As the dust begins to settle on EMC Corp.'s $2.1 billion
acquisition of RSA Security Inc., there are still plenty of
questions as to how the company will integrate the security giant.
SearchStorage.com talked with EMC's vice president of information
security Dennis Hoffman on the challenges ahead with this deal and
how EMC sees security and storage coming together.What's the integration strategy?Dennis Hoffman: We want to make RSA an integrated
division of the company, somewhere between a VMware [Inc.] and a
Legato. We want to leverage RSA technology broadly through almost
everything we do. The brand of RSA is so strong, and the product
set is in an affiliated market, generally sold to a different
buyer, [so] there is some need for independence. What's technically
happening is we're creating a security division … RSA is the
foundation of that division, as well as some EMC resources, and
then we will be augmenting that over time with partnerships and
more acquisitions.
@24451 More acquisitions! How about integrating this one
first? RSA makes SecureID cards while EMC makes storage hardware
and software. Where's the integration going to actually take
place?
Hoffman: We've been asked: 'We don't see what
fobs have to do with disk drives?' But
that's simply the wrong way to look at the problem. And given
everything EMC has done over the last four or five years, if you
still see EMC as a disk drive company, we're really not getting
a whole lot of credit for the significant change the company's
undergone. RSA is perhaps best known for the SecureID token, but
that's just because it's ubiquitous, everybody has one,
[however] it's not the entire company. The real question is what
does identity and access management have to do with ILM
[information lifecycle management]?
If we raise the issue above storage security to information
security, if you agree that information is data in the hands of a
person, then it stands to reason that to secure information, you
must secure data, and you must secure the person, and that takes
three things: the ability to establish and manage an identity;
technically, it takes the ability to
encrypt and manage the encryption keys
associated with data; and it takes the ability to secure the
information infrastructure between the two. So very
colloquially, it means you have to secure the people, the gear
and the data.
What was so attractive to us about RSA is that they have a set
of integrated technologies across that spectrum. [They have
products that address] the establishment of identity or
authentication …they have encryption, and they've been working for
some time now on building a technology platform or
service-orientated architecture that unites those elements of their
company, a platform upon which other products can leverage those
services … It's the real lynchpin in the whole thing … RSA has been
working on [it] for the last couple of years, and it's something
that they have referred to publicly as the Identity Management
System or IMS. From the perspective of evolving the security of our
storage offerings or our applications, [such as] content
management,
virtualization and network management,
what's most interesting is this Web services platform. It's not
a product, but an enabling technology inside the company.
What does this Web services platform do?
Hoffman: It makes it very easy for applications and
devices to avail themselves of security services, such as
authentication, authorization, auditing and logging, [and]
encryption and key management. It facilitates our ability to build
security into everything we make.
What if customers have non-EMC storage or content management
software from another vendor, will RSA's security products support
third-party products going forward?
Hoffman: RSA is a standard bearer and standard setting.
The encryption standards are RSA, they routinely donate patents to
industry standards groups and they are a very open company. We've
learned [that] we're not going to sell anything into the security
space if it's not wide open. While security may be a bit new to the
storage industry, it's not new to the bulk of our customers. They
have security environments, and they are going to expect us to be a
very good citizen in that environment.
You mentioned that you will be talking to a different buyer.
Who is that person?
Hoffman: The chief information officer and security teams
play [not only] a budgetary purchasing role, [but] they also have
veto power over buying anything that does not comply with their
internal security standards. The security teams will begin to
affect a lot more of the purchase behavior of all devices,
applications and technology that enters the enterprise. We're
seeing that in government, through common criteria standards; we're
seeing it in the financial services industry. It's beginning to
roll out horizontally, too, as things like Visa and MasterCard push
the PCI Payment Card Industry standards.
In other words, it helps EMC win account control?
Hoffman: It definitely broadens and elevates our
relationships with customers because we're able to solve more of
the problem, and RSA is generally viewed as having some 70% to 80%
market share of two-factor authentication. That's roughly double
our stated share of the high-end storage market, or rather the
external storage market, so it stands to reason that they are in
places we are not.
Hence, the well-publicized and talked about bidding war for
this company and the hefty price tag?
Hoffman: It's a very unique company in the security
industry. One of the most ironic things about the information
security market is that almost none of the products in it secure
information. The single largest selling product in the security
market is antivirus software, and that's being heavily commoditized
with the introduction of [Microsoft] Vista, but it's still the No.
1 selling product. It keeps your laptop from catching a cold. But
if all of these laptops that have been lost or stolen from the
Veteran's administration, Fidelity, Unisys lost one recently, it's
happening over and over again. They all have antivirus software,
but it does nothing whatsoever to protect the data itself. As we
looked at that, we realized … there was a giant hole in the market,
everything was perimeter-centric and nothing was actually
information-centric. And when we laid the companies out along that
spectrum, every company was in the perimeter-centric camp, except
for one of any size or scale, and it was RSA. They've always been
focused on the managing of identity and digital assets. While
everybody was on the firewall, intrusion protection, antivirus
bandwagon, RSA stuck to their knitting and created a very strong
position for themselves in this other side of the security
industry, the information-centric side.
How do you get this integration done given all the
acquisitions EMC has made and while the company is morphing into a
different business than just storage? There's a lot of distraction
there.
Hoffman: It's a mixture of three things: pushing and
creating pull, and having clear ownership. The push is the fact
that we have a product policy inside the company that dictates a
baseline, uniform security across everything we make. It is a
requirement that our products comply with that. In order to comply,
they need to do things like authentication, auditing,
authorization, encryption, key management, and so your product must
comply or it won't be releasable. There are engineers that want it
as it's a way for them to get their products to market. The pull
part is around IMS, the Identity Management System. The carrot is
we make it easy for engineers to adopt the technology by providing
it to them packaged in a very nice manor. The last part is
ownership. As we structure the security division, there will be a
very senior executive position reporting to Art Coviello, the CEO
of RSA, who will be president of the division and responsible for
the synergy and integration. Ideally, if this strategy works, we
will have a uniform policy across EMC, you will authenticate into
all EMC products the same way, you will manage encryption keys no
matter where they are in the stack in one way, with one open
product, as opposed to a number of key management silos.
For storage users unfamiliar with key management issues,
what's the biggest problem with this technology?
Hoffman: Its complexity and comprehensiveness. Key
management is complicated because there are a number of things one
does with an encryption key. When you encrypt a piece of data, you
end up storing the bulk of the value in the key, and you have the
same issues managing the key as you have managing the data. It's a
hall of mirrors problem. Key management involves a number of
disciplines. Key rotation, so if you leave something stored for 30
years with the same key, over 30 years, somebody could crack it. So
periodically, you'd like to rotate the keys. But that's
complicated. It's like rotating tapes in a tape device in order to
make certain the tapes still work and tension is where it needs to
be, and they are still readable. But the tapes are stored in vault
somewhere, and there are encryption keys for each one. So how do I
actually rotate the keys? Key sharing [is another issue]. Two
trusted third parties want to exchange data over the Internet --
how do I get that third party a key securely without giving
everybody a key? [Another issue] is key escrow. I want to store
some data for 30 years, and I want to be absolutely certain I
haven't deleted the data 30 years ago when it comes time to open it
again. It's a time capsule problem. All of the people have changed,
the technology has changed, and somebody wants to read that 30-year
old tape, and I've got to go find a key. How do you escrow those
for long periods of time and trust that they're recoverable and not
compromised?
The comprehensive part is that people want encryption built in
and not bolted onto their infrastructure, and they want it built in
all over the place. Different use cases demand different locations
for encryption. If you're only interested in protecting tape media
that's going away on a truck to be backed up in a vault, you can
encrypt right before the tape device. That protects you against
nothing other than loss of the tape. Anybody accessing the tape
through the system will be automatically given the key. So in some
instances, people want to encrypt in the application so that the
entire stack is protected from intrusion. Others will tell you they
need to encrypt their laptop, their Blackberry, a database field,
the storage device and everything in between.
Key management is complex, and you can end up with many silos of
it that are incompatible. What the market is resisting is broad
distribution or broad adoption of encryption technology because of
their fears of both the complexity of key management from a
technology perspective, and in the absence of a comprehensive
offering, they give themselves an enormous management burden by
creating many silos of key management. Encryption is analogous to
the disk drive. It's wicked high-tech, but it's basically
commoditized. The value is all in the ability to manage the keys of
the encrypted stuff in a way that allows your business to keep
functioning securely.
It sounds like you have two major challenges here: to get the
industry to move toward this approach to security and to integrate
RSA security into all EMC products?
Hoffman: We must simultaneously remain completely open
and convince the industry to adopt the key management strategy that
RSA had launched into the market, while deeply embedding RSA
encryption into everything we do and … in a way that the industry
doesn't look at us as being proprietary.
How do you do that?
Hoffman: By continuing to drive standards efforts -- the
stuff RSA is doing today. But we will undoubtedly fight a
perception problem that we are somehow cornering the market on
encryption or something.
So people will think EMC is trying to lock in
customers?
Hoffman: It's back to the question you asked earlier:
'This is going to be open to other applications and storage vendors
right?' That question comes up from every customer. RSA is
notoriously open. The security industry conference is named after
them. That was another reason this was so important for us. We
wanted to make a statement about our commitment to the way the
security game needs to be played, which is literally wide open --
may the best technology win. But there's no lock-ins.