Welcome!

SDN Journal Authors: Liz McMillan, Greg Schulz, Carl J. Levine, ManageEngine IT Matters, Destiny Bertucci

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Cloud Security, @BigDataExpo, SDN Journal

@CloudExpo: Article

Data Control and Data Residency

Consider your options carefully when planning the move to the cloud

The benefits associated with adoption of the cloud are well documented and understood. Organizations cite tremendous cost savings, fast deployment times and streamlined application support and maintenance when compared to traditional on-premise software deployments. So what is holding many companies back from adopting the cloud? A recent report from Gartner entitled "Five Cloud Data Residency Issues That Must Not Be Ignored" highlights one key reason for this hesitancy - enterprises' questions and concerns about jurisdictional and regulatory control arising from a lack of clarity on where cloud data truly resides. The report from Gartner recommends that enterprises adopt measures that will simultaneously boost the security of sensitive data as well as assist them in satisfying regulatory compliance with data residency laws.

While the report provides some excellent guidance associated with the implementation of one technique - encryption - to safeguard sensitive information in the cloud, it did not cover a few key points that deserve to be mentioned:

  • Tokenization should be given strong consideration as the data security technique that enterprises deploy when data residency is a critical concern.
  • If encryption is deployed by enterprises, they should take every measure to ensure that they are deploying the strongest form of encryption possible (e.g., use FIPS 140-2 validated modules) to guard against the inherent threats associated with multi-tenant cloud environments.

Why Tokenization?
Tokenization is a process by which a sensitive data field, such as a "Name" or "National ID Number," is replaced with a surrogate value called a token. De-tokenization is the reverse process of redeeming a token for its associated original value. While various approaches to creating tokens exist, frequently they are simply randomly generated values that have no mathematical relation to the original data field (click here to review third-party evaluation of PerspecSys' tokenization approach). This underlies the inherent security of the approach - it is nearly impossible to determine the original value of a sensitive data field by knowing only the surrogate token value. When deployed as a technique within a Cloud Data Protection Gateway, the token "vault" that matches the clear text value with the surrogate token stays on-site within an organization's data-center. Because of this, the benefit from a data residency compliance perspective is apparent - the data truly never leaves the enterprise's location.

How Encryption Differs
Encryption is an obfuscation approach that uses a cipher algorithm to mathematically transform sensitive data's original value to a surrogate value. The surrogate can be transformed back to the original value via the use of a "key," which can be thought of as the means to undo the mathematical lock. While encryption clearly can be used to obfuscate a value, a mathematical link back to its true form still exists. As described, tokenization is unique in that it completely removes the original data from the systems in which the tokens reside (the cloud) and there is no construct of a "key" that can be used to bring it back into the clear in the cloud.

In our experience with many customers, it is this unique characteristic of tokenization that has made it the preferred approach selected by enterprises when they are explicitly trying to address data residency requirements. In the words of one of our largest customers (who selected tokenization as their data security approach), "encrypted data leaving your premises is still data leaving your premises."

But If Encryption Is Used - Deploy Using Best Practices
If an organization decides to deploy encryption in order to protect sensitive information going to the cloud, then they need to ensure that industry standard best practices on the use of encryption are followed. As highlighted in the Cloud Security Alliance's Guidelines as well as numerous Gartner Reports, the use of published, well-vetted strong encryption algorithms is a must. In fact, the previously mentioned report "Five Cloud Data Residency Issues That Must Not Be Ignored" notes that enterprises need to ensure that the "strength of the security is not compromised." A good guideline is to look for solutions that support FIPS 140-2 validated algorithms from well-known providers such as McAfee, RSA, SafeNet, Symantec and Voltage Security. A unique and highly valued quality of the PerspecSys gateway is that cloud end users can still enjoy the full capabilities of cloud applications (such as SEARCH) even with data that is strongly encrypted with these industry accepted, validated algorithms.

Netting It Out
There is much to gain from using data obfuscation and replacement technologies to satisfy residency requirements in order to pave the way to cloud adoption. But equally, there is much to lose if the implementation is not well thought through. Do your homework - consider tokenization as an approach, question any encryption techniques that are not well vetted and accepted in the industry and finally, compare solutions from multiple vendors (a suggestion - refer to our whitepaper as a guide: "Critical Questions to Ask Cloud Protection Gateway Providers". We know from our experience helping many organizations around the world tackle these challenges via the use of our Cloud Data Protection Gateway, that by charting your path carefully at the beginning of your project, you can arrive at a solution that will fully meet the needs of your Security, Legal, and Business Line teams.

Read the original blog entry...


PerspecSys Inc. is a leading provider of cloud protection and cloud encryption solutions that enable mission-critical cloud applications to be adopted throughout the enterprise. Cloud security companies like PerspecSys remove the technical, legal and financial risks of placing sensitive company data in the cloud. PerspecSys accomplishes this for many large, heavily regulated companies across the world by never allowing sensitive data to leave a customer's network, while maintaining the functionality of cloud applications. For more information please visit http://www.perspecsys.com/ or follow on Twitter @perspecsys.

More Stories By Gerry Grealish

Gerry Grealish is Vice President, Marketing & Products, at PerspecSys. He is responsible for defining and executing PerspecSys’ marketing vision and driving revenue growth through strategic market expansion and new product development. Previously, he ran Product Marketing for the TNS Payments Division, helping create the marketing and product strategy for its cloud-based payment gateway and tokenization/encryption security solutions. He has held senior marketing and leadership roles for venture-backed startups as well as F500 companies, and his industry experience includes enterprise analytical software, payment processing and security services, and marketing and credit risk decisioning platforms.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
FinTech is the sum of financial and technology, and it’s one of the fastest growing tech industries. Total global investments in FinTech almost reached $50 billion last year, but there is still a great deal of confusion over what it is and what it means – especially as it applies to retirement. Building financial startups is not simple, but with the right team, technology and an innovative approach it can be an extremely interesting domain to disrupt. FinTech heralds a financial revolution that...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
“Being the one true cloud-agnostic and storage-agnostic software solution, more and more customers are coming to Commvault and saying ' What do you recommend? What's your best practice for implementing cloud?” explained Randy De Meno, Chief Technologist at Commvault, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...