Venkatesh S, ISS Solutions Sales (Asia Pacific), Global Technology Services, IBM India/South Asia

SMBs are undoubtedly the potential and hottest market for almost all security vendors. IBM is one of the leading security vendors, currently concentrating to grab major share in this specific vertical. We recently spoke to Venkatesh Sadayappan, ISS Solutions Sales (Asia Pacific), Global Technology Services, IBM India/South Asia, to understand IBM ISS’s product and market strategy for SMB segment.

Q. How big is The SMB security market in India?

According to AMI Partners, SMBs in India are expected to spend around $289 million on data security in 2008. This, the research firm, notes is an increase of 32% compared to last year. Of the total spend, Medium businesses (MBs or companies with 100 to 999 employees) are generating the majority of this increased demand accounting for 54% of the country’s total SMB security expenditure.

Q. What are the latest strategies from IBM ISS to tap this potential market segment?

Our current strategy is to go ahead and execute the basics.

Product: We have developed SMB/Mid-market specific offerings in the form of Express Advantage from our Appliance and Services portfolio.

Price: Pricing is a critical requirement for SMB and prices for the offerings are to meet SMB expectations, The Proventia Multi-Function Security solution is currently available and list prices starts at $999 for the appliance.

Place: We would address these offerings across the tier-1 metros and tier-2 cities in India / South Asia.

Partner: Partnering would be our key focus to reach out the large SMB marketplace. IBM ISS has a good strong Security Partners, who are continuously trained on security skills on a yearly progamme to be abreast with the Security trends and able to deliver and support IBM ISS solutions. We would also actively pursue partnering with the right kind of partners who can mutually add value.

From a solution perspective, newest release of the IBM Proventia Unified Threat Management (UTM) provides best-of-breed complete security at a lower overall cost. It provides six security modules, and now includes a Secure Sockets Layer Virtual Private Network (SSL VPN) to provide remote users with easy remote access and tighter security controls. The newest model also contains several firewall enhancements and many usability upgrades for greater security, making it easier for the IT department to manage.

The Proventia Multi-Function Security solution is currently available for purchase, and list prices starts at $999 for the appliance.

There are multiple benefits to the new UTM. For Small and Medium Business, this solution allows the same security protecting the largest governments and banks in the world made affordable. The UTM provides 6 security appliances in 1 easy to use system which saves budget and energy. The price advantage of a UTM helps SMBs while each security module can compete head to head with competitors as stand alone technology. Additionally, IBM has the only UTM Certified by NSS to help address up to 10 out of the 12 PCI requirements that could be addressed by a network appliance. This means that users can address all of the network PCI requirements through this one appliance.

Large Enterprises with many remote offices also see major benefits. The UTM provides remote offices with the same industrial strength security found at corporate gateway, and reduces bandwidth costs by ditching expensive private network in lieu of standard internet connections.  Exclusive management features, found on the Proventia Multi-Function Security solution, reduce the cost of managing UTMs at many remote offices by managing many devices as if they were one

Q. Can you brief us about X Force advantage?

The IBM Internet Security Systems X-Force® research and development (R&D) organization provides the foundation for the preemptive approach to Internet security used by IBM Internet Security Systems (ISS). The X-Force team is one of the oldest, best-known commercial security research groups in the world. This leading group of security experts researches and evaluates vulnerabilities and security issues, develops assessment and countermeasure technology for IBM Internet Security Systems products, and educates the public about emerging Internet threats. The X-Force team provides IBM ISS with the ability to stop more threats because of its knowledge base of information—understanding the tools and techniques used to create attacks and collaborating with government agencies, industry consortia and software developers. X-Force security intelligence, combined with 24x7 threat tracking and analysis through the IBM Internet Security Systems Global Threat Operations Center, helps ensure that IBM ISS stays ahead of the threat.

The X-Force R&D team leverages its superior understanding of vulnerabilities to develop the engines that make preemptive solutions possible, helping IBM ISS to protect against entire categories of vulnerabilities instead of creating signatures for specific exploits. By discovering and analyzing previously unknown vulnerabilities in critical software and infrastructure such as e-mail, network infrastructure, Internet applications, security protocols, business applications and Voice over IP (VoIP), the X-Force team is able to help IBM ISS help clients preemptively protect themselves against security breaches.

In addition to relying on its own findings, the IBM Internet Security Systems X-Force team collects data from multiple research sources, researching publicly disclosed vulnerabilities and the underground for irresponsibly disclosed zero-day vulnerabilities. The team also analyzes proof-of-concept and exploit code. By monitoring global Internet threats around the clock, and updating the IBM Internet Security Systems AlertCon resource center in real time, the X-Force team helps IBM ISS keep stakeholders and clients abreast of the current global Internet threat level at all times.

The IBM Internet Security Systems X-Force vulnerability database is one of the largest and most authoritative vulnerability databases in the industry. Containing over 30,000 entries, with more than 5,100 added in 2005, the database includes detailed analysis of every notable public vulnerability disclosure since 1994. Moreover, the X-Force team collaborates with thousands of the world’s leading businesses and governments, vertical sector information sharing and analysis centers (ISACs), global coordination centers and other product vendors.

In April 2008, IBM unveiled the details of a breakthrough research initiative from IBM X-Force and IBM Research, code named "Phantom" that cracks the code on secure virtualization.

• At Phantom's core is advanced intrusion protection technology that sits in an isolated partition on the hypervisor -- the layer of management software that coordinates calls between operating systems and computer hardware.
• The hypervisor is critical point of vulnerability, because once an attacker gains control of the hypervisor, they gain control of all of the machines running on the virtualized platform - by either taking control of all the virtual machines running on that system, or introducing a new machine to gain command of other systems in the environment. 
• The PHANTOM-based virtualization security technology can efficiently monitor and disrupt malicious communications between virtual machines without being compromised. 
• PHANTOM's visibility into the entire virtualization environment allows it to monitor the execution state of virtual machines, protecting them against both known and unknown threats before they occur
• For the first time, the hypervisor – the gateway to the virtualized world and all that lays above it – can be locked down.  
• IBM pioneered virtualization over forty years ago - with Phantom, IBM we're combining our systems and software heritage, Research prowess and X-Force intelligence to once again lead a new wave of virtualization innovation. IBM's secure virtualization strategy spans the company’s Services, Software, Systems and Research arms to shift isolation and security controls from physical to virtual resources.

Q. How do you see 'Security as a Service' market and what is IBM ISS planning for the same?

IBM ISS offers “Security as a Service” from our Managed Security Services and Professional Security Services portfolio. For e.g. IBM Vulnerability Management Service, is a comprehensive program designed to help organizations implement the tools, methodologies and best practices required to address today’s dynamic vulnerability landscape, which helps organizations of all sizes proactively respond to Internet threats while integrating security with key business processes. This turnkey solution focuses on vulnerability discovery, prioritization, remediation, dynamic protection, verification and customizable reporting. By combining internal and external managed scanning services with integrated workflow and case management capabilities, the IBM Vulnerability Management Service provides organizations with comprehensive visibility into each area of potential exposure within a distributed network environment. Each component forms an integral part of the vulnerability management framework, helping not only to reduce risk but also to enhance and quantify an organization’s overall security posture.

Q. Can Express Advantage fulfill security needs of Indian SMBs? What are the real challenges faced today by Indian SMBs and how does IBM plan to tackle those issues? As no. of complicated and sophisticated blended threats are increasing, What is IBM ISS's approach to prevent and extend proactive operation to stop this growth?

Security Statistics

• The average cost per hour of unplanned downtown is equal to US$42,000 per 1000 transactions (Source: Alinen ROI Report)
• 33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible (Source: Ponemon Institute, 2007)
• 50% of consumers avoid making purchases online because they are afraid their financial information will be stolen (Source: Cyber Security Industry Alliance survey of consumers, 2007)
• Complexity remains the biggest security challenge for clients (InformationWeek 2008 Security Survey)
• In North America alone, companies are expected to spend an estimated $28 billion on security compliance in 2008 (AMR Research)
• Significantly, through 2010, companies that select individual solutions for each regulatory challenge they face will spend ten times more on the IT portion of compliance projects than companies that take a proactive and more-integrated approach. (Gartner)

The new products and services from IBM ISS aim to solve the security problem holistically and move towards true transformation of the security industry. We’ve realized that clients are facing changes in managing their security IT infrastructure from five areas. We know that clients want to simplify their security infrastructure by consolidating vendors, streamlining management of products and centralizing necessary compliance demands. Our products aim to meet this need while helping clients balance risk, complexity and cost.

Five Vectors of Change

1. Evolving threats:  In recent years, an entire constellation of threats has emerged, ranging from denial of service attacks, to rootkits, botnets, browser based attacks, spear-phising and whaling.  This rapidly shifting landscape is followed in near real time in IBM’s X-Force threat report. The nature of threats has also evolved, expanding beyond mischief and into political and profit-driven motivations.  This is apparent in the recent attacks on Sarah Palin’s email account.

2. Evolving compliance: The security-related regulatory and industry compliance burden for organizations also continues to balloon. According to Forrester Research, approximately 114,000 regulations have been imposed on U.S. businesses, institutions and government agencies since 1981 and the phenomenon is also prevalent in countries around the globe. 

3.  Evolving technologies: Virtualization, Web 2.0, service oriented architectures, cloud computing and other technology evolutions continue to expand the boundaries of the enterprise and establish new avenues of business interaction.  Such disruptive innovation also creates new risks and/or undermines legacy security models and investments, which calls for new counter measures and leads to new costs and management challenges for IT.

4.  Evolving economics: The globalization of the economy has established the 24-hour business work day and has compounded enterprise risk challenges with new geographic, language, legal and cultural factors. Unfavorable exchange rates can impact security budgets, emerging markets present unfamiliar risk factors, foreign governments present unique compliance challenges, etc. 

5. Evolving business needs: Increasingly, companies have to quickly adjust to changing market conditions.  Sometimes it means such strategic moves as mergers or acquisitions, or altering distribution methods.  Or it may simply call for creative ways to apply technology, personnel and other assets to boost internal productivity, improve collaboration with suppliers, and enhance interaction with customers.  Because all these things typically involve sharing potentially sensitive data, they can impact risk posture. 

Q. How unique are IBM ISS offer for SMBs, compared to others vendors?

Overall no other vendor offers the same reliability, level of security and technological innovation like IBM does. For e.g., no other vendor offers this level of PCI compliance through UTM appliance. Each of our security modules are best in class and could compete head to head with competing stand-alone products. And many of the other players don't have capability to update their UTMs for new security modules. That means once a customer invests in the hardware, that's all it ever can offer. Our UTM can add more value as technology innovation progresses. All updates can be pushed remotely in groups making it easy for clients to upgrade the UTM with the latest technology.

IBM is the only company with the breadth and depth of research, products, services, consulting and global business partners to deliver end-to-end security.

• Over 200 security-related products
• Over 3,500 skilled security services professionals
• Six worldwide research labs innovating security technology
• Eight security operations centers
• Extensive network of global business partners
• Leader in privacy protection
• Leader in security standard efforts in Java and SOA security
• IBM Tivoli provides the most comprehensive, integrated security management software portfolio, with over 25 current products, that address three main security challenges: identity and access management, security information and event management, and compliance management.
• IBM Tivoli is the worldwide market share leader in identity and access management software.
• IBM Rational AppScan is the market leading web application security scanner that identifies, validates and reports on application security vulnerabilities. AppScan not only finds problems, but it helps resolve them by generating intelligent fix recommendations, pinpointing the issues and helping users to remediate the vulnerabilities.
• IBM Internet Security Systems (ISS) has commanded the leading edge of security innovation, inventing cornerstone technologies such as vulnerability assessment and intrusion detection/prevention for more than 10 years.
• IBM ISS serves as a trusted security advisor to the U.S. Department of Homeland Security as well as many other federal, state and local government organizations, helping create governmental security standards and initiatives.
• IBM ISS is a leader in keeping corporate customers ahead of security threats.
• The IBM X-Force team, established in 1997, is the oldest commercial security research group in the world and X-Force maintains the world's largest vulnerability database with more than 33,000 vulnerabilities.
• As the only technology provider with more than 40 years of security development and innovation, IBM designed the System z mainframe to support business when constrained resources demanded that many applications share compute resources safely. These features are designed to protect against hacks, keep private data.

Q. How do you predict the Indian SMB security market for next 2 years?