Asthissurveyshows,encryptionisoneofthemosteffective

    meanstoprotectdata.Usingencryptionwithautomatedkeymanagementgoesalongwaytoward

    helpingorganizationsachievetheircomplianceandIToperationsobjectives.

    KeyFindingsTrustCatalystconductedthesecondannualdataprotectionsurveytoevaluateevolvingtrendsin

    encryptionandkeymanagement.Thisreport,sponsoredbyThales,providesnewanalysisandunique

    datatohelporganizationslearnfromthedataprotectionandriskmanagementdecisionsoftheirpeers.

    Thereportidentifiesthesekeyfindings:

    Unnecessaryrisk.TheAchillesheelofmanyorganizationsremainsthesameaslastyear:unencrypteddatabasesandbackuptapes.Lessthan50percentoforganizationsareencrypting

    backup

    tapes

    and

    databases,

    creating

    a

    critical

    vulnerability

    in

    data

    protection

    programs.

    Nearly

    20

    percentofparticipantswhoarenotencryptingbackuptapessaidtheirorganizationwouldwaituntil

    abreachoccurredbeforebeginningtoencrypttapes.

    Costofencryptionremainsatopconcern.Participantssaidcostremainsthesinglemostimportantfactorpreventingtheencryptionofdatathatshouldbeencrypted.Overhalfcitedeitherthecostof

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    theencryptionsolution(26percent)orthecostofmanagingtheencryptionsolution(25percent)as

    theprimaryobstaclestoadoptingencryptionwhereitisneededmost.

    Operationalconcernsdelayencryptionprojects.Costisnttheonlybarriertoencryptionadoption.Thedecisiontoencryptrequiresorganizationstoweighotheroperationalefficienciesagainstthe

    needfor

    data

    protection.

    When

    asked

    what

    was

    preventing

    them

    from

    encrypting

    databases,

    25

    percentofparticipantscitedperformanceasthekeyinhibitor.Forbackuptapes,thecomplexityof

    managingkeyswastheprimaryobstacle,citedby24percentofrespondents.Here,many

    participantstoldusavailabilityismoreimportantthanconfidentiality.

    Lostkeysdisruptbusiness.8percentoforganizationshaveexperiencedproblemswithlostencryptionkeys,creatingsecurityconcerns(50percent),causingdatatobepermanentlydestroyed

    (39percent),ordisruptingthebusiness(39percent),while19percentofrespondentssaidthey

    directlylostbusiness.

    Keymanagementandcompliance.Planninganorganizationskeymanagementstrategyisnoeasyfeat.Athirdofsurveyrespondents(34percent)havebeenplanningtheirkeymanagementstrategy

    foroverayear.Forthefirsttime,theseparticipantsrankedprovingcompliancerequirementshave

    beenmetasthemostchallengingaspectofkeymanagement.

    Newencryptionmandatesconsideredhelpfultodataprotectionstrategies.Regulationsmandatingencryptionwereseenashelpfulinmovingdataprotectionstrategiesforwardforanoverwhelming

    71percentofsurveyparticipants,whileonly7percentdisagreed,sayingtheseregulationsharmed

    orobstructedtheirorganizationsdataprotectionefforts.Encryptionmandatesappeartobethe

    ammunitionmanyorganizationsneedtohelpselltheirdataprotectionstrategiesinternally.In

    addition,66

    percent

    of

    respondents

    expect

    to

    see

    more

    industry

    regulations

    outlining

    data

    protectionguidelines,and55percentexpecttoseemorenationalbreachnotificationlaws.

    Patientandcreditcarddataprotectiondrivesencryptionspending.PCIDSS,HIPAA,andtheEUDataPrivacyDirectivearethetopthreedataprotectionregulationsrequiringallocationofnew

    encryptionbudgetoverthenext24months.54percentofrespondentsindicatedtheywere

    allocatingbudgetforPCIDSS,29percentforHIPAAand22percentfortheEUDataPrivacyDirective.

    DataprotectionrulessuchasHIPAAandPCIaredrivingtheuseofencryptionacrossindustriesas

    theneedtoprotectspecifictypesofdatagrows.

    Cloud

    not

    ready

    for

    prime

    time.

    52

    percent

    of

    participants

    cite

    data

    security

    concerns

    as

    being

    the

    numberonebarrierpreventingtheirorganizationfromadoptingcloudcomputing.43percentof

    surveyparticipantssaidtheyarenotcurrentlyplanningonmovingtothecloud,whileanother47

    percentsaidtheywouldwaituntildataisencryptedbeforemoving.59percentsaidtheywould

    wanttomanagetheirownencryptionkeysifencrypteddatawasmovedtothecloud.

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    AboutThisPaper

    Thispaperisorganizedintothefollowingfoursections:

    SectionI:DataEncryptionTrendsandObstacles

    Section

    II:

    Regulations

    and

    Compliance

    Drivers

    SectionIII:CloudComputing SectionIV:ImportanceofKeyManagementinNewDataProtectionImperativeResearchmethodologyandinformationaboutthesurveyrespondentsareoutlinedinAppendixA.

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    2009TrustCatalyst Telephone: +1.415.867.8842

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    SectionI:DataEncryptionTrendsandObstaclesNewcomplianceregulationsarepushingtheneedtoencryptmoredatathaneverbefore.Inthisyears

    survey,wewantedtounderstandnotonlywhatwasbeingencrypted,butalsowhatwaspreventing

    organizationsfromadoptingmoreencryptionwhereitsneededthemost.Inthissection,wesummarize

    thesetrendsbyexploring:

    Encryptiontrends Obstaclestoencryption KeymanagementtrendsEncryptionTrendsTable1comparesthe13applicationssurveyedin2008toshowthechangeinencryptiontrendsfrom

    2008to2009.Theapplicationsarerankedfrommosttoleastwidelydeployedaccordingtothisyears

    surveyresults.

    Table1:

    Applications

    encrypting

    data

    comparing

    2008

    and

    2009

    results

    Encryptionapplication Rankin2009

    survey

    Rankin2008

    survey

    Change

    WebserverSSL 1 1 0

    Fileencryptionserver 2 5 +3

    Fileencryptiondesktop 3 2 1

    FTPencryption 4 4 0

    Emailclient(e.g.S/MIMEorOpenPGP) 5 3 2

    Emailgateway(e.g.TLS) 6 7 +1

    Fulldiskencryption 7 6 1

    Databaseencryption 8 8 0

    Mobiledevice

    encryption

    9

    11

    +2

    Tapebackupencryption 10 9 1

    USBdeviceencryption 11 10 1

    XMLencryption 12 12 0

    Storagefabric/Switchencryption 13 13 0

    ThemostsignificantincreasesinthisyearsresearchwereFileencryptionservermovingupfrom

    fifthtosecondplaceandMobiledeviceencryptionrisingfromeleventhtoninth.Emailencryptionat

    theclientsawthemostsignificantfall,fromthirdplacein2008tofifthin2009.Therewasnota

    significantincreaseinencryptionadoptionfordatabasesorbackuptapesin2009.Wecontinueto

    cautionorganizationsnotencryptingtheseapplicationsthattheyremainatseriousriskofdatabreach

    particularlywithregardtopatientandcreditcarddata.

    Thisyearsresearchsawtheadditionoffournewapplications:1)Networklinkencryption,2)Payment

    processing,3)Diskarray,and4)Cloudcomputing.Figure1andTable2comparetheresultsofall

    respondentstothoseofthefinancialservicesindustry,whichhasadoptedencryptionfaster.

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    2009TrustCatalyst Telephone: +1.415.867.8842

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    Figure1:Encryptionadoptioncomparedtofinancialservicesindustry2009results

    Table2:Encryptionapplicationsused2009resultsEncryptionapplication Allrespondents FinancialservicesindustryWebserverSSL 77% 86%

    Fileencryptionserver 57% 65%

    Fileencryption

    desktop

    56% 62%

    FTPencryption 54% 65%

    Networklinkencryption 53% 70%

    Emailclient(e.g.S/MIMEorOpenPGP) 52% 60%

    Emailgateway(e.g.TLS) 51% 68%

    Paymentprocessing 50% 79%

    Fulldiskencryption 49% 56%

    Databaseencryption 43% 53%

    Mobiledeviceencryption 42% 63%

    Tapebackupencryption 41% 58%

    USBdeviceencryption 41% 45%

    Diskarray 25% 44%

    XMLEncryption 31% 33%

    Storagefabric/Switchencryption 20% 30%

    Cloudcomputing 17% 19%

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    Herewecanseethatthefivemostwidelydeployedencryptionapplicationsoverallare:

    1. Webservers(77percent)2. Fileencryptiononservers(57percent)3. Desktopfileencryption(56percent)4. FTPencryption(54percent)5. Networklinkencryption(53percent)Thefinancialservicesindustrydiffersslightly,withemailencryptionatthegatewayandpayment

    processingamongthefivemostfrequentlyusedencryptionapplicationsinthisyearsresearch:

    1. Webservers(87percent)2. Paymentprocessing(79percent)3. Networklinkencryption(70percent)4. Emailencryptionatthegateway(68percent)5. Tie:Fileencryptionattheserver(65percent)andFTPencryption(65percent)Thefinancialservicesindustrydoeshaveahigherpercentageofdatabaseandbackuptapeencryption

    deployedthanthegeneralsurveypopulation.53percentoffinancialservicesparticipantsencrypt

    databasescomparedwith43percentoverall.58percentoffinancialservicesparticipantsencrypt

    backuptapescomparedwith41percentoverall.Sincethefinancialservicesindustryhasbeenthefocal

    pointofmoredataprotectionregulations,thistrendmaypointtowardfutureoverallgrowthin

    databaseandbackuptapeencryptionastheseregulationsbegintoimpactmoreindustries.

    Wemustcontinuetocautionorganizationsnotencryptingdatabasesandbackuptapesthattheyareat

    riskfortworeasons:

    1. Recentresearchhasshownthatexposingasfewas10,000customerrecordscancostover$1millionindamages1andthattheaverageorganizationpays$6millionperbreach.2

    2. Tapesanddatabasesaretransportable.Tapesareoftensentoutsidetheprotectedperimeteroftheorganization,makingdatavulnerable.Thisisalsotruefordatabaseswhendatabaseinformationis

    transferred,backeduptodisk,orstoredontape.Thismeanseverytimeabackupofthedatabaseis

    madetotapeandsentoutsideoftheorganizationunencrypted,thelikelihoodofadatabreach

    increases.

    ObstaclestoEncryptionInthisyearsresearch,wewantedtouncovermoreoftheobstaclestoencryption.Cost,availability,and

    keymanagementconcernstoppedthelist.Inthissection,welookateachfactorseparately.

    1Gartner,PayforMobileDataEncryptionUpfront,orPayMoreLater,November5,2008.2PonemonInstitute,FourthAnnualUSCostofDataBreachStudy,January2009.

    http://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdfhttp://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/2008-2009%20Cost%20of%20Data%20Breach%20Report%20Final.pdf
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    2009TrustCatalyst Telephone: +1.415.867.8842

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    Cost

    Costisstilltheprimaryissueformostorganizationsthatwanttoencryptmoredatawhereitisneeded

    most.Table3showsrespondentsanswerstothequestion,Ifthereisdatainyourorganizationthat

    shouldbeencryptedbutisnot,whatisthebiggestobstaclepreventingencryption?Slightlymorethan

    halfofrespondentsindicatedthecostofeitherdeployingormanagingthesolutionastheirbiggest

    obstacle.Another

    22

    percent

    of

    participants

    cited

    data

    recovery

    costs

    or

    key

    management

    challenges

    as

    theirmostsignificantbarrier.

    Table3:Ifthereisdatainyourorganizationthatshouldbeencryptedbutisnot,whatisthebiggest

    obstaclepreventingencryption?

    Response Allrespondents

    Costofencryptionsolution 26%

    Costofmanagingencryptionsolution 25%

    Other 14%

    Managementdoesntseeconnectionbetweenencryptionandprotectingcustomers

    thinksitsanunnecessaryexpense

    13%

    Costofdatarecoveryandkeymanagement 12%

    Datarecoveryconcernsresultingfromunresolvedkeymanagementchallenges 10%

    DataAvailability

    Thisyearsresearchfoundthatdatabaseandbackuptapeencryptionarestilllesswidelyadoptedthan

    encryptionformanyotherapplications.Oneparticipantsuccinctlysummarizedthereasoningbehind

    thisreluctance:Availabilityismoreimportantthanconfidentiality.Otherscitedignorance,

    underestimationofrisks,budget,andneglectasreasonswhyparticipantshavenotencrypted

    sensitivedata.

    Databaseencryption

    Whenitcomestoprotectingsensitivedataindatabases,mostthinkencryptingwillcreateperformance

    issuesforbusinesscriticalapplications.Evenrespondentsfromthefinancialservicesindustry,witha

    higherrateofdatabaseencryptionadoption,tendtoagree.Whenapplicationsprocessfewer

    transactionsbecauseofdatabaseencryption,organizationslosebusiness.Oneparticipanttoldusthat

    bothperformanceandcostblockedtheiradoptionofdatabaseencryption:Poordatabaseschema

    designsusesensitivedataasdatabasekeysandthusdrasticallyimpactsperformance.Thisfixisa

    schemaredesignthatmostorganizationsarenotwillingtofund.

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    Table4showsparticipantsideasaboutthemainfactorsthathavepreventedorganizationsfrom

    deployingdatabaseencryption.

    Table4:Inyouropinion,whatisthemainreasonsomanyorganizationsarewaitingtoencryptsensitive

    datainthedatabase?

    Response

    Allrespondents

    Financialservices

    industry

    Createsperformanceimpactsthatmayallowfewercustomertransactions 21% 25%

    Dontseethebenefitofencryptingthedatabasewhenhackersattackthefront

    endoftheapplicationsandcangetaccesstodatawhetherencryptedornot

    18% 19%

    Keymanagementissuesaretoocomplex 17% 18%

    Requiresadisruptiontotheapplicationenvironmentwhichmaycauselost

    business

    15% 13%

    Waitingtobenativelyembeddedinthedatabasesolution 13% 14%

    Requiresmigratingdatathatwillcauseadisruptiontothebusiness 9% 13%

    Other

    7%

    6%

    Thesecondmostpopularresponsecamefromparticipantswhodontseethebenefitofencrypting

    databasesiftheycanstillbeattacked.Hostbasedattacks,SQLinjection,andinsiderthreatsmaynotbe

    thwartedbytheuseofdataencryption.Itsalwaysimportantthatadefenseindepthapproachto

    mitigatingrisksisused.

    However,oneoftheselayersshouldbeencryptingdatabases.Forexample,iforganizationsbackup

    theirdatabasestotapes,theycouldbeatseriousriskiftheyshipthosetapesunencrypted.Using

    databaseencryptionbeforebackingupthedatacanhelpprotectsensitiveinformationandpreventa

    databreach

    if

    atape

    is

    lost

    or

    stolen.

    Finally,17percentofparticipantssaidkeymanagementwastoocomplextoapplyencryptionatthe

    database.Aswewillseelaterinthissection,manyparticipantssaidtheywouldhavelessthananhour

    torecoverencrypteddatafromthedatabase,creatingdataavailabilityconcerns.Thismakeseffective

    keymanagementthatmuchmoreimportant.

    Backuptapeencryption

    Inregardtobackuptapeencryption,weaskedsurveyrespondentsasimilarquestion:Inyouropinion,

    whatisthemainreasonsomanyorganizationsarewaitingtoencryptbackuptapes?AsshowninTable

    5,the

    most

    popular

    response

    was

    key

    management

    issues

    too

    complex

    at

    24

    percent.

    For

    example,

    oneparticipanttoldusthatorganizationsWanttoensureaccesstobackuptapes[]ifencryptedand

    keyislostorunavailablethenthebackuptapeisworthless.Otherstoldusitwastheworryaboutdata

    recoverabilityafterlongperiodsofstoragethatdiscouragedencryption.

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    Cominginsecondplacewith19percentwastheresponsemostorganizationswouldwaituntilaftera

    databreach

    event

    before

    they

    would

    be

    willing

    to

    tackle

    tape

    backup

    encryption.

    This

    was

    concerning

    becauseourassessmentofthecurrentregulatoryenvironmentconcludesthatorganizationsdonot

    havetheluxuryofwaitingtoencrypttapesasthelikelihoodofbreachesandcoststothebusinessare

    onlyincreasing.Inouropinion,organizationsthatshiptapesmustencrypttapes.

    KeyManagementTrends

    Asweveseenwithbackuptapesanddatabases,keymanagementconcernscontinuetoplague

    organizationsattemptingtoencryptsensitivedata.Oncethisdataisencrypted,itmustberecoverable

    atsomepointinthefuture,withlittleroomforerror.Firstandforemost,datamustbeavailable.

    Concernsarounddataavailabilityhavemadeplanninganorganizationskeymanagementstrategyno

    easyfeat.

    A

    third

    of

    survey

    respondents

    (34

    percent)

    have

    been

    planning

    their

    key

    management

    strategyforoverayear(upfrom26percentin2008).Table6belowshowshowmuchtime

    organizationshavespentplanningforkeymanagementcomparedtothefinancialservicesindustry.

    Unsurprisingly,morefinancialservicesparticipants(47percent)havespentoverayearplanningtheir

    keymanagementstrategy.

    Table6:Howmuchtimehasyourorganizationspentpreparingorplanningforkeymanagementissues?

    Lengthoftime Allrespondents Financialservices

    Over1year 34% 47%

    612months 15% 19%

    15months 23% 16%

    1week

    9%

    6%

    None 19% 12%

    Dataavailabilityconcernsareoftendrivenbytheamountoftimeonehastorecoverencrypteddata.

    Thelesstimetorecoverdata,thegreatertheavailabilityconcerns.Table7belowshowsacceptable

    recoverytimeframesfordifferentapplications.

    Table5: Inyouropinion,whatisthemainreasonsomanyorganizationsarewaitingto

    encryptbackuptapes?

    Choices All

    Respondents

    Keymanagement

    issues

    too

    complex

    24%

    Mostorganizationswillwaituntilafteradatabreachnotificationevent 19%

    Waitingtobenativelyembeddedinmybackuptapesolution 17%

    Decisiontopostponeencryptingtapesismadebythestoragedeptwithout

    involvementfromthesecuritydept

    11%

    Encryptingtapescostmorethandatabreachsoitsnotcosteffectivetoencrypt 10%

    Toodifficulttomakekeyaccessibletothedisasterrecoverysite 10%

    Other 9%

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    Table7:Whatisanacceptableamountoftimetorecoverdata?

    Datalocation Lessthan1

    hour

    Lessthan1day 2days1week 1monthormore

    Laptops 22% 50% 26% 1%

    Mobiledevices 29% 42% 29% 2%

    Fileservers

    41%

    43.%

    16%

    1%

    Databases 49% 37% 13% 1%Email 30% 42% 27% 1%

    Backuptapes 17% 43% 36% 4%

    Cloudcomputing 31% 33% 27% 9%

    Storagefabric 30% 36% 10% 7%

    Paymentprocessing 54% 29% 13% 4%

    Networklinkencryption 54% 30% 12% 4%

    Formostapplications,encrypteddataneedstoberecoveredinlessthanaday,butforbusinesscritical

    applicationslike

    databases,

    network

    link

    encryption,

    and

    payment

    processing

    applications,

    data

    often

    mustberecoveredinlessthananhour.

    Withsuchhighdemandsondatarecoverabilitytimeframes,wewantedtoknowhowencryptionkeys

    werebeingstoredtoseeiftherewasaconnectionbetweenkeymanagementanddataavailability

    requirements.Table8belowshowstheresultsfromallsurveyparticipantsandallapplications.

    Table8:Whereareencryptionkeysstored?

    Application HSM Database Software

    ordisk

    USB

    device

    Dont

    know

    WebserverSSL 23% 13% 29% 9% 26%File

    encryption

    server

    32% 14% 21% 5% 29%

    Fileencryptiondesktop 23% 13% 29% 9% 26%

    FTPencryption 14% 11% 26% 4% 46%

    Networklinkencryption 26% 6% 20% 3% 45%

    Emailclient(e.g.S/MIMEorOpenPGP) 14% 12% 31% 5% 37%Emailgateway(e.g.TLS) 13% 12% 30% 4% 42%

    Paymentprocessing 36% 7% 13% 3% 41%

    Fulldiskencryption 24% 12% 30% 5% 30%

    Databaseencryption 24% 21% 15% 2% 37%

    Mobiledeviceencryption 17% 10% 23% 5% 45%

    Tape

    backup

    encryption

    26%

    9%

    15%

    2%

    49%

    USBdeviceencryption 14% 8% 16% 19% 42%

    Diskarray 17% 6% 12% 2% 63%

    Storagefabric/Switchencryption 19% 5% 9% 2% 64%

    Asitwaslastyear,themostpopularresponseformostapplicationswasdontknowevenforthe

    applicationsthatneededtoberecoveredinlessthananhour.However,forrespondentswhoknew

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    wherekeyswerestored,themajorityofapplicationsthatneededtoberecoveredinanhourweremost

    likelytobeinahardwaresecuritymodule(HSM).Thefourapplicationsforwhichrespondentspreferred

    tohavetheirkeysstoredinanHSMratherthansoftwareordiskwerePaymentprocessing,Network

    linkencryption,Databaseencryption,andTapebackupencryption(allhighlightedinboldinthe

    abovetable).HerewecanseetheimportanceofusingHSMstoautomatekeymanagementand

    overcomedata

    availability

    concerns.

    Without

    HSMs

    or

    the

    use

    of

    automated

    key

    management

    tools,

    we

    believedataavailabilityconcernswillcontinuetostandinthewayofdataprotection.

    Conclusion

    Costisnttheonlybarriertoencryptionadoption.Thedecisiontoencryptrequiresorganizationsto

    weighoperationalfactorslikeavailabilityandperformanceagainsttheneedfordataprotection.Here,

    organizationsareunwillingtosacrificeoperationalefficienciesfordataencryption.Manyorganizations

    arecaughtinaholdingpatternwhiletheytrytodeterminehowtobestmeetdatarecoverability

    requirementsorfindbudgettomeetperformanceandavailabilitydemands.Sadly,manywillsuffera

    databreach

    before

    they

    can

    encrypt

    sensitive

    data.

    Nearly

    20

    percent

    of

    those

    surveyed

    believe

    it

    will

    takeadatabreachtogettheapprovaltostartencryptingbackuptapes.Giventhenewregulatory

    climate,manyorganizationswillneedtoaskthemselveswhatwillbeworsepayingforautomated

    encryptionkeymanagementtoovercomedataavailabilityfears,orlosingcustomersinabreachwhen

    theyexposesensitivecreditcardorpatientdata.Consideringthehighercostsandrisksofabreach,we

    believepostponingtheseencryptiondecisions(particularlyforbackuptapes)isnolongerasustainable

    riskmanagementstrategy.

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    www.trustcatalyst.com Contact: [email protected]

    SectionII:RegulationsandComplianceDriversThisyearsresearchshowsthattheprotectionhealthcareandcreditcarddataaredrivingfuture

    compliancespending.Thissectiontakesalookatregulationsimpactonorganizationssurveyedby

    exploring:

    Encryptionbudgetallocatedforcompliance Howsurveyrespondentsexpectregulationstochange TheconnectionbetweenkeymanagementandcomplianceEncryptionBudgetAllocatedforComplianceWeprovidedparticipantswithalistof25dataprotectionregulationsandaskedwhichoneswould

    requiretheallocationofnewbudgetinthenext24months.Table9belowshowstheresponses,with

    PCIDSSleadingthecharge,followedbyUSHIPAAandtheEUDataPrivacyDirective.

    Table9:Regulationsrequiringallocationofnewencryptionbudgetovernext24months

    Regulation

    Allrespondents

    PCIDSS 54%

    USHIPAA 29%

    EUDataPrivacyDirective 22%

    USGrammLeachBliley 18%

    USMultipleStateDataBreachNotificationLaws 16%

    USCaliforniaDataBreachNotification(CASB1386) 15%

    USMassachusettsDataProtectionAct(MA201CMR17) 14%

    UKDataPrivacyAct 13%USFederalTradeCommissionRedFlagRules 12%

    Canada

    Personal

    Information

    Protection

    and

    Electronic

    Documents

    Act

    10%

    USNevada(SenateBillNo.227) 9%CanadaPrivacyBreachGuideline 9%

    GermanyS93ActonProcessingofPersonalData 8%

    UKPrivacyCommissionerBreachNotificationGuidelines 7%

    SouthAfricaProtectionofPersonalInformationAct 7%

    ItalyDataProtectionCode 4%SpainPersonalDataProtectionandTelecommunicationsAct 4%

    JapanPersonalInformationAct 4%

    HongKongPersonalDataPrivacyOrdinance 4%

    AustraliaPrivacyCommissionerBreachNotificationGuidelines 3%

    France

    Postal

    and

    Electronic

    Communications

    Code 3%

    AustraliaCommonwealthPrivacyAct 3%

    SouthKoreaActontheProtectionofPersonalInformation 2%

    NewZealandPrivacyCommissionerBreachNotificationGuidelines 2%

    NewZealandPrivacyBreachGuidelines 2%

    ItwasasurprisetoseeindustrydrivenregulationssuchasPCIDSSandHIPAAtoppingthelist,giventhat

    themajorityofsurveyrespondentswerenotfromfinancialservices,healthcare,andretail.Webelieve

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    thisindicatesthatencryptionbudgetallocationsaredrivenlessbytheindustryyouareinthanbythe

    typeofdatayouneedtoprotect.Asmoreindustriesstore,manage,andprocesscustomer,patient,

    employee,andbusinesspartnerinformation,theywillberequiredtoprotecttheirdataaccordingly.

    ComparingtheTopFiveRegulationsintheUSandEMEAFigure

    3and

    Table

    10

    below

    track

    the

    top

    five

    regulations

    in

    the

    US

    and

    EMEA

    and

    compare

    them

    to

    the

    worldwideresponse.HereyoucanseethatwhilePCIDSSreceivedthehighestresponseinEMEA,HIPAA

    receivedthehighestresponseintheUS.

    Figure2:Percentageofrespondentscitingnewencryptionspendingdrivenbymajorregulations

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    Table10:PercentageofrespondentscitingnewencryptionspendingdrivenbymajorregulationsRegulation Allrespondents US EMEAPCIDSS 53% 48% 52%USHIPAA 27% 53% 8%EUDataPrivacyDirective 21% 13% 43%

    US

    Gramm

    Leach

    Bliley

    15%

    32%

    5%

    USStateDataBreachNotificationLaws 15% 32% 5%

    USMassachusettsDataProtectionAct 12% 26% 3%

    UKDataPrivacyAct 11% 9% 20%

    Germany S93ActonProcessingPersonalData 5% 5% 15%

    UK PrivacyCommissionerBreachNotificationGuidelines 5% 9% 9%

    HowSurveyRespondentsExpectRegulationstoChangeWewantedtoknowhowparticipantsexpectedregulationstochangeovertimeandiftheythought

    regulationsmandatingtheuseofencryptionwerehelpfulorharmfultotheirdataprotectionstrategies.

    InFigure4andTable11,weaskedparticipantshowtheyexpectregulationstochangeinthenext24

    months.Twothirds(66percent)indicatedtheybelievedtherewouldbenewindustryregulations,and

    55percentsaidtheyexpectnewnationallaws.Only11percentbelievedtherewouldbenonewlaws

    introduced.

    Figure4:Howdoyouexpectregulationstochangeinthenext24months?

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    Table11:Howdoyouexpectregulationstochangeinthenext24months?

    Response Allrespondents

    Therewillbenewindustryregulations 66%

    Therewillbenewnationallaws 55%

    Therewillbenewlocallaws(stateandregional) 43%

    Therewill

    be

    no

    new

    laws

    introduced

    11%

    Wealsowantedtoknowhowparticipantsvieweddatabreachregulationsthatrequiredtheuseof

    encryption.WeaskedthemiftheseregulationswereseenasHelpfultomovingforwardyour

    organizationsdataprotectioneffortsorHarmfulandgetsinthewayofyourorganizationsdata

    protectionefforts.Theoverwhelmingmajorityofrespondents(70percent)foundthemhelpful.

    Surprisingly,anevenhigherpercentage(79percent)ofrespondentsfromorganizationsthathave

    experiencedadatabreachfoundthemhelpful,withonly2percentfindingthemharmful.

    Table12belowcomparestheresponsesofparticipantswhoseorganizationshadexperiencedadata

    breachto

    those

    who

    had

    not.

    Table12:Databreachregulationsthatspellouttheneedforprotectingdatausingencryptingdataare

    Response Breachedorganizations Nonbreached

    organizations

    Helpfultomovingforwardyourorganizationsdata

    protectionefforts

    79% 70%

    Undecided 19% 23%

    Harmfulandgetsinthewayofyourorganizationsdata

    protectionefforts

    2% 7%

    TheNewConnectionBetweenKeyManagementandComplianceOverthelasttwoyearsofconductingthisresearch,weveaskedparticipantstoranktheaspectsofkey

    managementtheyvefoundthemostchallenging.Theresultsofthisyearsstudyhighlightaninteresting

    newfinding:Organizationsthathavespentthemosttimeplanningkeymanagementrankedtheirmost

    challengingaspectdifferentlyfromtheirpeers.Thosethathavebeenusingencryptionandhavespent

    themosttimepreparingforkeymanagementarenowmorefocusedondemonstratingcompliance

    comparedtoorganizationsthatarejustbeginningtoadoptencryption.

    Table13belowcomparesthesethreegroupsandrankstheirchoicesfrommostdifficulttoleastdifficult

    for:

    Allresponses2008 Allresponses2009 2009responsesbythosewhohadspentoneyearormoreplanningkeymanagementstrategy

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    Table13:Relativedifficultyofdifferentaspectsofkeymanagement(1=mostdifficult)

    2008 2009 2009 2009Planning

    Difference

    Aspect

    of

    key

    management All

    Respondents

    All

    Respondents

    1+Yearof

    KeyMgmt.

    Planning

    2009 (All)to

    2009(1+Yearof

    Planning)

    Preparingfortheunfortunatepublicityand

    impactofdatabreach

    1 2 3 1

    Rotatingkeys,decryptingandreencryptingdata 2 1 2 1

    Keepingtrackofkeys(havingtherightkeyatthe

    righttime)

    3 3 7 4

    Meetingcompliancerequirements 4 6 4 +2

    Longtermkeyarchival 5 5 5 0

    Provingcompliancerequirementshavebeen

    met

    6 4 1 +3

    Makingkeysaccessibletothedisasterrecovery

    site

    7 6 6 0

    Backingupandrecoveringkeys 8 7 8 1

    Revoking/terminatingkeys(sodatacantbe

    accessed)

    9 8 9 1

    Respondentsfoundthefollowingamongthemorechallengingaspectsofkeymanagement:

    Rotating,decryptingandreencryptingdata PreparingfortheunfortunatepublicityandimpactofdatabreachesButthereweredifferenceswhenitcametowhatwasthemostchallenging.Provingcompliance

    requirementshavebeenmetwasrankedthemostdifficultbythegroupthathadbeenplanningkey

    managementlonger.Bycontrast,theparticipantsin2008rankedMeetingcompliancerequirements

    morechallengingthanprovingtheyhadbeenmet.Wethinkthisisasignificantfinding:Asorganizations

    becomemorematureintheirencryptionandkeymanagementstrategies,theyfindprovingcompliance

    moredifficultthanthemechanicsofkeymanagement.

    TherewerealsointerestingdifferencesregardingthedifficultyofKeepingtrackofkeys(havingthe

    rightkeyattherighttime).Thosewhohadnotbeenplanninglongerthanayearrankeditthirdin

    difficulty,while

    those

    who

    had

    been

    planning

    the

    longest

    found

    it

    to

    be

    one

    of

    the

    least

    challenging

    aspectsofkeymanagement.Thissuggeststhateffectivekeymanagementcanreducethetimeand

    operationscostsspentonkeymanagementtasks.

    ConclusionParticipantsinthesurveyarefeelingtheimpactofdatabreachregulationsintwocriticalareas:the

    typesofdatatheywillneedtoprotectandtheirkeymanagementstrategies.Whilethemajorityof

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    participantsworldwidearebudgetingforPCIDSS,HIPAAisthemostimportantencryptionbudgetdriver

    intheUS.WebelievethisisaresultoftheHITECHruleintroducingbreachnotificationforsensitive

    healthcaredata.

    Second,thosewhohavebeenplanningtheirkeymanagementstrategiesthelongestseeaconnection

    betweenkey

    management

    and

    their

    compliance

    strategies.

    They

    now

    consider

    the

    most

    challenging

    aspectofkeymanagementtobeprovingthatcompliancerequirementshavebeenmet.These

    organizationshavemorematuredataprotectionmodelsandarelivinginacomplianceworldwherethe

    mostimportantaspectofdataprotectionistheirreportingcapability.Theyarespendingmoretime

    makingsuretheircomplianceeffortsaredemonstrableandlesstimedecidinghowandwhattoencrypt.

    Organizationsthatarelessexperiencedwithkeymanagementarelikelydealingwithnewerencryption

    deploymentsandoperationalissues.Theyhaventachievedtheoperationalefficienciesenjoyedby

    organizationsthathavebeenplanningtheirkeymanagementstrategiesthelongest.

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    SectionIII:CloudComputingThesecuritydebatearoundcloudcomputinghasarisensinceour2008survey.Thisyear,wewere

    interestedinunderstandingthreethings:

    Barrierstocloudcomputingadoption Roleofencryptionanddataprotectioninanorganizationsdecisiontomovetothecloud ExpectationsforkeymanagementwithcloudcomputingFigure5andTable14belowshowstheresponsetothequestion,Whatisthebiggestbarrierforyour

    organizationwhenadoptingcloudcomputing?52percentofsurveyparticipantsciteddatasecurity

    concernsasthebiggestbarrier,while18percentsaidtherearenobarriers.

    Table14:Whatisthebiggestbarrierforyourorganizationwhenadoptingcloudcomputing?Response AllrespondentsDatasecurityconcerns 52%There

    are

    no

    barriers

    18%

    Other 14%

    Compliance 8%

    Keymanagementconcerns 8%

    Figure3:Biggestbarriertocloudcomputing

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    Organizationsarereluctanttomovetothecloud,withorwithoutdatasecurityinplace.Whenasked,

    Wouldyourorganizationmovetothecloudwithoutdataencryption?,47percentsaidtheywould

    waitforencryption,butalmostasmany(43percent)saidtheywerenotplanningonmovingtothe

    cloudatall.

    Table15

    and

    Figure

    6show

    the

    findings

    for

    all

    participants.

    Table15:Wouldyourorganizationmovetothecloudwithoutdataencryption?Response AllrespondentsNo,wewouldwaituntildataisencrypted 47%No,wearenotplanningonmovingtothecloud 43%

    Yes,encryptionisnotabarrierforustoadoptcloudcomputing 7%

    Yes,wehavealreadymovedunencrypteddatatothecloud 5%

    Figure4:Wouldyourorganizationmovetothecloudwithoutdataencryption?

    Finally,wewantedtoknowifencryptionkeymanagementbasedinthecloudwouldbeacceptableto

    surveyparticipants,oriftheywouldprefertomanagetheencryptionkeysthemselves.An

    overwhelming58.8percentsaidtheywouldwanttomanagetheirownkeyscomparedto15.1percent

    whowouldntmindiftheirserviceproviderhandledkeymanagementontheirbehalf.

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    Table16andFigure7showthesefindings.

    Table16:Isencryptionkeymanagementbasedinthecloudacceptable?

    Response AllRespondents

    No,Iwouldwanttomanageourencryptionkeys 59%

    Yes,Itrustmysolutionprovidertomanageencryptionkeysandrecovermy

    datainatimethatisacceptabletoourbusiness

    15%

    Dontknow 26%

    Figure5:Isencryptionkeymanagementbasedinthecloudacceptable?

    ConclusionOurresearchshowssurveyrespondentsareveryskepticalaboutcloudcomputing.Whilethereisnt

    enoughdataheretopredictanysubstantialtrendsforcloudcomputing,onethingisclear:Organizations

    shouldbesuretoanalyzewhetherornotamovetothecloudmakessensewithariskmanagement

    frameworkthatincorporatesdataprotectionandcompliancerequirements.Ifyourorganizationis

    adoptingcloudcomputing,thendataprotection,dataavailability,andkeymanagementexpectations

    shouldbewelldefinedinservicelevelagreements.Organizationsshouldalsooutlinewhentheyexpect

    tobenotifiedifbreachesoccur.Fromcustomersperspective,abreachatacloudserviceproviderwill

    beinterpretednodifferentlythanifyoucausedthebreach,sobesureyouandyourcustomersare

    protectedbeforeusingcloudservices.

    No(59%)

    Yes(15%)

    Don'tknow(26%)

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    Ontheotherhand,ifyouareacloudcomputingserviceprovider,yourhandlingofthedataprotection

    andcomplianceissuescoveredinthisreportcouldbetranslatedintocompetitiveadvantagesinselling

    yourservices.

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    SectionIV:ImportanceofKeyManagementinNewDataProtectionImperativeWithnewdataprotectionregulationsspecifyingencryptionforsafeharbororevenmandatingitsuse,

    webelieveitsbecomemuchriskierouttherefororganizationsthatarewaitingtoencryptcritical

    informationlikehealthcareandcreditcarddatainunprotectedbackuptapesanddatabases.Withless

    thanhalf

    of

    participants

    encrypting

    backup

    tapes

    and

    nearly

    20

    percent

    of

    respondents

    saying

    it

    would

    takethepainofadatabreachtogettheirorganizationtoencrypt,webelievetoomanyorganizations

    areneedlesslyatrisk.

    Attheheartofthenewdataprotectionimperativeliesacriticalriskmanagementdecision.

    Organizationscaneither:1)Waittoencryptsensitivedataandlivewithamuchhigherriskofdata

    breachthaneverbefore,or2)Encryptdatabutriskbusinesscontinuityissuessuchasdataavailability

    withouteffectivekeymanagement.Thechartbelowsummarizesthisriskmanagementdecision,taking

    intoaccountafewofthefactorswefindmostimportant:

    Concern:Likelihoodofadatabreachversuslikelihoodoflosingakeyoncedataisencrypted Typeofnotification:Whathappensifyourconcerncomestrueandyouhavetotellothers Whoisnotified:Exactlywhoisonthedistributionlistandalertedwhenthingsgowrong Coststobusiness:3Immediateandlongertermconsequences Howtoavoid:Actiontheorganizationmusttaketoavoidtheproblem

    3PleasecontactTrustCatalystfortheTrustCatalystDataBreachPrepKit acostworksheetthatcanhelpyou

    determinecostsofdatabreacheventsforyourorganization.

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    Operationalefficiencieslikeavailabilityandperformancecauseorganizationstopostpone

    implementationoftheirdataprotectionstrategiesforfearthatencryptionwillslowthebusinessdown

    (e.g.,databases)orthatlostencryptionkeyswillcauselostbusinesswhendataisnotavailable(e.g.,

    backuptapes).Butwebelieveorganizationsnolongerhavetheluxuryofpostponingencryptionof

    criticaldatabecauseofkeymanagementconcerns.Asthechartaboveshows,therearemorecostsand

    negativeimpacts

    to

    the

    business

    associated

    with

    data

    breaches

    that

    involve

    public

    disclosure,

    and

    most

    couldbeavoidedbyencryptingdata.

    Injustthelastyear,wevelearnedalotmoreaboutthecostsoflossofcustomertrustafterabreach.A

    recentsurveyofdatabreachvictims4showedthesignificantimpactofabreachonthebusiness:

    55percenttrustedtheorganizationless,whichgreatlyimpactedfuturebusiness. 30percentvowednevertopurchasegoodsfromtheorganizationagain. 29percentterminatedfuturerelationshipswiththeorganization. 69percentofthecostsofdatabreachcamefromlostbusiness.Ourresearchshows,respondentsweremorelikelytohaveexperiencedadatabreachthantohavelost

    anencryptionkey,asTable17shows.

    Table17:Incidentrateforlostkeysanddatabreachesamongrespondents

    Event Incidentrate%

    Lostkey 8%

    Databreach(inthelast24months) 12%

    AsTable18belowshows,forthoseorganizationsthathavelostencryptionkeys,theeventcreated

    security

    concerns

    (50

    percent),

    resulted

    in

    permanent

    data

    loss

    (39

    percent),

    and

    caused

    business

    disruptions(39percent)andlostbusiness(19percent).Whilewedontwanttodiminishthebusiness

    impactsofbadkeymanagement,webelievetheycannolongerserveasanexcuseforpostponing

    encryptionparticularlyofhealthcareandcreditcarddata.

    Table18:Whatwastheimpactoflosingencryptionkeystoyourbusiness?

    Response Respondentswho

    havelostkey

    Createdasecurityconcern 50%

    Lostdatathatwasneverrecovered 39%

    Createdabusinessdisruption 39%

    Lostdata

    but

    we

    were

    able

    to

    recover

    it

    31%

    Causedlostbusiness 19%

    Other 4%

    4JavelinStrategyandResearch,ConsumerSurveyonDataBreachNotification,2008.

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    Conclusion

    Weareconcernedfortworeasons.First,withoutautomatedkeymanagement,theencryption

    necessarytoprotectsensitivedatawhereitismostatriskwillnothappen.Webelievethelackofakey

    managementstrategyisnolongeranacceptablereasonforpostponingtheprotectionofcriticaldata

    likehealthcare,patient,andcreditcarddata.Theonlywayorganizationswillbeabletocomplywith

    regulationsandsafelyprotectpatientandconsumerdatawillbetoautomateencryptionkey

    management.TechnologieslikeHSMs(hardwaresecuritymodules)havelongbeenavailabletohelp

    organizationsautomatekeymanagementandavoiddataavailabilityissues.However,many

    organizationsseethesetechnologiesastoocostlytoimplement.Takingintoconsiderationthevalue

    organizationsplaceonavailability,theoperationalefficienciesgoodkeymanagementbrings,andthe

    abilitytoencryptmore,webelievethesetechnologiesarewellworththecost.

    Second,thecostsofbreachnotificationsareworsethanweoriginallythought.Postponingyourdecision

    toencryptwillcostalotmorethanmanyorganizationsinitiallyestimatedintheirassessmentoftheir

    risks.Onlywithautomatedmanagementofkeyswillavailabilityandcontinuityissuesstopobstructing

    encryptionprojects.Webelieveautomatingkeymanagementisnolongeranoptionespeciallywhenit

    comestoprotectingcreditcardandpatientdata.

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    AppendixA:ResearchMethodologyInAugust2009,TrustCatalystconductedanonlinesurveytoexaminethecurrentandplanneduseof

    encryptionandkeymanagementstrategieswithintodaysglobalenterprise.Prospectivesurvey

    respondentswere

    selected

    from

    adatabase

    of

    global

    information

    security

    professionals

    collected

    by

    Thales,aleaderintheprovisionofinformationandcommunicationsystemssecuritysolutionswhose

    customersincludesomeofthemostsecurityconsciousorganizationsintheworld.Over30,000emails

    weresenttoinformationsecurityprofessionalswhowereaskedtocompletetheonlinesurvey.Asan

    incentivetocompletethesurvey,weofferedtheresultsofthesurveycontainedwithinthisresearch

    report.Wereceived655completeandpartialresponses.

    Respondentsweregiventhefollowinginstructionsbeforestartingthesurvey:

    Thepurposeofthesurveyistogathermuchneededinformationaboutglobalmarketrequirementsinencryptionandkeymanagementtrendsatalevelofdepthandexperiencemissinginothersurveyscompletedtodate.Likelastyear,the2009researchreportwillbeaninvaluablebenchmarkshowinghowhundredsofotherorganizationscomparetoyoursintheuseofencryptionandrespondingtokeymanagementchallenges.Yourparticipationiscompletelyconfidentialandallresponseswillbecompiledatanaggregatelevelsoyourparticipationiscompletelyanonymous.Followingarethedemographicsandorganizationalcharacteristicsofthe655respondents.Table19

    showsparticipantsfunctionalresponsibilities.Table20providestheirselfreportedorganizationalroles.

    Table19:

    Functional

    responsibilities

    of

    respondents

    Percent

    of

    respondents

    Compliance 5%

    Databaseadministration 1%

    Informationsecurity 30%

    Networksecurity 6%

    Operations 6%

    PKIdeployment 8%

    Product/applicationdevelopment 14%

    Riskmanagement 4%

    Storageadministration/design 0.6%

    Systemadministration

    /design

    5%

    Websiteadministration 0.3%

    Other 21%

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    Figure8:Functionalresponsibilitiesofrespondents

    Table20:Organizationalrolesofrespondents Percentofrespondents

    Administrator 6%

    Architect 15%

    Staff 8%

    Manager 24%Director 8%

    Vicepresident 3%

    Chiefinformationofficer 2%

    Chiefsecurityofficer 1%

    Chiefinformationsecurityofficer 2%

    Chiefcomplianceofficer 1%

    CEO

    3%

    Other 27%

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    Figure9:Organizationalrolesofrespondents

    Table21showsthepercentagedistributionofsurveyrespondentsbyindustryclassification.Thetwo

    biggestindustrysegmentsweretechnologyandsoftware(28.5percent)andfinancialservices(25.7

    percent).

    Table21:Industryclassificationofrespondents Percentofrespondents

    Automotive 0.3%

    Defense 3%

    Education 3%

    Energy 1%

    FinancialServices 26%Foodservices 0.3%

    Government 8%

    Healthcare 4%

    Hospitality 0%

    InternetandISP 1%

    LocalGovernment 1%

    Manufacturing 3%

    Media 0.5%

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    Pharmaceuticals 0.2%

    ProfessionalServices 6%

    Research 0.8%

    Retail 2%

    TechnologyandSoftware 29%Telco,

    Wireless

    and

    Cable

    3%

    Transportation 0.9%

    Other 8%

    Figure10andTable22showthegeographicalbreakdownofsurveyrespondents,withthemajorityof

    respondentscomingfromeitherEMEA(Europe,theMiddleEast,andAfrica)ortheUnitedStates.

    Figure10:Locationofrespondents

    Table22:Locationofrespondents PercentofrespondentsAsiaPacific 5%

    Canada 6%

    EMEA 45%LatinAmerica 5%

    UnitedStates 40%

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    2009TrustCatalyst Telephone: +1.415.867.8842

    www.trustcatalyst.com Contact: [email protected]

    Finally,respondentscompanysizeisdepictedinthefigurebelow,with48percenthavingfewerthan

    1,000employees,30percenthaving1,00125,000employeesand22percenthavingmorethan25,000

    employees.

    Figure11Numberofemployeesinrespondentorganization

    1,000orless(48%)

    1,001 25,000(30%)

    25,001ormore(22%)

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    Page33 2009EncryptionandKeyManagementIndustryBenchmarkReport

    AboutThales

    Thalesisoneoftheworldleadersintheprovisionofinformationandcommunicationsystemssecurity

    solutionsforgovernment,defense,criticalinfrastructureoperators,enterprises,andthefinance

    industry.Thalessuniquepositioninthemarketisduetoitsendtoendsecurityofferingspanningthe

    entirevalue

    chain

    in

    the

    security

    domain.

    The

    comprehensive

    offering

    includes

    architecture

    design,

    securityandencryptionproductdevelopment,evaluationandcertificationpreparation,andthroughlife

    managementservices.

    ThaleshasfortyyearsofunrivalledtrackrecordinprotectinginformationrangingfromSensitiveBut

    UnclassifieduptoTopSecret,aswellasacomprehensiveportfolioofsecurityproductsandservices,

    whichincludesnetworksecurityproducts,applicationsecurityproducts,andsecuredtelephony

    products.

    AboutTrustCatalyst

    TrustCatalysthelpsglobalorganizationsmakecriticaldecisionsabouthowtoprotecttheirmost

    valuableresourcetheircustomerstrust.Weunderstandthattheadoptionofasuccessfuldata

    protectionorsecurityprogramisaboutsellingastrategytoalargeraudience.Wespeakthelanguage

    businessexecutivesunderstandandquantifytheneedforsecuritybyhelpingestablishthecostsoflost

    customertrust,includingdisruptionofbusiness.Ascybercriminalsincreasinglytargetorganizationswith

    sensitivecustomerdata,wehelpbusinessesunderstandthethreats,thecostsofthosethreats,andhow

    tomaintaintrustedrelationshipswithcustomers.Youcanlearnmoreanddownloadourresearchat

    www.trustcatalyst.com.

    http://www.trustcatalyst.com/http://www.trustcatalyst.com/