Adam Ely
Strategies for Security: When, Why, How

Adam Ely is the Founder and COO of Bluebox. Prior to this role, he was the CISO of the Heroku business unit at Salesforce where he led application security, security operations, compliance, and external security relations. Prior to Salesforce, Adam led security and compliance at TiVo and held roles within The Walt Disney Company where he was led application security of http://ABC.com, http://ESPN.com, and http://Disney.com.

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First, I always like to start off alittle bit to figure out the audience and what you guysare up to and want to get out of the presentation like this.I have a smaller group tonight, so I am cool with yell outquestions, hold them to the end, whatever you want to do.We can kind of go however you want.

This is a bit about my background.I recently founded a security company, spentabout a decade plus in security.I started in reverse engineering working for the governmentdeveloping exploits back in the mid-to-late 90s.I went on to publish some papers and booksand random things on the corporate side and ran security at Disney for a couple of different visions, then TiVo. Then James and team recruited me intoHeroku and Salesforce, and then I leftand started my own company.

This is pretty much what I live every day and I knowthe challenges of trying to figure out building securityand what do you do and when do you do it andhow do you do it, and that it's a pain in the ass anddo you really want to spend money and time on it.I get that because I've been yelled at for many yearsby all the people around me telling me thatsecurity's a pain in the ass.We're going to try to get away from that and talk aboutexactly what's relevant for you guys and how you can startand figure out where you're at and where you should go.

To kind of just level set a little bit, anybody want toshare a little bit about what they're hoping to getout of this today or where you might be at security orsome of the blockers or questions?Or are we going to be a shy crowd?Ok go ahead.

Q: What do we need to do to get enterprisecustomers using our products in terms of security?

A: What you need to do to get enterprise customersto use your product from a security standpoint.That's normally the biggest one.

People for some reason want to get enterprisecustomers and make money. Somehow security plays into that, which is great becauseall my life everybody said security has no ROI, why do it?

And I've always said well, because at some point you'regoing to have to do this and have to show what you're doing.

I'm going to start off with some very basic things.If this goes too basic, yell at me and tell me.Say move on.If you guys want to dive deeper, yell at me and tell me.We can go all the way into stuff.This is what literally I do all day long and I havesome of the most amazing security peoplein the world yelling at me every day to tell them more.

This is a very simple thing that in most cases I wouldbe embarrassed to ever admit that I will actually reference.It's what we call the CIA Triad. You canfigure out why it's called CIA on there.This is the principles to all security.If you can keep these three things in mind at all timesthen you'll have some guiding principles that willset you down the right path. Not necessarilyhow to do certain things, but this is whatall security people think about.They think about the confidentiality of data.

If you have enterprise data or if you have PIIfrom your customers, keeping that private.Even Facebook has to keep some of my stuff private.I share some things, but I send messages to my friendsand tell them they're dumbasses or ask girls forinappropriate photos, whatever it might be.I don't want that to be public,so that's where that comes in.

Integrity. Obviously enterprises want to make surethat the data that you're storing, that their datais actually what it's supposed to be. That somebodydidn't modify it, didn't change their sales numbers,that their billing statements didn't get changed orusage statements didn't get changed, whatever it might be.They want to make sure that that data is of qualitybecause that's what it really comes down to.

Then availability.The reason availability was actually added to this years agoand it became a triad instead of just two principles,was because security people forgot about this part.Security people thought, oh if I lock it all down, then it'ssecure. They actually forgot that somebody actually had toget to data to do things with it.

This is wheremost security programs and implementations fail, is thatthey are too rigid and they become too difficultand then that's why you have security programsthat are just a pain in the ass.

How many of you ever worked for a big company?A Fortune 5 or something like that.Did you like the security people there?No, of course because it wasa pain in the ass and that's where we all failed.Do you like any security people?Yes, good answer because I'm here.Alright, perfect.

Before we kind of jump in a little bit more.First thing to say is "security." I tend toput it in quotes a lot of times. I'm going to do thedouchey-like airbag quotes real quick.Security really doesn't mean anything.It's compromised in many things.You have your technical pieces, you have your managementpieces, your processes, you have the sales side,the assurance, all that kind of stuff.And depending where you are in a company depends onwhat you really have to try to tackle.

Are most companies here some kind of SAS web-basedplatform? Okay, so you know all this.James just hooked me up with somebody the other day,the Lockitron guys. Honestly a very different model. Iwas like, "Yes I want to talk tothese guys about their security."Then of course, all the reverse engineersthat I employ were like, "No we want your lock."That's what they were really interested in.

Anyway, so you have all your different kinds ofpieces of security. The technical bitsare usually what most people ask about.This is where most people start because this is what you're going to be drilled aboutfrom the enterprises most often.Enterprise security guys, they're going to come to youand they're going to say, "Oh you want our money?Okay, what are you doing about all of these things?"

They're going to send you that stupid questionnairein Excel that's like 300, 400 questions long with likesix tabs, it's all color-coded and everything. Andsome risk analyst on the other end takes the thingand inputs all the data in some big system and theytell you how secure you are.That's not really what happens.That whole thing is meant to just scare you and basicallysay, "What are you doing, are you doing anything?"I can speak from firsthand because I used tosend that to a lot of people.I still do every now and then topiss off a couple of my vendors.I will send that out.

Really what people care about is they're going tolook at this and if they're a technical security review,these are the top things that they're going to ask about.They're going to ask about code quality.They're going to ask about logging.They're going to ask about access controls.They're going to ask about your patching and updating.And what they're saying is, "You don't have to be perfect,but what do you actually do?"If you can give them an answer.

If you can show them something, that puts youabove most other people that they're talking to.That puts you above most other vendors.It's all about just removing a little bit of that fear.

The technical piece, this is the one thatmost people have the biggest hurdle withbecause it's so expansive.There's just so much going on because I havea whole other slide for technical.Now you have infrastructure.So all of your servers — are you running on Heroku,are you running on your own data center,your own EC2, what are you doing?It just kind of continues and people want to seethat all these little boxes are checked and that you'redoing something in every one of these areas.

Once you kind of get past that, and you say well,there's these technical bits and there's this processand there's all of these things, there's this listof things that you can do under security,it really breaks down to minimizing risk.But it's minimizing risk both for your customer,be it end user Joe in Omaha, or a big Fortune 500 company.But it all comes down to minimizing risk and making surethat what you're doing is the right thing, and thatyou can show that to your customers.That assurance, that whole transparency of securityis another big takeaway that you should take awayfrom tonight, if nothing else.

Define what you're doing and be openabout it to your customers.They will appreciate that.

If you go look at like Saleforce's site, I loveSalesforce as an example of this. They have trust.salesforce.com.It's a whole site dedicated to how they handleyour data, how they handle their security, andit's a place for you to startthat conversation with them.Salesforce blew open the SAS world for all of us.I was at a SAS company, back before it was called SASmany years ago, before I was even at Disney,and security was this big thingwe always had a problem with.We hadn't caught on, or I should say I hadn'tcaught on, to the whole be transparent. I wasvery reluctant to talk about my security.

Salesforce, they said nope we're going to be transparent,and they have blown it open to where peoplewill actually trust cloud solutions now, and it'sall because of that transparency.If you take nothing else away from tonight,remember that one thing and that will help you.

Alright, so the "why" of security.We heard one thing, it wasabout getting enterprise business.Most security people will give you that top answer.They're going to give you the bullshit answerof why you should do security. Because without security, your business is notgoing to exist anymore.You're going to lose so much business, you'regoing to lose so much revenue, damageto your brand, all of this.

When I started at Disney, I called up brand management.This is a super-large company.They have an entire team just brand managementand there's like 300 people on that team.I got this very nice lady, and I said,"Hey,ifone of our web applications, one of our websites,"and we're talking disney.com, ESPN, ABC, I said, "if that gets compromised, what's theimpact to the brand of Disney?"

This very nice, sweet lady down in LA,started laughing at me, and she literally said,"Adam, it is not even relevant.The security of that and if somebody breaks into ESPN.com, will not hurt our bottom line whatsoever."She's like, "We have people with heart attacksin the park. That should hurt us,and it still doesn't."She goes, "How many people have died in our park?"

And I said, "I don't know how many?"

She goes, "Zero."

And I go, "Well why?"

"Because we don't allow them topronounce the person dead until they get tothe hospital, so technically they died at the hospital."

I was like, "You're evil.That's a whole other level, but okaypoint taken. You don't care."

So, I had to go down some whole other pathto figure it out.Now, the one thing I will say is, this was early onand Disney was still very focused on theirparks and resorts and their physical business, the one thing that can hurt Disney: One dayI got a call. I have no idea to this dayhow this lady got routed to my desk.But I got a call, there was a lady screamingabout her kid got a spam email for Viagra.

She's like, "My kid has only ever signed upfor your game," it was Club Penguin orsomething like that, "and you got compromisedand now my kid's getting Viagra spam and it'stalking about penis and talking about this and that."And I'm like, "Oh God."

You've never had to deal with a nightmare,if you've not had to deal with an irate mother.I will take any internet attacker on the planet.Script kiddies, DoS in my site, great.Somebody wants to steal some data, great.I never want to deal with an angry motherever again in my life.This woman would not stop calling me for a month.Turned out it was not Disney.Her kid had actually signed up for something elseand that's where it came from,but I had to deal with that.

Anyway, that's what you're normally going to getand that's what your customerswill try to tell you, and they'll try to tout it. It's not right.In the security industry we'vealways tried to hold to that.TJX was the largest credit card compromisein history at the time. Since thenthere's been two larger.Year-over-year revenues at TJX were up the yearfollowing this massive credit card theft.Only one company, only one sizable company,has ever gone out of business because of a compromise. That's it, one. So that's not why.

The more crappy answeris: why you do security depends on your business.I actually started to write that in this slideand that's why I wrote the crappy answer.Because I just felt crappy saying, "You know what,I don't know what all you guys do, butit depends on your business, that's why you'regoing to do security."I felt like that was a shitty answer, soI wasn't going to leave you with that.

The real answers. One, because Spike Lee told us to do the right thing.I don't know if you guys have seen the moviefrom 1989. It's a little old. I'm datingmyself all of a sudden here.

Really, it's about protecting your IP.You have IP that's valuable.Your company, you want to go get new customers,you want to go IPO, you want to get acquired,whatever it is.That's intellectual property.If that gets out there and gets lost, you have nothing.The value in your company is gone.

I know a very large company that we work with,they make everything from some householdappliances to bombs, literally.This company, in the last quarter, has beenbeat to market six times by Chinese companieswith their own schematics.Their exact product design.They've been compromised for at least a yearwe know at this point, and they're losingmarket share and they're losing revenue.They can't do anything with that.The product's already out there, they're justa me-too player and that's it.

Even more importantly for small companies though,is the IP of your customers.So if you want to get a large enterprise customer,enterprise customer has maybe data on their employees,on their customers, other intellectual propertyand business data.The right thing to do is protect thatbecause they are entrusting you with it.And also, let's be honest, none of us thatrun startups can sustain a lawsuit from Disneyfor liability.

There's that whole financialside of it as well.I see many small startups really go into bad shapebecause they had to pay out a million to 10 milliondollar liability claim against a bigenterprise because they signed a contractthat was a little too loose.

Take that for a warning as well. Be carefulwith your contracts when you talk to big enterprisesbecause they will try to get whatever they wantand you want their money, so often we signthose contracts. I do it myself I have to admit that.

I'm going to skip to the last one.The last one is really kind of the big one.Enterprises need assurances.I always say that this is kind of like dating.I can tell a girl that I'm a great guy.I am awesome, go read my Match profile, my match.comprofile. I am awesome, you'lllove me, I travel, I'm well educated,I'm articulate most days, maybe not today.I can tell them all I want, but until I prove itand they see it, they don't care.Security is much like that.That's the big reason why you do this.

Other than just doing the whole right thing,we're going to leave that kind ofoff to the side real quick, our enterprise morals. But from a business standpoint, you do itbecause you need to show that you're legit. That you're a real company. That youtake these things seriously.Now, to what degree you do it, that's a different story.And it's not always created equal when you'regetting audited, but you have to somethingand you have to show that assurance.

I spend a lot of time on this topic,because I struggled with this early in my career.I was very egotistical about: I am the expert in this,why should I have to prove this, I know what I'm doing,why would you ever question me?Granted I started my career when I was like 16,and I was a dickhead, but it's the fact thatI see myself now and I turn around and tell my staff,and I go well show me.How did you arrive at this conclusion?It's that whole assurance thing.So again, it's much like dating.I use that analogy quite a bit these days.

The other stuff is loss of market leadership,and all this kind of stuff that comes with losing your IPand those kind of things. The very last bullet point is an interesting one.Somebody's ass is on the line.If you're doing business with an enterprise,there's some security guy somewhere in a cube farmin whatever city. He's got to make a decisionof whether he's going to let a certain type of datago into your product or use you for a certain kindof service. And he takes that very, very seriously.Because at the end of the day if your solutiongets compromised, it's him that they look atand him whom might get fired.

Security people are the notorious scapegoats.Everybody who has ever been in my role hasalways been scared of being the scapegoatin two years because a breach is going to happenand they turn around and go, "Well you're thesecurity expert. We got compromised. You're fired."They put out a press release about that:"Hey we replaced our old security team, stock is back up."I've seen that many, many times.

Take in the personal side of this and thatalso kind of plays to when you go through reassessmentsand talk to their customers. How many of you havetalked to enterprises already that start tobring up security or want you to talk to security staff?Okay, a couple.Have you found that relationship to be kind of likethey're your adversary?Kind of battling, or has it been a good relationship?Some, yeah.So most security people are dickheads.Just know this.I am.They're just assholes, to be completely honest.It's their job to find a problem in your product,so they're going to sit there all day.

Get over that part and remember that they're human,and help them with their job, andit goes much, much easier.

Into the last slide.These are the things that Iused to tell my bosses that I worked forthat didn't want to fund my security teams.I had to figure out models for ROI for security.My cofounder, he loves to just randomly tell mesecurity has no ROI. He knows how itpisses me off so much.I've spent just like a decade in it, andhaving a whole company around it.But he also likes to just come over to me withrandom things.

He goes, "If we put in this controland it costs $200,000, what's the ROI?How do you justify it?"And I'll build him a whole deck for it.I'll be like, "Here you go. This is what you would do."He loves to try to stump me on this.This is a random thing we do, especially when I'm drunk.That's his new thing, is he waits until I get drunkand then tries it and I'm still destroying him. So I'm better than him.Caleb, if you ever watch this video,I'm better than you.Okay, just a little shout-out.

Market leadership because you're going togain your customers.If you're a small company, and you can gainone or two notable enterprises, big-name enterprises,you can take your market.You can take a lead against everybody elsethat's your same size, and then if you haveother companies that are already establishedor more big enterprise that you're competing with,you're the breakout, you're trying to disruptthe market, whatever it might be.Whatever the new terminology used on TechCrunchthis week for changing the market is.You will be able to actually prove that youare a player, and then other companies will look at you.

When we started our company, first thing I did was,I went and got two companies that I knew thatwould resonate with the other customers I wanted to target. AndI haven't had to look back.It's been really great.

So now the "hows." Let me ask a little bit, other than justgetting the customers, what are you guys struggling withfrom a security standpoint right now?Is it technical aspects of it?Or it just where to start or organizing it?Prioritizing.Yeah, that's fun.Anything else?Okay, we'll start with that.I have that right in the middle of the slide.Perfect, awesome! I thought I was going to have tochange slides. I'm very happy.

Let's start with prioritizing.I'm going to jump around the slide a little bit.Prioritizing security is a pain in the assfor the reason that it feels different.We feel like security is different than whenwe prioritize features for our product, or weprioritize how we shop at the grocery store.The fact is, it's a process.It's the same as what we're going to do anything else.

All of you in this room, you look at your productand you say, "I have this huge list and I have likefour years worth of work, where do I start?"You guys know that pain of figuring that out.Security is the same process, though.You look at it and you say there's somethingon this list that's more important.And how do you define importance?Normally with security and risk people, it's definedon risk is probability and impact.It's what impact would this have ifsomebody compromised my Rails app?What's the probability that it's actually going tohappen? Is there a worm for this vulnerabilityin the Rails framework?And that's how security people look at it.

I'm guessing that most of you are going tohave to uplevel it a little bit and alsoweigh in the business side of it, which isunfortunate because it's much easier just to lookat the technical side of it.And I'd love to do that all day long becausebusiness just complicates things, customers and stuff.Why deal with that?

What you have to look at though is: What's going togive us the biggest traction forward?It might not be solving the biggest security hurdle,or vulnerability, but it might be the thing thatgives you the biggest traction with the customersthat you are talking to.Your customers may be coming to you and saying,what I really care about is application security.Web app security, SQL injection,cross-site scripting, all of these things.They may not be asking about your background checkprocess. They may not ask about yourinfrastructure patching process.

They may say, what we really careis about this abstract stuff.If you hear that 3 out of 4 phone calls,and that's what they focus 90 percent of the time on,then from a business priority that's probablygoing to be the highest priority.Just like if you get on the calls with your customersand your customers say I need this feature,and that's the one you hear the most, thenthat's probably where you're going tofocus some of your time.

What I always say is find the stuff that's thebig wins, that will move you forward as a business,and that you can also tackle to show that momentumand start to build that culture of security.

But to back up a little bit, I have one principle. I don't knowif James still in here, I think he ducked out.I'm going to tell a story about James here in a second.Oh no, there he is, he's behind the pillar.I believe in making security frictionless.The problem with security and the reason we allhate security, the reason my company even existsis because people go around itbecause it's a pain in the ass.They don't want to do it because it messes uptheir workflow, it's extra work, it's this other project,it doesn't make sense.You have to make it frictionless.So you have to find ways to build it into your culture,especially from an early stage if you can, andfind ways to make it easy so people don't have tothink about it and you have less processes.

For instance, when I started at Heroku.Heroku was a little scared of me, to be completely honest.I was this big enterprise hire that came into Heroku.I'm in a room with a bunch of developers.They didn't know much about me other thanwhat they saw on LinkedIn, which is a completely pitchedposition for big enterprise, Fortune stuff.They were like, oh, crap, this guy's going to be an asshole.Literally, one of the guys told me that.He thought I was going to be an asshole.Luckily he told me this after he didn't thinkI was an asshole anymore, otherwise it probablywould have set us on a bad track early on.

I hada meeting with James one day,maybe the first, second day, something like that.We were talking about random security controls,things that people had brought up and what we should do.I was like yeah that's a legitimate controland he had concerns, rightfully so.His job was to push me.His job was to make sure I didn'tscrew up the culture at Heroku.His job was to make sure I didn't screw up the livesand the productivity of everybody around me,just in the name of doing my job.

There was a question about endpoint security,laptop security, and he was like,"Well what aboutthis, what about that?"

I was like, "Well, you have SSH keys on there,you have this..."

He goes,"So how do other companies do it?"

I go, "Well, they would put all this tons ofendpoint security software on there and encrypt it,and put your AV on there and decreasethe performance by 25 percent. It's a great pain in the ass."

He goes, "So how can we do it different?"

And one of the things I was very scared whenI went into Heroku was that everybody told methey don't accept the status quo.It was always about innovate. And that's alsowhy I liked it and went there, becausethey built that culture.

I said, "You know, there's this thing.I have an idea.You can do a key management serverjust like you do a crypto keys. It's checked out,temporarily used, destroyed after use.It reduces your risk window to a really minimal timeframe.This will be great and it will alleviate the needfor these other four controls."

I found a way to do something that was frictionless.In my company now, we havea command-line tool that we use forvarious things, automation and whatnot.In that command-line tool, I built in auditing. When you run that, it will actuallyaudit the system it runs and says, okay does it meetall these standards and these configurationsthat we have to have in place?

I didn't want to build an audit team.I didn't want to have to walk around all my guysand say hey, how's your laptop configured,is it configured properly?So I built it into the tool they already usedwhich auto-generates a report every time they run it.It just goes and logs into the databaseand I can go look at it if I need it. Or better yet,I can show it to my customers.

And now my customers say, "Wow! You're this 23-personstartup and you have continuing auditing of your controls,which Fortune 100s still can't do."

They loved that.That gave them an assurance that I wasactually thinking about security.I wasn't doing everything, I'm still not.I have a company of some of the bestsecurity people on the planet.Who's familiar with SQL Injection?My CTO, you can blame for that.He's the guy who discovered the entireconcept of SQL injection.So you can write him an email jeff@bluebox.comand blame him for having to deal with thatbecause he's a dick for finding that.He's messed up all of our lives.But those are the kind of guys I have, andeven we're not perfect.So trust me nobody's ever going to expectanybody else to be perfect.

The next thing I always say is after youbuild that culture of frictionless, is tounderstand the customer's wants and needs.Again, I'm going to go back to my dating scenariothat I use a lot. My board loves that I do this.Actually, they're quite embarrassed by that fact, but that's another story.

When I go out on a date sometimes, or I havea girlfriend, which is rare these days, girls willtell me, they'll tell me stuff and I'mnot really understanding it.They're telling me what they want, but I'mnot really understanding what they need from me.They need me to call them more.They need me to not be an asshole.They need me to not be in my office 19 hours a day.This is stuff they need. They're saying,hey, I want to do dinner, I want to do this.And I say the same thing back to them forthe things that I need and want.So customers are very much the same.

It's just like from a product standpoint, so I'm going totry to put this in terms that are relevant here.You guys hear from your customers, they say theywant certain things, but you have to distillthat down to what they really need, and whatthey're really trying to communicate.Because they're not always good at that.They don't think like product people.Enterprise security is the same way.They're going to come in, they're going togive you this huge list, and they're going tosa this is what we need."Nah!That's what you want.What do you really need?"

You take that list and you talk to themand you find their concerns, and then you goback to the prioritization, and you prioritizethe stuff that they tell you they really need.And you say, if I get these three things in place,can we do a deal?And most of the time they're going to go, "yeah,"as long as you have a roadmap for the rest of the stuff.

Once you get that frictionless and think abouthow you're going to build out your security andget that into your culture, then there's understandingthose needs and wants, then there's prioritizing.Then you can just kind of go from thereto build out your ownership, and learn frompeople in the market that have already done this before.

Ownership is one that's really, really important.

How many of you have someone in your company right nowthat "owns" or "champions" security?Okay, a couple.That's actually more hands than I expectedto be completely honest.Security is one of these things that, it's likeanything else, like product management orsales or marketing that there's probably going tobe a lot of people involved in it.But you have to have an owner, somebody who is justkind of herding the cats in the right directionand saying we have a strategy, and we're going to executeon the strategy and this is the direction we're going to go.And making sure that you're meeting the needs ofthose customers, and that everything is going well.

I also believe that you should mix security inand it should be everybody's responsibilitywhich comes back to that frictionless state.If you have a team of engineers and you havean architect, maybe that architect is also thinkingabout security. Are we doing things secure,or are we doing things the way we should, orthe way we'd want our data handled? You have that executive owner, thattechnical owner or whoever it is, that is thatkind of champion and that's able tocommunicate security strategy inside the companyand transparently outside the company.That way you know that it's moving forward, andwhere it's moving forward.

I'm going to go through a couple of these, they're going todive into some of the points that we have.But, like I said, if you guys have any questions orif you guys want to go down adifferent direction, holler out.We can totally go down different directions.I am well prepared for you guys.They scared me.They have a very professional setup here and everything,so I was like I have to be on point tonight I guess.

We talked about this a bit, just makethings frictionless and build things into whatyou already do, so you don't have to choose a bad option.The good option is there, it works and youcan already take it.One of the things I always talk about here isusing vetted libraries.There's tons of libraries out there that haveinvented from a security standpoint, or have beencustom built for security for sanitizing inputs.By the way that's the $300,000 consulting secret right there.

If you sanitize your inputs and outputs of your product,you will stop 90, I'm going to go 95+ on thispercent of attacks.YourSQL injection attacks, your cross-site scripting, all that.You're going to make your app securityside of the world much, much easier.Spend time on that if you spend time on anything.

You use those vetted libraries.You use the tools that are built into whatyou're already doing. You're going to save yourself time, you're going to save yourself headache, and the right optionis just going to be there.Nobody's going to have to make a tradeoff in a pinch ofdo I have to ship product, or ship secure product?It's just there.And that's what you really, really want tostrive for from an early stage.

We talked about this already, boiling downwhat the customers need.This is my favorite example, PCI.Have any of your customers asked you about PCI compliance?Okay, out of the ones that raised your hand,are you in scope for PCI compliance?These are the answers that are interesting,the not sure and probably nots.

Enterprises will ask youif you're PCI compliant, or what you do for PCIto meet PCI compliance even if you're not required to be in scopebecause it's a measuring stick.They don't know what other questions to ask.They don't know how else to gauge you and measure you, so it's a common criteria.They'll come to you and they'll say,"Well you have to be PCI compliant.And you go, "What's your need?That's what you want me to be, what's your need?"You boil that down to the exact needs anda lot of times this question will just go away and disappear. It's an awesome one.So that's why I called that one out.

The next thing I'll say is understand your riskand the concerns you have in your business.Each of you has a set of concerns that are inyour head all day long as you're running your companies.As you're building code, or shipping product,you have some concern whether it's running out offunding, hiring new staff.Which, I hate recruiting, I hope everybody elsehates it as much as I do.Otherwise you guys have better recruitersand that pisses me off.You have concerns.You should be thinking about yoursecurity concerns as well.

You can look at your product and you can say,how would I break into this?What aspect of my product would Ibe scared to use my own personal data in?If you put your Social Security number,you put your bank account information in there,would you feel comfortable end-to-end through the product?Vendors interacting with it, your staff interactingwith it, all of this.

Put yourself in the seat of your customers, andall of a sudden you'll figure out where yourbiggest concerns are in your product.Then you'll be able to look at that, prioritize that,and then internally use that as a motivatorto drive that security culture.

Security culture internally is a big thingthat you have to really own and championto push forward before you can ever reallyaddress it with your customers.Because if you get too much pushback insideor people just aren't adopting it and doing it,it's almost for naught.Once you know all that, then you candefine those risks, you can prioritize them,and figure out how to tackle those.

Again, we talked about this, but it's the biggest wins.You want to focus on the biggest wins.So your biggest win may be technical, or it may bejust documenting what you do.I had a very specializedsecurity career before I came to the evil vendor side.I specialized in building andrebuilding security teams.That's what I did.I came in, you either had nothing or somethingwent upside down, and I came in and I either built teams,I gutted teams, but that's what I did.I was restructuring for security.

The first thing that I've always done, I write downall the concerns that I have and then I startto prioritize that. Then I figure outwhat are my biggest wins?What are the things that customers are asking for?Nine out of ten times, it's simply documentingwhat I already do and documenting what I'm going to do.

That simple documentation not only gives mea roadmap internally just like it would for a product,but it also gives me something to hand to my customers,to talk to them and start the conversation.I find that you have to have that to startthe conversation to understand what theirtrue needs are, otherwise they write you off.

There's a large company, I won't name them,but there's a large company that had a breacha few years back when I was at TiVo.Their product came in and somebody in our legal teamsaid we would really like to use this product.It was going to have very, very sensitive data in it.Stuff shared with our board, very, very sensitiveproduct stuff, litigation stuff. If youknow anything about TiVo, their whole model isbasically being an IP troll these days.We couldn't allow this to get compromised.I was a little concerned about it, so I had somebodyfrom my team contact their security team, no answer.I called somebody over there, no answer.

Eventually, the CEO of this Fortune50 company called the head of securityand said, "Why have you not called TiVo back?We need to close this deal."Turns out, that he just didn't want to show me anything.Turns out he didn't have anything to show me, so he didn't want to have the conversation.Deal stopped right there.I didn't care after that, the deal stopped.If you can't be transparent with me,you can't show me, and we can't have aa conversation, deal stops.Had he just shown me something and said, "Hey, here'swhat we have going on, here's my roadmap,"I would have probably accepted it and said,"Oh this is good, okay, let's work towards that."

This is where the prioritization of justwriting it all down, working with the customers,figuring out what you can tackle,and then going from there.

If you get to a point where you hire a CISOor a head of security, please think of themas kind of a product manager over your security.Don't think of them as the security wonkin the corner that wants to say no all the time.Think of them as somebody who actuallywill champion your security, and use themboth on the internal side and the external side.

This is one of the things I'll give Jamestons of credit for when they hired me.They let me have reign inside and go talk to the customers,and I was able to connect the two and findthe right strategies for the very shortperiod of time that I was there before Ibecame a defector and started my own company.So anyway, that's prioritization.

The next thing, and this is an engineering trap. Not to offend any engineers in here, butI yell at my engineers all day every day abouthow much I hate them and the way engineers think becauseI think more from the business side.I see a lot of very, very smart technical peopletry to reinvent security.They try to find some new process, some new thing,some new way to do it.This shit ain't new.That tip that I gave you about sanitizing your inputsand your outputs of your product, that wasin a book written in 1979; 1979 and we're still screwing this up.So this shit ain't new.

Learn from the people that have been out there.Go check out OWASP.Go talk to the experts.Hire consultants.Consult me.Call me, I'll help you out.

Go talk to people and understand strategiesand how you can move forward and where to start,and how to tackle things.Don't go out and try to find a new thing.It's like doing crypto.

Anybody—not anybody, but 99 percent of peoplethat try to invent their own crypto, they fail.It's horrible, it's useless.They're not smart enough to do it, me included.I am not smart enough to do it.So we don't do that.We reuse it.Security strategies are the same way.Use the frameworks that are available to you.Use the processes that are available to you.

There are maturity models, if you're one of the peoplethat subscribes to that kind of thought.There are just simple processes that you can say, "Here's a checklist that's a security baselinethat all my customers are asking for.I'm going to prioritize what I can do on thisand what is asked for the most. And I'm going tostart building that roadmap and build my documentationand be transparent and go down that route."

I see too many companies fail because they justthey try to reinvent the wheel, andit makes no sense to me.It's a fun challenge I guess, but one Iwouldn't take on personally.

The ownership one is an interesting one to me.I'm going to talk a little aboutorg structure here as well.This is a little controversial inside some of thebig companies, but it's going to help you guys out a lot.You need to have somebody in your org that reallychampions security and drives security forward.Somebody who, like I said, kind ofherds the cats in the right direction and says, "This is our strategy, this is where we need to go,how are we getting there?"

Just like you have a product manager, or Google has like 300 of them, think of security the same way.Somebody needs to champion and push it and own itand say this is what's best for the company,for our customers, for the product, whatever it is.But the tactical level, this is what's going to bea little more interesting I think.The tactical level is where people tend to have a hard time.How do you execute on it?Do you hire somebody and say, "You're thesecurity guy, go work with all the teams andgo do the work" or "You're the security guy,go project manage basically all the security."

I believe in a model, and this is a model that'scaught on the last few years. Actually probablyless, five to ten.The Fortune 100s are still a little slow.I put this in at Disney, I put this in at TiVo,Citibank actually does this now in certain divisions,just to show you even staunchy East coastcompanies will do it as well.

It's to basically say, "I have an owner and I have somebodywho is keeping track of security, but we're going tospread it out, or spread the responsibility out."We're going to say, "You know what, in this team over hereof rails developers, you guys are experts.You guys know the product.You guys know the code.Somebody over there needs to be the liaisonor the owner in thinking about securityfor that component."And over here maybe there's a java team, orover here there's an infrastructure team.

You basically have people at the tactical levelwho are keeping track of it. Who are, I don'twant to say gatekeepers because that soundstoo process oriented, but are kind of the guardiansor kind of the product managers, or thejunior product managers for security at that tactical level.You have the champion, the executive owner or whoever,who's making sure it's all going the same directionand everything is getting done that needs to get doneand things are getting prioritized.

Inside the individual teams now, everybody'sinvolved in security.This builds a culture of security, and this alsoputs the people that actually know what they're doingin the place that they can execute and do it.

I can't tell you how many times in my careerI've been brought into a meeting with a bunchof engineers to say we need a security guidanceon this product or component or whatever it is. Only to spend three hours for them to explain to mehow it all works, for me to give them 20 minutesof advice of what to do.Not time well spent.I mean for me, great! I was learning some stuffand got me out of some meetings.For them, I'm sure they could have been doingmuch more interesting things than babysitting me all day.

By** distributing** it out, what's going to happen isyou're not going to have to staff up and say,"I'm going to build this big security team that'sover here that doesn't really understandproduct and doesn't really understand what's going on,that's going to fight for prioritiesand try to get their projects in oversomebody else's project."

It's with inside the teams.All of the teams now have ownership for it.All the teams know what they should be doing.And it's going to work and it's going to help you grow.

Now eventually, your companies will get to a certainsize where you need security operations peopleand testers and all this stuff.That's different.But at the early stage and at the product stagereally think about that** tactical** ownership.Because this is one of the biggest stumbling blocksmost companies run into, not the technicalaspects of it, not even figuring out what to do.Just the how to do it and who owns it.This is one of the biggest areasI see companies run into problems.

Q: How do you get peopleto take on that additional responsibility?

A: I generally find that one, if you have thatchampion that's an influencer within the organization,and they really put it out there as this is what we'reabout. It's not just, we're securityto get enterprise business.It's, we're security to protect our customers,protect privacy, really the right reasons,people will step up and people will want to do it.It's very few cases I've ever seen where therewasn't somebody that didn't really want to step upand say yeah, I want to be involved in thisfor my team, I want to own this.

If you don't have that case, or if teams are smallor it's a single team at smaller companies,really it should just be part of your general discussions.When you're looking at your product andsayinghow are we going to do something, everybodyshould be thinking about it.You should just make it part of, I hate tosay it this way, but part of the job.Everybody should just be thinking about itand everybody should be responsible for it.You measure the security defects that come out,that are found through testing, just likeyou would any other product defect.

Like in my company, if somebody breaks a buildthat's going to go out, they are flawed andthey actually have to buy the entire company milkshakes.I don't know how we started milkshakes, but we haverandom things where the punishment is chocolate milkshakes.I'm going to be a fatty one day, I'm sure.We do the same thing with security defects, andI have in most companies.I treat them as any other product defect, likea P0, P1 or whatever system you guys useand it's a bad thing to get those.If you build in that culture, it will workeven if you don't find somebody who will step up.But most of the time I find somebody who steps up.

Communication and transparency, how many of youare scared to tell your customers whatyou're doing about security right now?I see some head nods, I see some hands.I know you don't want to ever admit thatin front of other people, especially if there's a camera.Don't worry they didn't turn it on you guys.It's still on me.Most of my career I was always scared of this.I was scared to tell the companies what we were doingwell, what we weren't doing very well.What I found was, it was like any otherproduct discussion or sales discussion.

I just open-kimonoed it and said, lookthis is what we're doing.If we're not meeting your needs, we're notwhatever government certified, thenwe're probably not the right business for you.You need HIPPA?I don't want that liability.Here's another company you should go talk to.They're going to meet your needs.

I found that it was a much easier conversationto be open and transparent, than try to hide it.

I had a boss one time at a company early on, heliterally tried to hide stuff from auditors, andthey tried to fake configurations and all this stuff.We're talking like board-level fraud.This actually got him fired as well.At the end of the day, he spent more timetrying to lie about the security of the company thanactually trying to fix the security of the company.It was ridiculous.I would say be open, don't be scared.Obviously, keep what you need to keep secret.It will ease the customers minds, you'll buildthat communication path and you can show your customersthat you're thinking about security.

Literally, I can't overstate this.Creating a simple document that says this iswhat we do about security, even if it'sjust a couple of paragraphs:We have passwords.We use SSH keys.We use access controlled volumes.We encrypt this kind of data.Anything, even if it's just simple. They will appreciate it.You're not going tonail every customer with this, but they're going tolook at it and go, okay now let's have that dialog.And you're going to get much further than youwould have if you had nothing or if you tried to hide it.I can never overstate that.

You can go to policy.heroku.com. It's still up.I found a typo in it the other day. I had tosend it to Oren. I wrote that.I wrote that probably my first two weeks at Heroku.I didn't know very much about the internal security. But what I did was I collected all of the documentationthat I could get from AWS and from the product teamat Heroku, and the stuff that I already knewthat we were doing, and I just put it togetherbecause I needed a starting document.I needed something to start with so thatI could understand what we were doing and I couldstart to have conversations with people aboutwhere we needed to actually be.So back to the customer needs.

You can go look at that, policy.heroku.comit's the security overview document.If there's any typos, sorry.I don't have access anymore.It's very, very simple. You'll see what I'm sayingwhen you look at that.

The final thing on this one is really findthe verticals that you're trying to target.My company, right now we have an element of our productthat's in the cloud, and we have both thecontrol channel and a data channel. Enterprise datamay come through us in certain cases.There's some verticals I just don't go after yetbecause my processes aren't mature enough,my product, my security (and I employ a companyof almost all security people) is not where it needs to beto tackle those verticals.

I'm very self-aware of what are good targetcustomers, and what are going to be customers thatI can't break into that market yet, but in six months I'll get some of them.I'll get the early adopters.In 12 months, I'll get the mid ranges.In hopefully less than 18 months, I'll have thebiggest names in that market that are themost conservative. Once I have them,I can get everybody else.

Be very self-aware of that and know thatit's okay to say I need to step away fromsome business because of security.Sometimes that's the right decision.I've had to do that myself andI don't like it.

So to the meat of it.Where to actually start?This is just a quick list, high-level, of some of thetop concerns and questions you're going to hearfrom enterprise customers. This should look familiarto you guys that have been meeting with enterprises.

First thing is, if you have their data or theircustomers' data, they always start talking about that.PII and privacy and breaches, and whatnot.We're in the age right now of every weekI get an email going, "Hey, we've had a compromise.Please reset your password."This is becoming the norm these days.This is where all the enterprises start.It's all about that customer data.It's because that's the most valuable assetgenerally they're giving you, and it'salso the highest risk.They have the biggest liability if they lose that.

I talked to a guy at a big bank I used todo business with at one time.I said, We just have this little flaw in ourproduct, everything's good and nobody exploited it. We found it, but it was a little close."I said, "What happens if I lose somecredit card numbers?" This is the bankthat underwrites the card.I said, "What happens if some of thesecard numbers get compromised?"

He goes, "Eh, we'll reissue the cards. We'll come down,we'll do an audit, and whatever."

"That's it?"

He goes, "Yeah, but you lose a SocialSecurity number, we're going to sue you out of business."A

I go, "Okay, that's about right."But I asked him, "Why?"I'm a little naive at the time asking why.

He goes, "Well we're the bank.We already have all the money.We can just rewrite the credit card.Like whatever, it doesn't matter.It's our liability anyway and we can take care of it.Social Security number, I can't reissue."That's why they were so worried about thatbecause that was the highest liability data.

Understanding where the customers are coming fromhelps you start to prioritize and where to actually start.

Then as you get through all that, app securityis what comes in. Generally app securitywill either be the lead or right behindcustomer data because most likelyyour company will be compromised.Go ahead and realize that.Most companies on the planet get compromised at some point.Most likely if it's an external attacker, it'sgoing to be through a web application vulnerability.

As mature as this market should be,we are still not there because it's humans writing code. It might be in your code, it might be a codethat you use, whatever it might be. That's whereit's the easiest path.You're going to find a defect thatsomebody created in the product and your web application is what's exposed.It's the easiest target.It's usually pretty vast, complex web applicationsthese days, so that means lots of lines of code,lots of opportunity for defect, and this is whereyou're going to be attacked most of the time.

Almost all of these password compromises andthings that you see come out, "I got breached"and credit card numbers got stolen.Almost all come through this.You'll read the news and they'll talk aboutmalware and APT and all this.Don't get distracted.That's us security guys trying to sell more product.We have to scare you guys so thatwe can get bigger dollars.My entire market is built on FUD. It's great.I love it.

Your application security, once youunderstand your customer data handling —who has access, how do you store it, how longdo you store it, all that kind of stuff,your app security is generally where you want to look next.And very quickly.Followed by your infrastructure security becausethat's also forward-facing.Then you get more into your internal stuff.Your internal access controls, your policies,getting third parties to come in andaudit you, all that kind of stuff.

A secret in the security world — most companies: hardened shell, gushy gooey inside.Security at most big companies is really soft on the inside because the risk is really the external-facing stuff.

There's all these studies that come out and sayyour biggest threat is your insider threat.I've been hearing that for like 15 years.There is not a single study to ever back that up.Your insider threat can do the most damage, but it'susually the less probable attacker.It's usually your external that's alwaysgoing to be the one that screws you at the end of the day.Work on that stuff that's going to be customer-facing,that's going to be really around customer data.Start on customer data and work outward, theapplications, the infrastructure, etc.

Then you're going to be able to go back to that wholeassurance and showing your customers and communicating.You're going to say, "Look, I take your data and theapplications and systems around that really seriously.Yeah, I may not have these other processesin place, I may not have AV on every laptop.I may not have encrypted drives on these laptops.But, my security around your customer datais so good that it mitigates for these other things."

When it goes back to prioritization, this is howyou really slingshot yourself ahead in this conversationby really addressing their core need.This goes back to their need, not their want — their core need — by doing the things thatgive you the biggest win and are actuallyaddressing the largest liabilities for enterprises.Because enterprises care abouttwo things, cash and liabilities.That's more or less it, actually.

Third-party audits, any of you going through any third-partysecurity audits right now?Okay.Eventually you guys will be asked to do this.Customers will come in, especially if you're dealingwith any sensitive data.They'll say, well okay that's great that you'vetold me that you do all this and you can show mesome documents, but has anybody else audited you?Be open to those companies auditing you.Be open to those companies sending intheir third-party auditors.

One of the banks I used to work withthey would send in their third-party auditorsto do source code reviews.These were like $200,000 engagements thatI didn't have to pay for simply becausethey wanted assurance.I was like, awesome, free security review.I mean this is $200,000 not out of my budget.This was great.My boss at the time was freaking out.He's like no, no they're going to know whatall our problems are. Either they're going to know whatour problems are or they're going to cancel the contract.Whatever, I really get something out of thisif it goes upside down.So, eventually you're going to be asked for that.Welcome that and everything.

And we get to the "when."I purposely put this in reverse order instead ofputting when at the beginning.Normally, when I have this discussion I talk about the when,but I wanted to drive home the points of transparency,prioritization, and really customer needbefore I talked about the when.Because the when you start security is kind of ano-brainer actually to me.

You start as soon as possible.You start today. You start thinking about right nowwhat your risks are and what you need to do.

And you go back and whoever your council is in yourcompany, whoever it is that are thethought leaders, the influencers.You start talking to them and saying, "Hey,how many security questions do we geton a weekly, monthly basis.Hey, are we losing deals because of security?Hey, what are we doing about security?Can I put my personal data in this?Would I trust it?

These are the conversations you shouldgo ahead and start having.Even if you're not in a place to execute,go ahead and ask the questions.Go ahead and learn, and go ahead and getthat conversation started inside your company.Because it's going to take time to get thatball rolling and get that culture set in your company.

From a true business standpoint, youdo these things when you have to.And when you have to is normally either, somebodyhas told you you have to, an existing customer,you're losing business because of it,you've been compromised, or you're justbeing attacked a lot because you'resome really high-value target.

Let's go back to my Facebook example for a minute.Facebook, amazing security team.One of the best incident-response teamsI've ever seen inside a company.Like, non-IR consultants.They were getting attacked so much that they justhad to go staff this security team to go dealwith spammers and go deal with compromisesand attackers and patching of applicationsand testing.Because they realized to be this massive brandand be this billion dollar whatever companythat they wanted to be, that they could not losethe private messages of their users.That's about the most sensitive thing they have.

They got the private message that I sent to my girlfriendlike, "Oh my god I love you so much. Yes, I willtotally take you on that very you-know-datethat I would never admit to my friendsthat I'll take you on." I don't want that public.But, it's not a big deal if that went public?It's not my credit, it's not my identity.Yet they realized that they had to protect their brandif they want to be this massive companybecause they had so many users.

They're an interesting case that I wasreference back from because they didn't havethe monetary revenue. They didn't have like,"Oh my God, there's been a big compromise, nowwe have to show our shareholders that we're responding"kind of thing like Heartland Payment Systems did.They just simply said this is the right thing.I really like that model.And this is about the only time I'llever reference Facebook as a business.I still consider it a toy where I post photosandmy friends check me in drunk.

The biggest thing is really just time securityto when you need it just like you wouldfor a product roadmap.

You build a product roadmap for whenyou need to ship features.Security, you should be looking forward to that.So that's why you start now to understand your culture.Understand the drivers.Understand the questions that are coming in. Then you can say how long is itgoing to take me to get there?How long to do the things I need to do, or tohave those conversations, or untilI'm comfortable having those conversationswith my customers or potential customers?

You start early and then you really justtarget to when you need it.Now, most security people and hopefully none of themever see this talk, but most security people say,"You have to do it now, the sky's falling, all this."You'll find that I'm very balanced, becauseI've been through it.I've been through compromises, I've been throughbig companies, small companies.

Realistically it's security has a great ROI,especially for small companies trying to disrupta market and get big enterprise customers.But it's all about timing and when you do it.Don't spend your resources andspin your wheels too early because you probably have more valuable things to do.

Even me as a security company, that'sour strategy to be completely honest.

Once you figure all that out thenwe talked a little about the hiring, eventuallyyou'll have to hire dedicated people becauseyou'll be big enough.But part of that, involve the people thatwant to be involved.Find the people who will champion it from insideand will build it, bubble it up from the bottomwhile you champion it from the top downor whoever it might be.

That's the meat of the how, when and why.Now I want to turn it over to more questionsso we can dive into whatever might bespecific to your needs, where you guys mightbe struggling or questions you guys have.

Q: When meeting an enterprise customer, what should you be transparent about?

A: Sure, that's a great question.I say be as transparent as you possibly can.Anything and everything that you can show.But to dial that in a little bit more, it kind of goes back to what your business isand what the needs are of your customers.So if you're handling customer data, then you want toshow how you handle that data in a secure manner.

Anytime you have customers in the systemyou want to show how you're handling their dataor how you're providing your service in a secure mannerto them.

You want to go down as granular as you canto say, "We control who has accessto this data. This is how long we keep his data. This is where and how we store it. We have it on serversand segmented networks. We have it encrypted. Here's the key management."You actually want to put a high-level narrativearound those things to really make that transparent, let themthem be comfortable and have an ease of mind.Then you want to step out and say, "Okay what'sall around that?"It's just expanding out.I believe in a model of you applysecurity to the now.

My brother, the cocky bastard that he is, he's a Navy Seal.And he will tell you he's a Navy Seal all day long. He's very cocky about this.But there's one thing that I learned from him that I loved.I said, "So what's your mission?"He goes, "Protect the now."I said what's the now?"He goes, "Whatever's valuable.I don't know until I get there, butI'm going to protect it whenever I get there."

I say the same thing to security all the time:Apply your security to the now and work out from there.

When you're communicating to customers,what they are concerned about is theircustomer data or this service that I'm providingto them, hosting or whatever it might be.I'm going to show them everything that I doto protect that and then work my way out.

The high-level low that you always want to show isyour customer data security, your encryption,access controls, your application security,your infrastructure security, your logging,and your policies.Those roughly seven things, those are the coreto all the 400 questions that you might getfrom enterprise security teams.Those are going to cover all the biggest threatsand biggest areas.

If you've run code analysis tools, if you've run white box or black box auditing tools, share the summary of those reports.You don't have to give all the details. Youdon't have to give your code or anything like that.Share those. Say, we ran this vulnerability assessment.We actually came up with four high findings,and high is not always created equal, but we foundfour high findings.This is our plan to fix them, or we've already fixed themand we did it in 30 days or 60 days or whatever it is.Show them that stuff.

If you can show them around vulnerability,if you have it if you get to that point, customer data handling, storage encryption, access control,logging, app security, infrastructure security,and then policies and if you have any yet,those are the core things to start off withand to try to provide.

Q: What are some things you should or shouldn't sign in a security contract?

A: Never sign any contract you don't have to.That's my general legal advice.What's going to happen, this is always interestingbecause I've given people advice.I think it was three months ago I spoke at a conferenceand I was giving advice on how to write contracts,how enterprises should write contracts whendoing business with SAS services or cloud vendorsand everything they need to shove into that contractto make sure they're protected.So now I'm going to give you that advice.That's interesting.

The things that you have to look for are theunlimited liability, what constitutes a breach,or what can cause you to have to do a securitydisclosure, an incident disclosure to them.

What'll happen is many of these customersthey think they want to know all this stuff, but reallythey can't handle it when you send it to thembecause they freak out.You finding a vulnerability, you perform your own scanof your own application, you find a vulnerability—I've seen contracts where that constituteshaving to tell the customers about that vulnerability.

Well, in any reasonable enterprise, you're going tofind thousands if not tens of thousandsof vulnerabilities in a few months' spanacross all of the infrastructure.Enterprises, customers don't really want to know all that,but what they want to know is you had a breach,or you had a third-party notify you about a vulnerability,or you found a vulnerability that maybe you thinksomebody exploited. That's what they want to know about.

They want to know about the stuff that actuallymight have affected them.So be very careful around that liability andaround that disclosure terminology.

Also, be careful of where you're at company size-wisearound the audit rights.Most enterprises will try to put something into say we have the right to come audit you.Usually there's some kind of trigger on that. Itsays, if you've had a security breach, orif these kind of events have happened, but somewill put a very open-ended one in, we have the right to audit you andaudit your security any time.Problem is there's no scope there.If you read up in the contract and you read aboutany other section of the contract, there'ssome kind of scope.It's limited to the business, it's limited to the revenues,or the cost of the product, whatever.

The security guys are really good aboutleaving this wide open.Be careful about that and say we encourageyou to come audit us because we have nothing to hide.But let's talk about this.It's once a year at your cost, or whatever.Don't necessarily take the burden of that.It's not every week, it's not on a whim,and it has to be either just an annual thingor a six-month thing, or based on a breach or a compromise.Those are the biggest ones that I would watch for because those are the ones where I screwedcompanies quite often in my contractsto be completely honest.

Q: What is too much transparency? Should I disclose on my website if I've discovered a vulnerability?

A: I would say that's too far.Companies want transparency, but if the enterprisesare using your service, your platform, ortheir data is in it, they don't want anybody elseto know what problems exist.I know a cloud platform right now that they wantto have a bug bounty program.They want to allow hackers to come play and test andtry to find vulnerabilities, and they'll pay them for it.But the problem is, they're large enterprise customersfreaked out when they ran this idea pasta couple of them.They were like, no, what if they use it against us?So the same kind of thing.

Even if in a vulnerability report all the vulnerabilitieshave been fixed, the problem is it will show a pattern.If I read your vulnerability reports, and I readtwo or three of them, I will see a pattern.I will see where you're weak in your security processes and where your STLC is just falling down,and I'll know exactly what to attack.This is a little too much information.

What I would do is, put out there these areour guiding principles of security.Here's some of the controls that we have in placeand things we do.We do application and security vulnerability assessments.We do secure coding, howeveryou want to phrase this.Have those reports and send those toyour customers, but not publicly.

One of the things I always do in every companyis after I get my documentation and saythis is what we do,I package everything that I canand I create a security package.I have it and I give it tomy sales team, and I say here is our security package.So as soon as the security guy, or somebody atthis other company says what about your security,they send them over the zip file — the this is what we do, here's our most recentvulnerability report, here's our high-levelroadmap or goals or that updatemaybe quarterly or whatever.

This thins off about 20 percent of the companiesthat are just looking at if we did something.Then it opens the door to the next about 70 percent, where I can actuallyget through the audits with those guys.The remainder companies are the onesthat I'm just not going to close becausemy security is not mature enoughor the deal blew up.

Have all that prepared and be ableto give it to them fast, but not too public.Definitely put stuff out there that's public.Market to that.

Especially with this hot trend right now ofpeople talking about privacy and theirpasswords always being compromised.Market to that.Take that FUD, turn it around and use it for your own benefit.

Q: How can I test if my app is vulnerable without asking a third party to audit me?

A: There's a number of tools that are very similarto how you would do the same thing, product testing,as well as services that are out there that willjust run. They'll run web application scans,or they'll run code, static code analysis,generate reports, feed that into JIRA or whateversystem you use.There's the equivalent tools on the security side.

Most of these are tailored to the enterprise,so most of them are very expensive.I think WebInspect, which was the top ofthe premiere web app security scanning productthat had a scheduled engine, you could justtell it to run all day long.A base license was 25,000.Fortify, which was the premiere static codeanalyzer, base seat license of that was probably 35-40.Prices have changed a little bit sincethose companies have been acquired.But that kind of gives you an idea of the market on that.

There are some tools that are out therethat are open source and that are great.You can look at like Nikto, Whisker, you can look atthe Google guys have one for web app scanning.You're going to get some benefit out of these.

But without somebody to really review the reportthat knows what they're looking at, you get less benefit.

I havea lot of people who run them and go, "I got this report.What do I do?"So make sure you have somebody who can look at that.

The other thing that you can do you can look atsome of these services that are out there that'llscan your web applications, if you're ready fora kind of service like WhiteHat Securityand some of these guys that have SaaS offeringsspecifically for code analysis and app scanning.There's plenty of these tools out there and they'll plug in to whatever continuousintegration suite you're using, and generallyyour ticketing suites as well.

I like it. That question is actuallyfurther along the maturity model than Iactually get from most security people.So that's good.

Q: What are the best practices for securing customer data?

A: Absolutely.If you have customer data, or personal data,some of the best practices, the first thing is, and this is the very simple one,only collect what you absolutely have to have.Be very mindful of where you're collecting data.If you have customers and you're marketing in the EU,the data laws in the EU to the US are very, very different.Even aside the EU, Spain and Germany are morerestrictive than most of the other countries in the EU.

Only collect absolutely what you have toand what actually makes sense.

The next thing is, only store it for as long as you need to.Make sure that you're purging that data out. Set up some auto routine.Account hasn't been active in five years, move it out.Maybe throw it in the marketing system.But reduce the number of places you have itand purge it out as often as possible.

The next easiest one is access control.Make sure you understand who has access to it,how they gain access to it and there's logging of that.Those basic minimums right there will help you meet thingslike safe harbor requirements.They'll help you meet the 37, I think it is, data securitylaws in the US now that have popped up inthe last about 2-1/2 to 3 three years.Those basic three things will get you there.

To go beyond that, encrypting the to data is alwaysa really good thing to do.Especially if you use third-party vendors to store stuff.Anybody who might be an EC2 or other cloud services,you don't always know where that data is going to land.You may have a residency prob and it maygo to a country that it shouldn't have.Not like, North Korea or Iraq, but it may be EU datathat ended up in Asia and it wasn't supposed to.

Encrypting will help you fight the liabilityor any problems there.Also, it'll help you secure that data both insideyour own infrastructure and outside.

But if you only collect what you have to havefor as long as you need to, you have access controlsand you have loggings that you can say yes,this data was changed and no this data wasn't changed; orthis data was compromised or no it wasn't, you'll meet the base requirements.It's the base best practices right there.Then you go encryption above that and you're pretty much golden in most cases.

Thank you for having me.Hopefully it was helpful.