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Finance	
  and	
  Accounting	
  Services	
  
	
  




 Cloud	
  Security:	
  
 Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  
 	
  

                                                                                                  Table	
  of	
  Contents	
  
                                                                                                  	
  
                                                                                                  Introduction	
                  	
               	
              	
                                                       	
     	
                                           2	
  

                                                                                                  The	
  Rise	
  of	
  Cloud	
  Computing	
                        	
  	
  	
                                               	
     	
                                           3	
  

                                                                                                  Physical	
  Location	
                           	
              	
                                                       	
     	
                                           4	
  

                                                                                                  Transmission	
                  	
               	
              	
                                                       	
     	
                                           4	
  

                                                                                                  Access	
  Security	
   	
                        	
              	
                                                       	
     	
                                           5	
  

                                                                                                  Security	
  From	
  Disaster	
   	
                              	
                                                       	
     	
                                           6	
  

                                                                                                  The	
  New	
  Reality	
  of	
  Cloud	
  ERP	
  Solutions	
   	
                                                                  	
                                           6	
  

                                                                                                  Security	
  Checklist	
                          	
              	
                                                       	
     	
                                           7	
  

                                                                                                  CLARITY	
  es:	
  Cloud-­‐Hosted	
  –Microsoft	
  Powered	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
   8	
  

                                                                                                  Sutherland	
  Global–A	
  Practical	
  Overview	
  	
                                                                            	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  10	
  

                                                                                                  Contact	
  Information	
                         	
              	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
   	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  10	
  
                                                                                           	
  
                                                                                                  About	
  Sutherland	
  Global	
  Services	
                                                                               	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  11	
  
 	
  



 	
  
 	
  
 	
  
 	
  
 Authors:	
  
 Dan	
  McCue,	
  Senior	
  Vice	
  President,	
  Finance	
  &	
  Accounting,	
  Sutherland	
  Global	
  Services	
  
 Bill	
  Burke,	
  CEO,	
  Merit	
  Solutions	
  



        Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
                                                                                                                                 Page	
  1
Introduction	
  
Companies	
  in	
  today’s	
  economic	
  environment	
  are	
  all	
  facing	
  the	
  age-­‐old	
  business	
  conundrum:	
  how	
  
can	
  we	
  do	
  more	
  with	
  less?	
  To	
  help	
  improve	
  capacity	
  but	
  drive	
  down	
  costs,	
  organizations	
  are	
  
increasingly	
  turning	
  to	
  cloud-­‐based	
  technologies.	
  	
  

Cloud-­‐based	
  Enterprise	
  Resource	
  Planning	
  (ERP)	
  can	
  be	
  deployed	
  quickly,	
  minimizes	
  the	
  initial	
  
investment,	
  reduces	
  the	
  Total	
  Cost	
  of	
  Ownership	
  (TCO)	
  and	
  offers	
  seamless	
  upgrades.	
  Although	
  
many	
  CEOs,	
  CFOs,	
  CIOs	
  and	
  key	
  stakeholders	
  look	
  to	
  cloud	
  computing	
  to	
  help	
  realize	
  tremendous	
  
savings,	
  there	
  are	
  concerns	
  about	
  cloud-­‐based	
  data	
  solutions.	
  

In	
  the	
  age	
  of	
  cyber	
  attacks	
  and	
  the	
  seemingly	
  ever-­‐growing	
  list	
  of	
  online	
  security	
  threats,	
  senior	
  
executives	
  worry	
  about	
  the	
  safety	
  of	
  their	
  cloud-­‐based	
  information.	
  Physical	
  location,	
  data	
  
transmission,	
  access	
  security	
  and	
  disaster	
  recovery	
  represent	
  the	
  four	
  top-­‐of-­‐mind	
  security	
  
concerns.	
  

This	
  white	
  paper	
  will	
  look	
  at	
  some	
  of	
  the	
  key	
  aspects	
  of	
  cloud	
  security	
  and	
  examine	
  some	
  of	
  the	
  
myths	
  and	
  misconceptions.	
  Research	
  also	
  shows	
  that	
  while	
  senior	
  executives	
  are	
  apprehensive	
  
about	
  cloud-­‐based	
  security,	
  only	
  a	
  small	
  percentage	
  conduct	
  due	
  diligence	
  on	
  their	
  providers.	
  This	
  
white	
  paper	
  also	
  includes	
  a	
  checklist	
  of	
  10	
  questions	
  that	
  SMBs,	
  mid-­‐market	
  companies	
  and	
  large	
  
organizations	
  should	
  ask	
  their	
  potential	
  providers.




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
             Page	
  2
The	
  Rise	
  of	
  Cloud	
  Computing	
  
A	
  2011	
  survey	
  by	
  CDW	
  found	
  that	
  28%	
  of	
  US-­‐based	
  organizations	
  are	
  using	
  cloud	
  computing	
  
today,	
  and	
  73%	
  of	
  those	
  organizations	
  took	
  their	
  first	
  step	
  by	
  implementing	
  a	
  single	
  cloud	
  
application.	
  Interestingly,	
  the	
  vast	
  majority	
  of	
  the	
  survey	
  respondents	
  (84%)	
  say	
  they	
  “have	
  
already	
  employed	
  at	
  least	
  one	
  cloud	
  application.”	
  So,	
  in	
  essence,	
  there	
  are	
  a	
  lot	
  of	
  first	
  steps	
  being	
  
taken,	
  and	
  wider	
  cloud	
  adoption	
  is	
  foreseeable.	
  
	
  
There’s	
  no	
  doubt	
  the	
  cloud	
  is	
  garnering	
  attention	
  as	
                             Top	
  5	
  Cloud	
  ERP	
  Misconceptions	
  
companies	
  cautiously	
  explore	
  cloud	
  applications.	
  According	
  
to	
  an	
  April	
  2011	
  Forrester	
  Research	
  report	
  titled	
  “Sizing	
  the	
                        1. With	
  a	
  cloud	
  ERP	
  solution,	
  our	
  data	
  
Cloud”	
  the	
  global	
  cloud	
  computing	
  market	
  is	
  estimated	
  to	
                                        isn’t	
  as	
  secure	
  as	
  it	
  is	
  onsite.
reach	
  $241	
  billion	
  in	
  2020.	
  Yet,	
  despite	
  the	
  rise	
  of	
  cloud	
                        2. Cloud	
  ERP	
  solutions	
  provide	
  only	
  basic	
  
computing,	
  there	
  are	
  a	
  number	
  of	
  misconceptions	
  floating	
                                           ERP	
  functionality.	
  
around,	
  with	
  security	
  at	
  the	
  top	
  of	
  the	
  list.	
                                           3. Cloud	
  ERP	
  solutions	
  can’t	
  be	
  
	
                                                                                                                        customized.	
  
As	
  companies	
  transition	
  from	
  low-­‐risk	
  “testing	
  the	
  waters”	
  to	
                         4. It’s	
  difficult	
  to	
  integrate	
  cloud	
  ERP	
  
taking	
  the	
  plunge	
  with	
  cloud	
  ERP	
  for	
  more	
  mission-­‐critical	
                                    systems	
  with	
  other	
  systems.	
  	
  
functions	
  like	
  Finance	
  and	
  Accounting,	
  the	
  issue	
  of	
  cloud	
                               5. If	
  the	
  Internet	
  goes	
  down,	
  the	
  business	
  
security	
  is	
  inevitable.	
  The	
  question	
  most	
  often	
  asked	
  is,	
  	
                                   goes	
  down.
“Just	
  how	
  secure	
  is	
  our	
  data?”	
  	
                                                                       	
  
	
  
It’s	
  a	
  legitimate	
  question.	
  It	
  was	
  only	
  a	
  few	
  short	
  years	
  ago	
  that	
  cloud-­‐based	
  ERP	
  systems	
  were	
  the	
  
exception	
  rather	
  than	
  the	
  norm	
  for	
  most	
  companies.	
  The	
  idea	
  of	
  not	
  having	
  all	
  data,	
  
infrastructure,	
  software	
  and	
  hardware	
  on-­‐site	
  was	
  new,	
  intriguing	
  and	
  fraught	
  with	
  concerns.	
  
Entrusting	
  private	
  business	
  data	
  and	
  applications	
  to	
  an	
  outside	
  hosting	
  service	
  made	
  (and	
  
continues	
  to	
  make)	
  some	
  organizations	
  uncomfortable.	
  	
  
       	
  
Despite	
  the	
  cloud’s	
  shift	
  into	
  the	
  mainstream,	
  security	
  and	
  compliance	
  still	
  top	
  the	
  list	
  of	
  
apprehensions	
  inhibiting	
  cloud	
  adoption.	
  Some	
  of	
  this	
  apprehension	
  is	
  caused	
  in	
  part	
  by	
  confusion	
  
around	
  a	
  lack	
  of	
  industry	
  standards;	
  expectations	
  and	
  definitions	
  of	
  security	
  can	
  vary	
  from	
  
industry	
  to	
  industry.	
  Different	
  regions	
  and	
  countries	
  are	
  subject	
  to	
  different	
  data	
  protection	
  
policies	
  and	
  legislation	
  that	
  could	
  compromise	
  data	
  privacy.	
  Companies	
  need	
  to	
  conduct	
  due	
  
diligence	
  on	
  their	
  prospective	
  cloud	
  providers.	
  	
  

Data	
  security	
  and	
  privacy	
  issues	
  are	
  very	
  real	
  concerns	
  no	
  matter	
  whether	
  SMBs	
  implement	
  a	
  
cloud	
  ERP	
  solution	
  or	
  on-­‐premise	
  ERP.	
  Both	
  require	
  knowledge	
  of	
  data:	
  which	
  data	
  is	
  sensitive,	
  
the	
  degree	
  of	
  sensitivity	
  and	
  the	
  protocols	
  required	
  to	
  protect	
  it.	
  

Yet,	
  the	
  pervasive	
  myth	
  that	
  cloud-­‐based	
  ERP	
  simply	
  isn’t	
  as	
  secure	
  as	
  on-­‐premise	
  solutions	
  
continues	
  to	
  linger.	
  The	
  myth	
  persists	
  based	
  on	
  four	
  misconceptions	
  about	
  the	
  security	
  of	
  physical	
  
location,	
  transmission,	
  access	
  security,	
  and	
  disaster	
  security.	
  	
  




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
                                      Page	
  3
Physical	
  Location	
  
The	
  Misconception:	
  A	
  cloud-­‐based	
  solution	
  is	
  nebulous	
  and	
  can’t	
  be	
  secured.	
  	
  

The	
  Reality	
  

Cloud	
  computing	
  is	
  new,	
  unknown	
  and	
  eyed	
  suspiciously.	
  It	
  has	
  the	
  appearance	
  of	
  being	
  risky	
  
because	
  you	
  cannot	
  secure	
  its	
  perimeter—where	
  are	
  a	
  cloud’s	
  boundaries?	
  	
  A	
  May	
  2010	
  study	
  by	
  
the	
  Ponemon	
  Institute	
  found	
  that	
  IT	
  professionals	
  believed	
  security	
  risks	
  were	
  more	
  difficult	
  to	
  
curtail	
  in	
  the	
  cloud,	
  including	
  securing	
  the	
  physical	
  location	
  of	
  data	
  assets	
  and	
  restricting	
  
privileged	
  user	
  access	
  to	
  sensitive	
  data.	
  Yet,	
  as	
  CIO	
  Magazine	
  pointed	
  out:	
  

“…respondents	
  only	
  gave	
  the	
  on-­‐premise	
  alternative	
  a	
  56%	
  positive	
  rating!	
  In	
  other	
  words,	
  nearly	
  
half	
  the	
  respondents	
  believe	
  that	
  their	
  own	
  internal	
  data	
  centers	
  do	
  not	
  do	
  a	
  good	
  job	
  of	
  securing	
  
                                                                      1
the	
  physical	
  environments	
  of	
  their	
  data	
  centers.” 	
  

The	
  reality	
  is	
  that	
  often	
  on-­‐premise	
  ERP	
  security	
  does	
  not	
  measure	
  up	
  to	
  the	
  same	
  standards	
  as	
  a	
  
world-­‐class	
  data	
  state-­‐of-­‐the-­‐art	
  facility.	
  	
  

An	
  ideal	
  data	
  center	
  should	
  be	
  secure,	
  free	
  of	
  windows,	
  and	
  built	
  with	
  cement	
  or	
  steel	
  
fortifications	
  with	
  24/7	
  on-­‐site	
  security.	
  Most	
  SMB	
  IT	
  departments	
  reside	
  in	
  a	
  department	
  or	
  on	
  a	
  
floor	
  of	
  commercial	
  buildings	
  and	
  office	
  towers,	
  which	
  rarely	
  have	
  these	
  conditions.	
  

In	
  comparison,	
  the	
  CLARITY	
  es	
  data	
  centers	
  are	
  housed	
  in	
  multi-­‐million	
  dollar	
  facilities	
  with	
  
building	
  fortifications.	
  The	
  main	
  data	
  center	
  is	
  housed	
  underground	
  in	
  a	
  facility	
  that	
  is	
  designed	
  to	
  
withstand	
  an	
  8.3	
  magnitude	
  earthquake.	
  The	
  data	
  centers	
  also	
  have	
  24/7/365	
  security,	
  monitored	
  
by	
  staff	
  as	
  well	
  as	
  security	
  guards.	
  


Transmission	
  
Misconception:	
  Cloud-­‐based	
  solutions	
  are	
  more	
  vulnerable	
  to	
  hacking	
  and	
  other	
  attacks.	
  

The	
  Reality	
  

SMBs	
  typically	
  invest	
  in	
  hardware,	
  software	
  and	
  applications	
  to	
  thwart	
  specific	
  security	
  
challenges:	
  spam,	
  security	
  breaches,	
  malware,	
  non-­‐compliance,	
  and	
  so	
  forth.	
  Unfortunately,	
  many	
  
of	
  these	
  products	
  have	
  limited	
  life	
  cycles,	
  are	
  difficult	
  to	
  scale	
  and,	
  from	
  a	
  security	
  point	
  of	
  view,	
  
often	
  only	
  produce	
  single	
  points	
  of	
  failure.	
  Additionally,	
  the	
  latest	
  technologies	
  to	
  scramble	
  and	
  
encrypt	
  data	
  –	
  RSA,	
  Secure	
  Socket	
  Layer	
  (SSL),	
  Data	
  Encryption	
  Standard	
  (DES),	
  or	
  Triple	
  DES,	
  etc.	
  
–	
  can	
  quickly	
  drain	
  SMB	
  IT	
  budgets.	
  

With	
  traditional	
  licensed	
  ERP	
  software,	
  organizations	
  typically	
  must	
  wait	
  for	
  the	
  next	
  release	
  to	
  
benefit	
  from	
  the	
  latest	
  features,	
  upgrades,	
  or	
  security	
  patches.	
  Sometimes	
  limited	
  resources	
  can	
  
mean	
  that	
  upgrades	
  aren’t	
  always	
  deployed	
  in	
  a	
  timely	
  manner.	
  In	
  fact,	
  two-­‐thirds	
  of	
  mid-­‐size	
  
businesses	
  are	
  running	
  outdated	
  versions	
  of	
  their	
  ERP	
  software2.	
  This	
  can	
  leave	
  these	
  companies	
  
vulnerable.	
  




       1
             	
  Golden,	
  Bernard.	
  "Cloud	
  Computing	
  Security:	
  IT's	
  Take	
  on	
  State	
  of	
  Play."	
  CIO	
  Magazine.	
  N.p.,	
  17	
  May	
  2010.	
  Web.	
  
       2
           	
  "Why	
  Cloud	
  Computing	
  Matters	
  to	
  Finance,"	
  Ron	
  Gill,	
  CMA,	
  CFM:	
  Strategic	
  Finance,	
  January	
  2011.	
  




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
                                          Page	
  4
Under	
  the	
  SaaS	
  (Software	
  as	
  a	
  Service)	
  delivery	
  model	
  that	
  forms	
  the	
  basis	
  of	
  cloud	
  ERP,	
  the	
  
provider	
  continuously	
  and	
  unobtrusively	
  adds	
  the	
  latest	
  features	
  and	
  upgrades,	
  which	
  means	
  that	
  
users	
  can	
  be	
  assured	
  that	
  they’re	
  actually	
  using—rather	
  than	
  waiting	
  for—the	
  latest	
  security	
  
technology.	
  

By	
  their	
  very	
  nature,	
  external	
  applications	
  like	
  cloud-­‐based	
  technologies	
  must	
  adopt	
  a	
  “trust	
  no	
  
one”	
  approach.	
  Layers	
  of	
  security	
  controls,	
  encryption	
  of	
  all	
  sensitive	
  data	
  and	
  security	
  testing	
  at	
  
the	
  application	
  level,	
  as	
  well	
  as	
  countless	
  other	
  safeguards	
  are	
  necessary	
  for	
  cloud	
  security.	
  

A	
  world-­‐class	
  cloud	
  ERP	
  provider	
  will	
  perform	
  rigorous	
  internal	
  vulnerability	
  scans,	
  log	
  threats,	
  and	
  
are	
  audited	
  for	
  SSAE	
  16	
  (formerly	
  SAS	
  70	
  Type	
  II)	
  compliance.	
  Data	
  is	
  fully	
  secured,	
  both	
  in	
  
transmission	
  and	
  at	
  rest.	
  For	
  example,	
  CLARITY	
  es	
  runs	
  on	
  a	
  Microsoft	
  Dynamics	
  AX	
  platform.	
  It	
  
uses	
  the	
  RPC_C_AUTHN_LEVEL_PKT_PRIVACY	
  call,	
  which	
  provides	
  the	
  highest	
  security	
  level	
  
available	
  through	
  a	
  remote	
  procedure	
  call	
  (RPC).	
  There	
  are	
  no	
  software	
  or	
  hardware	
  purchases,	
  
and	
  updates	
  are	
  seamless.	
  


Access	
  Security	
  
The	
  Misconception:	
  An	
  on-­‐premise	
  solution	
  offers	
  more	
  security	
  over	
  
who	
  may	
  access	
  information.	
  	
  

The	
  Reality	
  

The	
  myth	
  that	
  a	
  cloud	
  solution	
  simply	
  cannot	
  be	
  as	
  secure	
  as	
  an	
  on-­‐premise	
  solution	
  has	
  very	
  
much	
  to	
  do	
  with	
  the	
  notion	
  of	
  “seeing	
  is	
  believing.”	
  Often	
  companies	
  feel	
  more	
  in	
  control	
  of	
  their	
  
data	
  when	
  it	
  resides	
  under	
  their	
  own	
  roof.	
  	
  

When	
  ERP	
  is	
  on-­‐site,	
  it	
  is	
  the	
  sole	
  responsibility	
  of	
  the	
  IT	
  department	
  to	
  authenticate	
  and	
  log	
  all	
  
access	
  to	
  data	
  in	
  order	
  to	
  prevent	
  unwanted	
  users,	
  both	
  internal	
  and	
  external,	
  from	
  accessing	
  
information	
  or	
  resources.	
  

Access	
  security	
  for	
  on-­‐premise	
  ERP	
  systems	
  may	
  be	
  enforced	
  through	
  business	
  logic	
  or	
  at	
  the	
  
database	
  layer.	
  This	
  authenticates	
  users	
  and	
  provides	
  them	
  with	
  specific	
  rights	
  to	
  data	
  objects.	
  	
  
For	
  example,	
  a	
  payroll	
  clerk	
  would	
  only	
  have	
  access	
  to	
  payroll	
  data,	
  not	
  customer	
  records.	
  

A	
  cloud-­‐based	
  ERP	
  is	
  no	
  different.	
  With	
  CLARITY	
  es,	
  you	
  control	
  access	
  to	
  data	
  throughout	
  by	
  
managing	
  security	
  restrictions	
  on	
  forms,	
  records	
  and	
  data	
  fields	
  for	
  specific	
  user	
  groups	
  and	
  
domains,	
  and	
  define	
  and	
  assign	
  rights	
  according	
  to	
  how	
  you	
  want	
  security	
  restrictions	
  managed.	
  
As	
  well,	
  because	
  CLARITY	
  es	
  is	
  a	
  single-­‐tenant	
  environment	
  there	
  is	
  no	
  risk	
  of	
  data	
  being	
  
inadvertently	
  exposed	
  to	
  other	
  users	
  due	
  to	
  poor	
  implementation	
  of	
  the	
  access	
  management	
  
process.	
  

While	
  a	
  secure	
  cloud	
  ERP	
  system	
  doesn’t	
  increase	
  the	
  vulnerability	
  of	
  your	
  business	
  data,	
  
authenticated	
  users	
  have	
  “anywhere,	
  anytime,	
  any	
  device”	
  access,	
  which	
  is	
  a	
  tremendous	
  
advantage	
  for	
  global	
  collaboration,	
  monitoring	
  and	
  managing.	
  




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
                Page	
  5
Security	
  From	
  Disaster	
  
Misconception:	
  It’s	
  better	
  to	
  handle	
  backups	
  internally	
  to	
  be	
  able	
  to	
  access	
  data	
  more	
  
quickly	
  in	
  case	
  of	
  a	
  disaster.	
  	
  

The	
  Reality	
  

Companies	
  must	
  examine	
  how	
  often	
  they	
  back	
  up	
  data	
  and	
  where	
  the	
  backups	
  are	
  the	
  stored.	
  
SMBs	
  looking	
  to	
  third-­‐party	
  back-­‐up	
  systems	
  and	
  business	
  continuity	
  facilities	
  must	
  thoroughly	
  
examine	
  the	
  security	
  standards	
  that	
  are	
  in	
  place.	
  The	
  truth	
  of	
  the	
  matter	
  is	
  that	
  SMBs	
  need	
  to	
  
invest	
  in	
  a	
  rigorous	
  program	
  for	
  data	
  backups	
  with	
  offsite	
  storage	
  in	
  a	
  secure	
  location	
  separate	
  
from	
  the	
  main	
  data	
  center.	
  	
  

Key	
  questions	
  to	
  ask	
  before	
  choosing	
  an	
  external	
  backup	
  partner	
  include:	
  Does	
  the	
  third-­‐party	
  
data	
  recovery	
  service	
  abide	
  by	
  recognized	
  security	
  standards	
  and	
  compliance	
  requirements?	
  What	
  
happens	
  if	
  there	
  is	
  a	
  power	
  failure?	
  How	
  long	
  will	
  my	
  data	
  be	
  kept?	
  

Cloud-­‐based	
  solutions,	
  like	
  CLARITY	
  es,	
  ensure	
  full	
  nightly	
  backups,	
  which	
  are	
  stored	
  in	
  an	
  off-­‐site	
  
location	
  and	
  are	
  maintained	
  for	
  seven	
  years.	
  As	
  well,	
  the	
  data	
  centers	
  have	
  multiple	
  power	
  
sources	
  and	
  redundant	
  incoming	
  lines	
  provisioned	
  in	
  an	
  N+1	
  configuration	
  for	
  continuous	
  power.	
  	
  


The	
  New	
  Reality	
  of	
  Cloud	
  ERP	
  Solutions	
  
Traditional	
  and	
  cloud	
  ERP	
  share	
  many	
  of	
  the	
  same	
  security	
  issues,	
  from	
  preventing	
  unauthorized	
  
access	
  to	
  safe	
  and	
  secure	
  backups.	
  As	
  the	
  “new	
  kid	
  on	
  the	
  block”,	
  cloud	
  technology	
  is	
  unfamiliar	
  
and	
  not	
  fully	
  trusted.	
  

SMBs	
  that	
  adopt	
  a	
  cloud-­‐based	
  ERP	
  solution,	
  like	
  CLARITY	
  es,	
  find	
  that	
  security	
  is	
  actually	
  
improved.	
  Unlike	
  large	
  enterprise	
  companies,	
  SMBs	
  usually	
  don’t	
  have	
  the	
  high	
  security	
  
infrastructure,	
  processes	
  or	
  best	
  practices	
  knowledge	
  readily	
  on	
  hand.	
  In	
  the	
  case	
  of	
  cyber	
  attacks,	
  
cyber	
  espionage,	
  malware,	
  human	
  error	
  and	
  disasters,	
  cloud-­‐based	
  service	
  providers	
  have	
  higher	
  
levels	
  of	
  security.	
  	
  

Microsoft	
  released	
  research	
  in	
  May	
  of	
  2012,	
  that	
  verified	
  the	
  significant	
  IT	
  security	
  advantages	
  from	
  using	
  
the	
  cloud.	
  One	
  of	
  the	
  most	
  interesting	
  facts	
  to	
  emerge	
  from	
  the	
  survey	
  was	
  that	
  "35	
  percent	
  of	
  US	
  
                                                                                                                                                            3
companies	
  surveyed	
  have	
  experienced	
  noticeably	
  higher	
  levels	
  of	
  security	
  since	
  moving	
  to	
  the	
  cloud." 	
  

Security	
  is	
  always	
  a	
  top	
  concern	
  for	
  companies,	
  but	
  it’s	
  time	
  to	
  put	
  to	
  cut	
  through	
  the	
  fog,	
  and	
  
bring	
  a	
  little	
  clarity	
  to	
  the	
  situation:	
  Cloud	
  ERP	
  systems	
  and	
  the	
  data	
  they	
  contain	
  are	
  as	
  secure,	
  if	
  
not	
  more	
  secure	
  than	
  traditional	
  ERP	
  systems.	
  




       3
        	
  Microsoft.	
  News	
  Center.	
  Cloud	
  Computing	
  Security	
  Benefits	
  Dispel	
  Adoption	
  Barrier	
  for	
  Small	
  to	
  Midsize	
  Businesses.	
  
       14	
  May	
  2012.	
  Web.	
  




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
                                Page	
  6
Security	
  Checklist	
  
CompTIA's	
  9th	
  Annual	
  Information	
  Security	
  Trends	
  survey	
  of	
  U.S.	
  executives	
  with	
  IT	
  
responsibilities	
  reported	
  that	
  only	
  29%	
  of	
  organizations	
  report	
  conducting	
  a	
  heavy	
  review	
  of	
  their	
  
cloud	
  service	
  provider's	
  security	
  policies,	
  procedures	
  and	
  capabilities.	
  

SMBs	
  must	
  vet	
  their	
  cloud	
  providers	
  by	
  conducting	
  due	
  diligence	
  and	
  asking	
  for	
  proof	
  of	
  physical	
  
audits	
  and	
  physical	
  access	
  controls.	
  Here	
  are	
  10	
  questions	
  you	
  can	
  ask	
  your	
  provider.	
  

1.)	
  What	
  is	
  your	
  privacy	
  policy?	
  

Your	
  potential	
  solution	
  provider	
  should	
  have	
  a	
  well-­‐defined	
  and	
  clearly	
  articulated	
  privacy	
  policy	
  
that	
  spells	
  out	
  exactly	
  who	
  has	
  access	
  to	
  various	
  types	
  of	
  information.	
  It	
  should	
  also	
  describe	
  the	
  
organization’s	
  standard	
  operating	
  policies	
  and	
  procedures	
  for	
  ensuring	
  privacy.	
  Your	
  prospective	
  
vendor	
  should	
  voluntarily	
  provide	
  you	
  with	
  a	
  copy	
  of	
  this	
  policy	
  information.	
  	
  

2.)	
  What	
  level	
  of	
  security	
  do	
  you	
  use	
  to	
  ensure	
  the	
  safety	
  and	
  integrity	
  of	
  critical	
  data?	
  

To	
  safeguard	
  your	
  data	
  onsite,	
  your	
  prospective	
  solution	
  provider	
  should	
  use	
  a	
  combination	
  of	
  
intrusion	
  detection	
  system	
  (IDS)	
  and	
  intrusion	
  prevention	
  system	
  (IPS)	
  products	
  and	
  apply	
  
antivirus	
  at	
  various	
  network	
  layers.	
  It	
  should	
  also	
  utilize	
  deep	
  packet	
  inspection	
  (DPI)	
  or	
  an	
  
application-­‐level	
  firewall	
  technology	
  that	
  scans	
  all	
  levels	
  of	
  packet	
  transmission.	
  Finally,	
  it	
  should	
  
also	
  use	
  secure	
  socket	
  layer	
  (SSL)	
  or	
  https-­‐encrypted	
  transmission	
  to	
  ensure	
  Internet	
  security.	
  

3.)	
  Is	
  your	
  production	
  equipment	
  housed	
  in	
  a	
  state-­‐of-­‐the-­‐art	
  facility?	
  

Your	
  prospective	
  vendor’s	
  data	
  center	
  should	
  be	
  secure,	
  free	
  of	
  windows,	
  and	
  built	
  with	
  cement	
  
or	
  steel	
  fortifications.	
  It	
  should	
  also	
  be	
  located	
  somewhere	
  that	
  is	
  not	
  prone	
  to	
  inclement	
  
weather.	
  

4.)	
  What	
  are	
  your	
  facility’s	
  physical	
  security	
  arrangements?	
  Are	
  they	
  in	
  place	
  24	
  hours	
  a	
  day,	
  
seven	
  days	
  a	
  week,	
  and	
  365	
  days	
  a	
  year?	
  

Similar	
  to	
  its	
  privacy	
  policy,	
  your	
  potential	
  hosted	
  ERP	
  solution	
  provider	
  should	
  have	
  well-­‐defined	
  
and	
  robust	
  security	
  arrangements	
  that	
  are	
  in	
  place	
  at	
  all	
  times.	
  

5.)	
  Do	
  you	
  contract	
  with	
  an	
  independent,	
  third-­‐party	
  organization	
  to	
  conduct	
  periodic	
  external	
  
and	
  internal	
  vulnerability	
  scans?	
  

In	
  addition	
  to	
  maintaining	
  an	
  intrusion	
  response	
  system	
  and	
  a	
  prepared	
  response	
  plan,	
  your	
  
prospective	
  solution	
  provider	
  should	
  frequently	
  commission	
  both	
  routine	
  and	
  unannounced	
  
security	
  audits.	
  

6.)	
  How	
  often	
  do	
  you	
  back	
  up	
  data,	
  and	
  where	
  are	
  the	
  backups	
  stored?	
  

Your	
  potential	
  hosting	
  provider	
  should	
  have	
  in	
  place	
  a	
  rigorous	
  program	
  of	
  data	
  backup	
  and	
  
offsite	
  storage	
  in	
  a	
  secure	
  location	
  remote	
  from	
  its	
  main	
  data	
  center.	
  

	
  

	
  

	
  




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
           Page	
  7
7.)	
  Do	
  you	
  offer	
  full	
  hardware	
  redundancy	
  to	
  avoid	
  the	
  negative	
  consequences	
  
of	
  a	
  power	
  failure?	
  

Your	
  prospective	
  solution	
  provider’s	
  data	
  center	
  and	
  backup	
  location	
  should	
  have	
  redundant	
  
power	
  supplies,	
  such	
  as	
  battery	
  and	
  diesel	
  generator	
  backups,	
  to	
  avoid	
  the	
  negative	
  consequences	
  
associated	
  with	
  a	
  power	
  failure.	
  

8.)	
  Does	
  your	
  staff	
  include	
  a	
  highly	
  qualified	
  operations	
  team	
  that	
  monitors	
  the	
  site	
  
24	
  hours	
  a	
  day,	
  365	
  days	
  a	
  year?	
  

Your	
  prospective	
  vendor	
  should	
  have	
  on	
  staff	
  many	
  certified	
  security	
  experts,	
  including	
  those	
  with	
  
the	
  preferred	
  CISSP	
  designation.	
  

9.)	
  Is	
  my	
  data	
  stored	
  in	
  a	
  multi-­‐tenant	
  or	
  single	
  tenant	
  environment?	
  

A	
  multi-­‐tenant	
  cloud-­‐based	
  ERP	
  is	
  a	
  set	
  of	
  pooled	
  computing	
  resources,	
  shared	
  among	
  many	
  
different	
  organizations	
  (tenants).	
  In	
  short,	
  various	
  organizations	
  share	
  the	
  same	
  database.	
  In	
  a	
  
single	
  tenant	
  environment,	
  customers	
  operate	
  with	
  their	
  own	
  individual	
  database.	
  It	
  is	
  our	
  belief	
  
that	
  an	
  isolated	
  single	
  tenant	
  environment	
  best	
  maximizes	
  performance,	
  security,	
  privacy	
  and	
  
integration.	
  

10.)	
  How	
  safe	
  is	
  your	
  data	
  center	
  in	
  terms	
  of	
  natural	
  disasters?	
  

Your	
  potential	
  provider	
  should	
  be	
  prepared	
  for	
  any	
  number	
  of	
  natural	
  disasters.	
  In	
  addition	
  to	
  a	
  
windowless,	
  cement	
  building	
  with	
  steel	
  fortifications,	
  the	
  provider	
  should	
  have	
  multiple	
  power	
  
sources	
  and	
  redundant	
  incoming	
  lines	
  provisioned	
  in	
  an	
  N+1	
  configuration	
  for	
  continuous	
  power.	
  
For	
  example,	
  our	
  main	
  data	
  center’s	
  backup	
  generators	
  can	
  power	
  a	
  city	
  of	
  25,000	
  people	
  -­‐	
  which	
  
allows	
  us	
  to	
  go	
  off	
  grid	
  for	
  28	
  days	
  without	
  water,	
  electricity,	
  sewer,	
  or	
  natural	
  gas	
  feeds.	
  


CLARITY	
  es:	
  Cloud-­‐Hosted	
  –Microsoft-­‐Powered	
  
The	
  ERP	
  platform	
  of	
  the	
  CLARITY	
  es	
  solution	
  is	
  cloud-­‐hosted	
  and	
  powered	
  by	
  Microsoft	
  Dynamics	
  
AX,	
  considered	
  by	
  Gartner	
  as	
  a	
  market	
  leader.	
  The	
  cloud-­‐hosting	
  ensures	
  rapid	
  implementation	
  
and	
  low	
  up-­‐front	
  costs.	
  

CLARITY	
  es	
  provides	
  multiple	
  customized	
  portals	
  and	
  tailored	
  solutions	
  for	
  all	
  aspects	
  of	
  
your	
  business:	
  

       •      Finance	
  &	
  Accounting	
  
       •      Procurement	
  
       •      Human	
  Capital	
  Management	
  
       •      Sales	
  &	
  Marketing	
  (CRM)	
  
       •      Project	
  Accounting	
  
       •      Supply	
  Chain	
  Management	
  
       •      Production	
  /	
  Manufacturing	
  
       •      Business	
  Intelligence	
  &	
  Reporting	
  

CLARITY	
  es	
  is	
  a	
  composite	
  and	
  customizable	
  solution	
  with	
  core	
  industry-­‐specific	
  functionalities.	
  All	
  
elements	
  of	
  the	
  solution	
  from	
  application	
  implementation,	
  support	
  and	
  hosting	
  to	
  service	
  delivery	
  
with	
  guaranteed	
  metrics	
  are	
  provided	
  by	
  Sutherland	
  Global	
  Services	
  –	
  one	
  of	
  the	
  world’s	
  largest	
  
pure-­‐play	
  BPO	
  service	
  providers.




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
         Page	
  8
Dynamics	
  AX	
  Power	
  

Powerful	
  Foundation	
  Gives	
  You	
  More	
  Value	
  Faster	
  

Pre-­‐built	
  industry-­‐specific	
  functionalities	
  enable	
  users	
  to	
  streamline	
  mission-­‐critical	
  business	
  
processes	
  with	
  workflow	
  functionality	
  and	
  alerts	
  that	
  provide	
  automatic	
  notification	
  of	
  pending	
  
tasks	
  and	
  events.	
  These	
  features	
  provide	
  management	
  real-­‐time	
  visibility	
  into	
  critical	
  business	
  
data	
  through	
  customized	
  dashboards	
  and	
  reports.	
  With	
  powerful	
  embedded	
  business	
  intelligence	
  
and	
  analytics,	
  you	
  will	
  be	
  able	
  to	
  run	
  ad-­‐hoc	
  reports	
  rapidly	
  and	
  streamline	
  workflows.	
  

CLARITY	
  es	
  Cloud	
  Advantage	
  

Supply	
  Chain	
  

CLARITY	
  es	
  has	
  complete	
  supply	
  chain	
  integration	
  and	
  is	
  customizable	
  to	
  your	
  industry	
  
and	
  business.	
  

Flexible	
  &	
  Agile	
  

CLARITY	
  es	
  gives	
  you	
  flexible	
  deployment	
  options,	
  allowing	
  you	
  to	
  switch	
  between	
  the	
  cloud	
  and	
  
on-­‐premise	
  deployment,	
  implementing	
  your	
  solutions	
  all	
  at	
  once	
  or	
  in	
  phases.	
  This	
  unified	
  natural	
  
model	
  offers	
  companies	
  improved	
  forecasting,	
  reporting,	
  and	
  budgeting	
  abilities.	
  Extend	
  these	
  
models	
  with	
  industry-­‐specific	
  capabilities	
  as	
  the	
  company	
  evolves.	
  

Web	
  Access	
  

CLARITY	
  es	
  gives	
  you	
  anywhere,	
  anytime	
  access	
  with	
  97.99%	
  Up	
  Time.	
  This	
  user-­‐centric	
  platform	
  
provides	
  access	
  to	
  more	
  people,	
  including	
  customers	
  and	
  partners,	
  while	
  guaranteeing	
  data	
  
control	
  maintenance	
  and	
  integrity.	
  You	
  get	
  a	
  dedicated	
  environment	
  (not	
  multi-­‐tenant)	
  that	
  
replicates	
  on-­‐premise	
  configuration,	
  the	
  administrative	
  rights	
  to	
  the	
  servers,	
  and	
  a	
  secure	
  VPN	
  
access.	
  Your	
  data	
  will	
  be	
  available	
  where	
  you	
  need	
  it,	
  when	
  you	
  need	
  it.	
  CLARITY	
  es	
  is	
  certified	
  
SSAE	
  16	
  (formerly	
  SAS	
  70	
  Type	
  II)	
  compliant.	
  

Simplified	
  Solution	
  Drives	
  Adoption	
  &	
  Lowers	
  Costs	
  

The	
  interface	
  is	
  familiar	
  and	
  intuitive,	
  allowing	
  for	
  easy-­‐to-­‐use	
  collaboration	
  with	
  colleagues,	
  
partners,	
  vendors,	
  and	
  customers	
  using	
  integrated	
  email,	
  instant	
  messaging,	
  and	
  presence	
  
information	
  through	
  unified	
  communications.	
  

	
                                                        	
  




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
           Page	
  9
Sutherland	
  Global	
  –	
  A	
  Practical	
  Overview	
  
Structure	
  

       •      Globally	
  distributed	
  delivery	
  capacity	
  and	
  domain	
  capability	
  
       •      The	
  Deloitte-­‐established	
  Tulsa	
  FAO	
  Centre	
  of	
  Excellence	
  has	
  been	
  servicing	
  
              clients	
  since	
  1995	
  
       •      Strategic	
  global	
  locations	
  designed	
  to	
  satisfy	
  SSAE	
  16	
  (formerly	
  SAS	
  70	
  Type	
  II)	
  standards	
  
              and	
  Sarbanes-­‐Oxley	
  requirements	
  

Capability	
  

       •      Full	
  suite	
  of	
  BPaaS	
  services	
  –	
  transaction	
  processing	
  to	
  financial	
  and	
  
              management	
  reporting	
  
       •      Integrated	
  analytics	
  to	
  support	
  Collections,	
  Financial	
  Planning	
  and	
  Analysis	
  functions	
  
       •      Onshore,	
  offshore	
  and	
  hybrid	
  solutions	
  tailored	
  to	
  meet	
  client-­‐specific	
  needs	
  

Expertise	
  

       •      Dedicated	
  team	
  experienced	
  in	
  business	
  transformation,	
  process	
  optimization	
  
              and	
  transition	
  services	
  
       •      Expertise	
  in	
  utilizing	
  existing	
  client	
  applications	
  and/or	
  SGS-­‐hosted	
  ERP	
  systems	
  
       •      Robust	
  set	
  of	
  add-­‐on	
  technologies	
  supported	
  by	
  in-­‐house	
  application	
  management	
  team	
  

Flexibility	
  
     • Custom-­‐crafted	
  Pricing	
  and	
  Commercial	
  Structure	
  aligned	
  to	
  client	
  needs	
  and	
  objectives	
  
     • Output/Outcome	
  Based	
  Pricing	
  and	
  No	
  Termination	
  penalties	
  	
  
     	
  
       	
  
If	
  you	
  would	
  like	
  to	
  continue	
  the	
  conversation	
  and	
  get	
  information	
  about	
  
our	
  CLARITY	
  es	
  offering	
  please	
  contact:	
  +1-­‐800-­‐388-­‐4557	
                                                                     	
  




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
              Page	
  10
 

About	
  Sutherland	
  Global	
  Services	
  
Sutherland	
  Global	
  Services	
  is	
  a	
  multi-­‐national	
  technology-­‐enabled	
  business	
  process	
  outsourcing	
  
(BPO)	
  services	
  company	
  providing	
  a	
  unique	
  combination	
  of	
  vast	
  BPO	
  resources	
  as	
  well	
  as	
  
extensive	
  expertise	
  and	
  industry	
  knowledge	
  in	
  Finance	
  and	
  Accounting.	
  We	
  help	
  you	
  build	
  a	
  high-­‐
performance	
  finance	
  organization	
  by	
  combining	
  accounting	
  best	
  practices	
  with	
  proven	
  BPO	
  
processes.	
  Our	
  global	
  service	
  delivery	
  infrastructure	
  and	
  full	
  range	
  of	
  outsourcing	
  solutions	
  –	
  from	
  
specific	
  transactional	
  processes	
  to	
  controller	
  and	
  compliance	
  functions	
  –help	
  you	
  reduce	
  costs	
  
while	
  gaining	
  better	
  visibility	
  and	
  control	
  of	
  financial	
  processes	
  and	
  data.	
  All	
  of	
  our	
  finance	
  and	
  
accounting	
  engagements	
  are	
  led	
  by	
  our	
  Controllership	
  &	
  Management	
  Center,	
  based	
  in	
  Tulsa,	
  
Oklahoma.	
  

Our	
  strategy	
  quickly	
  improves	
  your	
  F&A	
  operations	
  by	
  adapting	
  a	
  set	
  of	
  standardized	
  processes	
  
and	
  using	
  technology	
  and	
  automation	
  to	
  improve	
  efficiency.	
  We	
  begin	
  by	
  analyzing	
  your	
  existing	
  
accounting	
  workflows,	
  then	
  we	
  design	
  an	
  outsourcing	
  solution	
  based	
  on	
  your	
  business	
  objectives	
  
and	
  available	
  resources.	
  Ongoing	
  processes	
  are	
  transferred	
  to	
  our	
  organization.	
  Once	
  this	
  
transition	
  is	
  complete,	
  we	
  follow	
  through	
  to	
  ensure	
  flawless	
  service	
  delivery.	
  	
  	
  
	
  
The	
  Result:	
  You	
  gain	
  access	
  to	
  higher	
  quality,	
  more	
  complete	
  financial	
  information	
  to	
  support	
  
effective	
  tactical	
  and	
  strategic	
  decision-­‐making	
  across	
  your	
  business.	
  Our	
  outsourcing	
  solution	
  not	
  
only	
  reduces	
  the	
  cost	
  of	
  the	
  finance	
  function;	
  it	
  provides	
  CFOs	
  the	
  opportunity	
  to	
  focus	
  the	
  
organization	
  on	
  what	
  is	
  strategically	
  important	
  to	
  the	
  business.	
  	
  
       	
  
       	
  
	
  
	
  




Cloud	
  Security:	
  Bringing	
  CLARITY	
  to	
  Common	
  Myths	
  and	
  Misconceptions	
  ©	
  2012	
  Sutherland	
  Global	
  Services.	
        Page	
  11

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Cloud Security: Bringing CLARITY to Common Myths and Misconceptions

  • 1.     Finance  and  Accounting  Services     Cloud  Security:   Bringing  CLARITY  to  Common  Myths  and  Misconceptions     Table  of  Contents     Introduction             2   The  Rise  of  Cloud  Computing             3   Physical  Location           4   Transmission             4   Access  Security             5   Security  From  Disaster           6   The  New  Reality  of  Cloud  ERP  Solutions       6   Security  Checklist           7   CLARITY  es:  Cloud-­‐Hosted  –Microsoft  Powered                             8   Sutherland  Global–A  Practical  Overview                              10   Contact  Information                                                            10     About  Sutherland  Global  Services                              11             Authors:   Dan  McCue,  Senior  Vice  President,  Finance  &  Accounting,  Sutherland  Global  Services   Bill  Burke,  CEO,  Merit  Solutions   Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  1
  • 2. Introduction   Companies  in  today’s  economic  environment  are  all  facing  the  age-­‐old  business  conundrum:  how   can  we  do  more  with  less?  To  help  improve  capacity  but  drive  down  costs,  organizations  are   increasingly  turning  to  cloud-­‐based  technologies.     Cloud-­‐based  Enterprise  Resource  Planning  (ERP)  can  be  deployed  quickly,  minimizes  the  initial   investment,  reduces  the  Total  Cost  of  Ownership  (TCO)  and  offers  seamless  upgrades.  Although   many  CEOs,  CFOs,  CIOs  and  key  stakeholders  look  to  cloud  computing  to  help  realize  tremendous   savings,  there  are  concerns  about  cloud-­‐based  data  solutions.   In  the  age  of  cyber  attacks  and  the  seemingly  ever-­‐growing  list  of  online  security  threats,  senior   executives  worry  about  the  safety  of  their  cloud-­‐based  information.  Physical  location,  data   transmission,  access  security  and  disaster  recovery  represent  the  four  top-­‐of-­‐mind  security   concerns.   This  white  paper  will  look  at  some  of  the  key  aspects  of  cloud  security  and  examine  some  of  the   myths  and  misconceptions.  Research  also  shows  that  while  senior  executives  are  apprehensive   about  cloud-­‐based  security,  only  a  small  percentage  conduct  due  diligence  on  their  providers.  This   white  paper  also  includes  a  checklist  of  10  questions  that  SMBs,  mid-­‐market  companies  and  large   organizations  should  ask  their  potential  providers. Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  2
  • 3. The  Rise  of  Cloud  Computing   A  2011  survey  by  CDW  found  that  28%  of  US-­‐based  organizations  are  using  cloud  computing   today,  and  73%  of  those  organizations  took  their  first  step  by  implementing  a  single  cloud   application.  Interestingly,  the  vast  majority  of  the  survey  respondents  (84%)  say  they  “have   already  employed  at  least  one  cloud  application.”  So,  in  essence,  there  are  a  lot  of  first  steps  being   taken,  and  wider  cloud  adoption  is  foreseeable.     There’s  no  doubt  the  cloud  is  garnering  attention  as   Top  5  Cloud  ERP  Misconceptions   companies  cautiously  explore  cloud  applications.  According   to  an  April  2011  Forrester  Research  report  titled  “Sizing  the   1. With  a  cloud  ERP  solution,  our  data   Cloud”  the  global  cloud  computing  market  is  estimated  to   isn’t  as  secure  as  it  is  onsite. reach  $241  billion  in  2020.  Yet,  despite  the  rise  of  cloud   2. Cloud  ERP  solutions  provide  only  basic   computing,  there  are  a  number  of  misconceptions  floating   ERP  functionality.   around,  with  security  at  the  top  of  the  list.   3. Cloud  ERP  solutions  can’t  be     customized.   As  companies  transition  from  low-­‐risk  “testing  the  waters”  to   4. It’s  difficult  to  integrate  cloud  ERP   taking  the  plunge  with  cloud  ERP  for  more  mission-­‐critical   systems  with  other  systems.     functions  like  Finance  and  Accounting,  the  issue  of  cloud   5. If  the  Internet  goes  down,  the  business   security  is  inevitable.  The  question  most  often  asked  is,     goes  down. “Just  how  secure  is  our  data?”         It’s  a  legitimate  question.  It  was  only  a  few  short  years  ago  that  cloud-­‐based  ERP  systems  were  the   exception  rather  than  the  norm  for  most  companies.  The  idea  of  not  having  all  data,   infrastructure,  software  and  hardware  on-­‐site  was  new,  intriguing  and  fraught  with  concerns.   Entrusting  private  business  data  and  applications  to  an  outside  hosting  service  made  (and   continues  to  make)  some  organizations  uncomfortable.       Despite  the  cloud’s  shift  into  the  mainstream,  security  and  compliance  still  top  the  list  of   apprehensions  inhibiting  cloud  adoption.  Some  of  this  apprehension  is  caused  in  part  by  confusion   around  a  lack  of  industry  standards;  expectations  and  definitions  of  security  can  vary  from   industry  to  industry.  Different  regions  and  countries  are  subject  to  different  data  protection   policies  and  legislation  that  could  compromise  data  privacy.  Companies  need  to  conduct  due   diligence  on  their  prospective  cloud  providers.     Data  security  and  privacy  issues  are  very  real  concerns  no  matter  whether  SMBs  implement  a   cloud  ERP  solution  or  on-­‐premise  ERP.  Both  require  knowledge  of  data:  which  data  is  sensitive,   the  degree  of  sensitivity  and  the  protocols  required  to  protect  it.   Yet,  the  pervasive  myth  that  cloud-­‐based  ERP  simply  isn’t  as  secure  as  on-­‐premise  solutions   continues  to  linger.  The  myth  persists  based  on  four  misconceptions  about  the  security  of  physical   location,  transmission,  access  security,  and  disaster  security.     Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  3
  • 4. Physical  Location   The  Misconception:  A  cloud-­‐based  solution  is  nebulous  and  can’t  be  secured.     The  Reality   Cloud  computing  is  new,  unknown  and  eyed  suspiciously.  It  has  the  appearance  of  being  risky   because  you  cannot  secure  its  perimeter—where  are  a  cloud’s  boundaries?    A  May  2010  study  by   the  Ponemon  Institute  found  that  IT  professionals  believed  security  risks  were  more  difficult  to   curtail  in  the  cloud,  including  securing  the  physical  location  of  data  assets  and  restricting   privileged  user  access  to  sensitive  data.  Yet,  as  CIO  Magazine  pointed  out:   “…respondents  only  gave  the  on-­‐premise  alternative  a  56%  positive  rating!  In  other  words,  nearly   half  the  respondents  believe  that  their  own  internal  data  centers  do  not  do  a  good  job  of  securing   1 the  physical  environments  of  their  data  centers.”   The  reality  is  that  often  on-­‐premise  ERP  security  does  not  measure  up  to  the  same  standards  as  a   world-­‐class  data  state-­‐of-­‐the-­‐art  facility.     An  ideal  data  center  should  be  secure,  free  of  windows,  and  built  with  cement  or  steel   fortifications  with  24/7  on-­‐site  security.  Most  SMB  IT  departments  reside  in  a  department  or  on  a   floor  of  commercial  buildings  and  office  towers,  which  rarely  have  these  conditions.   In  comparison,  the  CLARITY  es  data  centers  are  housed  in  multi-­‐million  dollar  facilities  with   building  fortifications.  The  main  data  center  is  housed  underground  in  a  facility  that  is  designed  to   withstand  an  8.3  magnitude  earthquake.  The  data  centers  also  have  24/7/365  security,  monitored   by  staff  as  well  as  security  guards.   Transmission   Misconception:  Cloud-­‐based  solutions  are  more  vulnerable  to  hacking  and  other  attacks.   The  Reality   SMBs  typically  invest  in  hardware,  software  and  applications  to  thwart  specific  security   challenges:  spam,  security  breaches,  malware,  non-­‐compliance,  and  so  forth.  Unfortunately,  many   of  these  products  have  limited  life  cycles,  are  difficult  to  scale  and,  from  a  security  point  of  view,   often  only  produce  single  points  of  failure.  Additionally,  the  latest  technologies  to  scramble  and   encrypt  data  –  RSA,  Secure  Socket  Layer  (SSL),  Data  Encryption  Standard  (DES),  or  Triple  DES,  etc.   –  can  quickly  drain  SMB  IT  budgets.   With  traditional  licensed  ERP  software,  organizations  typically  must  wait  for  the  next  release  to   benefit  from  the  latest  features,  upgrades,  or  security  patches.  Sometimes  limited  resources  can   mean  that  upgrades  aren’t  always  deployed  in  a  timely  manner.  In  fact,  two-­‐thirds  of  mid-­‐size   businesses  are  running  outdated  versions  of  their  ERP  software2.  This  can  leave  these  companies   vulnerable.   1  Golden,  Bernard.  "Cloud  Computing  Security:  IT's  Take  on  State  of  Play."  CIO  Magazine.  N.p.,  17  May  2010.  Web.   2  "Why  Cloud  Computing  Matters  to  Finance,"  Ron  Gill,  CMA,  CFM:  Strategic  Finance,  January  2011.   Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  4
  • 5. Under  the  SaaS  (Software  as  a  Service)  delivery  model  that  forms  the  basis  of  cloud  ERP,  the   provider  continuously  and  unobtrusively  adds  the  latest  features  and  upgrades,  which  means  that   users  can  be  assured  that  they’re  actually  using—rather  than  waiting  for—the  latest  security   technology.   By  their  very  nature,  external  applications  like  cloud-­‐based  technologies  must  adopt  a  “trust  no   one”  approach.  Layers  of  security  controls,  encryption  of  all  sensitive  data  and  security  testing  at   the  application  level,  as  well  as  countless  other  safeguards  are  necessary  for  cloud  security.   A  world-­‐class  cloud  ERP  provider  will  perform  rigorous  internal  vulnerability  scans,  log  threats,  and   are  audited  for  SSAE  16  (formerly  SAS  70  Type  II)  compliance.  Data  is  fully  secured,  both  in   transmission  and  at  rest.  For  example,  CLARITY  es  runs  on  a  Microsoft  Dynamics  AX  platform.  It   uses  the  RPC_C_AUTHN_LEVEL_PKT_PRIVACY  call,  which  provides  the  highest  security  level   available  through  a  remote  procedure  call  (RPC).  There  are  no  software  or  hardware  purchases,   and  updates  are  seamless.   Access  Security   The  Misconception:  An  on-­‐premise  solution  offers  more  security  over   who  may  access  information.     The  Reality   The  myth  that  a  cloud  solution  simply  cannot  be  as  secure  as  an  on-­‐premise  solution  has  very   much  to  do  with  the  notion  of  “seeing  is  believing.”  Often  companies  feel  more  in  control  of  their   data  when  it  resides  under  their  own  roof.     When  ERP  is  on-­‐site,  it  is  the  sole  responsibility  of  the  IT  department  to  authenticate  and  log  all   access  to  data  in  order  to  prevent  unwanted  users,  both  internal  and  external,  from  accessing   information  or  resources.   Access  security  for  on-­‐premise  ERP  systems  may  be  enforced  through  business  logic  or  at  the   database  layer.  This  authenticates  users  and  provides  them  with  specific  rights  to  data  objects.     For  example,  a  payroll  clerk  would  only  have  access  to  payroll  data,  not  customer  records.   A  cloud-­‐based  ERP  is  no  different.  With  CLARITY  es,  you  control  access  to  data  throughout  by   managing  security  restrictions  on  forms,  records  and  data  fields  for  specific  user  groups  and   domains,  and  define  and  assign  rights  according  to  how  you  want  security  restrictions  managed.   As  well,  because  CLARITY  es  is  a  single-­‐tenant  environment  there  is  no  risk  of  data  being   inadvertently  exposed  to  other  users  due  to  poor  implementation  of  the  access  management   process.   While  a  secure  cloud  ERP  system  doesn’t  increase  the  vulnerability  of  your  business  data,   authenticated  users  have  “anywhere,  anytime,  any  device”  access,  which  is  a  tremendous   advantage  for  global  collaboration,  monitoring  and  managing.   Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  5
  • 6. Security  From  Disaster   Misconception:  It’s  better  to  handle  backups  internally  to  be  able  to  access  data  more   quickly  in  case  of  a  disaster.     The  Reality   Companies  must  examine  how  often  they  back  up  data  and  where  the  backups  are  the  stored.   SMBs  looking  to  third-­‐party  back-­‐up  systems  and  business  continuity  facilities  must  thoroughly   examine  the  security  standards  that  are  in  place.  The  truth  of  the  matter  is  that  SMBs  need  to   invest  in  a  rigorous  program  for  data  backups  with  offsite  storage  in  a  secure  location  separate   from  the  main  data  center.     Key  questions  to  ask  before  choosing  an  external  backup  partner  include:  Does  the  third-­‐party   data  recovery  service  abide  by  recognized  security  standards  and  compliance  requirements?  What   happens  if  there  is  a  power  failure?  How  long  will  my  data  be  kept?   Cloud-­‐based  solutions,  like  CLARITY  es,  ensure  full  nightly  backups,  which  are  stored  in  an  off-­‐site   location  and  are  maintained  for  seven  years.  As  well,  the  data  centers  have  multiple  power   sources  and  redundant  incoming  lines  provisioned  in  an  N+1  configuration  for  continuous  power.     The  New  Reality  of  Cloud  ERP  Solutions   Traditional  and  cloud  ERP  share  many  of  the  same  security  issues,  from  preventing  unauthorized   access  to  safe  and  secure  backups.  As  the  “new  kid  on  the  block”,  cloud  technology  is  unfamiliar   and  not  fully  trusted.   SMBs  that  adopt  a  cloud-­‐based  ERP  solution,  like  CLARITY  es,  find  that  security  is  actually   improved.  Unlike  large  enterprise  companies,  SMBs  usually  don’t  have  the  high  security   infrastructure,  processes  or  best  practices  knowledge  readily  on  hand.  In  the  case  of  cyber  attacks,   cyber  espionage,  malware,  human  error  and  disasters,  cloud-­‐based  service  providers  have  higher   levels  of  security.     Microsoft  released  research  in  May  of  2012,  that  verified  the  significant  IT  security  advantages  from  using   the  cloud.  One  of  the  most  interesting  facts  to  emerge  from  the  survey  was  that  "35  percent  of  US   3 companies  surveyed  have  experienced  noticeably  higher  levels  of  security  since  moving  to  the  cloud."   Security  is  always  a  top  concern  for  companies,  but  it’s  time  to  put  to  cut  through  the  fog,  and   bring  a  little  clarity  to  the  situation:  Cloud  ERP  systems  and  the  data  they  contain  are  as  secure,  if   not  more  secure  than  traditional  ERP  systems.   3  Microsoft.  News  Center.  Cloud  Computing  Security  Benefits  Dispel  Adoption  Barrier  for  Small  to  Midsize  Businesses.   14  May  2012.  Web.   Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  6
  • 7. Security  Checklist   CompTIA's  9th  Annual  Information  Security  Trends  survey  of  U.S.  executives  with  IT   responsibilities  reported  that  only  29%  of  organizations  report  conducting  a  heavy  review  of  their   cloud  service  provider's  security  policies,  procedures  and  capabilities.   SMBs  must  vet  their  cloud  providers  by  conducting  due  diligence  and  asking  for  proof  of  physical   audits  and  physical  access  controls.  Here  are  10  questions  you  can  ask  your  provider.   1.)  What  is  your  privacy  policy?   Your  potential  solution  provider  should  have  a  well-­‐defined  and  clearly  articulated  privacy  policy   that  spells  out  exactly  who  has  access  to  various  types  of  information.  It  should  also  describe  the   organization’s  standard  operating  policies  and  procedures  for  ensuring  privacy.  Your  prospective   vendor  should  voluntarily  provide  you  with  a  copy  of  this  policy  information.     2.)  What  level  of  security  do  you  use  to  ensure  the  safety  and  integrity  of  critical  data?   To  safeguard  your  data  onsite,  your  prospective  solution  provider  should  use  a  combination  of   intrusion  detection  system  (IDS)  and  intrusion  prevention  system  (IPS)  products  and  apply   antivirus  at  various  network  layers.  It  should  also  utilize  deep  packet  inspection  (DPI)  or  an   application-­‐level  firewall  technology  that  scans  all  levels  of  packet  transmission.  Finally,  it  should   also  use  secure  socket  layer  (SSL)  or  https-­‐encrypted  transmission  to  ensure  Internet  security.   3.)  Is  your  production  equipment  housed  in  a  state-­‐of-­‐the-­‐art  facility?   Your  prospective  vendor’s  data  center  should  be  secure,  free  of  windows,  and  built  with  cement   or  steel  fortifications.  It  should  also  be  located  somewhere  that  is  not  prone  to  inclement   weather.   4.)  What  are  your  facility’s  physical  security  arrangements?  Are  they  in  place  24  hours  a  day,   seven  days  a  week,  and  365  days  a  year?   Similar  to  its  privacy  policy,  your  potential  hosted  ERP  solution  provider  should  have  well-­‐defined   and  robust  security  arrangements  that  are  in  place  at  all  times.   5.)  Do  you  contract  with  an  independent,  third-­‐party  organization  to  conduct  periodic  external   and  internal  vulnerability  scans?   In  addition  to  maintaining  an  intrusion  response  system  and  a  prepared  response  plan,  your   prospective  solution  provider  should  frequently  commission  both  routine  and  unannounced   security  audits.   6.)  How  often  do  you  back  up  data,  and  where  are  the  backups  stored?   Your  potential  hosting  provider  should  have  in  place  a  rigorous  program  of  data  backup  and   offsite  storage  in  a  secure  location  remote  from  its  main  data  center.         Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  7
  • 8. 7.)  Do  you  offer  full  hardware  redundancy  to  avoid  the  negative  consequences   of  a  power  failure?   Your  prospective  solution  provider’s  data  center  and  backup  location  should  have  redundant   power  supplies,  such  as  battery  and  diesel  generator  backups,  to  avoid  the  negative  consequences   associated  with  a  power  failure.   8.)  Does  your  staff  include  a  highly  qualified  operations  team  that  monitors  the  site   24  hours  a  day,  365  days  a  year?   Your  prospective  vendor  should  have  on  staff  many  certified  security  experts,  including  those  with   the  preferred  CISSP  designation.   9.)  Is  my  data  stored  in  a  multi-­‐tenant  or  single  tenant  environment?   A  multi-­‐tenant  cloud-­‐based  ERP  is  a  set  of  pooled  computing  resources,  shared  among  many   different  organizations  (tenants).  In  short,  various  organizations  share  the  same  database.  In  a   single  tenant  environment,  customers  operate  with  their  own  individual  database.  It  is  our  belief   that  an  isolated  single  tenant  environment  best  maximizes  performance,  security,  privacy  and   integration.   10.)  How  safe  is  your  data  center  in  terms  of  natural  disasters?   Your  potential  provider  should  be  prepared  for  any  number  of  natural  disasters.  In  addition  to  a   windowless,  cement  building  with  steel  fortifications,  the  provider  should  have  multiple  power   sources  and  redundant  incoming  lines  provisioned  in  an  N+1  configuration  for  continuous  power.   For  example,  our  main  data  center’s  backup  generators  can  power  a  city  of  25,000  people  -­‐  which   allows  us  to  go  off  grid  for  28  days  without  water,  electricity,  sewer,  or  natural  gas  feeds.   CLARITY  es:  Cloud-­‐Hosted  –Microsoft-­‐Powered   The  ERP  platform  of  the  CLARITY  es  solution  is  cloud-­‐hosted  and  powered  by  Microsoft  Dynamics   AX,  considered  by  Gartner  as  a  market  leader.  The  cloud-­‐hosting  ensures  rapid  implementation   and  low  up-­‐front  costs.   CLARITY  es  provides  multiple  customized  portals  and  tailored  solutions  for  all  aspects  of   your  business:   • Finance  &  Accounting   • Procurement   • Human  Capital  Management   • Sales  &  Marketing  (CRM)   • Project  Accounting   • Supply  Chain  Management   • Production  /  Manufacturing   • Business  Intelligence  &  Reporting   CLARITY  es  is  a  composite  and  customizable  solution  with  core  industry-­‐specific  functionalities.  All   elements  of  the  solution  from  application  implementation,  support  and  hosting  to  service  delivery   with  guaranteed  metrics  are  provided  by  Sutherland  Global  Services  –  one  of  the  world’s  largest   pure-­‐play  BPO  service  providers. Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  8
  • 9. Dynamics  AX  Power   Powerful  Foundation  Gives  You  More  Value  Faster   Pre-­‐built  industry-­‐specific  functionalities  enable  users  to  streamline  mission-­‐critical  business   processes  with  workflow  functionality  and  alerts  that  provide  automatic  notification  of  pending   tasks  and  events.  These  features  provide  management  real-­‐time  visibility  into  critical  business   data  through  customized  dashboards  and  reports.  With  powerful  embedded  business  intelligence   and  analytics,  you  will  be  able  to  run  ad-­‐hoc  reports  rapidly  and  streamline  workflows.   CLARITY  es  Cloud  Advantage   Supply  Chain   CLARITY  es  has  complete  supply  chain  integration  and  is  customizable  to  your  industry   and  business.   Flexible  &  Agile   CLARITY  es  gives  you  flexible  deployment  options,  allowing  you  to  switch  between  the  cloud  and   on-­‐premise  deployment,  implementing  your  solutions  all  at  once  or  in  phases.  This  unified  natural   model  offers  companies  improved  forecasting,  reporting,  and  budgeting  abilities.  Extend  these   models  with  industry-­‐specific  capabilities  as  the  company  evolves.   Web  Access   CLARITY  es  gives  you  anywhere,  anytime  access  with  97.99%  Up  Time.  This  user-­‐centric  platform   provides  access  to  more  people,  including  customers  and  partners,  while  guaranteeing  data   control  maintenance  and  integrity.  You  get  a  dedicated  environment  (not  multi-­‐tenant)  that   replicates  on-­‐premise  configuration,  the  administrative  rights  to  the  servers,  and  a  secure  VPN   access.  Your  data  will  be  available  where  you  need  it,  when  you  need  it.  CLARITY  es  is  certified   SSAE  16  (formerly  SAS  70  Type  II)  compliant.   Simplified  Solution  Drives  Adoption  &  Lowers  Costs   The  interface  is  familiar  and  intuitive,  allowing  for  easy-­‐to-­‐use  collaboration  with  colleagues,   partners,  vendors,  and  customers  using  integrated  email,  instant  messaging,  and  presence   information  through  unified  communications.       Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  9
  • 10. Sutherland  Global  –  A  Practical  Overview   Structure   • Globally  distributed  delivery  capacity  and  domain  capability   • The  Deloitte-­‐established  Tulsa  FAO  Centre  of  Excellence  has  been  servicing   clients  since  1995   • Strategic  global  locations  designed  to  satisfy  SSAE  16  (formerly  SAS  70  Type  II)  standards   and  Sarbanes-­‐Oxley  requirements   Capability   • Full  suite  of  BPaaS  services  –  transaction  processing  to  financial  and   management  reporting   • Integrated  analytics  to  support  Collections,  Financial  Planning  and  Analysis  functions   • Onshore,  offshore  and  hybrid  solutions  tailored  to  meet  client-­‐specific  needs   Expertise   • Dedicated  team  experienced  in  business  transformation,  process  optimization   and  transition  services   • Expertise  in  utilizing  existing  client  applications  and/or  SGS-­‐hosted  ERP  systems   • Robust  set  of  add-­‐on  technologies  supported  by  in-­‐house  application  management  team   Flexibility   • Custom-­‐crafted  Pricing  and  Commercial  Structure  aligned  to  client  needs  and  objectives   • Output/Outcome  Based  Pricing  and  No  Termination  penalties         If  you  would  like  to  continue  the  conversation  and  get  information  about   our  CLARITY  es  offering  please  contact:  +1-­‐800-­‐388-­‐4557     Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  10
  • 11.   About  Sutherland  Global  Services   Sutherland  Global  Services  is  a  multi-­‐national  technology-­‐enabled  business  process  outsourcing   (BPO)  services  company  providing  a  unique  combination  of  vast  BPO  resources  as  well  as   extensive  expertise  and  industry  knowledge  in  Finance  and  Accounting.  We  help  you  build  a  high-­‐ performance  finance  organization  by  combining  accounting  best  practices  with  proven  BPO   processes.  Our  global  service  delivery  infrastructure  and  full  range  of  outsourcing  solutions  –  from   specific  transactional  processes  to  controller  and  compliance  functions  –help  you  reduce  costs   while  gaining  better  visibility  and  control  of  financial  processes  and  data.  All  of  our  finance  and   accounting  engagements  are  led  by  our  Controllership  &  Management  Center,  based  in  Tulsa,   Oklahoma.   Our  strategy  quickly  improves  your  F&A  operations  by  adapting  a  set  of  standardized  processes   and  using  technology  and  automation  to  improve  efficiency.  We  begin  by  analyzing  your  existing   accounting  workflows,  then  we  design  an  outsourcing  solution  based  on  your  business  objectives   and  available  resources.  Ongoing  processes  are  transferred  to  our  organization.  Once  this   transition  is  complete,  we  follow  through  to  ensure  flawless  service  delivery.         The  Result:  You  gain  access  to  higher  quality,  more  complete  financial  information  to  support   effective  tactical  and  strategic  decision-­‐making  across  your  business.  Our  outsourcing  solution  not   only  reduces  the  cost  of  the  finance  function;  it  provides  CFOs  the  opportunity  to  focus  the   organization  on  what  is  strategically  important  to  the  business.             Cloud  Security:  Bringing  CLARITY  to  Common  Myths  and  Misconceptions  ©  2012  Sutherland  Global  Services.   Page  11