Securing the future workspace

HPI’s Secure the Future Workspace event focused on the risks of enterprise printing, but the discussion applies to all of the Internet of Things

This post is part of a corporate blogging assignment for HPI and IDC covering their Secure the Future Workplace event.

Security is probably the Internet of Things’ greatest weakness and probably the first devices to illustrate the weakness were networked office printers.

For HPI, the devolved printer and hardware arm of Hewlett-Packard, those IoT weaknesses is an opportunity to showcase their products. However the security of printers is only the tip of a frightening iceberg of technology risks facing businesses and homes.

Security starts at the top

The first keynote for the morning was Simon Piff, Vice President of IDC Asia/Pacific’s IT Security Practice Business.

Simon gave an overview of the challenge of digital transformation and the risks involved.

To Simon, digital transformation has five different aspects within an organisation – Leadership, omni-experience, information, operating model and workforce transformations – all of which have different demands upon management.

One thing he sought to emphasise during his keynote is an organisation’s IT security is a top down process. “If your CEO doesn’t care about cyber-security then how are you going to execute?” He asks.

For printers he makes an important point. “They are essentially a single function server.” He says, “this is another server.”

“There haven’t been headlines about printer hacks but we are about to hear about them.”

Simon’s points about enterprise security and networked printers are something that all computer users, be they in home or business, understand – almost every connected device can be a network server. Being hacked is a real risk for everyone.

Death of the perimeter

“Don’t accept complacency,” is the key message from the second keynote speaker, Edmund Wingate.

Edmund, HP’s Vice President and General Manager of the company’s JetAdvantage Solutions division, described how securing a company’s networking perimeter and relying on firewalls was “backward looking.”

In the printer world, that the typical office device has over 250 settings alone creates risks for network administrators and security officers.

Compounding that problem is the use of proprietary software in these devices. A plethora of custom operating systems, many of them based on outdated Linux distributions, opens opportunities for an infinite range of exploits.

It’s better for the industry and vendors like HP to be open about the systems they are using and any vulnerabilities they find as otherwise governments will be forced to step into the space, warns Edmund. “The absence of standards lets things percolate too long.”

Edmund’s point about proprietary and old software are important aspects in the entire Internet of Things security discussion. That there will be billions of devices ranging from network printers to traffic cameras and connected kettles running antiquated software is a problem the entire IT industry will have to manage.

When your networked is hacked

The day’s final session was a panel featuring Simon Piff, Managing Director ANZ for IDC; Carl Woerndle, Executive Director of Elevate Security; Hugh Ujhazy, Associate Vice President, IoT Practice Lead, IDC APeJ and Edmund Wingate.

Carl was the proprietor of Distributed IT, an Australian domain registrar that was spectacularly hacked in 2011. The damage done to the business was so debilitating that it eventually forced the company out of business.

The alleged perpetrator turned out to be an unemployed Australian truck driver with no formal  IT qualifications who had 700 other companies targeted. It’s a sobering lesson on how businesses are vulnerable.

Random attackers are the norm, Hugh Ujhazy pointed out, and ransomware is another factor which wasn’t widespread when Distributed IT was hacked.

Ujhazy sees Blockchain as the opportunity to rethink security. “We are on the cusp of changing the way we deal with devices and applications,” he says.

The consensus from the panel was all enterprise networks are vulnerable to inside threats – whether they are IoT devices like network printers, disaffected individuals, malware or hackers. For executives and boards, that’s an important message on how critical security is in the modern organisation.

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Facebook’s challenge in executing for the enterprise

Workplaces by Facebook is the social media giant’s push into the enterprise computing market. Its success isn’t assured.

Workplaces by Facebook was is the social media giant’s enterprise collaboration service it hopes will put the company into the enterprise space.

Like many similar products, the service is aimed at improving collaboration in the workplace. As the media release gushes, “the new global and mobile workplace isn’t about closed-door meetings or keeping people separated by title, department or geography. Organizations are stronger and more productive when everyone comes together.”

On first impressions, Facebook should score some successes with the service however it’s success is far from guaranteed. As we’ve seen with other major company’s attempts to open new products, being the deepest pocketed player doesn’t automatically ensure a successful product.

The Google example

A common assumption when a behemoth enters a martketplace is will simply smother smaller competitors by virtue of its size.

History shows this not always the case, Facebook itself thrived despite the huge threat posed by Google+, indeed Google is probably the best example of a large corporation that struggles outside its core business.

Part of the reason for the idea of big companies easily squashing the little folk being a fallacy is that the smaller companies are more focused on their problem – for a corporation the division is one part of a broader operation run by managers, not owners.

In such a marketplace, execution and management focus matter so Facebook’s success will depend as much on executive buy-in as the resources thrown at the product.

Cost and complexity

A notable thing about Workplaces by Facebook is its partner network, led by Deloitte. This is not a good sign.

The need to have consulting partners – particularly huge and expensive companies like Deloitte – is not an encouraging sign for the nascent service and may be a barrier towards adoption.

A separate issue in Deloitte’s involvement is how cloud services, which we include Workplaces by Facebook, are buddying up with the major consulting firms with everyone from Huawei to Oracle entering arrangements. While this might help partners squeeze a few more pennies out of their hapless clients, it’s doesn’t seem to be in the vendors’ or customers’ interests.

Trust

What happens to users’ data is a perennial problem for Facebook and it’s notable this issue isn’t mentioned in the announcement.

Facebook’s success shows consumers are relaxed about how the company uses data but that attitude may not be shared by managers and business owners.

The proprietor of one reasonable sized startup said, “I have a slight concern about giving Facebook any access to my company information. Whilst it has been fine from a personal perspective I feel the trust level is not strong enough to warrant handing over access to, effectively, everything.”

Overcoming that objection may be one of the biggest challenges for Facebook being accepted as an enterprise tool.

Becoming an enterprise service

Facebook’s push into the enterprise isn’t surprising and indicates that as the company matures, something more than the advertising funded consumer market is needed to drive its growth.

That consumer background is a strength for Facebook as the consumerization of enterprise software is an established trend. Having an interface and tools that are familiar to most staff is very attractive to managers looking at introducing new platforms with the shallowest possible learning curves.

However the ultimate question is what need does Workplaces by Facebook address? There’s no shortage of collaboration platforms that offer most of the futures offered by the platform.

If Workplaces by Facebook does address a genuine need in enterprise workplaces and the company’s management can maintain its focus on the product then the service may be a success. That isn’t a given though.

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Seeking salvation in the cloud

In a time of flat markets, companies struggle to find their next growth drivers. Software companies are hoping cloud computing will be their salvation

Oracle CEO Mark Hurd’s keynote at the company’s Open World conference in San Francisco yesterday illustrated a problem facing businesses around the world and its effects on enterprise software vendors like the one he heads.

“Standard and Poor’s top five hundred companies’ revenue growth is at one percent, their earnings growth is five percent.” “It means what? Expenses are going down.”

“This is the problem that the CEO has,” he says. “Why is it hard to grow revenue. All your investors want you to grow earnings and deliver growth. They have little patience for any long story about why it’s so hard.”

“They don’t care about any issues you may have. Grow earnings, grow cash flow, grow stock price. That’s it.”

Growing in a slow market

As a result of that the easiest way to grow earnings is to grow revenues but when global GDP and markets are flat, the only way to grow is to gain market share, Hurd says. “We have to know the customer better, we have to do a better job of marketing and we have to do a better job of aligning our goods and services to what our customers want. We have to improve our products and processes.”

That imperative for companies to cut their operating costs has had a brutal effect on enterprise IT budgets, “over the past five years, the growth in enterprise IT has been flat.” Hurd says, “the growth in spending has been basically zero.”

Customers drive the market

Like many things in the tech industry, the sector’s growth focus has shifted to consumers, “consumer spending on IT has almost quadrupled in the past decade. So while companies are sort of flat, consumers have been spending like crazy.” Hurd observes, “consumers are more sophisticated, more capable, more knowledgeable and expect better services than ever before.”

“Your customer experience is not being defined by your competitors but by technology fuelled consumers. For instance, AirBnB may be defining customer experience for the hospitality industry.”

“People are using a lot of social technologies in their personal lives,” “we expect ease of use, simplicity, clean interfaces are now things we expect in the enterprise side.”

Crimping innovation

In the enterprise IT sector, Hurd believes the flat market means many companies catering to the corporate market are skimping on Research and Development which in turn is crimping innovation, a factor compounded by cloud providers taking an increasingly larger share of the market.

This is underscored by cloud leader Amazon Web Services spending over ten billion dollars a year on R&D. Hurd’s boast that Oracle is spending half of that shows how the legacy players are struggling.

What stands out in Hurd’s keynote is how legacy providers see cloud computing as their salvation. However Amazon’s dominance in that space is a major obstacle for them.

For consumers, big and small, the shift to the cloud has been a good thing in shaking up the existing industry and making new technologies more accessible to smaller customers. For existing businesses like Oracle, there’s a challenge in adapting to a lower margin, commoditized and quickly changing market.

A bigger question though facing all large corporations, not just software companies, is this new normal of low economic growth. Succeeding in that environment is going require a completely different management and investor mind set to that of the last seventy years.

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