IDC Says ASP Security Not a Given
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At this point in the development of the ASP market, you might assume service providers had the security thing down cold. Not so, according to a survey by IDC.
In its report, "Delivering Software as a Service, Delivering a Sense of Security," the Framingham, Mass.-based research company says that of 50 ASPs surveyed about 25 percent had substandard security.
|Levels of Security|
|Security Service||Percentage of ASPs offering|
|User Authentication Service||78 percent|
|Network Security||76 percent|
|Virus Protection||76 percent|
|Disaster Recovery||74 percent|
|Redundant Service||74 percent|
|Detection of Illegal Action||68 percent|
|Institution Security||68 percent|
|24 X 365 surveillance system||60 percent|
|Institution Security||68 percent|
|Report on Security Conditioning||52 percent|
|Data Cyptography||50 percent|
|Security Consulting||34 percent|
|"IDC contends that at a minimum ASPs should provide user authentication, firewalls, virus protection and network security. As the chart indicates, roughly 25 percent did not provide these fundamentals," IDC's Jessica Goepfert told ASPnews.|
No, we aren't talking Department of Defense levels of security that were missing. The IDC study says some ASP were lacking fundamentals such as user authentication, virus protection, network security and firewall services.
Goepfert added that IDC "took great measures to properly identify which companies were truly providing ASP services compared with other types of services (e.g., Web hosting, IS outsourcing, application management and systems integration)."
The good news is that the majority of respondents do seem to have the basics down. However, IDC reports, there are still ASPs offering customers access to applications in an unprotected environment. "The truth is that enhanced security is often a benefit of signing with an ASP," Goepfert told ASPnews. "Chances are that the ASP offers more security than its customers and prospects could afford to deploy on their own. However, there are indications that some ASPs have entered the market with substandard protection."
The ASP industry hasn't yet reached full maturity and IDC reports that ASPs are at different points in their life cycle and may each take different approaches to attack the market. However, new or old, ASPs must all understand that security is essential to winning customers and promoting adoption of software as a service.
To accelerate adoption of hosted applications, according to IDC, ASPs must continue to educate the market about their security precautions and convince prospects that they can better protect the application environment than an internally deployed system.
"High-end ASPs that are rolling out enhanced security services are setting a strong example and new entrants would be well-served to observe," said Goepfert. "In fact, in recent months IDC has witnessed announcements from leading ASPs that demonstrate this trend and commitment to providing state-of- the-art security services."
|ASPnews consulting analyst Phil Wainewright writes, |
"It's time companies realized that, if they want to take advantage of all the commercial benefits the Internet represents, then they have to accept responsibility for security. The technology is there to ensure security to the nth degree. It's time to start using it. And ASPs should be setting an example, not cutting corners."
Interestingly, though, while many ASPs are beginning to guarantee the availability of security services, Goepfert notes that ASPs are not guaranteeing the effectiveness of security measures.
"The ASPs surveyed rarely, if ever, had any guarantees or metrics wrapped around the effectiveness of their security services. Who can blame them? Attacks are a reality of the computing environment; hackers are constantly getting wiser and actively seeking out the vulnerabilities of the cyber world," Goepfert told ASPnews.
"Security guarantees may bring end users more peace of mind, but if they can't be upheld they will be as worthless as the paper they are written on and will only serve to build false expectations with their customers."
Whether or not security measures are clearly outlined in an SLA, ASPs can't afford to ignore security, because they can be sure that their customers are paying attention. "Businesses understand that a breach in security could result in severe financial losses, never mind the damage to the company's reputation," said Goepfert. "It's up to the ASP to stay on top of these security systems in order to simply stay in the game."
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