Welcome!

Containers Expo Blog Authors: John Esposito, Liz McMillan, Pat Romanski, Elizabeth White, Scott Sobhani

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.


@ThingsExpo Stories
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...