Nominum Closes the Loop with ‘Security as a Service’ - A ...

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Networks and Service Platforms July 2017 Sue Rudd email: [email protected] www.strategyanalytics.com Service Provider Analysis Networks and Service Platforms Report Snapshot Cyberthreats have evolved and become costly. A new approach is needed. Hackers and cybercriminals no longer simply attack web sites and spread malware and viruses directly. Phishing attacks capture user data and software for future use; botnets take control of user devices to make them active participants in a threat network; and compromised IoT devices participate in Distributed Denial of Service (DDoS) attacks so diffuse that they look like user traffic - until it is too late. The latest WannaCry and Petya based ransomware attacks are just some of many that exemplify the cost of SMB attacks that has more than tripled over the last 4 years. To ‘Close the Security Loop’ we need a new Paradigm. A ‘Network Centric’ paradigm that detects threats and protects both Small and Medium Businesses (SMBs), Public Wi-Fi users and the network itself. DNS based network solutions can block the growth of botnets and the spread of ransomware centrally rather than relying on busy SMB end users - who have no IT in-house staff - to keep software up to date. For CSP Managed Security as a Service (SECaaS) can pre-empt attacks before SMB end users are even aware they have a problem. While Domain Name Systems (DNS) have long been used to block DDoS and network-based threats, they can now be the best way to offer ‘SECaaS’ to safeguard SMBs from cyberthreats as they emerge in real time. Nominum Closes the Loop with ‘Security as a Service’ - A Network-based Paradigm

Transcript of Nominum Closes the Loop with ‘Security as a Service’ - A ...

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Networks and Service Platforms

July2017SueRudd

email:[email protected]

ServiceProviderAnalysisNetworksandServicePlatforms

Report Snapshot Cyberthreatshaveevolvedandbecomecostly.Anewapproachisneeded.Hackersandcybercriminalsnolongersimplyattackwebsitesandspreadmalwareandvirusesdirectly.Phishingattackscaptureuserdataandsoftwareforfutureuse;botnetstakecontrolofuserdevicestomakethemactiveparticipantsinathreatnetwork;andcompromisedIoTdevicesparticipateinDistributedDenialofService(DDoS)attackssodiffusethattheylooklikeusertraffic-untilitistoolate.

ThelatestWannaCryandPetyabasedransomwareattacksarejustsomeofmanythatexemplifythecostofSMBattacksthathasmorethantripledoverthelast4years.

To‘ClosetheSecurityLoop’weneedanewParadigm.

A‘NetworkCentric’paradigmthatdetectsthreatsandprotectsbothSmallandMediumBusinesses(SMBs),PublicWi-Fiusersandthenetworkitself.

DNSbasednetworksolutionscanblockthegrowthofbotnetsandthespreadofransomwarecentrallyratherthanrelyingonbusySMBendusers-whohavenoITin-housestaff-tokeepsoftwareuptodate.ForCSPManagedSecurityasaService(SECaaS)canpre-emptattacksbeforeSMBendusersareevenawaretheyhaveaproblem.

WhileDomainNameSystems(DNS)havelongbeenusedtoblockDDoSandnetwork-basedthreats,theycannowbethebestwaytooffer‘SECaaS’tosafeguardSMBsfromcyberthreatsastheyemergeinrealtime.

NowCSPscanleveragetheirCAPEXInvestmentoftheirinstalledDNSinfrastructure

Nominum Closes the Loop with ‘Security as a Service’ - A Network-based Paradigm

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ExecutiveSummarySMBSecurityDemandsanew‘Network-centric’ParadigmCyberthreatshaveevolvedandbecomecostly.Anewapproachisneeded.Hackersandcybercriminalsnolongersimplyattackwebsitesandspreadmalwareandvirusesdirectly.Phishingattackscaptureuserdataandsoftwareforfutureuse;botnetstakecontrolofuserdevicestomakethemactiveparticipantsinathreatnetwork;andcompromisedIoTdevicesparticipateinDistributedDenialofService(DDoS)attackssodiffusethattheylooklikeusertraffic–untilitistoolate.

TheMay2017‘WannaCry’andJune2017Petya-basedransomwareattacksarejustafewofmanythathaveescalatedthecostofSmallandMediumBusiness(SMB)attacksbymorethanthreefoldoverthelastfouryears.

WeneedaNewParadigmthatClosestheSecurityLoopAnew‘Network-centric’paradigmcoulddetectthreatsandprotectbothSmallandMediumBusinesses(SMBs),SmallOfficeHomeOffice(SOHO)usersandthenetwork;andinaddition,blockthegrowthofbotnetsandthespreadofransomwarecentrally.SMBswillneverbefullyprotectediftheyrelyonbusyuserstoalwayskeepsoftwareuptodate.

NewOpportunityforCSPstoofferSMBsSecurityasaService(SECaaS)Exacerbatedsecurityattacksandtheneedforanetwork-basedsecurityapproachhavecreatedanopportunityforCommunicationsServiceProviders(CSPs)toofferSecurityasaService(SECaaS)topreemptthreatsbeforeendusersareevenawaretheyhaveaproblem.WhileDomainNameSystems(DNS)havelongbeenusedtoblockDistributedDenialofService(DDoS)andnetwork-basedthreats,theycannowoffer‘SECaaS’tosafeguardSMBsfromcyberthreatsastheyemergeinrealtimewhilepreventingunprotectedSMBdevicesfromjoiningnetwork-basedattacks.

CSPscanleveragetheirexistingCAPEXInvestmentinDNSinfrastructuretooffermanagedSECaaSatapricepointthatisattractivetomillionsofSMBsubscribers.

Thispaperdescribes:• Dynamicthreatlandscape• Requirementstoaddresssecuritythreats• Network-basedsolutionstomeetnetwork-basedthreats• DNS-basedsolutionsthatleverageCSPstrengths• SMBmarketopportunityforCSPManagedSecurityService• HowCSPsarepositionedtoofferSMBSecurityasaService(SECaaS)

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TableofContentsExecutiveSummary 2

SecurityDemandsanew‘Network-centric’Paradigm 2Cyberthreatshaveevolvedandbecomecostly.Anewapproachisneeded. 2To‘ClosetheSecurityLoop’weneedanewparadigm. 2

NewOpportunityforCSPstoofferSecurityasaService(SECaaS) 2TableofContents 31. Introduction 42. DynamicThreatLandscape 63. Network-basedSolutionstoMeetNetwork-basedThreats 74. RequirementstoAddressToday’sAttacks 85. DNS-basedDefensesEnableClosedLoopProtection 9

FiveStepstoaClosedLoopSolution 10DeployingtheSECaaSinCSPCloud 11

6. SMBMarketsOfferSignificantManagedServiceOpportunityforCSPs 137. CSPsWell-positionedtoOfferClosedLoopSecurity 14

Sixoutof10userswouldlooktoCSPsforasecuritysolution 148. Conclusion-BusinessBenefitsforCSPsandtheirSMBCustomers 15

SignificantbenefitsforCSPs 15SMBsbenefitfrommanagedSecurityasaService(SECaaS) 15Overallbenefitsofdeliveringsecurity‘fromthenetwork’ 15Thebottomline 15

AppendixA.DifferentiatorsforDNSNetwork-based‘SecurityasaService’ 16Sixkeydifferentiators 16

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1. IntroductionCompetitivepressuresareforcingCommunicationsServiceProviders(CSPs)toevolvebeyondconnectivityandofferincrementalvalue-added,hostedandmanagedservicestosustainrevenuegrowth.SecurityservicesarenowbecomingacandidateforaCSPmanagedserviceasawarenessoftheneedforsecurityprotectionhasskyrocketedfollowingrecentInternetattacks.

ThreattrendsandstrongalignmentwithlargecustomersegmentshavecreatedanopportunityforCSPstoofferafoundationallayerofwebprotectionforeveryInternetaccess.CSPscanprovideapreviouslyunavailablelevelofwebsecuritytoreducetherisktheircustomersface,withoutimposinganynewconfigurationormanagementburden.

Storiesaboutransomwareandmachinesthatinfiltratesystemstodestroydatahavespreadrapidlyaroundtheworld.Thenumberofphishingattacksreachedanall-timehighin2016accordingtotheAnti-PhishingWorkingGroup.1Phishingisthebasisforunwantedsoftwaredownloadsthatleadtomonetaryordatalosses.Botnetsareescalatingtoo;botslurkingondevicesaretrainedtofindvaluabledatalikecreditcardinformation,loginorothercredentialsforfinancialtransactions,andcanquietlyexportthoseinputsfor‘monetization’.2

TraditionalsecuritysolutionssuchasendpointclientsoftwareorexpensiveUniversalThreatManagement(UTM)appliancesarechallengedtokeepupwithdynamicwebthreatsthatchangeconstantlytoavoiddetection.Thoseapproachesarenotwell-suitedforprotectingtherapidlyexpandingbaseofbotnetsandInternet-connected‘things‘thatarebeinginstalledeverywhere.Therightendpointprotectionsareoftennotevenavailableformanydevicesandhardware.Asaresult,anumberofOvertheTop(OTT)cloud-basedsecuritycompanieshaveemergedtooffertheircloudnetworkformanagedsecurityservices.

CSPsareinfactexceptionallywell-positionedtooffercloud-basedsecuritysolutionsthemselvessincenetwork-basedsolutionsleverageaCSP’sdeploymentandoperatingstrengths.CSPservicesalsoalignwellwithCSPcustomersegmentslikeSmallandMediumBusinesses(SMBs)thatcanbepoorlyservedbylargeenterprisefirewallandotherenterprisesecurityvendors.

CSPsnowhaveanopportunitytoleverageexistingrelationshipstotargettwomarkets:• SmallandMediumBusinesses(SMBs)oftenlackITresourcesandsecurityexpertise,yet

nearlythree-quarters(73%)ofseniormanagersinthesecompaniesreportcybersecurityasahighpriority3andarelookingforwaystoreducetheirrisks.Capitalconstraints,however,limitwhattheycanspend,butasubscriptionmodelwithamodestincrementalmanagedsecurityservicefeeonamonthlybillcouldovercomethesebudgetarybarriers.

1Anti-PhishingWorkingGroupGlobalPhishingSurvey:TrendsandDomainNameUsein2016http://docs.apwg.org/reports/APWG_Global_Phishing_Report_2015-2016.pdf2Botnetsovershadowedbyransomware(inmedia)https://www.welivesecurity.com/2017/06/07/botnets-overshadowed-ransomware-media/3CyberSecurityBreachesSurvey2017https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2017

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• PublicWi-FihotspotsalsowanttoensureWi-Fiusersaren’texposedtowebthreatsorundesirablecontentwhenworkingremotely.PublicWi-Fihotspotdeploymentsareusuallyremotefacilities,e.g.storefronts,withthesameconstraintsasSMBs,i.e.noITexpertise,limitedbudgets,etc.

Thenewnetwork-basedsecurityapproachdescribedinthispaperwillallowCSPstodeliveranessentialfoundationallayerofprotection‘asaservice’fortheseusecases.CSPscantodaycreatenetwork-basedsubscribersecurityserviceexperienceandoutflanktheOTTcloud-basedsecurityplayers.Becauseitislightweight,easytouse,andcost-effective,newDNS-basedmanagedsecurityservicescanbepositionedasnecessaryforeveryInternetaccessconnection.

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2. DynamicThreatLandscapeToday’scyberthreatsarecharacterizedbyinnovation,andaredesignedtopropagate,andbypassdetectionandcontrolsbycontinually‘changingtheircomplexion.’Nooneisimmunebecausetheyspreadrandomlyusingsoftwareflawsorsocialnetworks.SMBsareespeciallyvulnerablebecausetheyfrequentlydonothaveadedicatedITprofessionalonsite.AsofJune2016thePonemonInstitutereportedthat“55percentofSMBssaytheyexperiencedacyberattackinthepast12monthsand50percentofSMBshadadatabreachduringthepastyear.”4

TheInternetofThings(IoT)isemergingandthereiseveryreasontobelievemoreandmore’things’willget’smart’and’connected’.IoTdeviceshaveawiderangeofcapabilitiesthatcanbe‘hijacked’tocreatediversesecurityvulnerabilities.Theseinclude:

• Intelligence-processor/memory/networkingstack• Instrumentation–cameras,microphones,speakers,sensors• Susceptibilitytocompromise–NATed(NetworkAddressTranslation)-always-onorpolled• Accessibility-openportsandagents,unpatchedvulnerabilities

ThismassivepoolofIoTdevicescreatesanewplayingfieldforattackers.ThepotentialforharmwasdemonstratedinOctober2016whenaMiraibotnetdeliveredthelargestDDoSattackinhistoryleveragingarelativelysmallnumberof‘dumb’devices.5AttackershavebeguntoexploreIoTvulnerabilitiesaspartofthe‘weaponizationofIoTdevices’.6

ThecostoftheseattacksforSMBsisescalating.TheFBIestimatedthatthetotalcostofransomwareintheU.S.was$24millionin2015andincreasedto$209millioninjustthefirstthreemonthsof2016.7Thosenumberscouldbeconservativesincemanytransactionsareneverreportedduetobusinessconcernsaboutpublicdisclosure.TheSmallBusinessAssociationsurveyreferencedabovealsoshowedthatattackcostsforSMBsaveragednearly$9,000withlossesfromhackedbankaccountsaveragingslightlylessthan$7,000.SinceSMBcostofcapitalisoftenhigh,theselossesareevenmorepainful.

4http://www.ponemon.org/blog/smbs-are-vulnerable-to-cyber-attacks5https://www.malwaretech.com/2016/10/mapping-mirai-a-botnet-case-study.html6https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEL03128USEN&7http://www.reuters.com/article/us-usa-cyber-ransomware-idUSKCN0X917X

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3. Network-basedSolutionstoMeetNetwork-basedThreatsTomeetthesenewnetwork-basedthreatsandtherisksintroducedbymobiledevices,anewstrategyisneeded.SMBscannotwaituntilanattackreachesenduserPCs,tabletsorsmartphonedevicesandhopethateachterminationwillrespondappropriatelytopromptlyblockathreat,stopanattackorrefusetojoinabotnet.SMBsneedtopreemptthreatsbeforetheyjeopardizeenduserdevices,applicationsorcorporatedatabases.Anewapproachthathandlestheproblemfromthenetworkperspectiveisrequired,SMBscannotrelyonmillionsofbusyenduserstoupdatesoftwarethatwouldclassify,isolateorredirecttheincomingfloodofattacksoneverydifferentdevice.

ITsecurityprofessionalsandtheirInternetandCommunicationsServiceProviders(ISPsandCSPs)needtoworktogetherto:

• Stopattacksatadistanceastheydevelop• Blockemergingthreatsandattackswithinsecondsofidentifyingthem,e.g.byrejecting

unregisteredphishingURLsasfastastheypopupratherthanrelyingonenduserstoavoidclickingonbadlinks

• Assumethatsomeuserswillalwaysbecomeinfectedandautomaticallypreventthemfromspreadinganinfection,virusorransomwaresoftwareacrossthenetwork

• Preventunknowinguserswhoseresourceshavebeenhijackedfromparticipatinginbotnetsandbecomingthreatsthemselves

Network-basedthreatsdemandwescanproactivelyforthreatsandattacksastheyarriveinthenetwork.ServiceprovidersoperatingDNSnetwork-basedsecurityservicescanseeeverythingthatiscominginrealtimeandwiththerightsoftwareinstantaneouslytriggernetwork-basedsolutionstofightbothnetwork-andenduser-originatedattacks.

DNSisthe‘alwayson’threatprotectionmechanismthatcanclosethesecurityloopbydetectingandpreemptingthreatstoSMBsorotherendusersevenbeforetheyareawaretheyhaveaproblem.

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4. RequirementstoAddressToday’sAttacksAsattackersinnovate,CSPandSMBdefensesmustadaptinparallel.Thisdemandsfourkeyrequirements:1. Defensesmustrespondfasttofast-changingmalware

SMBsneedsimplewaystoreducetheirexposuretowebattacks.Enforcementpointsmustbenetwork-basedsothattheyarealwaysavailableandupdatedinrealtime–i.e.no“Decline”or“Later.”Threatfeedsshouldbestreamedsothatthelatestprotectionsarealwaysactive.Real-timeenforcementisessentialtonarrowthewindowofviabilityforattacksandreducethesuccessrateofattackers.

2. Defensesmustbedevice-agnosticThediversityofindividualdevicesrendersclient-basedsecuritysoftwareprotectionimpossibleorimpractical.Acommonlayerofprotectionisrequiredtoinsulatethemultitudeofdiversedevicesthatareconnectedtonetworkstominimizeriskexposure.Thiscommonlayerofdefensecannotonlyblockthreats,butalsooffersausefulbaselinesothatsubtledeviationsfromnormalbehavioraredetectedinstantlyacrossallcategoriesofdevices.

3. Securityupgradesneedtobesimplified,automatedoreliminatedEndusersfrequentlyignore,defer,ordisableautomatedclientorapplicationupdatesthatmayimpacttheirsecurity.EvenSMBstaffchargedwithmanagingsecuritymaydelaythoseeffortsinfavorofurgentrevenue-generatingbusinessactivity.Businessapplicationsandserversmustallhavespecializedprotectionsandmanagement,butminimizingdependenciesonenduserandIoTdeviceswillreduceSMBstaffloadandensuremorerobust,continuouslyupdatedprotection.Usersmustbemadeawareofmaliciousactivitythatiswithintheir‘spanofcontrol.’Wheninfectionsarediscoveredonenduserdevices,orusersattempttonavigatetoknownmaliciousdestinations,e.g.websitesthatdownloadmalware,theyneedtobewarnedinstantlyofthedangersofproceedingandpromptedwithsuggestionsforremediation.Messagesnotonlyalertsubscribersbutmotivateappropriateimmediateaction.

CSPsareuniquelypositionedtomeettheserequirementswithDNStoenable‘ClosedLoop’Security.

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5. DNS-basedDefensesEnableClosedLoopProtectionDomainNameSystem(DNS)canprovidethe‘foundationallayerofprotection’toaddresstheSMBandpublicWi-Fiwebsecuritychallengesdescribedabove.NominumhasrecentlyannounceditsClosedLoopsolutionforCSPsandtheirSMBcustomersthatcanbedeployedinfixed,mobile,andconvergednetworksaswellasonpublicWi-Finetworks.Thissolution–showninthediagrambelow–reliesonintelligentfiltersandpoliciesthatareappliedtoDNSqueriesgeneratedbySMBsubscribersequippedwiththeservice.

SincebothmaliciousandlegitimateapplicationsusetheDNSitisessentialtoidentifythepresenceofmaliciousactivitywithreal-timethreatintelligencefeedsandtoprocesslegitimateDNSqueriesnormally.AsmaliciousqueriesareflaggedbytheNominumsolution,specialtreatmentisimmediatelyapplied.Forexample,auserquerytoaphishingdomainwillberedirectedtopreventtheuserfromgoingtothatphishingsite.Alternatively,abotnetCommandandControl(C&C)querywillbeimmediatelyblockedtopreventbotnetmalwarefromgettinginstructions.VirtuallyeverydeviceandapplicationusestheDNSsonearlyalldevicesandapplicationscanbeprotectedwithminimaluseraction.BecauseDNSisalreadyinthereal-timeflow,noadditionallatencyisintroducedforthesecurequeryprocessingandtheuserexperienceismaximized.

Exhibit1.DNSistheMostEfficientPlacetoMatchQueriestoThreatIntelligence

Source:Nominum

Asindicatedinthechartabove,managingsecurityviaDNSqueriessentfromapplicationsanddevicesisthemostefficientandeffectivewaytoidentifymaliciousactivity.SincealltrafficrequiresaDNSlookup,maliciousactivitycanbedetectedbycomparingincomingDNStrafficagainstallknownthreatfeedsinrealtime.Blockingmaliciousqueriesstopsattacksdead.

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ThecompleteClosedLoopsolutionisdepictedinthediagrambelow.ItconsistsoftightlyintegratedapplicationsthatprotectSMBsandWi-Fiusersfromwebthreatswhileaparallelmessagingapplicationkeepstheminformedandengaged.

Exhibit2.CompleteSecurityDemandsaClosedLoopSolution

Nominum’sDNS-basedClosedLoopsolutionoffersanewfoundationallayerofprotectionforeverySMBInternetaccessconnection.TightlyintegratedapplicationslikethisthatleverageexistingDNSinfrastructurearecost-effectiveforCSPstodeployandenduserstouse,whiletheykeepsubscribersinformedandengaged.

FiveStepstoaClosedLoopSolutionBelowwesummarizewhatoccursateachofthestepsshowninthechartabove.

Exhibit3.Five-stepProcessStep Functionality Description1. Protectthe

NetworkSMBsorpublicWi-Filocationsareprovisionedwitheithercloud-basedoronpremiseDNSserversandintegratedtoconnecteachnewsite.

2. DiscoverandBlockInfections

ActivatedsubscribersareprotectedasallDNSqueriestheysendaspartoftheirnormalwebbrowsing/internalITexperienceareevaluatedbyaNominumDNSresolver.DNStracksmalwareorbotsthatstealvaluablepersonalinformationinrealtime.• Protectionsarenetwork-basedsothereisnoclientsoftwaretobeinstalled.• Completelyautomated,everydeviceinbusinessiscoveredandsubscribers

neverhavetodealwithupdates.• Serviceisalways-onwithup-to-the-minutethreatinformation.• SMBsandpublicWi-Fiadministratorscanuseagraphicalportaltoset

preferencesoncontentallowedatworkplacesandremotelocations/homes.

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Exhibit3.Five-stepProcess(Continued)Step Functionality Description3. AlertInfected

UsersIfadeviceisidentifiedasinfected,e.g.,aftervisitinganunprotectednetwork,anintegratedapplicationwillnotifytheinfecteduser.CSP-brandedin-browsermessagespersonalizedforeverySMBorpublicWi-Ficustomeraresenttoreflectspecificdetailsoftheinfection.Toolsformanagingthesemessagesarebuiltintothesoftware.

4. ProvideRemediationOptions

Linkstoremediationtoolsandadviceincludedinendusermessages.Providerspresentbrandedwebpagesrecommendingtoolsfrompartners.Messagepagespointtoadviceandotherinformation.

5. PreventFurtherInfectionsProactively

Todeteremailorweb-drivenphishing,usersarenotifiedwithanin-browsermessagebeforetheyattempttonavigatetomaliciousdestinationswheremalwareorransomwaremaybelurking.Messagingsenttoenduserswhilethey’reactivelyengaged.Preventativeapproachsavestimeandmoneyandreducesstress.

Source:Nominum

AutomateddynamicthreatlistsfortheseClosedLoopservicesarebasedonintelligentalgorithmsdevelopedbyDataScienceexpertsatNominumandupdatedinrealtimeasthreatsareidentifiedaroundtheglobe.Additionallistscanbecreatedtoautomaticallyfilterunwantedcontent.

Nominumprocessesover100billionDNSqueriesperdayandappliesanalyticstoidentifynewthreatsquicklyandtoderiveuniqueinsightsforalgorithmdevelopment.Asophisticated,multi-stepvalidationprocessminimizesfalsepositivesthatcansignificantlyincreaseoperationaloverheadandreducesubscribersatisfaction.

DeployingSECaaSinCSPCloudCSPscandeploytheinfrastructureneededtosupporttheservicewithintheirownfacilities,inthecloud,orhostedasamanagedservice.DNSserversusedbySMBsonthecustomerpremiseoratpublicWi-Fisitescanbeoperatedinthecloudaspartofthemanagedservice.

ThealternativesforCSPsthatdonotoffersubscribersa‘ClosedLoop’securitysolutionarelessefficient,lesseffectiveandmorelimitedinscope.Forexample,onemajordrawbackoftoday’sendpointsecuritysolutionsisthatprotectionmustbeappliedtoeveryindividualdevice,ratherthantotheentirenetworkandallassociateddevices.Endpointsolutionsleaveholesinthenetworkandfirewallsexplicitlyallowmany‘portholes’thatcybercriminalscantakeadvantageof.Ontheotherhand,networklevelDNSsecurityrequiresnosoftwaredownloads,noportconfigurationandnouser-initiatedupdates–andstilleverydeviceonthenetworkisautomaticallyprotected.

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Exhibit4.DNS-basedSecurityCoversEveryDeviceAutomatically

Source:Nominum

Nominum’sClosedLoopDNS-basedapproachthereforedeliversanewfoundationallayerofprotectionforeveryInternetaccessconnection.CSPsthatdeployitwillhaveasustainablecompetitiveadvantagethatis:

• Lightweight-Noclientsoftwaremeanseverydeviceisprotectedautomatically.Noon-premisehardwaremeanslessCAPEXandOPEXforCSPs.

• Personalized-EachworkplaceorpublicWi-FiadministratorcancustomizetheservicetomatchuniqueneedswithoutanymajorconfigurationoroperationalburdenontheCSP.

• Simplicity-SMBsorWi-Fiadministratorscansetuptheserviceinminutesviaaportal.• Engaging-Integratedmessagingappcreatesopportunitiestoinformandengagesubscribers.• Agile–DNS-enhancedplatformensuresrapidtimetomarketwithcontinuingupgradesfor

CSPsbasedontightlyintegrated,software-onlyapplications,deployableinthecloud,‘asaservice’orasacombinedCPEand‘asaservice’solution

• Automated-Threatdetectionandprotectionenforcementpointsareautomaticallyandinstantaneouslyupdatedwiththereal-timeinputs.

• Scalable-DNScontrolplane-basedprocessinganalyzesallquerieswithoutintroducingadditionallatencyandwasdesignedfromthestartforcarrier-scaleoperations.

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6. SMBMarketsOfferSignificantManagedServiceOpportunityforCSPsAsCSPsmovetooffercloud-basedmanagedservices,onesourceestimatesthattheglobalopportunityforTelecomsManagedServices,includingManagedDataCenters,Networks,DataandInformation,Mobility,CommunicationsandManagedSecurity,islikelytobealmost$12billionin2017andwillgrowataCompound Annual Growth Rate (CAGR)of13.7percenttoover$22billionby2022.8

Separately,itisestimatedthatthetotalmarketforManagedSecurityServices(MSS)couldgrowtoalmost$41 billion by 2022, increasing at a CAGR of 16.6 percent from last year.9Eveniftelecomscapturelessthanone-thirdofthetotalMSSmarket,thisrepresentsahugeopportunity.Andcloud-basedMSSareexpectedtobeespeciallyattractivetoSMBsthathavethepotentialtodriveasubstantialshareofthatrevenue.

SMBsNeedManagedSecurityServices(MSS)AJuly2016reportbyOstermanResearch‘ITSecurityatSMBs:2016BenchmarkingSurvey’describestheresultsofasurveyofSMBsecuritymanagersandindicatesthat55percentofSMBshaveanITstaffofthreeorfewerpeople,and29percenthaveanITstaffofoneorless.ThismeansSMBseithercontractforexpensiveITsecuritypeopleorpurchasesecurity-as-a-serviceorforgoprotectionsaltogether.Thereportnotesthat“whileaslightmajorityofSMBsreportedtheircurrentwebsecuritycapableofstoppingmalwareinfiltrations,fewerthanhalfofrespondentsexpressedconfidenceintheirabilitytoprotectagainstthemostadvancedthreatslikeransomware,phishingandtargetedattacks,orstoppingabreachofsensitivedata.”ThetablebelowshowsITmanagers’levelofconcerncomparedtotheirassessmentoftheircurrentprotections.Italsoindicatesconcernsaboutmanagingaccesstocontentatworkthatcanundermineproductivity,consumebandwidth,andcreateHRexposure.

Exhibit5.ComparisonofSMBConcernsvs.PerceivedLevelofProtection

Source:OstermanResearchInc.‘ITSecurityatSMBs:2016BenchmarkingSurvey’

8ResearchandMarkets:http://www.businesswire.com/news/home/20170524005464/en/9AlliedMarketResearch:https://www.alliedmarketresearch.com/managed-security-services-market

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7. CSPsareWell-positionedtoOfferClosedLoopSecurityRecentattackshavegreatlyincreasedawarenessofsecurity,andasSMBsrecognizetheyneedoutsidehelp,ManagedSecurityServices(MSS)willbecomeasignificantmarket.

CSPs–bothtelecomsandcableoperators–areabletoservicealargenumberofrelativelysmallcustomersveryefficiently,andanattractivebundleofhigh-speedbandwidth,mobileservicesWi-FiandMSSshouldallowthemtodominatetheSMBmarketforSECaaS.

MobileUsersWanttoBuySecurityServicesfromtheirServiceProviderArecentsurveybyAllotindicatesthat61percentoftheirglobalenduserrespondentssaidtheywouldliketobuyamobilesecurityservicefromtheirserviceprovidereventhoughonly11percentcurrentlypayformobileprotection.“ThegapbetweendemandandfulfillmentformobilesecurityservicespresentsasignificantandimmediateopportunityforCSPs.”SeeExhibitbelow.

Exhibit6.MobileSecurityBuyer’sgapbyRegion

Source:Allot

SixOutof10UsersWouldLooktoCSPsforaSecuritySolutionWhenaskedwhotheywouldliketobuyasecuritysolutionfrom,sixoutof10optedfortheirCSP.

Exhibit7.PercentageofEndUsersWhowouldBuyMobileSecurityServicesfromtheirCSP

Source:Allot

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8. Conclusion-BusinessBenefitsforCSPsandtheirSMBCustomersDNS-basedmanagedsecuritysolutionsnotonlyprovidesignificantITbenefitsforCSPsandtheirSMBcustomers,theyalsodeliversignificantbusinessandoperationalbenefitstobothparties.Thesearesummarizedbelow:

SignificantBenefitsforCSPsTheDNS-basedSECaaSofferssignificantbenefitsforCSPoperationsandservicedeliveryincluding:

• Controlofacompletesecuritysolution• Real-timemonitoringandcontroloflivesecuritythreats• ConfigurableandflexibleoptionsthatcansupportvariableCSPserviceoffers• Fullvisibilityintobothuserandnetworkevents• ManagedServiceOptionforSMBsandSoHousersandevenconsumers• OngoingsupportfromNominumDataScienceexpertsforupdatesonmalicioussites/activities

SMBsBenefitfromManagedSecurityasaService(SECaaS)SECaaSensuresthatSMBshave:

• Instantaneoususercommunicationsandinteraction• ‘Inherent’security• Simpleactivationandupdates-‘NoAssemblyRequired’andnosoftwaretoinstallorupdate

repeatedly• Protectionforalldevicesandallnetworkaccessconnections

OverallBenefitsofDeliveringSecurity‘FromtheNetwork’Severaluniqueoverallbenefitsaccruefromthisnetwork-centricapproach.

� BreadthofSecurityCoverage:Allusersandalldevicesanywhereoveranyaccesstechnologyareautomaticallyprotectedbysoftwarethatisinstantaneouslyupdatedforthelatestthreats.

� DepthofProtection:Moretimely,reliableandrobustthantraditionaldeviceappsoftwarethatdependsonusersforupgrades.

� Cost-effectiveforbothCSPsandtheirSMBCustomers:NoexpensivesecurityplatformorseparateprobesarerequiredfortheCSPs.SMBswillavoidpayingexpensiveITstaff/contractorsaswellassaveonthecostofacquiring,maintainingandupdatingexpensiveCPEsoftware.Costsareprojectedtobeat40-50percentoftraditionalcustomer-basedsolutionstocreatethemostaffordablepremiumSMBsolutionavailable.

TheBottomLineDNS-basedSecurityasaServiceallowsCSPstodeliver‘AlwaysOn,’instantlythreat-aware,highlyreliableyettotallytransparentproactiveprotectionforSMBs.

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Networks and Service Platforms

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AppendixA.DifferentiatorsforDNSNetwork-based‘SecurityasaService’SixKeyDifferentiators-Simplicity,Scalability,ServiceOffer,‘SeeThrough’,SeamlessandSimultaneousCommunicationBelowwesummarizethesixkeydifferentiatorsthatmakeDNS-basedSECaaSthepreferredsolutionforaCSPmanagedserviceforSMBs.

ExhibitA.1.DNS-basedSECaaS-SixDifferentiatorsthatDeliverUniqueBenefitstoCSPsandSMBs SixDifferentiators DeliveredBenefitforCSP DeliveredBenefitforSMB1. Simplicity § ReducescomplexityofcloudandSMB

securitypackagesolutions§ Makespersonalcontrolandlightweightsolutionsimpleyetpowerful

2. Scalability § Reduceslinearlyincreasingfirewallcosts

§ Scalescomplexnetworksecuritymechanismsandnumberofeventsprocessedseamlessly

§ Scalesthreatandattacksupportdynamicallyasneeded‘ondemand’

3. ServiceOffer § Servicebundleoptionsmakeservice‘sticky’andreducechurnforCSPs

§ SecuritybundleisattractiveforSMBsthatcanaddoptionsinfuture-e.g.customer/guestWi-Fisecurity&HTTPSproxytermination

4. ‘SeeThrough’ § CSPshave‘seethrough’visibilityandbigdataanalyticsforthreatandattackhandlingaswellassubscriberawarenessandpersonalprofileanalytics

§ EverythingistransparenttotheSMBanditsendusers

§ ‘Opt-in’foranalyticsoptions

5. Seamless § SECaaSoperatescrossfixed,mobileandWi-Fiaccessnetworks

§ Authenticationandblockingoperateanywherelocally,regionallyandpotentiallyglobally

§ SecureWi-Fi/hotspotaccessforSMBandshared/publicWi-Fisites

§ SecureguestWi-Fionbusinesssites§ (Future)SecureroamingforemployeesonuntrustedWi-Fioracrossserviceproviders-withDNSroamingagentand/orredirectiontomonitorinputsfromotherDNSplatforms

6.SimultaneousComm-unication

§ Two-wayInteractioncanbeinitiatedwithcustomersassoonasthreatisdetected

§ SMBhastoolsforproactiveinteractiveproblemresolutionandcommunicationwithCSP

Source:StrategyAnalyticsNetworksandServicePlatforms

ThesesixkeydifferentiatorsallowbothtelecomsandcableCSPstocompetenotonlywithtraditionalappandfirewall-basedcompetitorsbutalsowithOTTandcloudmanagedserviceproviders.