Unit 2
1. Hybrid Cloud Strategy::
Challenges in Hybrid Cloud Encryption Key Management
1. Complexity: Keys stored across on-premises and cloud platforms can be hard to sync
and standardize.
2. Security Risks: Inconsistent policies and unsecured data transfers increase
vulnerabilities.
3. Compliance Issues: Meeting data residency and audit requirements is challenging.
4. Operational Overhead: Scaling, rotating, and managing keys across environments
requires effort.
Responsibilities in a Hybrid Cloud Model:
1. Infrastructure as a Service (IaaS):
- Provider: Secures physical hardware, network, virtualization, and infrastructure.
- Customer: Manages operating systems, applications, data, and access controls on
virtual machines.
2. Platform as a Service (PaaS):
- Provider: Secures infrastructure, operating systems, and runtime environment.
- Customer: Manages applications, data, and access controls.
3. Software as a Service (SaaS):
- Provider: Secures the entire infrastructure, including applications.
- Customer: Manages user access, data within the application, and specific
configurations.
Strategies to Address Challenges
1. Centralized KMS: Use a unified system for managing keys in both environments.
2. Standardization: Adopt uniform policies and protocols like KMIP.
3. Encryption Practices: Use end-to-end encryption and separate keys for different data
types.
4. Automated Key Management: Automate key rotation and lifecycle processes.
5. Enhanced Security: Apply strong access controls, MFA, and monitoring.
6. Compliance Tools: Use automated tools for reporting and auditing.
2. Data Tokenization::
Concept of Data Tokenization
1. Tokenization Process:
- Replace sensitive data with unique tokens that have no value outside the
tokenization system.
- Store the link between sensitive data and tokens in a secure vault.
- Keep sensitive data in the vault, using tokens in systems instead.
2. Token Retrieval:
- Retrieve original data by sending the token to the vault through authorized requests.
Benefits of Data Tokenization
1. Protection of Sensitive Data:
- Minimizes exposure by using tokens instead of actual data.
- Supports compliance with regulations like PCI-DSS and GDPR.
2. Maintaining Usability:
- Tokens function in systems without affecting operations.
- Enables secure processes like billing with tokenized data.
3. Security Enhancements:
- Limits breach impact as only tokens are exposed.
- Simplifies data protection and management.
4. Encryption Complement:
- Adds an extra layer of security alongside encryption for data at rest and in transit.
Considerations for Implementing Data Tokenization
1. Token Vault Security:
- Use strong encryption, access controls, and monitoring.
2. Token Management:
- Develop policies for token creation, usage, and de-tokenization.
3. Integration with Systems:
- Ensure smooth operation with existing applications.
Conclusion
Tokenization protects sensitive data while maintaining usability, enhancing both security
and compliance.
3. Encryption::
Why Encryption is Important?
Data Confidentiality: Protects sensitive data from unauthorized access by making it
unreadable without a decryption key.
Regulatory Compliance: Ensures compliance with laws like GDPR and PCI-DSS to avoid
penalties.
Mitigates Data Breach Impact: Stolen encrypted data remains secure without the
decryption key.
Maintains Customer Trust: By demonstrating strong data security practices, which
enhances customer confidence.
Key Stages for Applying Encryption
1. Data at Rest:
- What It Is: Data stored on disks, in databases, or in cloud storage.
- How to Implement: Encrypt data before storing it using strong algorithms like AES-
256.
2. Data in Transit:
- What It Is: Data being transmitted between systems or users.
- How to Implement: Use secure protocols like TLS or HTTPS to protect data during
transmission from interception or tampering.
3. Data in Use:
- What It Is: Data being processed or accessed by applications.
- How to Implement: Use techniques like homomorphic encryption or secure multi-
party computation (SMPC) to protect data while it is actively being used.
4. Key Management:
- What It Is: The secure handling of encryption keys.
- How to Implement: Using hardware security modules (HSMs) or cloud key
management services to ensure proper generation, storage, rotation, and disposal of
keys
5. Backup and Archive Data:
- What It Is: Data stored for backup or archival purposes.
- How to Implement: Encrypt backup and archived data to protect it, even if backup
systems are compromised.
Types of Encryption:
1. Symmetric Encryption
2. Asymmetric Encryption
4. Data Classification