2016 Cloud Security Spotlight Report

1. CLOUD SECURITY 2016 SPOTLIGHT REPORT PRESENTED BY Group Partner Information Security

2. TABLE OF CONTENTS Overview 3 Key survey findings 4 CLOUD ADOPTION TRENDS Cloud benefits 6 Cloud investments 7 Cloud adoption stages 8 Barriers to cloud adoption 9 Top cloud service delivery & providers 10 Most popular cloud workloads 11 Data stored in the cloud 12 Applications deployed in the cloud 13 Most popular cloud apps 14 CLOUD SECURITY CHALLENGES Cloud security concerns 16 Cloud security incidents 17 Security risks in the cloud vs. on-premise 18 Cloud apps vs. on-premise apps 19 Biggest security threats in public clouds 20 Cloud security concerns 21 Biggest cloud security headaches 22 Personal cloud storage policy 23 CLOUD SECURITY SOLUTIONS Paths to stronger security 25 Cloud confidence builders 26 Traditional security tools in the cloud 27 Most effective cloud security technologies 28 Most popular cloud security controls 29 Drivers of cloud-based security solutions 30 Barriers to cloud-based security solutions 31 Cloud application security 32 CLOUD SECURITY SPOTLIGHT REPORT Access to cloud applications 33 Security impact on DevOps 34 Methodology & Demographics 35 Sponsors 36 Contact us 39

3. OVERVIEW In this new report, you will learn how your peers are Cloud investment continues to grow over 20% annually as approaching cybersecurity in the era of cloud, organizations are looking to reduce including the latest trends and benchmarks to gauge IT cost, increase agility and better how your own organization stacks up. support business functions. Many thanks to our sponsors for supporting this Security of critical data and research project: AlienVault, Bitglass, Cato systems in the cloud remains a Networks, CloudPassage, Dell Software, Dome9, key barrier to adoption of cloud FireLayers, IMMUNIO, (ISC)2 and Randtronics. services. This report, the result of comprehensive research in We hope you will enjoy this report. partnership with the 300,000+ member Information Security Holger Schulze Community on LinkedIn, reveals the drivers and risk factors of migrating to the cloud. Learn how organizations are responding to the security threats in the cloud and what tools and best practices IT cybersecurity leaders are Holger Schulze Group Founder Information Security Community on LinkedIn Group Partner Information Security considering in their move to the cloud. hhschulze@gmail.com 3 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

4. KEY SURVEY FINDINGS Security concerns top the list of barriers to cloud adoption led by general security concerns (53%, up from 45% in last year’s survey), legal and regulatory compliance concerns (42%, up from 29%), and data loss and leakage risks (40%). The rise in specific concerns about compliance and integration suggests that companies are moving from theoretical exploration of cloud models to actual implementation. 1 53% of organizations see unauthorized access through misuse of employee credentials and improper access controls as the single biggest threat to cloud security. This is followed by hijacking of accounts (44%), and insecure interfaces / APIs (39%). One in three organizations say external sharing of sensitive information is the biggest security threat. 2 Verifying security policies (51%), visibility into infrastructure security (49%) and compliance (37%) were named as the top three cloud security challenges that cause the biggest headaches for IT security professionals. 3 Organizations moving to the cloud have a variety of choices available to strengthen cloud security. 61% of organizations plan to train and certify existing IT staff, 45% partner with a managed security services provider, and 42% deploy additional security software to protect data and applications in the cloud. Encryption of data at rest (65%) and in motion on networks (57%) top the list of most effective security technologies to protect data in the cloud. This is followed by intrusion detection and prevention (IDP) with 48% and access control technologies such as Cloud Access Security Brokers (CASB) with 45%. 4 5 4 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

5. CLOUD ADOPTION TRENDS

6. CLOUD BENEFITS After a few years of operating workloads in the cloud, organizations are confirming the benefits match the original promise of cloud computing. Availability (46%), cost reduction (41%) and flexible scalability (36%) top the list. Cloud is still falling short of expectations in the areas of regulatory compliance (13%) and the promise of reduced complexity (14%). Availability 46% Cost Reduction 41% Flexible Scalability 36% Cloud Benefits 14% 13% Reduced Complexity Regulatory Compliance Moved expenses from fixed CAPEX (purchase) to variable OPEX (rental/subscription) 32% | Accelerated deployment and provisioning 31% | Increased agility 28% | Improved performance 27% | Increased efficiency 26% | Increased geographic reach 24% | Increased employee productivity 23% | Improved security 19% | Accelerated time to market 18% | Align cost model with usage 18% | Not Sure/Other 25% Q: What benefits have you realized from your cloud deployment? 6 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

7. CLOUD INVESTMENTS For over a third of organizations (38%), cloud investments represent up to 15% of overall IT infrastructure investment. Half of all organizations have over 15% of their IT invested in the cloud. 50% Organizations invest more than 15% of all IT in cloud 38% 21% 13% 12% IT infrastructure 9% 7% 1-15% 0% 16-25% 26-50% 51-75% +75% Share of cloud relative to overall IT investment Q: Cloud infrastructure investments represent what percentage of your overall infrastructure footprint (in terms of servers/workloads/instances)? 7 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

8. CLOUD ADOPTION STAGES 79% of respondents are either in planning or trial stages, currently implementing or in active production cloud environments. Private Cloud 30% Public Cloud 25% Hybrid Cloud 24% 21% No Plans 41% 41% 34% 20% Deployed 20% 16% 20% Implementing 18% 19% Trial 23% 28% 20% Planning Cloud computing can be classified by location and ownership of the cloud infrastructure: Private Cloud - Cloud infrastructure and services are dedicated to a particular organization. Private clouds can reside on premise or be hosted by a third party. Public Cloud - Cloud services and infrastructure are hosted by a third-party cloud provider and resources are shared among multiple cloud tenants / clients. Hybrid Cloud - Cloud computing environment in which single applications are split across private and public cloud, often to dynamically accommodate spikes in server demand. Q: What cloud service delivery model(s) is your organization using? 8 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

9. BARRIERS TO CLOUD ADOPTION Cloud security concerns not only top the list of perceived barriers to cloud adoption, they are further increasing. General security concerns (with 53% up from 45% in last year’s survey), legal and regulatory compliance concerns (42% up from 29%), data loss & leakage risks (40% slightly down from 41%), integration with existing IT environments (35% up from 29%) and lack of expertise (26% up from 16%) top the list of barriers to cloud adoption. However, it is important to put this in context as the number of reported breaches in enterprise environments far exceed the reported exposure from cloud platforms. Cloud Adoption Barriers #1 #2 #3 #4 #5 53% 42% 35% 40% 26% General security risks Integration with existing IT environments Lack of expertise Legal & regulatory compliance Data loss & leakage risks 8% p.p. from last year 13% p.p. from last year 1% p.p. from last year 6% p.p. from last year 10% p.p. from last year Loss of control 23% | Management complexity 20% | Increased agility 28% | Fear of vendor lock-in 18% | Internal resistance and inertia 18% | Lack of staff resources 17% | Lack of transparency and visibility 15% | Lack of maturity of cloud service models 14% | Cost/Lack of ROI 13% | Lack of budget 13% Performance of apps in the cloud 12% | Lack of management buy-in 10% | Lack of customizability 9% | None 9% | Dissatisfaction with cloud service offerings/ performance/pricing 7% | Billing & tracking issues 7% | Lack of support by cloud provider 6% | Availability 5% | Not sure/Other 10% Q: What are the biggest barriers holding back cloud adoption in your organization? 9 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

10. TOP CLOUD SERVICE DELIVERY & PROVIDERS The dominance of both cloud applications and cloud Amazon AWS is the big fish in the cloud services infrastructure requires that we think about securing pond, used by 45% of respondents. Microsoft Azure these different entities as part of a holistic vision follows with 39%. for securing application and infrastructure (both on premise and in the cloud). A majority of organizations 45% (61%) uses SaaS models, followed by IaaS (53%) and PaaS (39%) as their cloud service delivery model. cloud service delivery models SaaS 39% 18% 61% IaaS PaaS 18% 8% 11% 5% 53% 39% Rackspace VMware IBM Softlayer / IBM 9% 11% 8% CenturyLink – Savvis 4% | HP 4% | Verizon – Terremark 4% | AT&T 4% | CSC 1% | GoGrid 1% | Joyent 1% | Not sure/Other 32% Not sure/Other BPaaS None Q: What cloud service delivery model(s) is your organization using? Q: What public cloud provider(s) do you currently use? 10 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

11. MOST POPULAR CLOUD WORKLOADS Storage (52% up from 38% in last year’s survey), computing (51% up from 32%) and virtualization (44% up from 33%) top the list of most deployed workloads in the cloud. 52% STORAGE 51% COMPUTING POPULAR CLOUD WORKLOADS 44% VIRTUALIZATION 41% BUSINESS APPLICATIONS Productivity Applications (email, collaboration, instant messaging) 37% | Networking (virtual private cloud, DNS, etc) 35% | Database (relational, NoSQL, caching, etc.) 33% | Operating System 30% | IT Operations Applications (administration, backup, provisioning, monitoring, etc.) 25% Developer / Testing Applications 25% | Security (Identity management, access control, data protection, usage & resource monitoring, anti-virus, etc.) 25% | Middleware 17% | Desktop virtualization 15% | Runtime 9% | Not sure/Other 17% Q: What services & workloads is your organization deploying in the cloud? 11 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

12. DATA STORED IN THE CLOUD Email is the most common corporate information stored in the cloud (44%), followed by customer data such as names and contact information (31%), sales and marketing data (31%), and employee and payroll data (30%). Fewer organizations store intellectual property information (18%) or employee healthcare data (12%) in the cloud. 44% 32% Email 26% Customer data 31% Contracts, invoices, orders Marketing data 30% data Sales & 18% 19% Intellectual property Employee Financial corporate data DevOps / development data 16% | Health information 12% | None 11% | Not sure/Other 24% Q: What types of corporate information do you store in the cloud? 12 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

13. APPLICATIONS DEPLOYED IN THE CLOUD The use of cloud applications is increasing as the number of organizations with 50% or more of applications deployed in the cloud (18%) has more than doubled since last year’s survey. It is apparent that the move toward cloud computing is inevitable. Organizations have no real competitive advantage by owning core IT infrastructure any more than owning power generation or water supply. 56% 16% 12% 10% 6% 1-25% 0% 26-50% 51-75% 76-100% Share of Applications Deployed in the Cloud Q: What percentage of applications used by your organization are in the cloud? 13 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

14. MOST POPULAR CLOUD APPS Q: What types of business applications is your organization deploying in the cloud? 46% Web apps Collaboration & communication apps 38% Web-based applications and websites (47%), collaboration and communication tools (38%) and 33% productivity tools (33%) are the most popular types Productivity of business applications deployed in the cloud. 27% IT Operations Application development / testing 26% | Sales & Marketing 25% | HR 25% | Business intelligence / analytics 24% | Disaster recovery / storage / archiving 24% | Content management 22% | Finance & accounting 19% | Supply chain management 11% | Not sure/Other 20% Custom business applications 27% MOST POPULAR CLOUD APPS CURRENTLY DEPLOYED FUTURE DEPLOYMENT Microsoft Office 365 is leading the way in existing Microsoft Office 365 Salesforce Exchange Google Apps Dropbox Service Now Box Workday None SuccessFactors Not sure 41% 27% 24% 20% 17% 15% 14% 9% 8% 7% 6% 20% 7% 11% 6% 5% 5% 4% 4% 5% 3% 10% cloud app deployments (41%) as well as planned future deployments (20%). Salesforce follows second and is already deployed in 27% of organizations and planned for future deployment in 7% of organizations. The migration to Office 365 is one of the biggest changes to enterprise IT in recent years. It represents yet another step in the migration of enterprises to a utility-based model for IT services delivery that started with Salesforce.com many years ago. Q: Which of the following cloud applications are deployed or will be deployed in your organization? 14 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

15. CLOUD SECURITY CHALLENGES 15 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

16. CLOUD SECURITY CONCERNS Cloud security concerns are on the rise. An overwhelming majority of 91% of organizations are very or moderately concerned about public cloud security. Today, perceived security risks are the single biggest factor holding back faster adoption of cloud computing. And yet, adoption of cloud computing is on the rise. The overwhelming benefits of cloud computing should drive organizations and security teams to find a way to “get cloud done”. This is a prime example to where security can have a profound impact on enabling business transformation. 44% Very concerned 91% organizations have security concerns 44% 4% Not sure Not at all concerned 5% 47% 47% Moderately concerned Q: Please rate your level of overall security concern related to adopting public cloud computing 16 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

17. CLOUD SECURITY INCIDENTS A majority of respondents say they did not experience a cloud-related security incident. 36% can’t disclose or aren’t sure about security incidents, indicating a lack of visibility into cloud security. 9% Can’t disclose 15% Yes Not sure 21% 55% NO Q: Did your organization experience a cloud-related security incident in the last 12 months? 17 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

18. SECURITY RISKS IN THE CLOUD VS ON-PREMISE We continue to see evidence that the perception of cloud security is slowly improving relative to traditional enterprise IT environments. The share of organizations that see a higher risk of security breaches in the cloud compared to traditional IT environments is shrinking to 21% compared to last year’s 28%. About the same 5% 21% Higher risk of security breaches compared to on-premise 22% 27% 7% Lower risk of security breaches compared to on-premise 16% 15% Significantly higher (5%) Somewhat higher (16%) Significantly lower (7%) Somewhat lower (15%) 30% 0% unchanged from last year 7% p.p. from last year Not sure Q: Compared to your traditional IT environment, would you say the number of security breaches you experienced in a public cloud is? 18 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

19. CLOUD APPS VS ON-PREMISE APPS Perceptions of SaaS security are slowly improving, thanks to continued investments in security controls and customer education. For the first time since we asked this survey question, a majority of over 52% believe that cloud apps are as secure or more secure than on-premises applications, up from only 40% in last year’s survey. The math is simple: Large cloud providers can outspend any enterprise in securing their infrastructure and apply expertise and manpower that is better utilized in protecting a shared infrastructure. The results are superior in terms of availability, performance and security of cloud environments. 52% Believe that cloud apps are as secure or more secure than on-premises applications 35% 33% 17% 15% Public cloud apps are more secure than internal apps Public cloud apps are about as secure as internal apps Public cloud apps are less secure than internal apps Not sure SaaS Security Q: Do you believe public cloud apps/SaaS like Salesforce and Office 365 are more or less secure than your internally hosted applications? 19 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

20. BIGGEST SECURITY THREATS IN PUBLIC CLOUDS Unauthorized access through misuse of employee credentials and improper access controls is the single biggest threat (53%) to cloud security. This is followed by hijacking of accounts (44%) and insecure interfaces / APIs (39%). 33% of organizations say external sharing of sensitive information is the biggest security threat. Identity management and access control is an emerging and increasing threat concern for enterprises scaling and on-boarding to the cloud. The good news is that all these risks can be addressed by using security controls including multi-factor authentication, Identity and Access Management (IAM), Cloud Access Security Brokers (CASB), IP range restrictions and access auditing. #1 #2 #3 #4 11001010110010101 010PASSWORD10 11001010110010101 11001010110010101 53% Unauthorized access 44% Hijacking of accounts 39% Insecure interfaces/APIs 33% External sharing of data Posting of confidential proprietary data by employees 33% | Malicious insiders 32% | Denial of service attacks 31% | Foreign state sponsored cyber attacks 30% | Malware injection 25% | Abuse of cloud services 24% | Shared memory attacks 18% | Lateral movement of threats (east-west traffic) 16% | Theft of service 15% | Lost mobile devices 12% | Natural disasters 5% | Not sure/Other 9% | Q: What do you consider the biggest security threats in public clouds? 20 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

21. CLOUD SECURITY CONCERNS Data loss, leakage and privacy continue to top the list of cloud related security concerns, virtually unchanged from last year’s survey findings. Concerns about legal and regulatory compliance have seen the biggest gain, moving from the number 7 spot (24%) to number 4 (39%) on the list, in line with the observed rise of compliance concerns as a key barrier to cloud adoption. CONFIDENTIAL 49% Data loss/leakage 46% Data privacy 42% Confidentiality 39% Legal and regulatory compliance Data sovereignty/control 34% | Accidental exposure of credentials 26% | Lack of forensic data 26% | Incident & problem management 25% Visibility & transparency 19% | Availability of services, systems and data 17% | Liability 17% | Disaster recovery 13% | Performance 13% | Business continuity 13% | Fraud (e.g. account hijacking) 12% | Not sure/Other 5% | None 1% Q: What are your biggest cloud security concerns? 21 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

22. BIGGEST CLOUD SECURITY HEADACHES Verifying security policies (51%), visibility into infrastructure security (49%) and compliance (37%) were named as the top three cloud security challenges that cause the biggest headaches for IT security professionals. Because the cloud is a new environment, that is often incompatible with existing security technologies, there is a need for a new holistic security model to cover both on-premise and cloud environments. The holy grail is a unified security policy that can be applied across the infrastructure regardless of the underlying assets. 51% Verifying security policies 49% Visibility to infrastructure security Compliance 37% No automatic discovery / visibility / control to infrastructure security 32% | Reporting security threats and solutions 31% | Remediating threats 29% | Security can’t keep up with pace of changes to new / existing applications 27% | Can’t identify misconfigurations quickly 26% | Complex cloud to cloud / cloud to on prem security rule matching 21% | Unknown / hidden open IP port 20% | Automatically enforcing of security across multiple datacenters 18% | IaaS / PaaS security rules limit / cap 15% | Lack of integration with on-premise security technologies 12% | Too much time and resource management overhead 11% | Lack of feature parity with on-premise security solution 9% | No flexibility 7% | Native to cloud application or cloud infrastructure 5% | None 4% | Not sure/Other 15% Q: What are your biggest cloud security headaches? 22 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

23. PERSONAL CLOUD STORAGE POLICY Employee access to private cloud storage is one of the biggest risk factors regarding data leakage and theft - and organizations are repsonding accordingly. 42% of organizations do not allow employees to access private cloud storage services from the company’s network – 36% do allow access. This is a notable reversal of last year’s survey findings where only 36% of organizations did not allow access to cloud storage services. Identifying the use of unauthorized cloud services (“Shadow IT”) remains a major visibility challenge. 36% 13% Yes We don’t have a policy 42% Not sure 9% Organizations do not allow employees to access private cloud storage services from the corporate network. 42% NO Q: Are employees allowed to access personal cloud storage services (those registered to a personal email address) from the company’s network? 23 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

24. CLOUD SECURITY SOLUTIONS 24 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

25. PATHS TO STRONGER SECURITY Organizations moving to the cloud are faced with new security challenges that cannot be addressed with traditional security approaches. Secure clouds cannot exist without the right cloud security expertise. 61% of organizations plan to train and certify existing IT staff in cloud security to ensure the proper cloud security controls are being implemented both internally and with third party cloud service providers. Organizations realize that their IT teams need to stay current on evolving cloud technologies, threats and mitigation strategies. In addition, 45% of organizations plan to partner with a managed security services provider and 42% deploy additional security software to protect data and applications in the cloud. 61% Train and certify existing IT staff 45% 42% Partner with a managed services provider who will provide the resources Use security software from independent software vendor(s) Add security staff dedicated to cloud security issues 23% 23% Hire Professionals Look at different security-as-a-service providers to outsource – 24x7 monitoring 17% 19% Not sure/Other Q: When moving to the cloud, how do you plan to handle your security needs? 25 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

26. CLOUD CONFIDENCE BUILDERS Setting and enforcing security policies across cloud environments is by far the most requested capability to increase confidence in public clouds. Setting and enforcing security policies across clouds 56% 39% 38% 37% 34% 33% Ability to create data boundaries APIs for reporting, auditing and alerting on security events Effective mapping of security controls for internally-hosted applications to the cloud infrastructure Isolation/protection of virtual machines Ability to compare security levels across cloud providers Improved Security compared to self-managed deployment 30% | Organization certification 29% | High-integrity infrastructure 27% | Regulatory oversight 25% | Protecting workloads 15% | Not sure/Other 13% Q: Which of the following would most increase your confidence in adopting public clouds? 26 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

27. TRADITIONAL SECURITY TOOLS IN THE CLOUD Most traditional security tools have not been designed for cloud environments and the unique challenges cloud adoption presents. The survey results confirm that traditional tools work somewhat or not at all for over half of cybersecurity professionals (59%). Only 14% feel that traditional security tools are sufficient to manage security across the cloud. The gap, say those surveyed, is primarily in both verifying security policies and visibility into infrastructure security. This is a great example of the dissolving perimeter. Together with mobility, the need to secure access from anywhere (mobile users, branch locations) to anywhere (physical datacenter, cloud datacenter and public cloud apps) breaks the traditional network topology and perimeter defense. The resulting proliferation in point security solutions is putting additional pressure on short handed security teams, as experienced security staff is still scarce. They work just fine 14% Not at all 11% Other 2% 59% traditional tools work somewhat or not at all Not sure 25% Somewhat (but not a complete solution) 48% Q: How well do your traditional network security tools / appliances work in public cloud environments? 27 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

28. MOST EFFECTIVE CLOUD SECURITY TECHNOLOGIES Virtually unchanged from last year’s cloud security survey, encryption of data at rest (65%) and in motion on networks (57%) tops the list of most effective security controls to protect data in the cloud. This is followed by intrusion detection and prevention (IDP) with 48% and access control technologies such as Cloud Access Security Brokers (CASB) and Identity and Access Management (IAM) with 45%. 65% Data encryption 57% Network encryption 48% Intrusion detection & prevention Trained cloud security professionals 45% | Access control (e.g. CASB / Cloud Access Security Brokers) 45% | Log management and analytics 43% | Firewalls / NAC 40% | Data leakage prevention 40% | Endpoint security controls 40% | Patch management 38% | Network monitoring 37% | Single sign-on / user authentication 35% | Anti-virus / Anti-malware 35% | Employee usage monitoring 29% | Mobile device management (MDM) 25% | Database scanning and monitoring 24% | Content filtering 24% | Security Information and Event Management (SIEM) 22% | Cyber forensics 21% | Not sure/Other 12% Q: What security technologies and controls are most effective to protect data in the cloud? 28 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

29. MOST POPULAR CLOUD SECURITY CONTROLS The most prevalent cloud security controls include multi-factor authentication in nearly half of organizations. One in four organizations deploy additional security mechanisms. 45% 43% 41% 40% We use multi-factor authentication for access control We use encryption or tokenization to protect data in the cloud Intrusion detection & prevention We use security services offered by the cloud provider Organizations deploy additional security mechanisms We deploy additional security services offered by third party vendors 25% | We don’t protect data in the cloud 5% | Not sure/Other 21% Q: How do you protect data in the cloud? 29 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

30. DRIVERS OF CLOUD-BASED SECURITY SOLUTIONS Faster time to deployment (47%), reduced software maintenance efforts (40%) and 48% #1 direct web access from any location (35%) are the dominant drivers for cloud-based Faster time to deployment #2 41% security solutions. Reduced effort around patches and upgrades of software #3 35% Placing security in the cloud provides significant ROI benefits for businesses. Need for direct secure Internet access from any location It breaks the traditional “appliance model” #4 31% of security: Instead of physical constraints, Automation helps reduce manual effort patch and upgrade cycles, and need for #5 28% a local IT support, the cloud enables a Easier policy management security model that is up to date, always 27% #6 patched, elastic and scalable, and available Better performance #7 25% everywhere. Appliance footprint reduction in branch offices 20%#8 Protection focused on the workload/instance #9 9% Native to cloud application or cloud infrastructure Not sure/Other 20% Q: What are the main drivers for considering Cloud-based Security Solutions? 30 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

31. BARRIERS TO CLOUD-BASED SECURITY SOLUTIONS On the flipside, data privacy (56%), compliance (43%) and platform integrity (39%) are the main barriers to cloud-based security solutions. These concerns apply to cloud in general. Using regional cloud instances to comply with data localization requirements, minimizing personal data storage, and demonstrating tight security controls around the platform should make cloud- based security the default security delivery model. This way, cloud computing can offer a compelling alternative to on- premise security in the face of emerging threats, shrinking budgets and scarce expertise. #3 #1 #2 56% 43% 39% cloud-based security solutions Data Privacy Regulatory compliance requirements Integrity of Cloud security platform Solution maturity 39% | Need to keep data within specific geographical area 31% | Need to provide Keys for SSL decryption in the Cloud 23% | Scalability and performance 17% | Lack of integration with on-premise security technologies 15% | Lack of feature parity with on-premise security solution 11% | Not sure/Other 15% Q: What are the main inhibitors of using Cloud-based Security Solutions? 31 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

32. CLOUD APPLICATION SECURITY A majority of organizations are taking proactive measures to protect their business applications. We dug deeper to find out how companies were protecting their applications. The most popular application security measures are penetration testing (59%) followed by web application firewalls (54%) and developer education (47%). 59% Penetration testing 54% Web application firewalls 47% Developer education 44% 38% 7% 6% 17% Static/Dynamic testing Security monitoring Bug Bounty programs None Not sure/Other Q: What Application Security measures are you taking in order to protect your business applications? 32 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

33. ACCESS TO CLOUD APPLICATIONS The vast majority of organizations surveyed (55%) use Active Directory on premise as the authoritative directory to identify, authenticate and authorize access to cloud applications. Consequently, access to cloud based applications for a majority of organizations depends heavily on proper security controls around on-premise Active Directory infrastructure. The cloud enablement of Active Directory is a key enabler for moving to cloud-based security infrastructure. 55% Organizations use Active Directory on premise 28% 27% 8% 7% 4% 3% On premise Active Directory (synchronization) Cloud based Directory only – AzureAD Cloud based Directory only – Amazon Simple AD On premise Active Directory (federation) On premise LDAP Directory (Non Microsoft) None Not sure/Other 23% Q: What is the authoritative directory you use for identity data and authentication, and authorization of access for your cloud based applications? 33 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

34. SECURITY IMPACT ON DEVOPS 46% of respondents state that security slows down continuous development methods like DevOps, another 15 percent noted that security is ignored completely in their DevOps process. 59% of respondents indicated that agility and accelerated deployments are among the cloud adoption benefits, yet security slows down DevOps. Utilization of “built for the cloud” security products provides security governance directly integrated into the DevOps process and is key to fully realizing the benefits of the cloud. 31% No - security is fully integrated with DevOps Yes - security slows down DevOps 46% 15% No - security is completely ignored in DevOps 8% Other Q: Does security slow down continuous development methods like DevOps at your organization? 34 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

35. METHODOLOGY & DEMOGRAPHICS The Cloud Security Spotlight Report is based on the results of a comprehensive survey of 2,200 professionals across a broad cross-section of organizations about their adoption of cloud computing and security related concerns and practices. The 2,200 respondents range from technical executives to managers and practitioners, and they represent organizations of varying sizes across many industries. Their answers provide a comprehensive perspective on the state of cloud security today. CAREER LEVEL 25% 19% 17% 14% 7% 6% 4% 8% Specialist Manager / Supervisor Consultant Director Owner / CEO / President CTO, CIO, CISCO, CMO, CFO, COO Vice President Other DEPARTMENT 52% 20% 9% 6% 4% 3%2% 2%2% IT Security IT Operations Engineering Operations Compliance Sales Product Management Other Marketing Finance Legal HR COMPANY SIZE 11% 13% 19% 16% 9% 32% Fewer than 10 10-99 100-999 1,000 4,000 5,000 – 10,000 Over 10,000 INDUSTRY 5% 5% 3% 3% 3% 5% 20% 18% 12% 8% 8% 6% 2%2% Technology, Software & Internet Government Financial Services Professional Services Healthcare, Pharmaceuticals, & Biotech Education & Research Computers & Electronics Telecommunications Manufacturing Energy & Utilities Retail Non-Profit Other 35 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

36. SPONSORS AlienVault | www.alienvault.com AlienVault has simplified the way organizations detect and respond to today’s ever evolving threat landscape. Our unique and award-winning approach, trusted by thousands of customers, combines the essential security controls of our all-in-one platform, AlienVault Unified Security Management, with the power of AlienVault’s Open Threat Exchange, the world’s largest crowd-sourced threat intelligence community, making effective and affordable threat detection attainable for resource-constrained IT teams. If your organization has adopted cloud infrastructure or services, you have a significant amount of valuable data in the cloud – all of which needs to be secured. AlienVault Unified Security Management™ (USM) simplifies cloud security management with a platform of essential tools to achieve complete security visibility and accelerate compliance reporting. Bitglass | www.bitglass.com The Bitglass Cloud Access Security Broker (CASB) solution provides end-to-end data protection from the cloud to the device. It deploys in minutes and works with any cloud app on any device. Bitglass enables enterprises to understand and control usage of cloud apps like Office 365 and Salesforce, and internal apps like Exchange and Sharepoint. Cloud data at rest is protected with encryption and suspicious activity detection. IT security teams can enforce consistent access, sharing, and data leakage prevention policies across multiple cloud services, and protect mobile devices - without MDM. Cato Networks | www.catonetworks.com Cato Networks provides businesses with a simple, affordable and enterprise-grade secure network, at the fraction of the cost of legacy, appliance-based solutions. The Cato Cloud reestablishes the network perimeter in the Cloud, connecting all datacenters, remote locations, cloud infrastructure and the mobile workforce. Cato protects all WAN and Internet traffic with a set of network security services, built directly into the cloud network. Cato was founded by cybersecurity luminary Shlomo Kramer, co-founder of Check Point Software and Imperva, and Gur Shatz, co-founder of Incapsula. 36 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

37. SPONSORS CloudPassage |www.cloudpassage.com CloudPassage® Halo® is the world’s leading agile security platform that provides instant visibility and continuous protection for servers in any combination of data centers, private clouds and public clouds. The Halo platform is delivered as a service, so it deploys in minutes and scales on-demand. Halo uses minimal system resources; so layered security can be deployed where it counts, right at every workload – servers, instances and containers. Leading enterprises like Citrix, Salesforce.com and Adobe use CloudPassage today to enhance their security and compliance posture, while at the same time enabling business agility. Dell Software |software.dell.com Dell Software empowers organizations of all sizes to experience Dell’s “power to do more” by delivering scalable yet simple-to-use solutions that can increase productivity, responsiveness and efficiency. Dell Software is uniquely positioned to address today’s most pressing business and IT challenges with holistic, connected software offerings across five core solution areas, encompassing data center and cloud management, information management, mobile workforce management, security and data protection. This software, when combined with Dell hardware and services, helps customers simplify IT, mitigate risk and accelerate business results. Dome 9 |dome9.com Dome9 Security provides enterprise identity access management (IAM) protection, network security, and compliance for public clouds like Amazon Web Services (AWS). More than 200 enterprise customers trust Dome9 to protect their clouds running on AWS, Windows Azure, Google Cloud, IBM/Softlayer and many others. 37 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

38. SPONSORS IMMUNIO |www.immunio.com IMMUNIO is a pioneer in realtime application self-protection (RASP), providing automatic detection and protection against web application security vulnerabilities. IMMUNIO augments applications with the necessary protection services and hardens applications against common attacks targeting typical security weaknesses. The company’s mission is to make truly effective real-time web protection technology easily available and widely deployed, and by doing so, stop the biggest source of breached data records. (ISC)2 |www.isc2.org/ccsp (ISC)2 is the largest not-for-profit membership body of certified cyber, information, software and infrastructure security professionals worldwide, with over 110,000 members. (ISC)2’s flagship certification is the CISSP®. In 2015, (ISC)2 and the Cloud Security Alliance partnered to launch the Certified Cloud Security Professional (CCSP®) credential for security professionals whose day-to-day responsibilities involve procuring, securing and managing cloud environments or purchased cloud services. (ISC)2 offers education programs and services based on its CBK®. Randtronics | www.randtronics.com Randtronics Data Privacy Manager (DPM) protects structured and unstructured data on premises and in the cloud using encryption, masking, tokenization and anonymization. DPM’s offering are some of the safest methods of security available. Without measures like encryption, companies are only partly securing their data and exposing themselves to growing vulnerabilities. 38 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT

39. CONTACT US Interested in joining the next security research report? Contact Holger Schulze to learn more. hhschulze@gmail.com Produced by: All Rights Reserved. Copyright 2016 Crowd Research Partners. This work is licensed under a Creative Commons Attribution 4.0 International License. 39 SHARE THE CLOUD SECURITY SPOTLIGHT REPORT