Tidal Forces: Software as a Service Is the New Back Office
TL;DR: SaaS enables Zero Trust networks with pervasive encryption and access. Box vendors lose once again. It no longer makes sense to run your own mail server in your data center. Or file servers. Or a very long list of enterprise applications. Unless you are on a very very short list of organizations. Running enterprise applications in an enterprise data center is simply an anachronism in progress. A quick peek at the balance sheets of the top tier Software as a Service providers shows the transition to SaaS continues unabated. Buying and maintaining enterprise applications, such as mail servers, files servers, ERP, CRM, ticketing systems, HR systems, and all the other organs of a functional enterprise has never been core to any organization. It was something we did out of necessity, reducing the availability of resources better used to achieving whatever mission someone wrote out and pasted on a wall. That isn’t to say using back-office systems better, running them more efficiently, or leveraging them to improve business operations didn’t offer value, but really, at the heart of things, all the cost and complexity of keeping them running has mostly been a drag on operations and budgets. In an ideal world SaaS wipes out major chunks of capital investments and reduces the operational overhead of maintaining the basil metabolic rate of the enterprise, freeing cash and people to build and run the things that make the organization different, competitive, and valuable. It isn’t like major M&A press releases cite “excellent efficiency in load balancing mail servers” or “global leaders in SharePoint server maintenance” as reasons for big deals. And SaaS reduces reliance on corporate networks – freeing employees to work at their kids’ sporting events and on cruise ships. SaaS offers tremendous value, but it is the Wild West of cloud computing. Top tier providers are strongly incentivized to prioritize security through sheer economics. A big breach at an enterprise-class SaaS provider is a likely existential event. (Okay, perhaps it would take two breaches to knock one into ashes). But smaller providers are often self- or venture-backed startups, more concerned with growing market share and adding features, hoping to stake their claims in the race to own the frontier. Security is all fine and good so long as it doesn’t slow things down or cost too much. Like our other Tidal Forces I believe the transition to SaaS will be a net gain for security, but one without pain or pitfalls. It is driving a major shift in security processes, controls, and required tooling and skills. There will be winners and losers, both professionally and across the industry. The Wild West demands strong survival instincts. Major SaaS providers for back-office applications can be significantly more secure than the equivalent application running in your own data center, where resources are constrained by budgets and politics. The key word in that sentence is can. Practically speaking we are still early in the move to SaaS, with as wide a range of security as we have opportunistic terrain. Risk assessment for SaaS doesn’t fit neatly within the usual patterns, and isn’t something you can resolve with site visits or a contract review. One day, perhaps, things will settle down, but until then it will take a different cache of more technical assessment skills set to avoid ending up with some cloud-based dysentery. There are fewer servers to protect. As organizations move to SaaS they shut down entire fleets of their most difficult-to-maintain servers. Email servers, CRM, ERP, file storage, and more are all replaced with software subscriptions and web browsers. These transitions occur at different paces with differing levels of difficulty, but the end result is always fewer boxes behind the firewall to protect. There is no security consistency across SaaS providers. I’m not talking about consistent levels of security, but about which security controls are available and how you configure them. Every provider has its own ways of managing users, logs (if they have them), entitlements, and other security controls. No two providers are alike, and each uses its own provider-specific language and documentation to describe things. Learning these for a dozen services might not be too bad, but some organizations use dozens or hundreds of different SaaS providers. SaaS centralizes security. Tied of managing a plethora of file servers? Just move to SaaS to gain omniscient views of all your data and what people are doing with it. SaaS doesn’t always enable security centralization, but when it does it can significantly improve overall security compared to running multiple, disparate application stacks for a single function. Yes, there is a dichotomy here; as the point above mentions, every single SaaS provider has different interfaces for security. In this case we gain advantages, because we no longer need to worry about the security of actual servers, and for certain functions we can consolidate what used to be multiple, disparate tools into a single service. The back office is now on the Internet and with always encrypted connections. All SaaS is inherently Internet accessible, which means anywhere and anytime encrypted access for employees. This creates cascading implications for traditional ways of managing security. You can’t sniff the network because it is everywhere, and routing everyone home through a VPN (yes, that is technically possible) isn’t a viable strategy. And a man-in-the-middle attack on your users is a doozy for security. Without the right controls credential theft enables someone to access essential enterprise systems from anywhere. It’s all manageable but it’s all different. It’s also a powerful enabler for zero trust networks. Even non-SaaS back offices will be in the cloud. Don’t trust a SaaS service? Can’t find one that meets your needs? The odds are still very much against putting something new in your data center – instead you’ll plop it down with a nice IaaS provider and just encrypt and manage everything yourself. The implications of these shifts go far deeper than not having to worry about securing a few extra servers. (And
