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How To Be PCI Compliant in the Cloud…

March 15th, 2009 9 comments

Monkeys
I kicked off a bit of a dust storm some months ago when I wrote a tongue-in-cheek post titled "Please Help Me: I Need a QSA to Assess PCI/DSS Compliance In the Cloud."  It may have been a little contrived, but it asked some really important questions and started some really good conversations on my blog and elsewhere.

At SourceBoston I sat in on Mike Dahn's presentation titled "Cloud Compliance and Privacy" in which he did an excellent job outlining the many issues surrounding PCI and Compliance and it's relevance to Cloud Computing.  

Shortly thereafter, I was speaking to Geva Perry and James Urquhart on their "Overcast" podcast and the topic of PCI and Cloud came up. 

Geva asked me if after my rant on PCI and Cloud if what I was saying was that one could never be PCI compliant in the Cloud.  I basically answered that one could be PCI compliant in the Cloud depending upon the services used/offered by the provider and what sort of data you trafficked in.

Specifically, Geva made reference to the latest announcement by Rackspace regarding their Mosso Cloud offering and PCI compliance in which they tout that by using Mosso, a customer can be "PCI Compliant"  Since I hadn't seen the specifics of the offering, I deferred my commentary but here's what I found:

Cloud Sites, Mosso|The Rackspace Cloud’s Flagship offering, is officially the very first cloud hosting solution to enable an Internet merchant to pass PCI Compliance scans for both McAfee’s PCI scans and McAfee Secure Site scans. 

This achievement occurred just after Computer World published an article where some CIO’s shared their concern that Cloud Computing is still limited to “things that don’t require full levels of security.”  This landmark breakthrough may be the beginning of an answer to those fears, as Mosso leads Cloud Hosting towards a solid future of trust and reliability.

Mosso's blog featured an example of a customer — The Spreadsheet Store — who allegedly attained PCI compliance by using Mosso's offering. Pay very close attention to the bits below:

“We are making the Cloud business-ready.  Online merchants, like The Spreadsheet Store can now benefit from the scalability of the Cloud without compromising the security of online transactions,” says Emil Sayegh, General Manager of Mosso|The Rackspace Cloud.  “We are thrilled to have worked with The Spreadsheet Store to prepare the Cloud for their online transactions.”

The Spreadsheet Store set up their site using aspdotnetstorefront, “Which is, in our opinion, the best shopping cart solution on the market today,” says Murphy.  “It also happens to be fully compatible with Mosso.”  Using Authorize.Net, a secure payment gateway, to handle credit card transaction, The Spreadsheet Store does not store any credit card information on the servers.  Murphy and team use MaxMind for fraud prevention, Cardinal Commerce for MasterCard Secure Code and Verified by Visa, McAfee for PCI and daily vulnerability scans, and Thawte for SSL certification.

So after all of those lofty words relating to "…preparing the Cloud for…online transactions," what you can decipher is that Mosso doesn't seem to provide services to The Spreadsheet Store which are actually in scope for PCI in the first place!*

The Spreadsheet store redirects that functionality to a third party card processor!  

So what this really means is if you utilize a Cloud based offering and don't traffic in data that is within PCI scope and instead re-direct/use someone else's service to process and store credit card data, then it's much easier to become PCI compliant.  Um, duh. 

The goofiest bit here is that in Mosso's own "PCI How-To" (warning: PDF) primer, they basically establish that you cannot be PCI compliant by using them if you traffic in credit card information:

Cloud Sites is not currently designed for the storage or archival of credit card information.  In order to build a PCI compliant e-commerce solution, Cloud Sites needs to be paired up with a payment gateway partner.

Doh!

I actually wrote quite a detailed breakdown of this announcement for this post yes
terday, but I awoke to find my buddy Craig Balding had already done a stellar job of that (curses, timezones!)  I'll refer you to his post on the matter, but here's the gem in all of this.  Craig summed it up perfectly:

The fact that Mosso is seeking ways to help their customers off-load as much PCI compliance requirements to other 3rd parties is fine – it makes business sense for them and their merchant customers.  It’s their positioning of the effort as a “landmark breakthrough” and that they are somehow pioneers which leads to generalisations rooted in misunderstandings that is the problem.
Next time you hear someone say ‘Cloud Provider X is PCI compliant’, ask the golden PCI question: is their Cloud receiving, processing, storing or transmitting Credit Card data (as defined by the PCI DSS)?  If they say ‘No’, you’ll know what that really means…marketecture.

There's some nifty marketing for you, eh?

* Except for the fact that the web servers housed at Mosso must undergo regularly-scheduled vulnerability scans — which Mosso doesn't do, either.

On the Overcast Podcast with Geva Perry and James Urquhart

March 13th, 2009 No comments

Overcastlogo
Geva and James were kind (foolish?) enough to invite me onto their Overcast podcast today:

In this podcast we talk to Christopher Hoff, renowned information security expert, and especially security in the context of virtualization and cloud computing. Chris is the author of the Rational Survivability blog, and can be followed as @Beaker on Twitter.
Show Notes:

    • Chris talks about some of the myths and misconceptions about security in the cloud. He addresses the claim that Cloud Providers Are Better At Securing Your Data Than You Are and the benefits and shortcomings of security in the cloud.
    • We talk about Chris's Taxonomy of Cloud Computing (excuse me, model of cloud computing)
    • Chris goes through some specific challenges and solutions for PCI-compliance in the cloud
    • Chris examines some of the security issues associated with multi-tenant architecture and virtualization
Check it out here.

/Hoff 

More On Clouds & Botnets: MeatClouds, CloudFlux, LeapFrog, EDoS and More!

March 13th, 2009 6 comments

After my "Frogs" talk at Source Boston yesterday, Adam O'Donnell and I chatted about one of my chuckle slides I threw up in the presentation in which I give some new names to some (perhaps not new) attack/threat scenarios which involve Cloud Computing:

CloudSecBingo.058

  • MeatCloud - Essentially abusing Amazon's Mechanical Turk and using it to produce the Cloud version of a sweat shop; exploiting the ignorant for fun and profit to perform menial illegal muling tasks on your behalf…think SETI meets underage garment workers…
  • CloudFlux – Take a mess of stolen credit cards, open up  a slew of Amazon AWS accounts using them, build/scale to thousands of instances overnight, launch carpet bomb attack (you choose,) tear it down/have it torn down, and move your botnet elsewhere…rinse, lather, repeat…
  • LeapFrog – As we move to hybrid private/public clouds and load balancing/cloudbursting across multiple cloud providers, we'll interconnect Clouds via VPNs to the "trusted internals" of your Cloudbase… Attackers will thank us by abusing these tunnels to penetrate your assets through the, uh, back door.
  • vMotion Poison Potion – When VMware's vCloud makes its appearance and we start to allow vMotion across datacenters and across Clouds (in the clear?,) imagine the fun we'll have as we see attacks against vMotion protocols and VM state…  
  • EDoS – Economic Denial of Sustainability – Covered previously here

Adam mentioned that I might have considered that Botnets were a great example of a Cloud-based service and wrote a very cool piece about it on ZDNet here.

I remembered after the fact that I wrote a related blog on the topic several months ago titled "Cloud Computing: Invented by Criminals, Secured by ???" as a rif on something Reuven Cohen wrote.

/Hoff
Categories: Cloud Computing, Cloud Security Tags:

Cloud Computing Not Ready For Prime Time?

March 9th, 2009 4 comments

I just read another in a never-ending series of articles that takes a polarized view of Cloud Computing and its readiness for critical applications and data.

In the ComputerWorld article titled "Cloud computing not ready for critical apps,", Craig Steadman and Patrick Thibodeau present some very telling quotes from CIO's of some large enterprises regarding their reticence toward utilizing "Cloud Computing" and it's readiness for their mission critical needs.

The reasons are actually quite compelling, and I speak to them (and more) in my latest Cloud Computing presentation which I am giving at Source Boston this week:

Frogs-Draft.056

Reliability, availability and manageability are all potential show-stoppers for the CIO's in this article, but these are issues of economic and adoptive context that don't present the entire picture. 

What do I mean?

At the New England Cloud Computing Users' Group, a Cloud-based startup called Pixily presented on their use of Amazon's AWS services. They painted an eye-opening business case which detailed the agility and tremendous cost savings that the "Cloud" offers.  "The Cloud" provides them with reduced time-to-market, no up-front capital expenditures and allows them to focus on their core competencies. 

All awesome stuff.

I asked them about how their use of AWS and what amounted to a sole-source service provider did to their disaster recovery, redundancy/resiliency and risk management processes.  They had to admit that the day they went live with feature coverage on the front page of several newspapers also happened to be the day that Amazon suffered an 8 hour outage, and thus, so did they.

Now, for a startup, the benefits often outweigh the risks associated for downtime and vendor lock-in. For an established enterprise with cutthroat service levels, regulatory pressures and demanding customers who won't/can't tolerate outages, this is not the case.

Today we're suffering from issues surrounding the fact that emerging offerings in Cloud Computing are simply not mature if what you're looking for involves the holistic and cohesive management, reliability, resilience and transparency across suppliers of Cloud services.

We will get there as adoption increases and businesses start to lean on providers to create and adopt standards that answer the issues above, but today if you're an enterprise who needs five 9's, you may come to the same conclusion as the CIO's in the CW article.  If you're an SME/SMB/Startup, you may find everything you need in the Cloud.

It's important, however, to keep a balanced, realistic and contextual perspective when addressing Cloud Computing and its readiness — and yours — for critical applications.  Polarizing the discussion to one hyperbolic end or the other is not really helpful.

/Hoff

Categories: Cloud Computing, Cloud Security Tags:

If Virtualization is a Religion, Does That Make Cloud a Cult?

March 9th, 2009 No comments

Skyfalling-angled
I had just finished reading Virtual Gipsy's post titled "VMware as religion" when my RSS reader featured a referential post from VM/ETC's Rich titled "vTheology: the study of virtualization as religion."

While I appreciated the humor surrounding the topic, I try never to mix friends politics, and religion* so I'll not wade into the deep end on this one except to suggest what my title asks: 

If virtualization is a religion, does that make cloud a cult?

If so, to whom do I send my tidings?  Who is the Cardinal of the Cloud?  The Pope of PaaS?  The Shaman of Service?

/Hoff

*…and truth be told, I'm not feeling particularly witty this morning.

Ron Popeil and Cloud Computing In Poetic Review…

February 27th, 2009 No comments

Popeil

The uptake of computing
using the cloud,
would make the king of all marketeers
— Ron Popeil — proud

He's the guy who came out
with the canned spray on hair,
the oven you set and forget
without care

He had the bass fishing rod
you could fit in your pocket,
the Veg-O-Matic appliance
with which you could chop it

Mr. Microphone, it seems, 
was ahead of its time
Karaoke meets Facebook
Oh, how divine!

The smokeless ashtray,
the Cap Snaffler, drain buster
selling you all of the crap
Infomercials could muster

His inventions solved problems
some common, some new
If you ordered them quickly
he might send you two!

Back to the Cloud
and how it's related
to the many wonders
that Sir Ron has created

The cloud fulfills promises
that IT has made:
agility, better service
at a lower pay grade

You can scale up, scale down
pay for just what you use
Elastic infrastructure
what you get's what you choose

We've got public and private,

outside and in,

on-premise, off-premise

thick platforms or thin

The offerings are flooding
the wires en masse
Everything, it now seems,
is some sort of *aaS

You've got infrastructure,
platforms, software and storage.
Integration, SOA 
with full vendor whoreage

Some folks equate
virtualization with cloud
The platform providers
shout this vision out loud

'Course the OS contingent
has something to say
that cloud and virt
is part of their play

However you see it,
and whatever its form
the Cloud's getting bigger
it's starting to storm

Raining down on us all
is computational glory
but I wonder, dear friends,
'bout the end of this story

Will the Cloud truly bring value?
Solve problems that matter?
Or is it about 
vendors' wallets a-fatter?

*I* think the Cloud
has wonderful promise
If the low-hanging IT fruit
can be lifted 'way from us

The Cloud is a function
that's forging new thought
Pushing the boundaries
and theories we've bought

It's profoundly game changing

and as long as we focus

and don't buy into the 

hyped hocus pocus

So before we end up
with a Cloud that "slices and dices"
that never gets dull,
mashes, grates, grinds and rices

It's important to state

what problem we're solving

so the Cloud doesn't end up

with its value de-evolving

—-

BTW, if you want to see more of my Cloud and Security poems, just check here.

I’m Sorry, But Did Someone Redefine “Open” and “Interoperable” and Not Tell Me?

February 26th, 2009 3 comments

3-stooges-football
I've got a problem with the escalation of VMware's marketing abuse of the terms "open," "interoperable," and "standards."  I'm a fan of VMware, but this is getting silly.


When a vendor like VMware crafts an architecture, creates a technology platform, defines an API, gets providers to subscribe to offering it as a service and does so with the full knowledge that it REQUIRES their platform to really function, and THEN calls it "open" and "interoperable," because an API exists, it is intellectually dishonest and about as transparent as saran wrap to call that a "standard" to imply it is available regardless of platform.


We are talking about philosophically and diametrically-opposed strategies between virtualization platform players here, not minor deltas along the bumpy roadmap highway.  What's at stake is fundamentally the success or failure of these companies.  Trying to convince the world that VMware, Microsoft, Citrix, etc. are going to huddle for a group hug is, well, insulting.

This recent article in the Register espousing VMware's strategy really highlighted some of these issues as it progressed. Here's the first bit which I agree with:

There is, they fervently say, no other enterprise server and data centre virtualisation play in town. Businesses wanting to virtualise their servers inside a virtualising data centre infrastructure have to dance according to VMware's tune. Microsoft's Hyper-V music isn't ready, they say, and open source virtualisation is lagging and doesn't have enterprise credibility.

Short of the hyperbole, I'd agree with most of that.  We can easily start a religious debate here, but let's not for now.  It gets smelly where the article starts talking about vCloud which, given VMware's protectionist stance based on fair harbor tactics, amounts to nothing more (still) than a vision.  None of the providers will talk about it because they are under NDA.  We don't really know what vCloud means yet: 

Singing the vcloud API standard song is very astute. It reassures all people already on board and climbing on board the VMware bandwagon that VMware is open and not looking to lock them in. Even if Microsoft doesn't join in this standardisation effort with a whole heart, it doesn't matter so long as VMware gets enough critical mass.

How do you describe having to use VMware's platform and API as VMware "…not looking to lock them in?" Of course they are!  

To fully leverage the power of the InterCloud in this model, it really amounts to either an ALL VMware solution or settling for basic connectors for coarse-grained networked capability.

Unless you have feature-parity or true standardization at the hypervisor and management layers, it's really about interconnectivity not interoperability.  Let's be honest about this.

By having external cloud suppliers and internal cloud users believe that cloud federation through VMware's vCloud infrastructure is realistic then the two types of cloud user will bolster and reassure each other. They want it to happen and, if it does, then Hyper-V is locked out unless it plays by the VMware-driven and VMware partner-supported cloud standardisation rules, in which case MIcrosoft's cloud customers are open to competitive attack. It's unlikely to happen.

"Federation" in this context really only applies to lessening/evaporating the difference between public and private clouds, not clouds running on different platforms.  That's, um, "lock-in."


Standards are great, especially when they're yours. Now we're starting to play games.  VMware should basically just kick their competitors in the nuts and say this to us all:

"If you standardize on VMware, you get to leverage the knowledge, skills, and investment you've already made — regardless of whether you're talking public vs. private.  We will make our platforms, API's and capabilities as available as possible.  If the other vendors want to play, great.  If not, your choice as a customer will determine if that was a good decision for them or not."

Instead of dancing around trying to muscle Microsoft into playing nice (which they won't) or insulting our intelligence by handwaving that you're really interested in free love versus world domination, why don't you just call a spade a virtualized spade.

And by the way, if it weren't for Microsoft, we wouldn't have this virtualization landscape to begin with…not because of the technology contributions to virtualization, but rather because the inefficiencies of single app/OS/hardware affinity using Microsoft OS's DROVE the entire virtualization market in the first place!

Microsoft is no joke.  They will maneuver to outpace VMware. HyperV and Azure will be a significant threat to VMware in the long term, and this old Microsoft joke will come back to haunt to VMware's abuse of the words above:

Q: How many Microsoft engineers does it take to change a lightbulb?  
A: None, they just declare darkness a standard.

is it getting dimmer in here?


/Hoff

Interesting Read: The World Privacy Forum’s Cloud Privacy Report

February 25th, 2009 No comments

The World Privacy Forum released their "Cloud Privacy Report" written by Robert Gellman two days ago. It's an interesting read that describes the many facets of data privacy concerns in Cloud environments: 

This report discusses the issue of cloud computing and outlines its implications for the privacy of 
personal information as well as its implications for the confidentiality of business and 
governmental information. The report finds that for some information and for some business 
users, sharing may be illegal, may be limited in some ways, or may affect the status or 
protections of the information shared. The report discusses how even when no laws or 
obligations block the ability of a user to disclose information to a cloud provider, disclosure may 
still not be free of consequences. The report finds that information stored by a business or an 
individual with a third party may have fewer or weaker privacy or other protections than 
information in the possession of the creator of the information. The report, in its analysis and 
discussion of relevant laws, finds that both government agencies and private litigants may be 
able to obtain information from a third party more easily than from the creator of the 
information. A cloud provider’s terms of service, privacy policy, and location may significantly 
affect a user’s privacy and confidentiality interests.


I plan to spend some time reading through the report in more depth, but I enjoyed my cursory review thus far, especially some of the coverage related to issues such as FCRA, bankruptcy, Cloud provider ownership, disclosure, etc.  Many of these issues are near and dear to my heart.

You can download the report here.

/Hoff
Categories: Cloud Computing, Cloud Security, Privacy Tags:

Internal v. External/Private v. Public/On-Premise v. Off- Premise: It’s all Cloud But How You Get There Is Important.

February 24th, 2009 No comments

Datacenter
I've written about the really confusing notional definitions that seem to be hung up on where the computing actually happens when you say "Cloud:" in your datacenter or someone else's.  It's frustrating to see how people mush together "public, private, internal, external, on-premise, off-premise" to all mean the same thing.

They don't, or at least they shouldn't, at least not within the true context of Cloud Computing.

In the long run, despite all the attempts to clarify what we mean by defining "Cloud Computing" more specifically as it relates to compute location, we're going to continue to call it "Cloud."  It's a sad admission I'm trying to come to grips with.  So I'll jump on this bandwagon and take another approach.

Cloud Computing will simply become ubiquitous in it's many forms and we are all going to end up with a hybrid model of Cloud adoption — a veritable mash-up of Cloud services spanning the entire gamut of offerings.  We already have today.

Here are a few, none-exhaustive examples of what a reasonably-sized enterprise can expect from the move to a hybrid Cloud environment:
  1. If you're using one or more SaaS vendors who own the entire stack, you'll be using their publicly-exposed Cloud offerings.  They manage the whole kit-and-kaboodle, information and all. 
  2. SaaS and PaaS vendors will provide ways of integrating their offerings (some do today) with your "private" enterprise data stores and directory services for better integration and business intelligence.
  3. We'll see the simple evolution of hosting/colocation providers add dynamic scalability and utility billing and really push the Cloud mantra.  
  4. IaaS vendors will provide (ala GoGrid) ways of consolidating and reducing infrastructure footprints in your enterprise datacenters by way of securely interconnecting your private enterprise infrastructure with managed infrastructure in their datacenters. This model simply calls for the offloading of the heavy tin. Management options abound: you manage it, they manage it, you both do…
  5. Other IaaS players will continue to offer a compelling suite of soup-to-nuts services (ala Amazon) that depending upon your needs and requirements, means you have very little (or no) infrastructure to speak of.  You may or may not be constrained by what you can or need to do as you trade of flexibility for conformity here.
  6. Virtualization platform providers will no longer make a distinction in terms of roadmap and product positioning between internal/external or public/private. What is enterprise virtualization today simply becomes "Cloud."  The same services, split along virtualization platform party lines, will become available regardless of location. 
  7. This means that vendors who today offer proprietary images and infrastructure will start to drive or be driven to integrate more open standards across their offerings in order to allow for portability, interoperability and inter-Cloud scalability…and to make sure you remain a customer.
  8. Even though the Cloud is supposed to abstract infrastructure from your concern as a customer, brand-associated moving parts will count; customers will look for pure-play vetted integration between the big players (networking, virtualization, storage) in order to fluidly move information and applications into and out of Cloud offerings seamlessly 
  9. The notion of storage is going to be turned on its head; the commodity of bit buckets isn't what storage means in the Cloud.  All the chewy goodness will start to bubble to the surface as value-adds come to light: DeDup, backup, metadata, search, convergence with networking, security…
  10. More client side computing will move to the cloud (remember, it doesn't matter whether it's internal or external) with thin client connectivity while powerful smaller-footprint mobile platforms (smartphones/netbooks) with native virtualization layers will also accelerate in uptake

Ultimately, what powers your Cloud providers WILL matter.  What companies adopt internally as their virtualization, networking, application delivery, security and storage platforms internally as they move to consolidate and then automate will be a likely choice when evaluating top-rung weighting when they identify what powers many of their Cloud providers' infrastructure.

If a customer can take all the technology expertise, the organizational and operational practices they have honed as they virtualize their internal infrastructure (virtualization platform, compute, storage, networking, security) and basically be able to seamlessly apply that as a next step as the move to the Cloud(s), it's a win.

The two biggest elements of a successful cloud: integration and management. Just like always.

I can't wait.

/Hoff

*Yes, we're concerned that if "stuff" is outside of our direct control, we'll not be able to "secure" it, but that isn't exactly a new concept, nor is it specific to Cloud — it's just the latest horse we're beating because we haven't made much gains in being able to secure the things that matter most in the ways most effective for doing that.

Trust But Verify? That’s An Oxymoron…

February 23rd, 2009 4 comments

GBCIA
In response to my post regarding Cloud (SaaS, really) providers' security, Allen Baranov asked me the following excellent question in the comments:

Hoff,

What would make you trust "the Cloud"? Scrap that… stupid question…

What would make you trust SaaS providers?

To which I responded:

Generally, my CEO or CFO. 🙁  

I don't "trust" third party vendors with my data. I never will. I simply exercise the maximal amount of due diligence that I am afforded given prevailing time, money, resources and transparency and assess risk from there.

Even if the data is not critical/sensitive, I don't "trust" that it's not going to be mishandled. Not in today's world.  (Ed: How I deal with that mishandling is the secret sauce…)

I then got thinking about the line that Ronald Reagan is often credited with wherein he described managing relations with the former Soviet Union:

Trust but verify.

Security professionals use that phrase a lot. They shouldn't. It's oxymoronic.

The very definition of "trust" is:

trust |trəst|
noun
firm belief in the reliability, truth, ability, or strength of someone or something relations have to be built on trust they have been able to win the trust of the others.
• acceptance of the truth of a statement without evidence or investigation I used only primary sources, taking nothing on trust.
• the state of being responsible for someone or something a man in a position of trust.
• poetic/literary a person or duty for which one has responsibility rulership is a trust from God.
• poetic/literary a hope or expectation all the great trusts of womanhood.

See the second bullet above "….without evidence or investigation"?  I don't "trust" people over whic
h I have no effective control. With third parties handling your data, you have no effective "control." You have the capability to audit, assess and recover, but control?  Nope.

Does that mean I think you should not put your information into the hands of a third party?  Of course not.  It's inevitable.  You already have. However, admitting defeat and working from there may make Jack a dull boy, but he's also not unprepared for when the bad stuff happens.  And it will.

I stand by my answer to Allen.

You?

/Hoff