ACG Research

ACG Research
We focus on the Why before the What

Thursday, September 8, 2011

A Business Case for Scaling the Next-Generation Network with the Cisco ASR 9000 System: Now with Converged Services

Cisco’s nV technology when deployed across the edge, aggregation and access networks that supports residential, enterprise and mobile services.

Extending nV from the edge to access reduces total cost of ownership as compared to a leading competitor’s converged services solution. Integrated traffic analytics offer traffic generation and reporting capabilities without using an external platform. This saves service providers thousands of dollars per service turn-up. To support the massive growth in mobile devices nV technology is now topology agnostic and its latest addition provides support for both ring, and hub and spoke topologies. The nV architecture allows for effective scaling of converged services while maintaining operational simplicity.

ACG Research has developed a business case analysis for Cisco’s nV technology when deployed across the edge, aggregation and access networks that supports residential, enterprise and mobile services. The analysis captures the market’s evolutionary change in the access network from E1/T1 to Ethernet-based technology. The model addresses this change for backhaul of 2G, 3G, and 4G radio technologies and for enterprise Internet access and L3 VPN services.

To download the PDF of the business case (September), click here.

To download the PDF of the business case for scaling the next-generation network with the Cisco ASR 9000 System (June), click here.

Wednesday, September 7, 2011

Could the Linux kernel incident happen to your company?

In late August kernel.org, the organization that maintains the Linux kernel, announced that they had been compromised. At the time of writing, the following is:

Known:
  • The attacker gained access to a kernel.org user account via a developer’s compromised system.
  • An escalation in rights from this user account to a root account has occurred.
  • The vector may have been incidentally closed in the recent release candidate kernel (3.1-RC2).
Unknown:
  • The exact attack vector: how the attacker escalated their rights from the developer's user account to a system administration account.
  • How (and if) changes in the release candidate kernel (3.1-RC2) have resolved the vulnerability.
With so much still unknown, a deeper analysis would be futile; however, this event has raised three points in my mind regarding security:

1. Unknown vulnerabilities
A recent article by Neils Johnson, security analyst, ACG, stated that there were 6253 potentially exploitable vulnerabilities (PEVs) discovered in 2010; that's 17 a day.

With such an overwhelming number of PEVs presenting themselves, I long ago stopped paying attention. It's even worse than you think; these vulnerabilities are never discovered the instant they are created. They lay dormant in the software for extended periods of time. It's not unheard of for newly discovered flaws to have been introduced nearly a decade earlier. You want some fear, uncertainty, and doubt? I bet that the system you are using right now has dozens if not hundreds of vulnerabilities that have not been published and may or may not be altogether unknown at this time. What's more, there are likely still other flaws that are not currently exploitable, but some future change to your system will make them so.

You can't anticipate, much less fix them all. Don't even bother trying. Try not to think about it at all, it'll only depress, frustrate, and anger you.

What you can do, however, is to think about software differently. Don't count its known security flaws; just accept the inevitability of failure. Security concerns should be placed to the side for a moment. Ask: Does this tool best support core business? Do you like the software's features? Does it make your staffs’ lives easier? Use productivity as a decider in software selection, not a fear of PEVs.

Obviously we can't keep security off the table, as much as we might like to. So, now, starting with the assumption that the application will fail, how much can be leveraged from that? Can you live with it? Can you minimize and isolate it? Can you detect it? At the end of the day, this is the best you can really hope for. So, why bother with all the song and dance?

2. Ideal considerations
Is your system configured or maintained as well as kernel.org is? They literally authored Linux from the ground up. You’d be hard-pressed to find a more expert, not to mention passionate, staff. Such a team would typically only be found in the wildest of CISO dreams, yet here we are discussing their failure.

Sometimes things just break. Does it matter? I am always amazed by the number of companies that have not undertaken even the most rudimentary risk assessment, much less, what I’d classify as a good one. You need to quantify your situation. In the face of the unknown, especially when feeling violated or hopeless, it's natural to assume the worst, get overwhelmed, and do nothing.

Focus on what you can fix and start with small changes that have the greatest impact. Do you have a sane password policy? Who controls what can run on the desktops? Has anyone from your security staff actually spoken to people involved with core business about what they do and how they do it?

3. Unforeseen modifications consequences
The newest release candidate kernel (3.1-RC2) appears to be immune to this attack without an explicit security patch; this is particularly interesting to me. They state that they “don't know if this is intentional or a side effect of another bug fix or change.”

The linear implication is that the software is naturally improving in overall quality, and the byproduct of this is the elimination of security-relevant flaws. However, unless this flaw was present in the original Linux release, 20 years ago, it was added in at a later point as side a effect of a prior fix/upgrade.

Smart organizations known that every attempt to fix a known problem may surreptitiously create entirely new problems (as well as fixing other unknown problems). Rapid/automatic patching is, unfortunately, somewhat of a crapshoot. Instead, seek to structure your environment in such a way that flaws are survivable/contained/isolated as they arise. Use this time to evaluate the patch. Your own modifications may also break stuff, but at least you know exactly what was changed.

Essentially, everything you have is vulnerable. A perfect effort isn't going to prevent a compromise, and any response may make you worse off. This may seem like doom and gloom if not outright hopelessness. Advice: don't panic! Ignore the kernel.org incident. Also, ignore the next time you hear about attackers gaining access to Microsoft, Oracle, Google or your bank.

It doesn't impact you. To drop your OS/bank/cloud provider would be misguided and unproductive. Your best bet is to:
  • Understand your infrastructure; conduct a risk assessment.
  • Know you potential problems; accept the inevitability of failure.
  • Focus on survivability; employ defense-in-depth and isolation/minimization efforts.
  • Try to just maintain an environment of continual, incremental, improvement.
  • Learn from your own failures and those of best practices.
  • Employ a poised touch with regard to change.
  • Be proactive!
If any of the previous points are unclear or unfamiliar, a little bit of panic might be appropriate and bring in some outside help.

Comments, contact security@acgresearch.net.

Friday, August 26, 2011

Partner-to-Partner Partnering

The next wave of managed services

Partner-to-partner partnering is gaining momentum and VARs and SIs are recognizing that it is an excellent opportunity for them to change their business models to add services to their portfolios. They also recognized how important the channel is to extend their reach to customers that they do not have today and most likely will never be their customers as most SMBs depend on the local VAR or system integrator for IT outsourced support.

Factors influencing the demise of the old business models:
  • Cloud- and network-based investments are growing while the on premise or equipment sold on site is declining.
  • Enterprises and SMBs are migrating to cloud to decrease costs and improve productivity associated with their IT investments.
  • Partners traditionally selling hardware, software and integration need new models to take advantage of these trends.
Vendors and service providers are responding to the trend and creating programs to extend their reach. Companies such as Momentum have launched a new partner program targeting value added resellers and managed services providers.

Presidio Networked Solutions has been profiled for success in its selection of partners to create value with white label programs.

MSP partners such as YouSendIt engaged ACG Research to create their channel plans and strategy. Their partner program represents referral, resell, affiliate and custom ISP partner programs.

Even distributors are reinventing their organizations to enable their assets, VARs and SIs to migrate to cloud offers. Distributors are feeling the pain of the pick-pack and ship revenue decreases. They recognize that vendors, a huge source of revenue (their revenue source for the last 10 years) need to market to VARs and SIs or risk losing revenue as more customers demand new service offers.

Trade groups and organizations are recognizing the need to “educate” the industry. ACG Research recently kicked off and conducted several panels for Everything Channel’s Cloud Boot Camp 2011. Our analysts focused on change management strategies for VARs, SIs, MSPs and SPs to show them how to connect the opportunity for adding profitable services to the traditional VAR and SI mix. We focused on the following:

VARs/SIs:

  • Migrate or lose customers to your competitors.
  • Alter your sales force to deliver incentives on services over product to gain annuity that is renewable.
  • No NOC, No Problem: establish partnerships with MSPs and SPs that increase your portfolios.
MSPs and SPs:
  • Increase your reach to inaccessible customers by creating programs to reach 200,000+ VARs and SIs.
  • Target not just your customers but the customers of your partners through programs that extend marketing through the partner to their installed base, identifying the cloud initiatives for enterprises and SMB.
Partners have to keep ahead of the next economic pressure that is changing the mindset of their customers by understanding the trends and knowing how their current assets can be leveraged to address these changes. Partner-to-partner partnering allows you to evolve with the changing markets and meet the demands made by enterprises and SMB. It’s either that or lose the customer.

To read more from Lauren Robinette, click here.


Lauren Robinette
lrobinette@acgresearch.net
www.acgresearch.net


Thursday, August 25, 2011

An Update on Photonic Integration

Photonic integration might be the most disruptive technology to hit the telecommunications market in a decade. Eve Griliches

In 2006 interest in the all-optical network was fading, and photonic integration was generating excitement and controversy in the industry.

The market traveled in two directions 1) photonic integration with coherent DSPs and 2) discrete components with coherent DSPs. Infinera is the only vendor that has a photonic integrated circuit (PIC) based system solution. The 10G economics of the PIC were disruptive, but Infinera included integrated OTN switching, which improved network efficiency.

Click here to download the PDF.



egriliches@acgresearch.net
www.acgresearch.net


IP Networking: Building Value through Network Subscriber and Application Awareness

Network subscriber and application awareness are two ways that IP networking is being extended beyond Layer 2 switching and Layer 3 routing. This expanded networking functionality is being driven on the demand-side by service providers' need to differentiate their services from both competitors and among internal lines of business where service cannibalization is a serious problem; and on the supply-side where more flexible hardware architectures make it possible to combine transport, switching, routing, and DPI capabilities in the same system chassis.bine transport, switching, routing, and DPI capabilities in the same system chassis.

To read the complete article, click here. To read more from Michael Kennedy, click here.


Michael Kennedy
mkennedy@acgresearch.net
www.acgresearch.net

Wednesday, August 17, 2011

Cloud Computing: A Primer

Because of the increased volume, complexity, interfaces and connectivity that require service providers and enterprises to architect, operate and manage networks very differently, many are moving to cloud computing, a term for any activities that involve delivering hosted services over the Internet. There are basically three types:
  • Infrastructure-as-a-Service (IaaS)
  • Platform-as-a-Service (PaaS)
  • Software-as-a-Service (SaaS)
Each of these services offers a different level of flexibility and control:

IaaS: Existing applications run a cloud; suppliers provide hardware; Physical or virtual servers

PaaS: Advantages include rapid development at low cost; provides environment and tools for creating new online applications; private or public deployment. Disadvantages include limits developers to providers programming languages and tools; risk of vendor lock-in.

SaaS: Advantages are free or paid for subscription; accessible from anywhere & facilitates collaborative working. A disadvantages is that generic applications not always suitable for everyone.

Cloud offers the following benefits:
  • Reduced Cost: Cloud technology is paid incrementally, saving organizations money.
  • Increased Storage: Organizations can store more data than on private computer systems.
  • Highly Automated: No longer do IT personnel need to worry about keeping software up to date.
  • Flexibility: Cloud computing offers much more flexibility than past computing methods.
  • More Mobility: Employees can access information wherever they are, rather than having to remain at their desks.
  • Allows IT to Shift Focus: Organizations no longer have to worry about constant server updates and other computing issues; they are free to concentrate on innovation.
There are roadblocks with cloud:
  • Definition: If you ask four different people, you will get four different definitions of the cloud. This lack of agreement can be attributed to lack of standards or to the absence of a governing/regulating body.
  • Security Concerns: Information security is a prime concern of organizations because their confidential data is being hosted on third-party data centers.
  • Service Availability: Since the cloud-based model is not just confined to application delivery but also to the platform for computing services under the IaaS model, service availability becomes a concern.
  • Data Lock-In Concerns: In the case of cloud computing, most of the APIs are proprietary and lack standardization, which means applications for a particular cloud platform cannot be migrated to another. Similarly, customers cannot easily extract their data or programs from a provider's site and run it on another site.
Network architectures that build on optimization and consolidation are a key interest and increasingly, a requirement for all service providers. Cloud computing platforms enable enterprises to provision an infrastructure and add computing capacity on demand. This elasticity promotes rapid deployment of solutions and allows service providers to scale their infrastructure based on demand and, consequently, to improve time to market for new services.

Cloud computing is one of the fastest growing segments in the IT industry, and service providers are uniquely positioned to capitalize on it because they already have the size and depth to build scalable services. By assuming an end-to-end position (application to end user) in the cloud computing value chain, the service provider can improve and add significant quality of service to experiences. This network-based approach to service assurance can position service providers to capitalize on the software revenue market related to the use of the applications, a market that network providers have yet to fully explore and utilize.
  • Before adopting cloud, enterprises and service providers should consider the following:
  • How quickly should I migrate my network from legacy to IP?
  • What is my role in delivering cloud services? Which investments should I make?
  • When, and to what extent, should I integrate my mobile and fixed networks?
  • How can I collaborate with OTTs? Which programs should I implement?
  • What should I do about a structural separation of the business? Will this be mandated?
  • How do I monetize the huge growth in network traffic? Where do I need to invest?
With cloud computing the economic advantages are great: reduction of costs and increased productivity. The risks are minimal, especially as new systems and checks are continuously being designed and instituted. The question is not if but when your business needs to move to initiatives to take advantage of cloud computing trends.



Thursday, July 28, 2011

Huawei Symantec Set to Shake up Data Center Market

Huawei/Symantec just announced at it 2011 Partner Summit their entry into the Ethernet switching/routing market. Providing a full suite of products from low-end SMB switches to high-end performance, density 1/10G chassis, Huawei/Symantec is positioning itself as an Ethernet competitor to Cisco, HP and Juniper. Leveraging its security and storage products, Huawei/Symantec is rolling out a high powered Terabit switch/router chassis and top-of-rack 1G and 10G switches to complement the data center switches. Huawei/Symantec, through the extensive development capabilities of Huawei, can claim the number 2 position with over 4 million units and 2 billion ports shipped to over 10,000 enterprise customers.

The S9300 is a high-end terabit routing switch developed by Huawei for the service-focused network. The intelligent multilayer switching technology provides intelligent service optimization methods such as traffic analysis, comprehensive QoS policies, controllable multicast, and integrated security guarantee to high-performance L2/L3 switching services. In addition, it features super high extensibility and reliability.

The S9300 is geared for WANs, MANs, campus networks, as well as the core layer and aggregation layer of data centers to help enterprises build an application-oriented network. It integrates the switching and routing functions to build an end-to-end integrated network. The suite features three models: S9303, S9306, and S9312. Their switching capacity and port density can be expanded indefinitely. The three models use universal modules and components. This not only ensures the extensibility of the equipment, but also protects the investments of carriers. In addition, the S9300 adopts various innovative energy saving technologies, which greatly reduce the energy consumption and noise of the equipment without affecting the performance and stability of the system.

The S6300 series 10 gigabit switch is a 40 port Ethernet switch that can provide top of rack capabilities in the data center. This is an ideal switch that complements Huawei/Symantec’s storage efforts in the entertainment, media and high-performance computing market. This 1U fixed configuration provides low latency, high performance with dual power capabilities.

S5300 series gigabit switches are new-generation Ethernet gigabit switches developed by Huawei to meet the requirements for high-bandwidth access and Ethernet multiservice convergence, providing powerful Ethernet functions for carriers and enterprise customers. Based on the new-generation high-performance hardware and Huawei’s versatile routing platform (VRP) software, the S5300 features 1U fixed configuration of either 24 or 48 ports gigabit Ethernet with interface choices of copper or fiber ports. 1G and 10G uplink options come in either copper or fiber options or unique combo cards. Stacking is also supported for this family of products. The S5300 series are classified into SI (standard) and EI (enhanced) models. The S5300 of the SI version supports Layer 2 functions and basic Layer 3 functions, and the S5300 of the EI version supports complicated routing protocols and rich service features.

The partner community was very enthusiastic about the Ethernet switching announcement. I am sure the rest of the industry will be closely watching the developments from Huawei/Symantec.



Marshall Bartoszek
mbartoszek@acgresearch.net
www.acgresearch.net

Monday, July 25, 2011

Security and Compliance: Anticipating Tomorrow

One of the most significant numbers in 2010 is 6253, which is the number of potentially exploitable vulnerabilities (PEVs) discovered last year. A PEV represents an exploitable hole in an operating system (OS), a piece of software or hardware or 6253 new opportunities for the bad guys to move into and disrupt the digital world. That’s 17 a day. And if you are a customer of Microsoft, Adobe, Cisco or using any ubiquitous piece of software, hardware or OS your odds of being exposed to one daily is actually very high.

That number has consequences for both security and compliance. For security it represents potentially exploitable weaknesses that can be leveraged to disrupt operations or processes. Those are written by the malware writers that are “notoriety driven,” and the anti-virus industry has pretty well reined those guys in. But more problematically, malware is now used to drop malicious code into environments to capture and remove data for future profit. Typically, the propagation techniques are much better architected and traditional security technologies have difficulty dealing with this type of threat. Hence, they are more successful and costly.

In 2009 the average lag time from the initial exposure of a PEV to the release of Beta code to exploit that PEV was 3.5 days. There are development teams designed to write and release that code quickly so the hole can be exploited before the targets are prepared to deal with it or are even aware that the issue even exists. The average lag time from PEV exposure to the release of the appropriate patch to resolve the issue was 45 days. This obviously represents a huge issue. That’s 41.5 days of exposure.

There is also the impact that 6253 PEVs bring to the compliance requirement table. Fact: None of the compliance documents (US or international) say (I will paraphrase) “thou shall fix the hole!” There is simply no requirement to patch or resolve a PEV. However, all of them say, and again I paraphrase, “You better know that the PEV is in your environment, document exactly how many instances of it you have and where they are located and have some 3rd party documentation of the probability of that PEV being exploited. If it’s low enough, you can use that as a rational for not fixing the hole.”

Those 41.5 days of exposure drive me back “the elephant” I talked about in the previous blog. It’s all about the knowledge component. Security technologies are only as good as the real-time pre-emptive knowledge that sits behind them and alignment or misalignment of the external risk landscape with the internal working environment. Today, it’s not how fast you can respond; it’s what do you already know about tomorrow.


Neils Johnson
Security@acgresearch.net
www.acgresearch.net

Wednesday, July 20, 2011

More on Netflix

A reader wrote in response to the Netflix blog:

I have been a loyal Neflix customer to 8 years. Recently my Cable Internet Service Provider (IPS) hit me with their data cap limit. I had to get a business internet account for $40 more a month to keep internet access due in part to Netflix.

Now Netflix is basically trying to hit me with yet another hike in my monthly bills only 2 months after swallowing the additional $40 from my ISP. This is very bad timing on Netflix part. I would have accepted a hike in the rate of a DVD, streaming account for their existing customers but not a %60 hike.

I buy through Amazon a lot so their Amazon Prime service for an annual fee of $79 charge and will let me have "free" 2 day shipping and includes video streaming looks like a great alternative. It does not have the large Netflix library but the service is new and is expected to grow fast. There are other alternatives.

5 of the Best Streaming Media Services Compared
February 14, 2011. This maybe different now that Netflix thumbed its nose at all its existing customer base.
http://mashable.com/2011/02/14/streaming-media-comparison/

Hulu Courts Buyers, While Netflix Streaming Surges
Jul 7, 2011
http://www.fastcompany.com/1765434/with-875k-subscribers-how-impressive-is-hulus-growth

Amazon Prime Instant: A Closer Look
February 22, 2011 - This article provides a chart of prices across the main video streaming competitors. This article is mainly focused on Amazon's offering but does compare it to the other offerings.
http://www.clicker.com/blog/amazon-prime-instant-a-closer-look-9651.html

Response:

Thanks for your input you highlight two important aspects of the business. There are competitors and reasonable alternatives, including Amazon and Hulu, and that the bandwidth utilization can be a catalyst for ISPs to raise rates or institute caps.

As you mentioned each has its strengths and different content libraries, so most users go for the service that suits them best. Amazon is great if you are already a Prime customer, but for those who are not big Amazon users, the value proposition is less compelling. Hulu is great for its library of TV shows, but is weak on movies. Netflix's price hike will certainly turn away some users, but I still believe that at $8 for streaming-only, it is still a very competitive offering given its library. The real change in price was in the bundle for both services, for people who use only one service (streaming or DVD) will not see any change.

Relative to rate caps/tiered service plans - these are inevitable because the ISPs are making massive investments to keep up with the demand and they have to earn a return on their investment.



David Dines
ddines@acgresearch.net
www.acgresearch.net

Monday, July 18, 2011

What's Your Security Batting Average?

The beginning…it’s a great place to start when discussing security, and I have two questions and the first one doesn’t count because it is posed to get you thinking and to set up the more important second question. Have you had a virus outbreak or malware or been hacked or had data stolen from your enterprise? Regardless of how you answer the first question, the second is much more important. How do you know if you’ve been attacked?

If knowing or not is the germinal point, we have to start by acknowledging that the “bad guys” are actually delivering some pretty cool stuff. Code is written with stealthing and propagation techniques that are designed to thwart traditional security technology. New methods of exploitation are developed such as web-apps (93 percent increase in web-based attacks in 2010 over 2009), new platforms (mobile devices), and now anything from Apple seems to be a target. Let’s face it, they’re good, and actually knowing that you’ve had an outbreak or had malware planted in your systems or data removed is not as easy to realize as it once was.

As I write this we are about a week away from the 2011 All Star Break. I am annually reminded that to be incredibly successful in baseball you can still fail at the plate 7 times out of 10. Anyone batting .300 is paid handsomely for those 7 failures. In the security space we don’t have luxury. In security we have to bat 1.000 and the bad guys only have to bat .001 to be successful. I will talk about the numbers that we are seeing in a future addition of this blog. So I will simply say that with the automated devices, developmental processes, quality control, which potentially offers huge monetary rewards, we don’t expect to see any slow down soon.

All that said, how should you respond to that kind risk? First, eliminate redundant data. Every time a data repository is duplicated it doubles the requirements for security, compliance, storage, and management.

Second, let’s talk about the elephant in the room: the general lack of knowledge about the threat landscape and how it changes every day. In 2010 the security industry surfaced 6253 new potentially exploitable vulnerabilities (PEVs), holes in operating systems, applications and hardware platforms. That’s 17 a day if you do the math. Did you know that? Again, we will talk about the significance of those PEVs in another blog. My point is that they have all sorts of implications for your environment from both a security and compliance perspective. IF you didn’t know about them or their implications, you have a personal example of the elephant.

We operate an information-centric world. The idea of defense-in-depth is still valid, but today the nomenclature includes words such as data loss prevention and encryption. The papers are full of examples of why those technologies are important — think Sony.

We’d like to hear your voice about these issues and encourage you to send an e-mail (Security@acgresearch.net). Give us your suggestions as to which security issues you want addressed and help us guide the direction of this blog. We don’t have all the answers, but we know the people who do and will get the answers to address your needs and bring you material at various levels of granularity about the risk landscape. We will talk about the definition of risk quite a lot, primarily because is changes daily. We will talk about the requirements to understand how significant that risk is to you and let you decide how risk tolerant you are. But if the answer is not very we will also work to deliver some help in the mitigation of that risk and help you bat 1.000.


Neils Johnson
Security@acgresearch.net
www.acgresearch.net