hello I'm John Furrier with thecube and welcome to this special presentation of the cube and Horizon 3.ai they're announcing a global partner first approach expanding their successful pen testing product Net Zero you're going to hear from leading experts in their staff their CEO positioning themselves for a successful Channel distribution expansion internationally in Europe Middle East Africa and Asia Pacific in this Cube special presentation you'll hear about the expansion the expanse partner program giving Partners a unique opportunity to offer Net Zero to their customers Innovation and Pen testing is going International with Horizon 3.ai enjoy the program [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're here with Jennifer Lee head of Channel sales at Horizon 3.ai Jennifer welcome to the cube thanks for coming on great well thank you for having me so big news around Horizon 3.aa driving Channel first commitment you guys are expanding the channel partner program to include all kinds of new rewards incentives training programs help educate you know Partners really drive more recurring Revenue certainly cloud and Cloud scale has done that you got a great product that fits into that kind of Channel model great Services you can wrap around it good stuff so let's get into it what are you guys doing what are what are you guys doing with this news why is this so important yeah for sure so um yeah we like you said we recently expanded our Channel partner program um the driving force behind it was really just um to align our like you said our Channel first commitment um and creating awareness around the importance of our partner ecosystems um so that's it's really how we go to market is is through the channel and a great International Focus I've talked with the CEO so you know about the solution and he broke down all the action on why it's important on the product side but why now on the go to market change what's the what's the why behind this big this news on the channel yeah for sure so um we are doing this now really to align our business strategy which is built on the concept of enabling our partners to create a high value high margin business on top of our platform and so um we offer a solution called node zero it provides autonomous pen testing as a service and it allows organizations to continuously verify their security posture um so we our company vision we have this tagline that states that our pen testing enables organizations to see themselves Through The Eyes of an attacker and um we use the like the attacker's perspective to identify exploitable weaknesses and vulnerabilities so we created this partner program from a perspective of the partner so the partner's perspective and we've built It Through The Eyes of our partner right so we're prioritizing really what the partner is looking for and uh will ensure like Mutual success for us yeah the partners always want to get in front of the customers and bring new stuff to them pen tests have traditionally been really expensive uh and so bringing it down in one to a service level that's one affordable and has flexibility to it allows a lot of capability so I imagine people getting excited by it so I have to ask you about the program What specifically are you guys doing can you share any details around what it means for the partners what they get what's in it for them can you just break down some of the mechanics and mechanisms or or details yeah yep um you know we're really looking to create business alignment um and like I said establish Mutual success with our partners so we've got two um two key elements that we were really focused on um that we bring to the partners so the opportunity the profit margin expansion is one of them and um a way for our partners to really differentiate themselves and stay relevant in the market so um we've restructured our discount model really um you know highlighting profitability and maximizing profitability and uh this includes our deal registration we've we've created deal registration program we've increased discount for partners who take part in our partner certification uh trainings and we've we have some other partner incentives uh that we we've created that that's going to help out there we've we put this all so we've recently Gone live with our partner portal um it's a Consolidated experience for our partners where they can access our our sales tools and we really view our partners as an extension of our sales and Technical teams and so we've extended all of our our training material that we use internally we've made it available to our partners through our partner portal um we've um I'm trying I'm thinking now back what else is in that partner portal here we've got our partner certification information so all the content that's delivered during that training can be found in the portal we've got deal registration uh um co-branded marketing materials pipeline management and so um this this portal gives our partners a One-Stop place to to go to find all that information um and then just really quickly on the second part of that that I mentioned is our technology really is um really disruptive to the market so you know like you said autonomous pen testing it's um it's still it's well it's still still relatively new topic uh for security practitioners and um it's proven to be really disruptive so um that on top of um just well recently we found an article that um that mentioned by markets and markets that reports that the global pen testing markets really expanding and so it's expected to grow to like 2.7 billion um by 2027. so the Market's there right the Market's expanding it's growing and so for our partners it's just really allows them to grow their revenue um across their customer base expand their customer base and offering this High profit margin while you know getting in early to Market on this just disruptive technology big Market a lot of opportunities to make some money people love to put more margin on on those deals especially when you can bring a great solution that everyone knows is hard to do so I think that's going to provide a lot of value is there is there a type of partner that you guys see emerging or you aligning with you mentioned the alignment with the partners I can see how that the training and the incentives are all there sounds like it's all going well is there a type of partner that's resonating the most or is there categories of partners that can take advantage of this yeah absolutely so we work with all different kinds of Partners we work with our traditional resale Partners um we've worked we're working with systems integrators we have a really strong MSP mssp program um we've got Consulting partners and the Consulting Partners especially with the ones that offer pen test services so we they use us as a as we act as a force multiplier just really offering them profit margin expansion um opportunity there we've got some technology partner partners that we really work with for co-cell opportunities and then we've got our Cloud Partners um you'd mentioned that earlier and so we are in AWS Marketplace so our ccpo partners we're part of the ISP accelerate program um so we we're doing a lot there with our Cloud partners and um of course we uh we go to market with uh distribution Partners as well gotta love the opportunity for more margin expansion every kind of partner wants to put more gross profit on their deals is there a certification involved I have to ask is there like do you get do people get certified or is it just you get trained is it self-paced training is it in person how are you guys doing the whole training certification thing because is that is that a requirement yeah absolutely so we do offer a certification program and um it's been very popular this includes a a seller's portion and an operator portion and and so um this is at no cost to our partners and um we operate both virtually it's it's law it's virtually but live it's not self-paced and we also have in person um you know sessions as well and we also can customize these to any partners that have a large group of people and we can just we can do one in person or virtual just specifically for that partner well any kind of incentive opportunities and marketing opportunities everyone loves to get the uh get the deals just kind of rolling in leads from what we can see if our early reporting this looks like a hot product price wise service level wise what incentive do you guys thinking about and and Joint marketing you mentioned co-sell earlier in pipeline so I was kind of kind of honing in on that piece sure and yes and then to follow along with our partner certification program we do incentivize our partners there if they have a certain number certified their discount increases so that's part of it we have our deal registration program that increases discount as well um and then we do have some um some partner incentives that are wrapped around meeting setting and um moving moving opportunities along to uh proof of value gotta love the education driving value I have to ask you so you've been around the industry you've seen the channel relationships out there you're seeing companies old school new school you know uh Horizon 3.ai is kind of like that new school very cloud specific a lot of Leverage with we mentioned AWS and all the clouds um why is the company so hot right now why did you join them and what's why are people attracted to this company what's the what's the attraction what's the vibe what do you what do you see and what what do you use what did you see in in this company well this is just you know like I said it's very disruptive um it's really in high demand right now and um and and just because because it's new to Market and uh a newer technology so we are we can collaborate with a manual pen tester um we can you know we can allow our customers to run their pen test um with with no specialty teams and um and and then so we and like you know like I said we can allow our partners can actually build businesses profitable businesses so we can they can use our product to increase their services revenue and um and build their business model you know around around our services what's interesting about the pen test thing is that it's very expensive and time consuming the people who do them are very talented people that could be working on really bigger things in the in absolutely customers so bringing this into the channel allows them if you look at the price Delta between a pen test and then what you guys are offering I mean that's a huge margin Gap between street price of say today's pen test and what you guys offer when you show people that they follow do they say too good to be true I mean what are some of the things that people say when you kind of show them that are they like scratch their head like come on what's the what's the catch here right so the cost savings is a huge is huge for us um and then also you know like I said working as a force multiplier with a pen testing company that offers the services and so they can they can do their their annual manual pen tests that may be required around compliance regulations and then we can we can act as the continuous verification of their security um um you know that that they can run um weekly and so it's just um you know it's just an addition to to what they're offering already and an expansion so Jennifer thanks for coming on thecube really appreciate you uh coming on sharing the insights on the channel uh what's next what can we expect from the channel group what are you thinking what's going on right so we're really looking to expand our our Channel um footprint and um very strategically uh we've got um we've got some big plans um for for Horizon 3.ai awesome well thanks for coming on really appreciate it you're watching thecube the leader in high tech Enterprise coverage [Music] [Music] hello and welcome to the Cube's special presentation with Horizon 3.ai with Raina Richter vice president of emea Europe Middle East and Africa and Asia Pacific APAC for Horizon 3 today welcome to this special Cube presentation thanks for joining us thank you for the invitation so Horizon 3 a guy driving Global expansion big international news with a partner first approach you guys are expanding internationally let's get into it you guys are driving this new expanse partner program to new heights tell us about it what are you seeing in the momentum why the expansion what's all the news about well I would say uh yeah in in international we have I would say a similar similar situation like in the US um there is a global shortage of well-educated penetration testers on the one hand side on the other side um we have a raising demand of uh network and infrastructure security and with our approach of an uh autonomous penetration testing I I believe we are totally on top of the game um especially as we have also now uh starting with an international instance that means for example if a customer in Europe is using uh our service node zero he will be connected to a node zero instance which is located inside the European Union and therefore he has doesn't have to worry about the conflict between the European the gdpr regulations versus the US Cloud act and I would say there we have a total good package for our partners that they can provide differentiators to their customers you know we've had great conversations here on thecube with the CEO and the founder of the company around the leverage of the cloud and how successful that's been for the company and honestly I can just Connect the Dots here but I'd like you to weigh in more on how that translates into the go to market here because you got great Cloud scale with with the security product you guys are having success with great leverage there I've seen a lot of success there what's the momentum on the channel partner program internationally why is it so important to you is it just the regional segmentation is it the economics why the momentum well there are it's there are multiple issues first of all there is a raising demand in penetration testing um and don't forget that uh in international we have a much higher level in number a number or percentage in SMB and mid-market customers so these customers typically most of them even didn't have a pen test done once a year so for them pen testing was just too expensive now with our offering together with our partners we can provide different uh ways how customers could get an autonomous pen testing done more than once a year with even lower costs than they had with with a traditional manual paint test so and that is because we have our uh Consulting plus package which is for typically pain testers they can go out and can do a much faster much quicker and their pain test at many customers once in after each other so they can do more pain tests on a lower more attractive price on the other side there are others what even the same ones who are providing um node zero as an mssp service so they can go after s p customers saying okay well you only have a couple of hundred uh IP addresses no worries we have the perfect package for you and then you have let's say the mid Market let's say the thousands and more employees then they might even have an annual subscription very traditional but for all of them it's all the same the customer or the service provider doesn't need a piece of Hardware they only need to install a small piece of a Docker container and that's it and that makes it so so smooth to go in and say okay Mr customer we just put in this this virtual attacker into your network and that's it and and all the rest is done and within within three clicks they are they can act like a pen tester with 20 years of experience and that's going to be very Channel friendly and partner friendly I can almost imagine so I have to ask you and thank you for calling the break calling out that breakdown and and segmentation that was good that was very helpful for me to understand but I want to follow up if you don't mind um what type of partners are you seeing the most traction with and why well I would say at the beginning typically you have the the innovators the early adapters typically Boutique size of Partners they start because they they are always looking for Innovation and those are the ones you they start in the beginning so we have a wide range of Partners having mostly even um managed by the owner of the company so uh they immediately understand okay there is the value and they can change their offering they're changing their offering in terms of penetration testing because they can do more pen tests and they can then add other ones or we have those ones who offer 10 tests services but they did not have their own pen testers so they had to go out on the open market and Source paint testing experts um to get the pen test at a particular customer done and now with node zero they're totally independent they can't go out and say okay Mr customer here's the here's the service that's it we turn it on and within an hour you're up and running totally yeah and those pen tests are usually expensive and hard to do now it's right in line with the sales delivery pretty interesting for a partner absolutely but on the other hand side we are not killing the pain testers business we do something we're providing with no tiers I would call something like the foundation work the foundational work of having an an ongoing penetration testing of the infrastructure the operating system and the pen testers by themselves they can concentrate in the future on things like application pen testing for example so those Services which we we're not touching so we're not killing the paint tester Market we're just taking away the ongoing um let's say foundation work call it that way yeah yeah that was one of my questions I was going to ask is there's a lot of interest in this autonomous pen testing one because it's expensive to do because those skills are required are in need and they're expensive so you kind of cover the entry level and the blockers that are in there I've seen people say to me this pen test becomes a blocker for getting things done so there's been a lot of interest in the autonomous pen testing and for organizations to have that posture and it's an overseas issue too because now you have that that ongoing thing so can you explain that particular benefit for an organization to have that continuously verifying an organization's posture yep certainly so I would say um typically you are you you have to do your patches you have to bring in new versions of operating systems of different Services of uh um operating systems of some components and and they are always bringing new vulnerabilities the difference here is that with node zero we are telling the customer or the partner package we're telling them which are the executable vulnerabilities because previously they might have had um a vulnerability scanner so this vulnerability scanner brought up hundreds or even thousands of cves but didn't say anything about which of them are vulnerable really executable and then you need an expert digging in one cve after the other finding out is it is it really executable yes or no and that is where you need highly paid experts which we have a shortage so with notes here now we can say okay we tell you exactly which ones are the ones you should work on because those are the ones which are executable we rank them accordingly to the risk level how easily they can be used and by a sudden and then the good thing is convert it or indifference to the traditional penetration test they don't have to wait for a year for the next pain test to find out if the fixing was effective they weren't just the next scan and say Yes closed vulnerability is gone the time is really valuable and if you're doing any devops Cloud native you're always pushing new things so pen test ongoing pen testing is actually a benefit just in general as a kind of hygiene so really really interesting solution really bring that global scale is going to be a new new coverage area for us for sure I have to ask you if you don't mind answering what particular region are you focused on or plan to Target for this next phase of growth well at this moment we are concentrating on the countries inside the European Union Plus the United Kingdom um but we are and they are of course logically I'm based into Frankfurt area that means we cover more or less the countries just around so it's like the total dark region Germany Switzerland Austria plus the Netherlands but we also already have Partners in the nordics like in Finland or in Sweden um so it's it's it it's rapidly we have Partners already in the UK and it's rapidly growing so I'm for example we are now starting with some activities in Singapore um um and also in the in the Middle East area um very important we uh depending on let's say the the way how to do business currently we try to concentrate on those countries where we can have um let's say um at least English as an accepted business language great is there any particular region you're having the most success with right now is it sounds like European Union's um kind of first wave what's them yes that's the first definitely that's the first wave and now we're also getting the uh the European instance up and running it's clearly our commitment also to the market saying okay we know there are certain dedicated uh requirements and we take care of this and and we're just launching it we're building up this one uh the instance um in the AWS uh service center here in Frankfurt also with some dedicated Hardware internet in a data center in Frankfurt where we have with the date six by the way uh the highest internet interconnection bandwidth on the planet so we have very short latency to wherever you are on on the globe that's a great that's a great call outfit benefit too I was going to ask that what are some of the benefits your partners are seeing in emea and Asia Pacific well I would say um the the benefits is for them it's clearly they can they can uh talk with customers and can offer customers penetration testing which they before and even didn't think about because it penetrates penetration testing in a traditional way was simply too expensive for them too complex the preparation time was too long um they didn't have even have the capacity uh to um to support a pain an external pain tester now with this service you can go in and say even if they Mr customer we can do a test with you in a couple of minutes within we have installed the docker container within 10 minutes we have the pen test started that's it and then we just wait and and I would say that is we'll we are we are seeing so many aha moments then now because on the partner side when they see node zero the first time working it's like this wow that is great and then they work out to customers and and show it to their typically at the beginning mostly the friendly customers like wow that's great I need that and and I would say um the feedback from the partners is that is a service where I do not have to evangelize the customer everybody understands penetration testing I don't have to say describe what it is they understand the customer understanding immediately yes penetration testing good about that I know I should do it but uh too complex too expensive now with the name is for example as an mssp service provided from one of our partners but it's getting easy yeah it's great and it's great great benefit there I mean I gotta say I'm a huge fan of what you guys are doing I like this continuous automation that's a major benefit to anyone doing devops or any kind of modern application development this is just a godsend for them this is really good and like you said the pen testers that are doing it they were kind of coming down from their expertise to kind of do things that should have been automated they get to focus on the bigger ticket items that's a really big point so we free them we free the pain testers for the higher level elements of the penetration testing segment and that is typically the application testing which is currently far away from being automated yeah and that's where the most critical workloads are and I think this is the nice balance congratulations on the international expansion of the program and thanks for coming on this special presentation really I really appreciate it thank you you're welcome okay this is thecube special presentation you know check out pen test automation International expansion Horizon 3 dot AI uh really Innovative solution in our next segment Chris Hill sector head for strategic accounts will discuss the power of Horizon 3.ai and Splunk in action you're watching the cube the leader in high tech Enterprise coverage foreign [Music] [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're with Chris Hill sector head for strategic accounts and federal at Horizon 3.ai a great Innovative company Chris great to see you thanks for coming on thecube yeah like I said uh you know great to meet you John long time listener first time caller so excited to be here with you guys yeah we were talking before camera you had Splunk back in 2013 and I think 2012 was our first splunk.com and boy man you know talk about being in the right place at the right time now we're at another inflection point and Splunk continues to be relevant um and continuing to have that data driving Security in that interplay and your CEO former CTO of his plug as well at Horizon who's been on before really Innovative product you guys have but you know yeah don't wait for a breach to find out if you're logging the right data this is the topic of this thread Splunk is very much part of this new international expansion announcement uh with you guys tell us what are some of the challenges that you see where this is relevant for the Splunk and Horizon AI as you guys expand uh node zero out internationally yeah well so across so you know my role uh within Splunk it was uh working with our most strategic accounts and so I looked back to 2013 and I think about the sales process like working with with our small customers you know it was um it was still very siled back then like I was selling to an I.T team that was either using this for it operations um we generally would always even say yeah although we do security we weren't really designed for it we're a log management tool and we I'm sure you remember back then John we were like sort of stepping into the security space and and the public sector domain that I was in you know security was 70 of what we did when I look back to sort of uh the transformation that I was witnessing in that digital transformation um you know when I look at like 2019 to today you look at how uh the IT team and the security teams are being have been forced to break down those barriers that they used to sort of be silent away would not commute communicate one you know the security guys would be like oh this is my box I.T you're not allowed in today you can't get away with that and I think that the value that we bring to you know and of course Splunk has been a huge leader in that space and continues to do Innovation across the board but I think what we've we're seeing in the space and I was talking with Patrick Coughlin the SVP of uh security markets about this is that you know what we've been able to do with Splunk is build a purpose-built solution that allows Splunk to eat more data so Splunk itself is ulk know it's an ingest engine right the great reason people bought it was you could build these really fast dashboards and grab intelligence out of it but without data it doesn't do anything right so how do you drive and how do you bring more data in and most importantly from a customer perspective how do you bring the right data in and so if you think about what node zero and what we're doing in a horizon 3 is that sure we do pen testing but because we're an autonomous pen testing tool we do it continuously so this whole thought I'd be like oh crud like my customers oh yeah we got a pen test coming up it's gonna be six weeks the week oh yeah you know and everyone's gonna sit on their hands call me back in two months Chris we'll talk to you then right not not a real efficient way to test your environment and shoot we saw that with Uber this week right um you know and that's a case where we could have helped oh just right we could explain the Uber thing because it was a contractor just give a quick highlight of what happened so you can connect the doctor yeah no problem so um it was uh I got I think it was yeah one of those uh you know games where they would try and test an environment um and with the uh pen tester did was he kept on calling them MFA guys being like I need to reset my password we need to set my right password and eventually the um the customer service guy said okay I'm resetting it once he had reset and bypassed the multi-factor authentication he then was able to get in and get access to the building area that he was in or I think not the domain but he was able to gain access to a partial part of that Network he then paralleled over to what I would assume is like a VA VMware or some virtual machine that had notes that had all of the credentials for logging into various domains and So within minutes they had access and that's the sort of stuff that we do you know a lot of these tools like um you know you think about the cacophony of tools that are out there in a GTA architect architecture right I'm gonna get like a z-scale or I'm going to have uh octum and I have a Splunk I've been into the solar system I mean I don't mean to name names we have crowdstriker or Sentinel one in there it's just it's a cacophony of things that don't work together they weren't designed work together and so we have seen so many times in our business through our customer support and just working with customers when we do their pen tests that there will be 5 000 servers out there three are misconfigured those three misconfigurations will create the open door because remember the hacker only needs to be right once the defender needs to be right all the time and that's the challenge and so that's what I'm really passionate about what we're doing uh here at Horizon three I see this my digital transformation migration and security going on which uh we're at the tip of the spear it's why I joined sey Hall coming on this journey uh and just super excited about where the path's going and super excited about the relationship with Splunk I get into more details on some of the specifics of that but um you know well you're nailing I mean we've been doing a lot of things on super cloud and this next gen environment we're calling it next gen you're really seeing devops obviously devsecops has already won the it role has moved to the developer shift left is an indicator of that it's one of the many examples higher velocity code software supply chain you hear these things that means that it is now in the developer hands it is replaced by the new Ops data Ops teams and security where there's a lot of horizontal thinking to your point about access there's no more perimeter huge 100 right is really right on things one time you know to get in there once you're in then you can hang out move around move laterally big problem okay so we get that now the challenges for these teams as they are transitioning organizationally how do they figure out what to do okay this is the next step they already have Splunk so now they're kind of in transition while protecting for a hundred percent ratio of success so how would you look at that and describe the challenge is what do they do what is it what are the teams facing with their data and what's next what are they what are they what action do they take so let's use some vernacular that folks will know so if I think about devsecops right we both know what that means that I'm going to build security into the app it normally talks about sec devops right how am I building security around the perimeter of what's going inside my ecosystem and what are they doing and so if you think about what we're able to do with somebody like Splunk is we can pen test the entire environment from Soup To Nuts right so I'm going to test the end points through to its I'm going to look for misconfigurations I'm going to I'm going to look for um uh credential exposed credentials you know I'm going to look for anything I can in the environment again I'm going to do it at light speed and and what what we're doing for that SEC devops space is to you know did you detect that we were in your environment so did we alert Splunk or the Sim that there's someone in the environment laterally moving around did they more importantly did they log us into their environment and when do they detect that log to trigger that log did they alert on us and then finally most importantly for every CSO out there is going to be did they stop us and so that's how we we do this and I think you when speaking with um stay Hall before you know we've come up with this um boils but we call it fine fix verifying so what we do is we go in is we act as the attacker right we act in a production environment so we're not going to be we're a passive attacker but we will go in on credentialed on agents but we have to assume to have an assumed breach model which means we're going to put a Docker container in your environment and then we're going to fingerprint the environment so we're going to go out and do an asset survey now that's something that's not something that Splunk does super well you know so can Splunk see all the assets do the same assets marry up we're going to log all that data and think and then put load that into this long Sim or the smoke logging tools just to have it in Enterprise right that's an immediate future ad that they've got um and then we've got the fix so once we've completed our pen test um we are then going to generate a report and we can talk about these in a little bit later but the reports will show an executive summary the assets that we found which would be your asset Discovery aspect of that a fix report and the fixed report I think is probably the most important one it will go down and identify what we did how we did it and then how to fix that and then from that the pen tester or the organization should fix those then they go back and run another test and then they validate like a change detection environment to see hey did those fixes taste play take place and you know snehaw when he was the CTO of jsoc he shared with me a number of times about it's like man there would be 15 more items on next week's punch sheet that we didn't know about and it's and it has to do with how we you know how they were uh prioritizing the cves and whatnot because they would take all CBDs it was critical or non-critical and it's like we are able to create context in that environment that feeds better information into Splunk and whatnot that brings that brings up the efficiency for Splunk specifically the teams out there by the way the burnout thing is real I mean this whole I just finished my list and I got 15 more or whatever the list just can keeps growing how did node zero specifically help Splunk teams be more efficient like that's the question I want to get at because this seems like a very scale way for Splunk customers and teams service teams to be more so the question is how does node zero help make Splunk specifically their service teams be more efficient so so today in our early interactions we're building customers we've seen are five things um and I'll start with sort of identifying the blind spots right so kind of what I just talked about with you did we detect did we log did we alert did they stop node zero right and so I would I put that you know a more Layman's third grade term and if I was going to beat a fifth grader at this game would be we can be the sparring partner for a Splunk Enterprise customer a Splunk Essentials customer someone using Splunk soar or even just an Enterprise Splunk customer that may be a small shop with three people and just wants to know where am I exposed so by creating and generating these reports and then having um the API that actually generates the dashboard they can take all of these events that we've logged and log them in and then where that then comes in is number two is how do we prioritize those logs right so how do we create visibility to logs that that um are have critical impacts and again as I mentioned earlier not all cves are high impact regard and also not all or low right so if you daisy chain a bunch of low cves together boom I've got a mission critical AP uh CPE that needs to be fixed now such as a credential moving to an NT box that's got a text file with a bunch of passwords on it that would be very bad um and then third would be uh verifying that you have all of the hosts so one of the things that splunk's not particularly great at and they'll literate themselves they don't do asset Discovery so dude what assets do we see and what are they logging from that um and then for from um for every event that they are able to identify one of the cool things that we can do is actually create this low code no code environment so they could let you know Splunk customers can use Splunk sword to actually triage events and prioritize that event so where they're being routed within it to optimize the Sox team time to Market or time to triage any given event obviously reducing MTR and then finally I think one of the neatest things that we'll be seeing us develop is um our ability to build glass cables so behind me you'll see one of our triage events and how we build uh a Lockheed Martin kill chain on that with a glass table which is very familiar to the community we're going to have the ability and not too distant future to allow people to search observe on those iocs and if people aren't familiar with it ioc it's an instant of a compromise so that's a vector that we want to drill into and of course who's better at Drilling in the data and smoke yeah this is a critter this is an awesome Synergy there I mean I can see a Splunk customer going man this just gives me so much more capability action actionability and also real understanding and I think this is what I want to dig into if you don't mind understanding that critical impact okay is kind of where I see this coming got the data data ingest now data's data but the question is what not to log you know where are things misconfigured these are critical questions so can you talk about what it means to understand critical impact yeah so I think you know going back to the things that I just spoke about a lot of those cves where you'll see um uh low low low and then you daisy chain together and they're suddenly like oh this is high now but then your other impact of like if you're if you're a Splunk customer you know and I had it I had several of them I had one customer that you know terabytes of McAfee data being brought in and it was like all right there's a lot of other data that you probably also want to bring but they could only afford wanted to do certain data sets because that's and they didn't know how to prioritize or filter those data sets and so we provide that opportunity to say hey these are the critical ones to bring in but there's also the ones that you don't necessarily need to bring in because low cve in this case really does mean low cve like an ILO server would be one that um that's the print server uh where the uh your admin credentials are on on like a printer and so there will be credentials on that that's something that a hacker might go in to look at so although the cve on it is low is if you daisy chain with somebody that's able to get into that you might say Ah that's high and we would then potentially rank it giving our AI logic to say that's a moderate so put it on the scale and we prioritize those versus uh of all of these scanners just going to give you a bunch of CDs and good luck and translating that if I if I can and tell me if I'm wrong that kind of speaks to that whole lateral movement that's it challenge right print serve a great example looks stupid low end who's going to want to deal with the print server oh but it's connected into a critical system there's a path is that kind of what you're getting at yeah I use Daisy Chain I think that's from the community they came from uh but it's just a lateral movement it's exactly what they're doing in those low level low critical lateral movements is where the hackers are getting in right so that's the beauty thing about the uh the Uber example is that who would have thought you know I've got my monthly Factor authentication going in a human made a mistake we can't we can't not expect humans to make mistakes we're fallible right the reality is is once they were in the environment they could have protected themselves by running enough pen tests to know that they had certain uh exposed credentials that would have stopped the breach and they did not had not done that in their environment and I'm not poking yeah but it's an interesting Trend though I mean it's obvious if sometimes those low end items are also not protected well so it's easy to get at from a hacker standpoint but also the people in charge of them can be fished easily or spearfished because they're not paying attention because they don't have to no one ever told them hey be careful yeah for the community that I came from John that's exactly how they they would uh meet you at a uh an International Event um introduce themselves as a graduate student these are National actor States uh would you mind reviewing my thesis on such and such and I was at Adobe at the time that I was working on this instead of having to get the PDF they opened the PDF and whoever that customer was launches and I don't know if you remember back in like 2008 time frame there was a lot of issues around IP being by a nation state being stolen from the United States and that's exactly how they did it and John that's or LinkedIn hey I want to get a joke we want to hire you double the salary oh I'm gonna click on that for sure you know yeah right exactly yeah the one thing I would say to you is like uh when we look at like sort of you know because I think we did 10 000 pen tests last year is it's probably over that now you know we have these sort of top 10 ways that we think and find people coming into the environment the funniest thing is that only one of them is a cve related vulnerability like uh you know you guys know what they are right so it's it but it's it's like two percent of the attacks are occurring through the cves but yeah there's all that attention spent to that and very little attention spent to this pen testing side which is sort of this continuous threat you know monitoring space and and this vulnerability space where I think we play a such an important role and I'm so excited to be a part of the tip of the spear on this one yeah I'm old enough to know the movie sneakers which I loved as a you know watching that movie you know professional hackers are testing testing always testing the environment I love this I got to ask you as we kind of wrap up here Chris if you don't mind the the benefits to Professional Services from this Alliance big news Splunk and you guys work well together we see that clearly what are what other benefits do Professional Services teams see from the Splunk and Horizon 3.ai Alliance so if you're I think for from our our from both of our uh Partners uh as we bring these guys together and many of them already are the same partner right uh is that uh first off the licensing model is probably one of the key areas that we really excel at so if you're an end user you can buy uh for the Enterprise by the number of IP addresses you're using um but uh if you're a partner working with this there's solution ways that you can go in and we'll license as to msps and what that business model on msps looks like but the unique thing that we do here is this C plus license and so the Consulting plus license allows like a uh somebody a small to mid-sized to some very large uh you know Fortune 100 uh consulting firms use this uh by buying into a license called um Consulting plus where they can have unlimited uh access to as many IPS as they want but you can only run one test at a time and as you can imagine when we're going and hacking passwords and um checking hashes and decrypting hashes that can take a while so but for the right customer it's it's a perfect tool and so I I'm so excited about our ability to go to market with uh our partners so that we understand ourselves understand how not to just sell to or not tell just to sell through but we know how to sell with them as a good vendor partner I think that that's one thing that we've done a really good job building bring it into the market yeah I think also the Splunk has had great success how they've enabled uh partners and Professional Services absolutely you know the services that layer on top of Splunk are multi-fold tons of great benefits so you guys Vector right into that ride that way with friction and and the cool thing is that in you know in one of our reports which could be totally customized uh with someone else's logo we're going to generate you know so I I used to work in another organization it wasn't Splunk but we we did uh you know pen testing as for for customers and my pen testers would come on site they'd do the engagement and they would leave and then another release someone would be oh shoot we got another sector that was breached and they'd call you back you know four weeks later and so by August our entire pen testings teams would be sold out and it would be like well even in March maybe and they're like no no I gotta breach now and and and then when they do go in they go through do the pen test and they hand over a PDF and they pack on the back and say there's where your problems are you need to fix it and the reality is that what we're going to generate completely autonomously with no human interaction is we're going to go and find all the permutations of anything we found and the fix for those permutations and then once you've fixed everything you just go back and run another pen test it's you know for what people pay for one pen test they can have a tool that does that every every Pat patch on Tuesday and that's on Wednesday you know triage throughout the week green yellow red I wanted to see the colors show me green green is good right not red and one CIO doesn't want who doesn't want that dashboard right it's it's exactly it and we can help bring I think that you know I'm really excited about helping drive this with the Splunk team because they get that they understand that it's the green yellow red dashboard and and how do we help them find more green uh so that the other guys are in red yeah and get in the data and do the right thing and be efficient with how you use the data know what to look at so many things to pay attention to you know the combination of both and then go to market strategy real brilliant congratulations Chris thanks for coming on and sharing um this news with the detail around the Splunk in action around the alliance thanks for sharing John my pleasure thanks look forward to seeing you soon all right great we'll follow up and do another segment on devops and I.T and security teams as the new new Ops but and super cloud a bunch of other stuff so thanks for coming on and our next segment the CEO of horizon 3.aa will break down all the new news for us here on thecube you're watching thecube the leader in high tech Enterprise coverage [Music] yeah the partner program for us has been fantastic you know I think prior to that you know as most organizations most uh uh most Farmers most mssps might not necessarily have a a bench at all for penetration testing uh maybe they subcontract this work out or maybe they do it themselves but trying to staff that kind of position can be incredibly difficult for us this was a differentiator a a new a new partner a new partnership that allowed us to uh not only perform services for our customers but be able to provide a product by which that they can do it themselves so we work with our customers in a variety of ways some of them want more routine testing and perform this themselves but we're also a certified service provider of horizon 3 being able to perform uh penetration tests uh help review the the data provide color provide analysis for our customers in a broader sense right not necessarily the the black and white elements of you know what was uh what's critical what's high what's medium what's low what you need to fix but are there systemic issues this has allowed us to onboard new customers this has allowed us to migrate some penetration testing services to us from from competitors in the marketplace But ultimately this is occurring because the the product and the outcome are special they're unique and they're effective our customers like what they're seeing they like the routineness of it many of them you know again like doing this themselves you know being able to kind of pen test themselves parts of their networks um and the the new use cases right I'm a large organization I have eight to ten Acquisitions per year wouldn't it be great to have a tool to be able to perform a penetration test both internal and external of that acquisition before we integrate the two companies and maybe bringing on some risk it's a very effective partnership uh one that really is uh kind of taken our our Engineers our account Executives by storm um you know this this is a a partnership that's been very valuable to us [Music] a key part of the value and business model at Horizon 3 is enabling Partners to leverage node zero to make more revenue for themselves our goal is that for sixty percent of our Revenue this year will be originated by partners and that 95 of our Revenue next year will be originated by partners and so a key to that strategy is making us an integral part of your business models as a partner a key quote from one of our partners is that we enable every one of their business units to generate Revenue so let's talk about that in a little bit more detail first is that if you have a pen test Consulting business take Deloitte as an example what was six weeks of human labor at Deloitte per pen test has been cut down to four days of Labor using node zero to conduct reconnaissance find all the juicy interesting areas of the of the Enterprise that are exploitable and being able to go assess the entire organization and then all of those details get served up to the human to be able to look at understand and determine where to probe deeper so what you see in that pen test Consulting business is that node zero becomes a force multiplier where those Consulting teams were able to cover way more accounts and way more IPS within those accounts with the same or fewer consultants and so that directly leads to profit margin expansion for the Penn testing business itself because node 0 is a force multiplier the second business model here is if you're an mssp as an mssp you're already making money providing defensive cyber security operations for a large volume of customers and so what they do is they'll license node zero and use us as an upsell to their mssb business to start to deliver either continuous red teaming continuous verification or purple teaming as a service and so in that particular business model they've got an additional line of Revenue where they can increase the spend of their existing customers by bolting on node 0 as a purple team as a service offering the third business model or customer type is if you're an I.T services provider so as an I.T services provider you make money installing and configuring security products like Splunk or crowdstrike or hemio you also make money reselling those products and you also make money generating follow-on services to continue to harden your customer environments and so for them what what those it service providers will do is use us to verify that they've installed Splunk correctly improved to their customer that Splunk was installed correctly or crowdstrike was installed correctly using our results and then use our results to drive follow-on services and revenue and then finally we've got the value-added reseller which is just a straight up reseller because of how fast our sales Cycles are these vars are able to typically go from cold email to deal close in six to eight weeks at Horizon 3 at least a single sales engineer is able to run 30 to 50 pocs concurrently because our pocs are very lightweight and don't require any on-prem customization or heavy pre-sales post sales activity so as a result we're able to have a few amount of sellers driving a lot of Revenue and volume for us well the same thing applies to bars there isn't a lot of effort to sell the product or prove its value so vars are able to sell a lot more Horizon 3 node zero product without having to build up a huge specialist sales organization so what I'm going to do is talk through uh scenario three here as an I.T service provider and just how powerful node zero can be in driving additional Revenue so in here think of for every one dollar of node zero license purchased by the IT service provider to do their business it'll generate ten dollars of additional revenue for that partner so in this example kidney group uses node 0 to verify that they have installed and deployed Splunk correctly so Kitty group is a Splunk partner they they sell it services to install configure deploy and maintain Splunk and as they deploy Splunk they're going to use node 0 to attack the environment and make sure that the right logs and alerts and monitoring are being handled within the Splunk deployment so it's a way of doing QA or verifying that Splunk has been configured correctly and that's going to be internally used by kidney group to prove the quality of their services that they've just delivered then what they're going to do is they're going to show and leave behind that node zero Report with their client and that creates a resell opportunity for for kidney group to resell node 0 to their client because their client is seeing the reports and the results and saying wow this is pretty amazing and those reports can be co-branded where it's a pen testing report branded with kidney group but it says powered by Horizon three under it from there kidney group is able to take the fixed actions report that's automatically generated with every pen test through node zero and they're able to use that as the starting point for a statement of work to sell follow-on services to fix all of the problems that node zero identified fixing l11r misconfigurations fixing or patching VMware or updating credentials policies and so on so what happens is node 0 has found a bunch of problems the client often lacks the capacity to fix and so kidney group can use that lack of capacity by the client as a follow-on sales opportunity for follow-on services and finally based on the findings from node zero kidney group can look at that report and say to the customer you know customer if you bought crowdstrike you'd be able to uh prevent node Zero from attacking and succeeding in the way that it did for if you bought humano or if you bought Palo Alto networks or if you bought uh some privileged access management solution because of what node 0 was able to do with credential harvesting and attacks and so as a result kidney group is able to resell other security products within their portfolio crowdstrike Falcon humano Polito networks demisto Phantom and so on based on the gaps that were identified by node zero and that pen test and what that creates is another feedback loop where kidney group will then go use node 0 to verify that crowdstrike product has actually been installed and configured correctly and then this becomes the cycle of using node 0 to verify a deployment using that verification to drive a bunch of follow-on services and resell opportunities which then further drives more usage of the product now the way that we licensed is that it's a usage-based license licensing model so that the partner will grow their node zero Consulting plus license as they grow their business so for example if you're a kidney group then week one you've got you're going to use node zero to verify your Splunk install in week two if you have a pen testing business you're going to go off and use node zero to be a force multiplier for your pen testing uh client opportunity and then if you have an mssp business then in week three you're going to use node zero to go execute a purple team mssp offering for your clients so not necessarily a kidney group but if you're a Deloitte or ATT these larger companies and you've got multiple lines of business if you're Optive for instance you all you have to do is buy one Consulting plus license and you're going to be able to run as many pen tests as you want sequentially so now you can buy a single license and use that one license to meet your week one client commitments and then meet your week two and then meet your week three and as you grow your business you start to run multiple pen tests concurrently so in week one you've got to do a Splunk verify uh verify Splunk install and you've got to run a pen test and you've got to do a purple team opportunity you just simply expand the number of Consulting plus licenses from one license to three licenses and so now as you systematically grow your business you're able to grow your node zero capacity with you giving you predictable cogs predictable margins and once again 10x additional Revenue opportunity for that investment in the node zero Consulting plus license my name is Saint I'm the co-founder and CEO here at Horizon 3. I'm going to talk to you today about why it's important to look at your Enterprise Through The Eyes of an attacker the challenge I had when I was a CIO in banking the CTO at Splunk and serving within the Department of Defense is that I had no idea I was Secure until the bad guys had showed up am I logging the right data am I fixing the right vulnerabilities are my security tools that I've paid millions of dollars for actually working together to defend me and the answer is I don't know does my team actually know how to respond to a breach in the middle of an incident I don't know I've got to wait for the bad guys to show up and so the challenge I had was how do we proactively verify our security posture I tried a variety of techniques the first was the use of vulnerability scanners and the challenge with vulnerability scanners is being vulnerable doesn't mean you're exploitable I might have a hundred thousand findings from my scanner of which maybe five or ten can actually be exploited in my environment the other big problem with scanners is that they can't chain weaknesses together from machine to machine so if you've got a thousand machines in your environment or more what a vulnerability scanner will do is tell you you have a problem on machine one and separately a problem on machine two but what they can tell you is that an attacker could use a load from machine one plus a low from machine two to equal to critical in your environment and what attackers do in their tactics is they chain together misconfigurations dangerous product defaults harvested credentials and exploitable vulnerabilities into attack paths across different machines so to address the attack pads across different machines I tried layering in consulting-based pen testing and the issue is when you've got thousands of hosts or hundreds of thousands of hosts in your environment human-based pen testing simply doesn't scale to test an infrastructure of that size moreover when they actually do execute a pen test and you get the report oftentimes you lack the expertise within your team to quickly retest to verify that you've actually fixed the problem and so what happens is you end up with these pen test reports that are incomplete snapshots and quickly going stale and then to mitigate that problem I tried using breach and attack simulation tools and the struggle with these tools is one I had to install credentialed agents everywhere two I had to write my own custom attack scripts that I didn't have much talent for but also I had to maintain as my environment changed and then three these types of tools were not safe to run against production systems which was the the majority of my attack surface so that's why we went off to start Horizon 3. so Tony and I met when we were in Special Operations together and the challenge we wanted to solve was how do we do infrastructure security testing at scale by giving the the power of a 20-year pen testing veteran into the hands of an I.T admin a network engineer in just three clicks and the whole idea is we enable these fixers The Blue Team to be able to run node Zero Hour pen testing product to quickly find problems in their environment that blue team will then then go off and fix the issues that were found and then they can quickly rerun the attack to verify that they fixed the problem and the whole idea is delivering this without requiring custom scripts be developed without requiring credential agents be installed and without requiring the use of external third-party consulting services or Professional Services self-service pen testing to quickly Drive find fix verify there are three primary use cases that our customers use us for the first is the sock manager that uses us to verify that their security tools are actually effective to verify that they're logging the right data in Splunk or in their Sim to verify that their managed security services provider is able to quickly detect and respond to an attack and hold them accountable for their slas or that the sock understands how to quickly detect and respond and measuring and verifying that or that the variety of tools that you have in your stack most organizations have 130 plus cyber security tools none of which are designed to work together are actually working together the second primary use case is proactively hardening and verifying your systems this is when the I that it admin that network engineer they're able to run self-service pen tests to verify that their Cisco environment is installed in hardened and configured correctly or that their credential policies are set up right or that their vcenter or web sphere or kubernetes environments are actually designed to be secure and what this allows the it admins and network Engineers to do is shift from running one or two pen tests a year to 30 40 or more pen tests a month and you can actually wire those pen tests into your devops process or into your detection engineering and the change management processes to automatically trigger pen tests every time there's a change in your environment the third primary use case is for those organizations lucky enough to have their own internal red team they'll use node zero to do reconnaissance and exploitation at scale and then use the output as a starting point for the humans to step in and focus on the really hard juicy stuff that gets them on stage at Defcon and so these are the three primary use cases and what we'll do is zoom into the find fix verify Loop because what I've found in my experience is find fix verify is the future operating model for cyber security organizations and what I mean here is in the find using continuous pen testing what you want to enable is on-demand self-service pen tests you want those pen tests to find attack pads at scale spanning your on-prem infrastructure your Cloud infrastructure and your perimeter because attackers don't only state in one place they will find ways to chain together a perimeter breach a credential from your on-prem to gain access to your cloud or some other permutation and then the third part in continuous pen testing is attackers don't focus on critical vulnerabilities anymore they know we've built vulnerability Management Programs to reduce those vulnerabilities so attackers have adapted and what they do is chain together misconfigurations in your infrastructure and software and applications with dangerous product defaults with exploitable vulnerabilities and through the collection of credentials through a mix of techniques at scale once you've found those problems the next question is what do you do about it well you want to be able to prioritize fixing problems that are actually exploitable in your environment that truly matter meaning they're going to lead to domain compromise or domain user compromise or access your sensitive data the second thing you want to fix is making sure you understand what risk your crown jewels data is exposed to where is your crown jewels data is in the cloud is it on-prem has it been copied to a share drive that you weren't aware of if a domain user was compromised could they access that crown jewels data you want to be able to use the attacker's perspective to secure the critical data you have in your infrastructure and then finally as you fix these problems you want to quickly remediate and retest that you've actually fixed the issue and this fine fix verify cycle becomes that accelerator that drives purple team culture the third part here is verify and what you want to be able to do in the verify step is verify that your security tools and processes in people can effectively detect and respond to a breach you want to be able to integrate that into your detection engineering processes so that you know you're catching the right security rules or that you've deployed the right configurations you also want to make sure that your environment is adhering to the best practices around systems hardening in cyber resilience and finally you want to be able to prove your security posture over a time to your board to your leadership into your regulators so what I'll do now is zoom into each of these three steps so when we zoom in to find here's the first example using node 0 and autonomous pen testing and what an attacker will do is find a way to break through the perimeter in this example it's very easy to misconfigure kubernetes to allow an attacker to gain remote code execution into your on-prem kubernetes environment and break through the perimeter and from there what the attacker is going to do is conduct Network reconnaissance and then find ways to gain code execution on other machines in the environment and as they get code execution they start to dump credentials collect a bunch of ntlm hashes crack those hashes using open source and dark web available data as part of those attacks and then reuse those credentials to log in and laterally maneuver throughout the environment and then as they loudly maneuver they can reuse those credentials and use credential spraying techniques and so on to compromise your business email to log in as admin into your cloud and this is a very common attack and rarely is a CV actually needed to execute this attack often it's just a misconfiguration in kubernetes with a bad credential policy or password policy combined with bad practices of credential reuse across the organization here's another example of an internal pen test and this is from an actual customer they had 5 000 hosts within their environment they had EDR and uba tools installed and they initiated in an internal pen test on a single machine from that single initial access point node zero enumerated the network conducted reconnaissance and found five thousand hosts were accessible what node 0 will do under the covers is organize all of that reconnaissance data into a knowledge graph that we call the Cyber terrain map and that cyber Terrain map becomes the key data structure that we use to efficiently maneuver and attack and compromise your environment so what node zero will do is they'll try to find ways to get code execution reuse credentials and so on in this customer example they had Fortinet installed as their EDR but node 0 was still able to get code execution on a Windows machine from there it was able to successfully dump credentials including sensitive credentials from the lsas process on the Windows box and then reuse those credentials to log in as domain admin in the network and once an attacker becomes domain admin they have the keys to the kingdom they can do anything they want so what happened here well it turns out Fortinet was misconfigured on three out of 5000 machines bad automation the customer had no idea this had happened they would have had to wait for an attacker to show up to realize that it was misconfigured the second thing is well why didn't Fortinet stop the credential pivot in the lateral movement and it turned out the customer didn't buy the right modules or turn on the right services within that particular product and we see this not only with Ford in it but we see this with Trend Micro and all the other defensive tools where it's very easy to miss a checkbox in the configuration that will do things like prevent credential dumping the next story I'll tell you is attackers don't have to hack in they log in so another infrastructure pen test a typical technique attackers will take is man in the middle uh attacks that will collect hashes so in this case what an attacker will do is leverage a tool or technique called responder to collect ntlm hashes that are being passed around the network and there's a variety of reasons why these hashes are passed around and it's a pretty common misconfiguration but as an attacker collects those hashes then they start to apply techniques to crack those hashes so they'll pass the hash and from there they will use open source intelligence common password structures and patterns and other types of techniques to try to crack those hashes into clear text passwords so here node 0 automatically collected hashes it automatically passed the hashes to crack those credentials and then from there it starts to take the domain user user ID passwords that it's collected and tries to access different services and systems in your Enterprise in this case node 0 is able to successfully gain access to the Office 365 email environment because three employees didn't have MFA configured so now what happens is node 0 has a placement and access in the business email system which sets up the conditions for fraud lateral phishing and other techniques but what's especially insightful here is that 80 of the hashes that were collected in this pen test were cracked in 15 minutes or less 80 percent 26 of the user accounts had a password that followed a pretty obvious pattern first initial last initial and four random digits the other thing that was interesting is 10 percent of service accounts had their user ID the same as their password so VMware admin VMware admin web sphere admin web Square admin so on and so forth and so attackers don't have to hack in they just log in with credentials that they've collected the next story here is becoming WS AWS admin so in this example once again internal pen test node zero gets initial access it discovers 2 000 hosts are network reachable from that environment if fingerprints and organizes all of that data into a cyber Terrain map from there it it fingerprints that hpilo the integrated lights out service was running on a subset of hosts hpilo is a service that is often not instrumented or observed by security teams nor is it easy to patch as a result attackers know this and immediately go after those types of services so in this case that ILO service was exploitable and were able to get code execution on it ILO stores all the user IDs and passwords in clear text in a particular set of processes so once we gain code execution we were able to dump all of the credentials and then from there laterally maneuver to log in to the windows box next door as admin and then on that admin box we're able to gain access to the share drives and we found a credentials file saved on a share Drive from there it turned out that credentials file was the AWS admin credentials file giving us full admin authority to their AWS accounts not a single security alert was triggered in this attack because the customer wasn't observing the ILO service and every step thereafter was a valid login in the environment and so what do you do step one patch the server step two delete the credentials file from the share drive and then step three is get better instrumentation on privileged access users and login the final story I'll tell is a typical pattern that we see across the board with that combines the various techniques I've described together where an attacker is going to go off and use open source intelligence to find all of the employees that work at your company from there they're going to look up those employees on dark web breach databases and other forms of information and then use that as a starting point to password spray to compromise a domain user all it takes is one employee to reuse a breached password for their Corporate email or all it takes is a single employee to have a weak password that's easily guessable all it takes is one and once the attacker is able to gain domain user access in most shops domain user is also the local admin on their laptop and once your local admin you can dump Sam and get local admin until M hashes you can use that to reuse credentials again local admin on neighboring machines and attackers will start to rinse and repeat then eventually they're able to get to a point where they can dump lsas or by unhooking the anti-virus defeating the EDR or finding a misconfigured EDR as we've talked about earlier to compromise the domain and what's consistent is that the fundamentals are broken at these shops they have poor password policies they don't have least access privilege implemented active directory groups are too permissive where domain admin or domain user is also the local admin uh AV or EDR Solutions are misconfigured or easily unhooked and so on and what we found in 10 000 pen tests is that user Behavior analytics tools never caught us in that lateral movement in part because those tools require pristine logging data in order to work and also it becomes very difficult to find that Baseline of normal usage versus abnormal usage of credential login another interesting Insight is there were several Marquee brand name mssps that were defending our customers environment and for them it took seven hours to detect and respond to the pen test seven hours the pen test was over in less than two hours and so what you had was an egregious violation of the service level agreements that that mssp had in place and the customer was able to use us to get service credit and drive accountability of their sock and of their provider the third interesting thing is in one case it took us seven minutes to become domain admin in a bank that bank had every Gucci security tool you could buy yet in 7 minutes and 19 seconds node zero started as an unauthenticated member of the network and was able to escalate privileges through chaining and misconfigurations in lateral movement and so on to become domain admin if it's seven minutes today we should assume it'll be less than a minute a year or two from now making it very difficult for humans to be able to detect and respond to that type of Blitzkrieg attack so that's in the find it's not just about finding problems though the bulk of the effort should be what to do about it the fix and the verify so as you find those problems back to kubernetes as an example we will show you the path here is the kill chain we took to compromise that environment we'll show you the impact here is the impact or here's the the proof of exploitation that we were able to use to be able to compromise it and there's the actual command that we executed so you could copy and paste that command and compromise that cubelet yourself if you want and then the impact is we got code execution and we'll actually show you here is the impact this is a critical here's why it enabled perimeter breach affected applications will tell you the specific IPS where you've got the problem how it maps to the miter attack framework and then we'll tell you exactly how to fix it we'll also show you what this problem enabled so you can accurately prioritize why this is important or why it's not important the next part is accurate prioritization the hardest part of my job as a CIO was deciding what not to fix so if you take SMB signing not required as an example by default that CVSs score is a one out of 10. but this misconfiguration is not a cve it's a misconfig enable an attacker to gain access to 19 credentials including one domain admin two local admins and access to a ton of data because of that context this is really a 10 out of 10. you better fix this as soon as possible however of the seven occurrences that we found it's only a critical in three out of the seven and these are the three specific machines and we'll tell you the exact way to fix it and you better fix these as soon as possible for these four machines over here these didn't allow us to do anything of consequence so that because the hardest part is deciding what not to fix you can justifiably choose not to fix these four issues right now and just add them to your backlog and surge your team to fix these three as quickly as possible and then once you fix these three you don't have to re-run the entire pen test you can select these three and then one click verify and run a very narrowly scoped pen test that is only testing this specific issue and what that creates is a much faster cycle of finding and fixing problems the other part of fixing is verifying that you don't have sensitive data at risk so once we become a domain user we're able to use those domain user credentials and try to gain access to databases file shares S3 buckets git repos and so on and help you understand what sensitive data you have at risk so in this example a green checkbox means we logged in as a valid domain user we're able to get read write access on the database this is how many records we could have accessed and we don't actually look at the values in the database but we'll show you the schema so you can quickly characterize that pii data was at risk here and we'll do that for your file shares and other sources of data so now you can accurately articulate the data you have at risk and prioritize cleaning that data up especially data that will lead to a fine or a big news issue so that's the find that's the fix now we're going to talk about the verify the key part in verify is embracing and integrating with detection engineering practices so when you think about your layers of security tools you've got lots of tools in place on average 130 tools at any given customer but these tools were not designed to work together so when you run a pen test what you want to do is say did you detect us did you log us did you alert on us did you stop us and from there what you want to see is okay what are the techniques that are commonly used to defeat an environment to actually compromise if you look at the top 10 techniques we use and there's far more than just these 10 but these are the most often executed nine out of ten have nothing to do with cves it has to do with misconfigurations dangerous product defaults bad credential policies and it's how we chain those together to become a domain admin or compromise a host so what what customers will do is every single attacker command we executed is provided to you as an attackivity log so you can actually see every single attacker command we ran the time stamp it was executed the hosts it executed on and how it Maps the minor attack tactics so our customers will have are these attacker logs on one screen and then they'll go look into Splunk or exabeam or Sentinel one or crowdstrike and say did you detect us did you log us did you alert on us or not and to make that even easier if you take this example hey Splunk what logs did you see at this time on the VMware host because that's when node 0 is able to dump credentials and that allows you to identify and fix your logging blind spots to make that easier we've got app integration so this is an actual Splunk app in the Splunk App Store and what you can come is inside the Splunk console itself you can fire up the Horizon 3 node 0 app all of the pen test results are here so that you can see all of the results in one place and you don't have to jump out of the tool and what you'll show you as I skip forward is hey there's a pen test here are the critical issues that we've identified for that weaker default issue here are the exact commands we executed and then we will automatically query into Splunk all all terms on between these times on that endpoint that relate to this attack so you can now quickly within the Splunk environment itself figure out that you're missing logs or that you're appropriately catching this issue and that becomes incredibly important in that detection engineering cycle that I mentioned earlier so how do our customers end up using us they shift from running one pen test a year to 30 40 pen tests a month oftentimes wiring us into their deployment automation to automatically run pen tests the other part that they'll do is as they run more pen tests they find more issues but eventually they hit this inflection point where they're able to rapidly clean up their environment and that inflection point is because the red and the blue teams start working together in a purple team culture and now they're working together to proactively harden their environment the other thing our customers will do is run us from different perspectives they'll first start running an RFC 1918 scope to see once the attacker gained initial access in a part of the network that had wide access what could they do and then from there they'll run us within a specific Network segment okay from within that segment could the attacker break out and gain access to another segment then they'll run us from their work from home environment could they Traverse the VPN and do something damaging and once they're in could they Traverse the VPN and get into my cloud then they'll break in from the outside all of these perspectives are available to you in Horizon 3 and node zero as a single SKU and you can run as many pen tests as you want if you run a phishing campaign and find that an intern in the finance department had the worst phishing behavior you can then inject their credentials and actually show the end-to-end story of how an attacker fished gained credentials of an intern and use that to gain access to sensitive financial data so what our customers end up doing is running multiple attacks from multiple perspectives and looking at those results over time I'll leave you two things one is what is the AI in Horizon 3 AI those knowledge graphs are the heart and soul of everything that we do and we use machine learning reinforcement techniques reinforcement learning techniques Markov decision models and so on to be able to efficiently maneuver and analyze the paths in those really large graphs we also use context-based scoring to prioritize weaknesses and we're also able to drive collective intelligence across all of the operations so the more pen tests we run the smarter we get and all of that is based on our knowledge graph analytics infrastructure that we have finally I'll leave you with this was my decision criteria when I was a buyer for my security testing strategy what I cared about was coverage I wanted to be able to assess my on-prem cloud perimeter and work from home and be safe to run in production I want to be able to do that as often as I wanted I want to be able to run pen tests in hours or days not weeks or months so I could accelerate that fine fix verify loop I wanted my it admins and network Engineers with limited offensive experience to be able to run a pen test in a few clicks through a self-service experience and not have to install agent and not have to write custom scripts and finally I didn't want to get nickeled and dimed on having to buy different types of attack modules or different types of attacks I wanted a single annual subscription that allowed me to run any type of attack as often as I wanted so I could look at my Trends in directions over time so I hope you found this talk valuable uh we're easy to find and I look forward to seeing seeing you use a product and letting our results do the talking when you look at uh you know kind of the way no our pen testing algorithms work is we dynamically select uh how to compromise an environment based on what we've discovered and the goal is to become a domain admin compromise a host compromise domain users find ways to encrypt data steal sensitive data and so on but when you look at the the top 10 techniques that we ended up uh using to compromise environments the first nine have nothing to do with cves and that's the reality cves are yes a vector but less than two percent of cves are actually used in a compromise oftentimes it's some sort of credential collection credential cracking uh credential pivoting and using that to become an admin and then uh compromising environments from that point on so I'll leave this up for you to kind of read through and you'll have the slides available for you but I found it very insightful that organizations and ourselves when I was a GE included invested heavily in just standard vulnerability Management Programs when I was at DOD that's all disa cared about asking us about was our our kind of our cve posture but the attackers have adapted to not rely on cves to get in because they know that organizations are actively looking at and patching those cves and instead they're chaining together credentials from one place with misconfigurations and dangerous product defaults in another to take over an environment a concrete example is by default vcenter backups are not encrypted and so as if an attacker finds vcenter what they'll do is find the backup location and there are specific V sender MTD files where the admin credentials are parsippled in the binaries so you can actually as an attacker find the right MTD file parse out the binary and now you've got the admin credentials for the vcenter environment and now start to log in as admin there's a bad habit by signal officers and Signal practitioners in the in the Army and elsewhere where the the VM notes section of a virtual image has the password for the VM well those VM notes are not stored encrypted and attackers know this and they're able to go off and find the VMS that are unencrypted find the note section and pull out the passwords for those images and then reuse those credentials across the board so I'll pause here and uh you know Patrick love you get some some commentary on on these techniques and other things that you've seen and what we'll do in the last say 10 to 15 minutes is uh is rolled through a little bit more on what do you do about it yeah yeah no I love it I think um I think this is pretty exhaustive what I like about what you've done here is uh you know we've seen we've seen double-digit increases in the number of organizations that are reporting actual breaches year over year for the last um for the last three years and it's often we kind of in the Zeitgeist we pegged that on ransomware which of course is like incredibly important and very top of mind um but what I like about what you have here is you know we're reminding the audience that the the attack surface area the vectors the matter um you know has to be more comprehensive than just thinking about ransomware scenarios yeah right on um so let's build on this when you think about your defense in depth you've got multiple security controls that you've purchased and integrated and you've got that redundancy if a control fails but the reality is that these security tools aren't designed to work together so when you run a pen test what you want to ask yourself is did you detect node zero did you log node zero did you alert on node zero and did you stop node zero and when you think about how to do that every single attacker command executed by node zero is available in an attacker log so you can now see you know at the bottom here vcenter um exploit at that time on that IP how it aligns to minor attack what you want to be able to do is go figure out did your security tools catch this or not and that becomes very important in using the attacker's perspective to improve your defensive security controls and so the way we've tried to make this easier back to like my my my the you know I bleed Green in many ways still from my smoke background is you want to be able to and what our customers do is hey we'll look at the attacker logs on one screen and they'll look at what did Splunk see or Miss in another screen and then they'll use that to figure out what their logging blind spots are and what that where that becomes really interesting is we've actually built out an integration into Splunk where there's a Splunk app you can download off of Splunk base and you'll get all of the pen test results right there in the Splunk console and from that Splunk console you're gonna be able to see these are all the pen tests that were run these are the issues that were found um so you can look at that particular pen test here are all of the weaknesses that were identified for that particular pen test and how they categorize out for each of those weaknesses you can click on any one of them that are critical in this case and then we'll tell you for that weakness and this is where where the the punch line comes in so I'll pause the video here for that weakness these are the commands that were executed on these endpoints at this time and then we'll actually query Splunk for that um for that IP address or containing that IP and these are the source types that surface any sort of activity so what we try to do is help you as quickly and efficiently as possible identify the logging blind spots in your Splunk environment based on the attacker's perspective so as this video kind of plays through you can see it Patrick I'd love to get your thoughts um just seeing so many Splunk deployments and the effectiveness of those deployments and and how this is going to help really Elevate the effectiveness of all of your Splunk customers yeah I'm super excited about this I mean I think this these kinds of purpose-built integration snail really move the needle for our customers I mean at the end of the day when I think about the power of Splunk I think about a product I was first introduced to 12 years ago that was an on-prem piece of software you know and at the time it sold on sort of Perpetual and term licenses but one made it special was that it could it could it could eat data at a speed that nothing else that I'd have ever seen you can ingest massively scalable amounts of data uh did cool things like schema on read which facilitated that there was this language called SPL that you could nerd out about uh and you went to a conference once a year and you talked about all the cool things you were splunking right but now as we think about the next phase of our growth um we live in a heterogeneous environment where our customers have so many different tools and data sources that are ever expanding and as you look at the as you look at the role of the ciso it's mind-blowing to me the amount of sources Services apps that are coming into the ciso span of let's just call it a span of influence in the last three years uh you know we're seeing things like infrastructure service level visibility application performance monitoring stuff that just never made sense for the security team to have visibility into you um at least not at the size and scale which we're demanding today um and and that's different and this isn't this is why it's so important that we have these joint purpose-built Integrations that um really provide more prescription to our customers about how do they walk on that Journey towards maturity what does zero to one look like what does one to two look like whereas you know 10 years ago customers were happy with platforms today they want integration they want Solutions and they want to drive outcomes and I think this is a great example of how together we are stepping to the evolving nature of the market and also the ever-evolving nature of the threat landscape and what I would say is the maturing needs of the customer in that environment yeah for sure I think especially if if we all anticipate budget pressure over the next 18 months due to the economy and elsewhere while the security budgets are not going to ever I don't think they're going to get cut they're not going to grow as fast and there's a lot more pressure on organizations to extract more value from their existing Investments as well as extracting more value and more impact from their existing teams and so security Effectiveness Fierce prioritization and automation I think become the three key themes of security uh over the next 18 months so I'll do very quickly is run through a few other use cases um every host that we identified in the pen test were able to score and say this host allowed us to do something significant therefore it's it's really critical you should be increasing your logging here hey these hosts down here we couldn't really do anything as an attacker so if you do have to make trade-offs you can make some trade-offs of your logging resolution at the lower end in order to increase logging resolution on the upper end so you've got that level of of um justification for where to increase or or adjust your logging resolution another example is every host we've discovered as an attacker we Expose and you can export and we want to make sure is every host we found as an attacker is being ingested from a Splunk standpoint a big issue I had as a CIO and user of Splunk and other tools is I had no idea if there were Rogue Raspberry Pi's on the network or if a new box was installed and whether Splunk was installed on it or not so now you can quickly start to correlate what hosts did we see and how does that reconcile with what you're logging from uh finally or second to last use case here on the Splunk integration side is for every single problem we've found we give multiple options for how to fix it this becomes a great way to prioritize what fixed actions to automate in your soar platform and what we want to get to eventually is being able to automatically trigger soar actions to fix well-known problems like automatically invalidating passwords for for poor poor passwords in our credentials amongst a whole bunch of other things we could go off and do and then finally if there is a well-known kill chain or attack path one of the things I really wish I could have done when I was a Splunk customer was take this type of kill chain that actually shows a path to domain admin that I'm sincerely worried about and use it as a glass table over which I could start to layer possible indicators of compromise and now you've got a great starting point for glass tables and iocs for actual kill chains that we know are exploitable in your environment and that becomes some super cool Integrations that we've got on the roadmap between us and the Splunk security side of the house so what I'll leave with actually Patrick before I do that you know um love to get your comments and then I'll I'll kind of leave with one last slide on this wartime security mindset uh pending you know assuming there's no other questions no I love it I mean I think this kind of um it's kind of glass table's approach to how do you how do you sort of visualize these workflows and then use things like sore and orchestration and automation to operationalize them is exactly where we see all of our customers going and getting away from I think an over engineered approach to soar with where it has to be super technical heavy with you know python programmers and getting more to this visual view of workflow creation um that really demystifies the power of Automation and also democratizes it so you don't have to have these programming languages in your resume in order to start really moving the needle on workflow creation policy enforcement and ultimately driving automation coverage across more and more of the workflows that your team is seeing yeah I think that between us being able to visualize the actual kill chain or attack path with you know think of a of uh the soar Market I think going towards this no code low code um you know configurable sore versus coded sore that's going to really be a game changer in improve or giving security teams a force multiplier so what I'll leave you with is this peacetime mindset of security no longer is sustainable we really have to get out of checking the box and then waiting for the bad guys to show up to verify that security tools are are working or not and the reason why we've got to really do that quickly is there are over a thousand companies that withdrew from the Russian economy over the past uh nine months due to the Ukrainian War there you should expect every one of them to be punished by the Russians for leaving and punished from a cyber standpoint and this is no longer about financial extortion that is ransomware this is about punishing and destroying companies and you can punish any one of these companies by going after them directly or by going after their suppliers and their Distributors so suddenly your attack surface is no more no longer just your own Enterprise it's how you bring your goods to Market and it's how you get your goods created because while I may not be able to disrupt your ability to harvest fruit if I can get those trucks stuck at the border I can increase spoilage and have the same effect and what we should expect to see is this idea of cyber-enabled economic Warfare where if we issue a sanction like Banning the Russians from traveling there is a cyber-enabled counter punch which is corrupt and destroy the American Airlines database that is below the threshold of War that's not going to trigger the 82nd Airborne to be mobilized but it's going to achieve the right effect ban the sale of luxury goods disrupt the supply chain and create shortages banned Russian oil and gas attack refineries to call a 10x spike in gas prices three days before the election this is the future and therefore I think what we have to do is shift towards a wartime mindset which is don't trust your security posture verify it see yourself Through The Eyes of the attacker build that incident response muscle memory and drive better collaboration between the red and the blue teams your suppliers and Distributors and your information uh sharing organization they have in place and what's really valuable for me as a Splunk customer was when a router crashes at that moment you don't know if it's due to an I.T Administration problem or an attacker and what you want to have are different people asking different questions of the same data and you want to have that integrated triage process of an I.T lens to that problem a security lens to that problem and then from there figuring out is is this an IT workflow to execute or a security incident to execute and you want to have all of that as an integrated team integrated process integrated technology stack and this is something that I very care I cared very deeply about as both a Splunk customer and a Splunk CTO that I see time and time again across the board so Patrick I'll leave you with the last word the final three minutes here and I don't see any open questions so please take us home oh man see how you think we spent hours and hours prepping for this together that that last uh uh 40 seconds of your talk track is probably one of the things I'm most passionate about in this industry right now uh and I think nist has done some really interesting work here around building cyber resilient organizations that have that has really I think helped help the industry see that um incidents can come from adverse conditions you know stress is uh uh performance taxations in the infrastructure service or app layer and they can come from malicious compromises uh Insider threats external threat actors and the more that we look at this from the perspective of of a broader cyber resilience Mission uh in a wartime mindset uh I I think we're going to be much better off and and will you talk about with operationally minded ice hacks information sharing intelligence sharing becomes so important in these wartime uh um situations and you know we know not all ice acts are created equal but we're also seeing a lot of um more ad hoc information sharing groups popping up so look I think I think you framed it really really well I love the concept of wartime mindset and um I I like the idea of applying a cyber resilience lens like if you have one more layer on top of that bottom right cake you know I think the it lens and the security lens they roll up to this concept of cyber resilience and I think this has done some great work there for us yeah you're you're spot on and that that is app and that's gonna I think be the the next um terrain that that uh that you're gonna see vendors try to get after but that I think Splunk is best position to win okay that's a wrap for this special Cube presentation you heard all about the global expansion of horizon 3.ai's partner program for their Partners have a unique opportunity to take advantage of their node zero product uh International go to Market expansion North America channel Partnerships and just overall relationships with companies like Splunk to make things more comprehensive in this disruptive cyber security world we live in and hope you enjoyed this program all the videos are available on thecube.net as well as check out Horizon 3 dot AI for their pen test Automation and ultimately their defense system that they use for testing always the environment that you're in great Innovative product and I hope you enjoyed the program again I'm John Furrier host of the cube thanks for watching

>>Welcome back everyone to the Cube and Horizon three.ai special presentation. I'm John Furrier, host of the Cube. We with Chris Hill, Sector head for strategic accounts and federal@horizonthree.ai. Great innovative company. Chris, great to see you. Thanks for coming on the Cube. >>Yeah, like I said, you know, great to meet you John. Long time listener. First time call. So excited to be here with >>You guys. Yeah, we were talking before camera. You had Splunk back in 2013 and I think 2012 was our first splunk.com. Yep. And boy man, you know, talk about being in the right place at the right time. Now we're at another inflection point and Splunk continues to be relevant and continuing to have that data driving security and that interplay. And your ceo, former CTO of Splunk as well at Horizons Neha, who's been on before. Really innovative product you guys have, but you know, Yeah, don't wait for a brief to find out if you're locking the right data. This is the topic of this thread. Splunk is very much part of this new international expansion announcement with you guys. Tell us what are some of the challenges that you see where this is relevant for the Splunk and the Horizon AI as you guys expand Node zero out internationally? >>Yeah, well so across, so you know, my role within Splunk was working with our most strategic accounts. And so I look back to 2013 and I think about the sales process like working with, with our small customers. You know, it was, it was still very siloed back then. Like I was selling to an IT team that was either using us for IT operations. We generally would always even say, yeah, although we do security, we weren't really designed for it. We're a log management tool. And you know, we, and I'm sure you remember back then John, we were like sort of stepping into the security space and in the public sector domain that I was in, you know, security was 70% of what we did. When I look back to sort of the transformation that I was, was witnessing in that digital transformation, you know when I, you look at like 2019 to today, you look at how the IT team and the security teams are, have been forced to break down those barriers that they used to sort of be silo away, would not communicate one, you know, the security guys would be like, Oh this is my BA box it, you're not allowed in today. >>You can't get away with that. And I think that the value that we bring to, you know, and of course Splunk has been a huge leader in that space and continues to do innovation across the board. But I think what we've we're seeing in the space that I was talking with Patrick Kauflin, the SVP of security markets about this, is that, you know, what we've been able to do with Splunk is build a purpose built solution that allows Splunk to eat more data. So Splunk itself, as you well know, it's an ingest engine, right? So the great reason people bought it was you could build these really fast dashboards and grab intelligence out of it, but without data it doesn't do anything, right? So how do you drive and how do you bring more data in? And most importantly from a customer perspective, how do you bring the right data in? >>And so if you think about what node zero and what we're doing in a Horizon three is that, sure we do pen testing, but because we're an autonomous pen testing tool, we do it continuously. So this whole thought of being like, Oh, crud like my customers, Oh yeah, we got a pen test coming up, it's gonna be six weeks. The wait. Oh yeah. You know, and everyone's gonna sit on their hands, Call me back in two months, Chris, we'll talk to you then. Right? Not, not a real efficient way to test your environment and shoot, we, we saw that with Uber this week. Right? You know, and that's a case where we could have helped. >>Well just real quick, explain the Uber thing cause it was a contractor. Just give a quick highlight of what happened so you can connect the >>Dots. Yeah, no problem. So there it was, I think it was one of those, you know, games where they would try and test an environment. And what the pen tester did was he kept on calling them MFA guys being like, I need to reset my password re to set my password. And eventually the customer service guy said, Okay, I'm resetting it. Once he had reset and bypassed the multifactor authentication, he then was able to get in and get access to the domain area that he was in or the, not the domain, but he was able to gain access to a partial part of the network. He then paralleled over to what would I assume is like a VA VMware or some virtual machine that had notes that had all of the credentials for logging into various domains. And so within minutes they had access. And that's the sort of stuff that we do under, you know, a lot of these tools. >>Like not, and I'm not, you know, you think about the cacophony of tools that are out there in a CTA orchestra architecture, right? I'm gonna get like a Zscaler, I'm gonna have Okta, I'm gonna have a Splunk, I'm gonna do this sore system. I mean, I don't mean to name names, we're gonna have crowd strike or, or Sentinel one in there. It's just, it's a cacophony of things that don't work together. They weren't designed work together. And so we have seen so many times in our business through our customer support and just working with customers when we do their pen test, that there will be 5,000 servers out there. Three are misconfigured. Those three misconfigurations will create the open door. Cause remember the hacker only needs to be right once, the defender needs to be right all the time. And that's the challenge. And so that's why I'm really passionate about what we're doing here at Horizon three. I see this my digital transformation, migration and security going on, which we're at the tip of the sp, it's why I joined say Hall coming on this journey and just super excited about where the path's going and super excited about the relationship with Splunk. I get into more details on some of the specifics of that. But you know, >>I mean, well you're nailing, I mean we've been doing a lot of things around super cloud and this next gen environment, we're calling it NextGen. You're really seeing DevOps, obviously Dev SecOps has, has already won the IT role has moved to the developer shift left as an indicator of that. It's one of the many examples, higher velocity code software supply chain. You hear these things. That means that it is now in the developer hands, it is replaced by the new ops, data ops teams and security where there's a lot of horizontal thinking. To your point about access, there's no more perimeter. So >>That there is no perimeter. >>Huge. A hundred percent right, is really right on. I don't think it's one time, you know, to get in there. Once you're in, then you can hang out, move around, move laterally. Big problem. Okay, so we get that. Now, the challenges for these teams as they are transitioning organizationally, how do they figure out what to do? Okay, this is the next step. They already have Splunk, so now they're kind of in transition while protecting for a hundred percent ratio of success. So how would you look at that and describe the challenges? What do they do? What is, what are the teams facing with their data and what's next? What do they, what do they, what action do they take? >>So let's do some vernacular that folks will know. So if I think about dev sec ops, right? We both know what that means, that I'm gonna build security into the app, but no one really talks about SEC DevOps, right? How am I building security around the perimeter of what's going inside my ecosystem and what are they doing? And so if you think about what we're able to do with somebody like Splunk is we could pen test the entire environment from soup to nuts, right? So I'm gonna test the end points through to it. So I'm gonna look for misconfigurations, I'm gonna, and I'm gonna look for credential exposed credentials. You know, I'm gonna look for anything I can in the environment. Again, I'm gonna do it at at light speed. And, and what we're, what we're doing for that SEC dev space is to, you know, did you detect that we were in your environment? >>So did we alert Splunk or the SIM that there's someone in the environment laterally moving around? Did they, more importantly, did they log us into their environment? And when did they detect that log to trigger that log? Did they alert on us? And then finally, most importantly, for every CSO out there is gonna be did they stop us? And so that's how we, we, we do this in, I think you, when speaking with Stay Hall, before, you know, we've come up with this boils U Loop, but we call it fine fix verify. So what we do is we go in is we act as the attacker, right? We act in a production environment. So we're not gonna be, we're a passive attacker, but we will go in un credentialed UN agents. But we have to assume, have an assumed breach model, which means we're gonna put a Docker container in your environment and then we're going to fingerprint the environment. >>So we're gonna go out and do an asset survey. Now that's something that's not something that Splunk does super well, you know, so can Splunk see all the assets, do the same assets marry up? We're gonna log all that data and think then put load that into the Splunk sim or the smoke logging tools just to have it in enterprise, right? That's an immediate future ad that they've got. And then we've got the fix. So once we've completed our pen test, we are then gonna generate a report and we could talk about about these in a little bit later. But the reports will show an executive summary the assets that we found, which would be your asset discovery aspect of that, a fixed report. And the fixed report I think is probably the most important one. It will go down and identify what we did, how we did it, and then how to fix that. >>And then from that, the pen tester or the organization should fix those. Then they go back and run another test. And then they validate through like a change detection environment to see, hey, did those fixes taste, play take place? And you know, SNA Hall, when he was the CTO of JS o, he shared with me a number of times about, he's like, Man, there would be 15 more items on next week's punch sheet that we didn't know about. And it's, and it has to do with how we, you know, how they were prioritizing the CVEs and whatnot because they would take all CVS was critical or non-critical. And it's like we are able to create context in that environment that feeds better information into Splunk and whatnot. That >>Was a lot. That brings, that brings up the, the efficiency for Splunk specifically. The teams out there. By the way, the burnout thing is real. I mean, this whole, I just finished my list and I got 15 more or whatever the list just can, keeps, keeps growing. How did Node zero specifically help Splunk teams be more efficient? Now that's the question I want to get at, because this seems like a very scalable way for Splunk customers and teams, service teams to be more efficient. So the question is, how does Node zero help make Splunk specifically their service teams be more efficient? >>So to, so today in our early interactions with building Splunk customers, what we've seen are five things, and I'll start with sort of identifying the blind spots, right? So kind of what I just talked about with you. Did we detect, did we log, did we alert? Did they stop node zero, right? And so I would, I put that at, you know, a a a more layman's third grade term. And if I was gonna beat a fifth grader at this game would be, we can be the sparring partner for a Splunk enterprise customer, a Splunk essentials customer, someone using Splunk soar, or even just an enterprise Splunk customer that may be a small shop with three people and, and just wants to know where am I exposed. So by creating and generating these reports and then having the API that actually generates the dashboard, they can take all of these events that we've logged and log them in. >>And then where that then comes in is number two is how do we prioritize those logs, right? So how do we create visibility to logs that are, have critical impacts? And again, as I mentioned earlier, not all CVEs are high impact regard and also not all are low, right? So if you daisy chain a bunch of low CVEs together, boom, I've got a mission critical AP CVE that needs to be fixed now, such as a credential moving to an NT box that's got a text file with a bunch of passwords on it, that would be very bad. And then third would be verifying that you have all of the hosts. So one of the things that Splunk's not particularly great at, and they, they themselves, they don't do asset discovery. So do what assets do we see and what are they logging from that? And then for, from, for every event that they are able to identify the, one of the cool things that we can do is actually create this low-code, no-code environment. >>So they could let, you know, float customers can use Splunk. So to actually triage events and prioritize that events or where they're being routed within it to optimize the SOX team time to market or time to triage any given event. Obviously reducing mtr. And then finally, I think one of the neatest things that we'll be seeing us develop is our ability to build glass tables. So behind me you'll see one of our triage events and how we build a lock Lockheed Martin kill chain on that with a glass table, which is very familiar to this Splunk community. We're going to have the ability, not too distant future to allow people to search, observe on those IOCs. And if people aren't familiar with an ioc, it's an incident of compromise. So that's a vector that we want to drill into. And of course who's better at drilling in into data and Splunk. >>Yeah, this is a critical, this is awesome synergy there. I mean I can see a Splunk customer going, Man, this just gives me so much more capability. Action actionability. And also real understanding, and I think this is what I wanna dig into, if you don't mind understanding that critical impact, okay. Is kind of where I see this coming. I got the data, data ingest now data's data. But the question is what not to log, You know, where are things misconfigured? These are critical questions. So can you talk about what it means to understand critical impact? >>Yeah, so I think, you know, going back to those things that I just spoke about, a lot of those CVEs where you'll see low, low, low and then you daisy chain together and you're suddenly like, oh, this is high now. But then to your other impact of like if you're a, if you're a a Splunk customer, you know, and I had, I had several of them, I had one customer that, you know, terabytes of McAfee data being brought in and it was like, all right, there's a lot of other data that you probably also wanna bring, but they could only afford, wanted to do certain data sets because that's, and they didn't know how to prioritize or filter those data sets. And so we provide that opportunity to say, Hey, these are the critical ones to bring in. But there's also the ones that you don't necessarily need to bring in because low CVE in this case really does mean low cve. >>Like an ILO server would be one that, that's the print server where the, your admin credentials are on, on like a, a printer. And so there will be credentials on that. That's something that a hacker might go in to look at. So although the CVE on it is low, if you daisy chain was something that's able to get into that, you might say, ah, that's high. And we would then potentially rank it giving our AI logic to say that's a moderate. So put it on the scale and we prioritize though, versus a, a vulner review scanner's just gonna give you a bunch of CVEs and good luck. >>And translating that if I, if I can and tell me if I'm wrong, that kind of speaks to that whole lateral movement. That's it. Challenge, right? Print server, great example, look stupid low end, who's gonna wanna deal with the print server? Oh, but it's connected into a critical system. There's a path. Is that kind of what you're getting at? >>Yeah, I used daisy chain. I think that's from the community they came from. But it's, it's just a lateral movement. It's exactly what they're doing. And those low level, low critical lateral movements is where the hackers are getting in. Right? So that's what the beauty thing about the, the Uber example is that who would've thought, you know, I've got my multifactor authentication going in a human made a mistake. We can't, we can't not expect humans to make mistakes. Were fall, were fallible, right? Yeah. The reality is is once they were in the environment, they could have protected themselves by running enough pen tests to know that they had certain exposed credentials that would've stopped the breach. Yeah. And they did not, had not done that in their environment. And I'm not poking. Yeah, >>They put it's interesting trend though. I mean it's obvious if sometimes those low end items are also not protected well. So it's easy to get at from a hacker standpoint, but also the people in charge of them can be fished easily or spear fished because they're not paying attention. Cause they don't have to. No one ever told them, Hey, be careful of what you collect. >>Yeah. For the community that I came from, John, that's exactly how they, they would meet you at a, an international event introduce themselves as a graduate student. These are national actor states. Would you mind reviewing my thesis on such and such? And I was at Adobe at the time though I was working on this and start off, you get the pdf, they opened the PDF and whoever that customer was launches, and I don't know if you remember back in like 2002, 2008 time frame, there was a lot of issues around IP being by a nation state being stolen from the United States and that's exactly how they did it. And John, that's >>Or LinkedIn. Hey I wanna get a joke, we wanna hire you double the salary. Oh I'm gonna click on that for sure. You know? Yeah, >>Right. Exactly. Yeah. The one thing I would say to you is like when we look at like sort of, you know, cuz I think we did 10,000 pen test last year is it's probably over that now, you know, we have these sort of top 10 ways that we think then fine people coming into the environment. The funniest thing is that only one of them is a, a CVE related vulnerability. Like, you know, you guys know what they are, right? So it's it, but it's, it's like 2% of the attacks are occurring through the CVEs, but yet there's all that attention spent to that. Yeah. And very little attention spent to this pen testing side. Yeah. Which is sort of this continuous threat, you know, monitoring space and, and, and this vulnerability space where I think we play such an important role and I'm so excited to be a part of the tip of the spear on this one. >>Yeah. I'm old enough to know the movie sneakers, which I love as a, you know, watching that movie, you know, professional hackers are testing, testing, always testing the environment. I love this. I gotta ask you, as we kind of wrap up here, Chris, if you don't mind the benefits to team professional services from this alliance, big news Splunk and you guys work well together. We see that clearly. What are, what other benefits do professional services teams see from the Splunk and Horizon three AI alliance? >>So if you're a, I think for, from our, our, from both of our partners as we bring these guys together and many of them already are the same partner, right? Is that first off, the licensing model is probably one of the key areas that we really excel at. So if you're an end user, you can buy for the enterprise by the enter of IP addresses you're using. But if you're a partner working with this, there's solution ways that you can go in and we'll license as to MSPs and what that business model on our MSPs looks like. But the unique thing that we do here is this c plus license. And so the Consulting Plus license allows like a, somebody a small to midsize to some very large, you know, Fortune 100, you know, consulting firms uses by buying into a license called Consulting Plus where they can have unlimited access to as many ips as they want. >>But you can only run one test at a time. And as you can imagine when we're going and hacking passwords and checking hashes and decrypting hashes, that can take a while. So, but for the right customer, it's, it's a perfect tool. And so I I'm so excited about our ability to go to market with our partners so that we underhand to sell, understand how not to just sell too or not tell just to sell through, but we know how to sell with them as a good vendor partner. I think that that's one thing that we've done a really good job building bringing into market. >>Yeah. I think also the Splunk has had great success how they've enabled partners and professional services. Absolutely. They've, you know, the services that layer on top of Splunk are multifold tons of great benefits. So you guys vector right into that ride, that wave with >>Friction. And, and the cool thing is that in, you know, in one of our reports, which could be totally customized with someone else's logo, we're going to generate, you know, so I, I used to work at another organization, it wasn't Splunk, but we, we did, you know, pen testing as a, as a for, for customers and my pen testers would come on site, they, they do the engagement and they would leave. And then another really, someone would be, oh shoot, we got another sector that was breached and they'd call you back, you know, four weeks later. And so by August our entire pen testings teams would be sold out and it would be like, wow. And in March maybe, and they'd like, No, no, no, I gotta breach now. And, and, and then when they do go in, they go through, do the pen test and they hand over a PDF and they pat you on the back and say, there's where your problems are, you need to fix it. And the reality is, is that what we're gonna generate completely autonomously with no human interaction is we're gonna go and find all the permutations that anything we found and the fix for those permutations and then once you fixed everything, you just go back and run another pen test. Yeah. It's, you know, for what people pay for one pen test, they could have a tool that does that. Every, every pat patch on Tuesday pen test on Wednesday, you know, triage throughout the week, >>Green, yellow, red. I wanted to see colors show me green, green is good, right? Not red. >>And once CIO doesn't want, who doesn't want that dashboard, right? It's, it's, it is exactly it. And we can help bring, I think that, you know, I'm really excited about helping drive this with the Splunk team cuz they get that, they understand that it's the green, yellow, red dashboard and, and how do we help them find more green so that the other guys are >>In Yeah. And get in the data and do the right thing and be efficient with how you use the data, Know what to look at. So many things to pay attention to, you know, the combination of both and then, then go to market strategy. Real brilliant. Congratulations Chris. Thanks for coming on and sharing this news with the detail around this Splunk in action around the alliance. Thanks for sharing, >>John. My pleasure. Thanks. Look forward to seeing you soon. >>All right, great. We'll follow up and do another segment on DevOps and IT and security teams as the new new ops, but, and Super cloud, a bunch of other stuff. So thanks for coming on. And our next segment, the CEO of Verizon, three AA, will break down all the new news for us here on the cube. You're watching the cube, the leader in high tech enterprise coverage.

(upbeat music) >> Okay, welcome back everyone. CUBE's coverage here in Boston, Massachusetts, AWS re:inforce 22, security conference. It's AWS' big security conference. Of course, theCUBE's here, all the reinvent, reese, remars, reinforced. We cover 'em all now and the summits. I'm John Furrier, my host Dave Vellante. We have IDC weighing in here with their analysts. We've got some great guests here, Jay Bretzmann research VP at IDC and Philip Bues research manager for Cloud security. Gentlemen, thanks for coming on. >> Thank you. >> Appreciate it. Great to be here. >> Appreciate coming. >> Got a full circle, right? (all laughing) Security's more interesting than storage, isn't it? (all laughing) >> Dave and Jay worked together. This is a great segment. I'm psyched that you guys are here. We had Crawford and Matt Eastwood on at HPE Discover a while back and really the data you guys are getting and the insights are fantastic. So congratulations to IDC. You guys doing great work. We appreciate your time. I want to get your reaction to the event and the keynotes. AWS has got some posture and they're very aggressive on some tones. Some things that we didn't hear. What's your reaction to the keynote? Share your assessment. >> So, you know, I manage two different research services at IDC right now. They are both Cloud security and identity and digital security, right? And what was really interesting is the intersection between the two this morning, because every one of those speakers that came on had something to say about identity or least privileged access, or enable MFA, or make sure that you control who gets access to what and deny explicitly. And it's always been a challenge a little bit in the identity world because a lot of people don't use MFA. And in RSA, that was another big theme at the RSA conference, MFA everywhere. Why don't they use it? Because it introduces friction and all of a sudden people can't get their jobs done. And the whole point of a network is letting people on to get that data they want to get to. So that was kind of interesting, but as we have in the industry, this shared responsibility model for Cloud computing, we've got shared responsibility for between Philip and I. (Philip laughing) I have done in the past more security of the Cloud and Philip is more security in the Cloud. >> So yeah. >> And now with Cloud operation Super Cloud, as we call it, you have on premises, private Cloud coming back, or hasn't really gone anywhere, all that on premises, Cloud operations, public Cloud, and now edge exploding with new requirements. It's really an ops challenge right now. Not so much dev. So the sec and op side is hot right now. >> Yeah, well, we've made this move from monolithic to microservices based applications. And so during the keynote this morning, the announcement around the GuardDuty Malware Protection component, and that being built into the pricing of current GuardDuty, I thought was really key. And there was also a lot of talk about partnering in security certifications, which is also so very important. So we're seeing this move towards filling in that talent gap, which I think we're all aware of in the security industry. >> So Jake, square the circle for me. So Kirk Coofell talked about Amazon AWS identity, where does AWS leave off, and companies like Okta or Ping identity or Cybertruck pickup, how are they working together? Does it just create more confusion and more tools for customers? We know the overused word of seamless. >> Yeah, yeah. >> It's never seamless, so how should we think about that? >> So, identity has been around for 35 years or something like that. Started with the mainframes and all that. And if you understand the history of it, you make more sense to the current market. You have to know where people came from and the baggage they're carrying, 'cause they're still carrying a lot of that baggage. Now, when it comes to the Cloud Service providers, they're more an accommodation from the identity standpoint. Let's make it easy inside of AWS to let you single sign on to anything in the Cloud that they have, right? Let's also introduce an additional MFA capability to keep people safer whenever we can and provide people with tools, to get into those applications somewhat easily, while leveraging identities that may live somewhere else. So there's a whole lot of the world that is still active, directory-centric, right? There's another portion of companies that were born in the Cloud that were able to jump on things like Okta and some of the other providers of these universal identities in the Cloud. So, like I said, if you understand where people came from in the beginning, you start to say, "Yeah, this makes sense." >> It's interesting you talk about mainframe. I always think about Rack F, you know. And I say, "Okay, who did what, when, where?" And you hear about a lot of those themes. So what's the best practice for MFA, that's non-SMS-based? Is it you got to wear something around your neck, is it to have sort of a third party authenticator? What are people doing that you guys would recommend? >> Yeah, one quick comment about adoption of MFA. If you ask different suppliers, what percent of your base that does SSO also does MFA, one of the biggest suppliers out there, Microsoft will tell you it's under 25%. That's pretty shocking. All the messaging that's come out about it. So another big player in the market was called Duo, Cisco bought them. >> Yep. >> And because they provide networks, a lot of people buy their MFA. They have probably the most prevalent type of MFA, it's called Push. And Push can be a red X and a green check mark to your phone, it can be a QR code, somewhere, it can be an email push as well. So that is the next easiest thing to adopt after SMS. And as you know, SMS has been denigrated by NIST and others saying, it's susceptible to man and middle attacks. It's built on a telephony protocol called SS7. Predates anything, there's no certification either side. The other real dynamic and identity is the whole adoption of PKI infrastructure. As you know, certificates are used for all kinds of things, network sessions, data encryption, well, identity increasingly. And a lot of the consumers and especially the work from anywhere, people these days have access through smart devices. And what you can do there, is you can have an agent on that smart device, generate your private key and then push out a public key and so the private key never leaves your device. That's one of the most secure ways to- >> So if our SIM card gets hacked, you're not going to be as vulnerable? >> Yeah, well, the SIM card is another challenge associated with the older ways, but yeah. >> So what do you guys think about the open source connection and they mentioned it up top. Don't bolt on security, implying shift left, which is embedding it in like sneak companies, like sneak do that. Very container oriented, a lot of Kubernetes kind of Cloud native services. So I want to get your reaction to that. And then also this reasoning angle they brought up. Kind of a higher level AI reasoning decisions. So open source, and this notion of AI reasoning. or AI reason. >> And you see more open source discussion happening, so you have your building maintaining and vetting of the upstream open source code, which is critical. And so I think AWS talking about that today, they're certainly hitting on a nerve, as you know, open source continues to proliferate. Around the automated reasoning, I think that makes sense. You want to provide guide rails and you want to provide roadmaps and you want to have sort of that guidance as to, okay, what's a correlation analysis of different tools and products? And so I think that's going to go over really well, yeah. >> One of the other key points about open source is, everybody's in a multi-cloud world, right? >> Yeah. >> And so they're worried about vendor lock in. They want an open source code base, so that they don't experience that. >> Yeah, and they can move the code around, and make sure it works well on each system. Dave and I were just talking about some of the dynamics around data control planes. So they mentioned encrypt everything which is great and I message by the way, I love that one. But oh, and he mentioned data at rest. I'm like, "What about data in flight? "Didn't hear that one." So one of the things we're seeing with SuperCloud, and now multi-cloud kind of as destinations of that, is that in digital transformation, customers are leaning into owning their data flows. >> Yeah. >> Independent of say the control plane aspects of what could come in. This is huge implications for security, where sharing data is huge, even Schmidt on stage said, we have billions and billions of things happening that we see things that no one else sees. So that implies, they're sharing- >> Quad trillion. >> Trillion, 15 zeros. (Jay laughs) >> 15 zeros. >> So that implies they're sharing that or using that pushing that into something. So sharing is huge with cyber security. So that implies open data, data flows. How do you guys see this evolving? I know it's kind of emerging, but it's becoming a nuanced point, that's critical to the architecture. >> Well, yeah, I think another way to look at that is the sharing of intelligence and some of the recent directives, from the executive branch, making it easier for private companies to share data and intelligence, which I think strengthens the cyber community overall. >> Depending upon the supplier, it's either an aggregate level of intelligence that has been anonymized or it's specific intelligence for your environment that everybody's got a threat feed, maybe two or three, right? (John laughs) But back to the encryption point, I mean, I was working for an encryption startup for a little while after I left IBM, and the thing is that people are scared of it. They're scared of key management and rotation. And so when you provide- >> Because they might lose the key. >> Exactly. >> Yeah. >> It's like shooting yourself in the foot, right? So that's when you have things like, KMS services from Amazon and stuff that really help out a lot. And help people understand, okay, I'm not alone in this. >> Yeah, crypto owners- >> They call that hybrid, the hybrid key, they don't know how they call the data, they call it the hybrid. What was that? >> Key management service? >> The hybrid- >> Oh, hybrid HSM, correct? >> Yeah, what is that? What is that? I didn't get that. I didn't understand what he meant by the hybrid post quantum key agreement. >> Hybrid post quantum key exchange. >> AWS never made a product name that didn't have four words in it. (John laughs) >> But he did reference the new NIST algos. And I think I inferred that they were quantum proof or they claim to be, and AWS was testing those. >> Correct, yeah. >> So that was kind of interesting, but I want to come back to identity for a second. So, this idea of bringing traditional IAM and Privileged Access Management together, is that a pipe dream, is that something that is actually going to happen? What's the timeframe, what's your take on that? >> So, there are aspects of privilege in every sort of identity. Back when it was only the back office that used computers for calculations, right? Then you were able to control how many people had access. There were two types of users, admins and users. These days, everybody has some aspect of- >> It's a real spectrum, really. >> Yeah. >> Granular. >> You got the C-suite, the finance people, the DevOps people, even partners and whatever. They all need some sort of privileged access, and the term you hear so much is least-privileged access, right? Shut it down, control it. So, in some of my research, I've been saying that vendors who are in the PAM space, Privilege Access Management space, will probably be growing their suites, playing a bigger role, building out a stack, because they have the expertise and the perspective that says, "We should control this better." How do we do that, right? And we've been seeing that recently. >> Is that a combination of old kind of antiquated systems meets for proprietary hyper scale, or kind of like build your own? 'Cause I mean, Amazon, these guys, Facebook, they all build their own stuff. >> Yes, they do. >> Then enterprises buy services from general purpose identity management systems. >> So as we were talking about knowing the past and whatever, Privileged Access Management used to be about compliance reporting. Just making sure that I knew who accessed what? And could prove it, so I didn't fail at all. >> It wasn't a critical infrastructure item. >> No, and now these days, what it's transitioning into, is much more risk management, okay. I know what our risk is, I'm ahead of it. And the other thing in the PAM space, was really session monitor. Everybody wanted to watch every keystroke, every screen's scrape, all that kind of stuff. A lot of the new Privileged Access Management, doesn't really require that. It's a nice to have feature. You kind of need it on the list, but is anybody really going to implement it? That's the question, right. And then if you do all that session monitoring, does anybody ever go back and look at it? There's only so many hours in the day. >> How about passwordless access? (Jay laughs) I've heard people talk about that. I mean, that's as a user, I can't wait but- >> Well, it's somewhere we want to all go. We all want identity security to just disappear and be recognized when we log in. So the thing with passwordless is, there's always a password somewhere. And it's usually part of a registration action. I'm going to register my device with a username password, and then beyond that I can use my biometrics, right? I want to register my device and get a private key, that I can put in my enclave, and I'll use that in the future. Maybe it's got to touch ID, maybe it doesn't, right? So even though there's been a lot of progress made, it's not quote, unquote, truly passwordless. There's a group, industry standards group called Fido. Which is Fast Identity Online. And what they realized was, these whole registration passwords, that's really a single point of failure. 'Cause if I can't recover my device, I'm in trouble. So they just did new extension to sort of what they were doing, which provides you with much more of like an iCloud vault that you can register that device in and other devices associated with that same identity. >> Get you to it if you have to. >> Exactly. >> I'm all over the place here, but I want to ask about ransomware. It may not be your wheelhouse. But back in the day, Jay, remember you used to cover tape. All the backup guys now are talking about ransomware. AWS mentioned it today and they showed a bunch of best practices and things you can do. Air gaps wasn't one of them. I was really surprised 'cause that's all every anybody ever talks about is air gaps and a lot of times that air gap could be a guess to the Cloud, I guess, I'm not sure. What are you guys seeing on ransomware apps? >> We've done a lot of great research around ransomware as a service and ransomware, and we just had some data come out recently, that I think in terms of spending and spend, and as a result of the Ukraine-Russia war, that ransomware assessments rate number one. And so it's something that we encourage, when we talk to vendors and in our services, in our publications that we write about taking advantage of those free strategic ransomware assessments, vulnerability assessments, as well and then security and training ranked very highly as well. So, we want to make sure that all of these areas are being funded well to try and stay ahead of the curve. >> Yeah, I was surprised to not see air gaps on the list, that's all everybody talks about. >> Well, the old model for air gaping in the land days, the novel days, you took your tapes home and put them in the sock drawer. (all laughing) >> Well, it's a form of air gap. (all laughing) >> Security and no one's going to go there and clean out. >> And then the internet came around and ruined it. >> Guys, final question we want to ask you, guys, we kind of zoom out, great commentary by the way. Appreciate it. We've seen this in many markets, a collection of tools emerge and then there's its tool sprawl. So cyber we're seeing the trend now where mon goes up on stage of all the ecosystems, probably other vendors doing the same thing where they're organizing a platform on top of AWS to be this super platform, for super Cloud capability by building a more platform thing. So we're saying there's a platform war going on, 'cause customers don't want the complexity. I got a tool but it's actually making it more complex if I buy the other tool. So the tool sprawl becomes a problem. How do you guys see this? Do you guys see this platform emerging? I mean tools won't go away, but they have to be easier. >> Yeah, we do see a consolidation of functionality and services. And we've been seeing that, I think through a 2020 Cloud security survey that we released that was definitely a trend. And that certainly happened for many companies over the last six to 24 months, I would say. And then platformization absolutely is something we talk and write about all the time so... >> Couple of years ago, I called the Amazon tool set an erector set because it really required assembly. And you see the emphasis on training here too, right? You definitely need to go to AWS University to be competent. >> It wasn't Lego blocks yet. >> No. >> It was erector set. >> Yeah. >> Very good distinction. >> Loose. >> And you lose a few. (chuckles) >> But still too many tools, right? You see, we need more consolidation. It's getting interesting because a lot of these companies have runway and you look at sale point at stock prices held up 'cause of the Thoma Bravo acquisition, but all the rest of the cyber stocks have been crushed especially the high flyers, like a Sentinel-1 one or a CrowdStrike, but just still M and A opportunity. >> So platform wars. Okay, final thoughts. What do you, think is happening next? What's your outlook for the next year or so? >> So, in the identity space, I'll talk about, Philip can cover Cloud for us. It really is more consolidation and more adoption of things that are beyond simple SSO. It was, just getting on the systems and now we really need to control what you're able to get to and who you are. And do it as transparently as we possibly can, because otherwise, people are going to lose productivity. They're not going to be able to get to what they want. And that's what causes the C-suite to say, "Wait a minute," DevOps, they want to update the product every day. Make it better. Can they do that or did security get in the way? People, every once in a while call security, the Department of No, right? >> They ditch it on stage. They want to be the Department of Yes. >> Exactly. >> Yeah. >> And the department that creates additional value. If you look at what's going on with B2C or CIAM, consumer oriented identity, that is all about opening up new direct channels and treating people like their old friends, not like you don't know them, you have to challenge them. >> We always say, you want to be in the boat together, it sinks or not. >> Yeah. Exactly. >> Philip I'm glad- >> Okay, what's your take? What's your outlook for the year? >> Yeah, I think, something that we've been seeing as consolidation and integration, and so companies looking at from built time to run time, investing in shift left infrastructure is code. And then also in the runtime detection, makes perfect sense to have both the agent and agent lists so that you're covering any of the gaps that might exist. >> Awesome, Jay Phillip, thanks for coming on "theCUBE" with IDC and sharing your- >> Oh, our pleasure- >> Perspective, commentary and insights and outlook. Appreciate it. >> You bet. >> Thank you. >> Okay, we've got the great direction here from IDC analyst here on the queue. I'm John Furrier, Dave Vellante. Be back more after this short break. (bright upbeat music)

>>Okay, welcome back everyone. Cube's coverage here in Boston, Massachusetts, AWS reinforced 22, the security conference. It's ADOS big security conference. Of course, the cubes here, all the reinvent res re Mars reinforce. We cover 'em all now and the summits. I'm John. Very my host, Dave ante have IDC weighing in here with their analysis. We've got some great guests here, Jay Brisbane, research VP at IDC and Philip who research managed for cloud security. Gentlemen, thanks for coming on. Thank you. Appreciate it. Great >>To, to be here. I appreciate the got the full >>Circle, right? Just, security's more interesting >>Than storage. Isn't it? >>Dave, Dave and Jay worked together. This is a, a great segment. I'm psyched that you guys are here. We had Crawford and Matt Eastwood on at HPE discover a while back and really the, the, the data you guys are getting and the insights are fantastic. So congratulations to IDC. You guys doing great work. We appreciate your time. I wanna get your reaction to the event and the keynotes. AWS has got some posture and they're very aggressive on some tones. Some things that they didn't, we didn't hear. What's your reaction to the keynote, share your, your assessment. >>So, you know, I managed two different research services at IDC right now. They are both cloud security and identity and, and digital security. Right. And what was really interesting is the intersection between the two this morning, because every one of those speakers that came on had something to say about identity or least privileged access, or, you know, enable MFA, or make sure that you, you know, control who gets access to what and deny explicitly. Right? And it's always been a challenge a little bit in the identity world because a lot of people don't use MFA. And in RSA, that was another big theme at the RSA conference, right? MFA everywhere. Why don't they use it because it introduces friction and all of a sudden people can't get their jobs done. Right. And the whole point of a network is letting people on to get that data they want to get to. So that was kind of interesting, but, you know, as we have in the industry, this shared responsibility model for cloud computing, we've got shared responsibility for between Philip and I, I have done in the ke past more security of the cloud and Philip is more security in the cloud, >>So yeah. And it's, and now with cloud operation, super cloud, as we call it, you have on premises, private cloud coming back, or hasn't really gone anywhere, all that on premises, cloud operations, public cloud, and now edge exploding with new requirements. Yeah. It's really an ops challenge right now. Not so much dev. So the sick and op side is hot right now. >>Yeah. Well, we've made this move from monolithic to microservices based applications. And so during the keynote this morning, the announcement around the guard duty malware protection component, and that being built into the pricing of current guard duty, I thought was, was really key. And there was also a lot of talk about partnering in security certifications. Yeah. Which is also so very important. So we're seeing this move towards filling in that talent gap, which I think we're all aware of in the security industry. >>So Jake square, the circle for me. So Kirk, Coel talked about Amazon AWS identity, where does AWS leave off and, and companies like Okta or ping identity or crock pickup, how are they working together? Does it just create more confusion and more tools for customers? We, we have, we know the over word overused word of seamless. Yeah. Yeah. It's never seamless. So how should we think about that? >>So, you know, identity has been around for 35 years or something like that started with the mainframes and all that. And if you understand the history of it, you make more sense to the current market. You have to know where people came from and the baggage they're carrying, cuz they're still carrying a lot of that baggage. Now, when it comes to the cloud service providers, they're more an accommodation from the identity standpoint, let's make it easy inside of AWS to let you single sign on to anything in the cloud that they have. Right. Let's also introduce an additional MFA capability to keep people safer whenever we can and, you know, provide people the tools to, to get into those applications somewhat easily, right. While leveraging identities that may live somewhere else. So, you know, there's a whole lot of the world that is still active directory centric, right? There's another portion of companies that were born in the cloud that were able to jump on things like Okta and some of the other providers of these universal identities in the cloud. So, you know, like I said, you, if you understand where people came from in the beginning, you start to, to say, yeah, this makes sense. >>It's, it's interesting. You talk about mainframe. I, I always think about rack F you know, and I say, okay, who did what, when, where, yeah. And you hear about a lot of those themes. What, so what's the best practice for MFA? That's, that's non SMS based. Is it, you gotta wear something around your neck, is it to have sort of a third party authenticator? What are people doing that is that, that, that you guys would recommend? >>Yeah. One quick comment about adoption of MFA. You know, if you ask different suppliers, what percent of your base that does SSO also does MFA one of the biggest suppliers out there Microsoft will tell you it's under 25%. That's pretty shocking. Right? All the messaging that's come out about it. So another big player in the market was called duo. Cisco bought them. Yep. Right. And because they provide networks, a lot of people buy their MFA. They have probably the most prevalent type of MFA it's called push. Right. And push can be, you know, a red X and a green check mark to your phone. It can be a QR code, you know, somewhere, it can be an email push as well. So that is the next easiest thing to adopt after SMS. And as you know, SMS has been denigrated by N and others saying, you know, it's susceptible to man and middle attacks. >>It's built on a telephony protocol called SS seven. Yep. You know, predates anything. There's no certification, either side. The other real dynamic and identity is the whole adoption of PKI infrastructure. As you know, certificates are used for all kinds of things, network sessions, data encryption, well identity increasingly, and a lot of the, you know, consumers and especially the work from anywhere, people these days have access through smart devices. Right. And what you can do there is you can have an agent on that smart device, generate your private key and then push out a public key. And so the private key never leaves your device. That's one of the most secure ways to, so if your >>SIM card gets hacked, you're not gonna be as at vulnerable >>Or as vulnerable. Well, the SIM card is another, you know, challenge associated with the, the older waste. But yeah. Yeah. >>So what do you guys think about the open source connection and, and they, they mentioned it up top don't bolt on security implying shift left, which is embedding it in like sneak companies, like sneak do that, right. Container oriented, a lot of Kubernetes kind of cloud native services. So I wanna get your reaction to that. And then also this reasoning angle, they brought up kind of a higher level AI reasoning decisions. So open source and this notion of AI reasoning >>Automation. Yeah. And, and you see more open source discussion happening, right. So you, you know, you have your building maintaining and vetting of the upstream open source code, which is critical. And so I think AWS talking about that today, they're certainly hitting on a nerve as, you know, open source continues to proliferate around the automated reasoning. I think that makes sense. You know, you want to provide guiderails and you want to provide roadmaps and you wanna have sort of that guidance as to okay. What's the, you know, a correlation analysis of different tools and products. And so I think that's gonna go over really well. >>Yeah. One of the other, you know, key points of what open source is, everybody's in a multi-cloud world, right? Yeah. And so they're worried about vendor lockin, they want an open source code base so that they don't experience that. >>Yeah. And they can move the code around and make sure it works well on each system. Dave and I were just talking about some of the dynamics around data control planes. So yeah. They mentioned encrypt everything, which is great. And I message, by the way, I love that one, but oh. And he mentioned data at rest. I'm like, what about data in flight? Didn't hear that one. So one of the things we're seeing with super cloud, and now multi-cloud kind of, as destinations of that, is that in digital transformation, customers are leaning into owning their data flows. >>Yeah. >>Independent of say the control plane aspects of what could come in. This is huge implications for security, where sharing data is huge. Even Schmidt on Steve said we have billions and billions of things happening that we see things that no one else else sees. So that implies, they're >>Sharing quad trillion, >>Trillion, 15 zeros trillion. Yeah. 15 >>Zeros, 15 zeros. Yeah. >>So that implies, they're sharing that or using that, pushing that into something. So sharing's huge with cyber security. So that implies open data, data flows. What do, how do you guys see this evolving? I know it's kind of emerging, but it's becoming a, a nuanced point that's critical to the architecture. >>Well, I, yeah, I think another way to look at that is the sharing of intelligence and some of the recent directives, you know, from the executive branch, making it easier for private companies to share data and intelligence, which I think strengthens the cyber community overall, >>Depending upon the supplier. Right? Yeah. It's either an aggregate level of intelligence that has been, you know, anonymized or it's specific intelligence for your environment that, you know, everybody's got a threat feed, maybe two or three, right. Yeah. But back to the encryption point, I mean, I was working for an encryption startup for a little while. Right after I left IBM. And the thing is that people are scared of it. Right. They're scared of key management and rotation. And so when you provide, >>Because they might lose the key. >>Exactly. Yeah. It's like shooting yourself in the foot. Right. So that's when you have things like, you know, KMS services from Amazon and stuff, they really help out a lot and help people understand, okay, I'm not alone in this. >>Yeah. Crypto >>Owners, they call that hybrid, the hybrid key, they call the, what they call the, today. They call it the hybrid. >>What was that? The management service. Yeah. The hybrid. So hybrid HSM, correct. >>Yeah. What is that? What is that? I didn't, I didn't get that. I didn't understand what he meant by the hybrid post hybrid, post quantum key agreement. Right. That still notes >>Hybrid, post quantum key exchange, >>You know, AWS never made a product name that didn't have four words in it, >>But he did, but he did reference the, the new N algos. And I think I inferred that they were quantum proof or the claim it be. Yeah. And AWS was testing those. Correct. >>Yeah. >>So that was kind of interesting, but I wanna come back to identity for a second. Okay. So, so this idea of bringing traditional IAM and, and privilege access management together, is that a pipe dream, is that something that is actually gonna happen? What's the timeframe, what's your take on that? >>So, you know, there are aspects of privilege in every sort of identity back when, you know, it was only the back office that used computers for calculations, right? Then you were able to control how many people had access. There were two types of users, admins, and users, right? These days, everybody has some aspect of, >>It's a real spectrum, really >>Granular. You got the, you know, the C suite, the finance people, the DevOps, people, you know, even partners and whatever, they all need some sort of privileged access. And the, the term you hear so much is least privileged access. Right? Shut it down, control it. So, you know, in some of my research, I've been saying that vendors who are in the Pam space privilege access management space will probably be growing their suites, playing a bigger role, building out a stack because they have, you know, the, the expertise and the, and the perspective that says we should control this better. How do we do that? Right. And we've been seeing that recently, >>Is that a combination of old kind of antiquated systems meets for proprietary hyperscale or kind of like build your own? Cause I mean, Amazon, these guys, they Facebook, they all build their own stuff. >>Yes. They >>Do enterprises buy services from general purpose identity management systems. >>So as we were talking about, you know, knowing the past and whatever privileged access management used to be about compliance reporting. Yeah. Right. Just making sure that I knew who accessed what and could prove it. So I didn't fail in art. It wasn't >>A critical infrastructure item. >>No. And now these days, what it's transitioning into is much more risk management. Okay. I know what our risk is. I'm ahead of it. And the other thing in the Pam space was really session monitor. Right. Everybody wanted to watch every keystroke, every screen's scrape, all that kind of stuff. A lot of the new privilege access Mon management doesn't really require that it's nice to have feature. You kind of need it on the list, but is anybody really gonna implement it? That's the question. Right. And then, you know, if, if you do all that session monitor, does anybody ever go back and look at it? There's only so many hours in the day. >>How about passwordless access? You know? Right. I've heard people talk about that. Yeah. I mean, that's as a user, I can't wait, but >>It's somewhere we want to all go. Yeah. Right. We all want identity security to just disappear and be recognized when we log in. So the, the thing with password list is there's always a password somewhere and it's usually part of a registration, you know, action. I'm gonna register my device with a username password. And then beyond that, I can use my biometrics. Right. I wanna register my device and get a private key that I can put in my enclave. And I'll use that in the future. Maybe it's gotta touch ID. Maybe it doesn't. Right. So even though there's been a lot of progress made, it's not quote unquote, truly passwordless, there's a group industry standards group called Fido. Right. Which is fast identity online. And what they realized was these whole registration passwords. That's really a single point of failure. Cuz if I can't recover my device, I'm in trouble. Yeah. So they just did a, a new extension to sort of what they were doing, which provides you with much more of a, like an iCloud vault, right. That you can register that device in and other devices associated with that same iPad that you can >>Get you to it. If you >>Have to. Exactly. I had >>Another have all over the place here, but I, I want to ask about ransomware. It may not be your wheelhouse. Yeah. But back in the day, Jay, remember you used to cover tape. All the, all the backup guys now are talking about ransomware. AWS mentioned it today and they showed a bunch of best practices and things you can do air gaps. Wasn't one, one of 'em. Right. I was really surprised cuz that's all, every anybody ever talks about is air gaps. And a lot of times that air gaps that air gap could be a guess to the cloud. I guess I'm not sure. What are you guys seeing on ransomware >>Apps? You know, we've done a lot of great research around ransomware as a service and ransomware and, and you know, we just had some data come out recently that I think in terms of spending and, and spend and in as a result of the Ukraine, Russia war, that ransomware assessments rate number one. And so it's something that we encourage, you know, when we talk to vendors and in our services, in our publications that we write about taking advantage of those free strategic ransomware assessments, vulnerability assessments, right. As well, and then security and training ranked very highly as well. So we wanna make sure that all of these areas are being funded well to try and stay ahead of the curve. >>Yeah. I was surprised that not the air gaps on the list, that's all everybody >>Talks about. Well, you know, the, the old model for air gaping in the, the land days, the Noel days, you took your tapes home and put 'em in the sock drawer. >>Well, it's a form of air gap security and no one's gonna go there >>Clean. And then the internet came around >>Guys. Final question. I want to ask you guys, we kind zoom out. Great, great commentary by the way. Appreciate it. As the, we've seen this in many markets, a collection of tools emerge and then there's it's tool sprawl. Oh yeah. Right? Yeah. So cyber we're seeing trend now where Mon goes up on stage of all the E probably other vendors doing the same thing where they're organizing a platform on top of AWS to be this super platform. If you super cloud ability by building more platform thing. So we're saying there's a platform war going on, cuz customers don't want the complexity. Yeah. I got a tool, but it's actually making it more complex if I buy the other tool. So the tool sprawl becomes a problem. How do you guys see this? Do you guys see this platform emerging? I mean, tools won't go away, but they have to be >>Easier. Yeah. We do see a, a consolidation of functionality and services. And we've been seeing that, I think through a 20, 20 flat security survey that we released, that that was definitely a trend. And you know, that certainly happened for many companies over the last six to 24 months, I would say. And then platformization absolutely is something we talk 'em right. About all the time. So >>More M and a couple of years ago, I called the, the Amazon tool set in rector set. Yeah. Because it really required assembly. Yeah. And you see the emphasis on training here too, right? Yeah. You definitely need to go to AWS university to be competent. It >>Wasn't Lego blocks yet. No, it was a rector set. Very good distinction rules, you know, and, and you lose a few. It's >>True. Still too many tools. Right. You see, we need more consolidation. That's getting interesting because a lot of these companies have runway and you look, you look at sale point, its stock prices held up cuz of the Toma Bravo acquisition, but all the rest of the cyber stocks have been crushed. Yeah. You know, especially the high flyers, like a Senti, a one or a crowd strike, but yeah, just still M and a opportunity >>Itself. So platform wars. Okay. Final thoughts. What do you thinks happening next? What's what's your outlook for the, the next year or so? >>So in the, in the identity space, I'll talk about Phillip can cover cloud force. You know, it really is more consolidation and more adoption of things that are beyond simple SSO, right. It was, you know, just getting on the systems and now we really need to control what you're able to get to and who you are and do it as transparently as we possibly can because otherwise, you know, people are gonna lose productivity, right. They're not gonna be able to get to what they want. And that's what causes the C-suite to say, wait a minute, you know, DevOps, they want to update the product every day. Right. Make it better. Can they do that? Or did security get in the way people every once in a while I'll call security, the department of no, right? Yeah. Well, >>Yeah. They did it on stage. Yeah. They wanna be the department of yes, >>Exactly. And the department that creates additional value. If you look at what's going on with B to C or C IAM, consumer identity, that is all about opening up new direct channels and treating people like, you know, they're old friends, right. Not like you don't know 'em you have to challenge >>'em we always say you wanna be in the boat together. It sinks or not. Yeah. Right. Exactly. >>Phillip, >>Okay. What's your take? What's your outlook for the year? >>Yeah. I think, you know, something that we've been seeing as consolidation and integration, and so, you know, companies looking at from built time to run time investing in shift left infrastructure is code. And then also in the runtime detection makes perfect sense to have both the agent and agentless so that you're covering any of the gaps that might exist. >>Awesome. Jerry, Phillip, thanks for coming on the queue with IDC and sharing >>Your oh our pleasure perspective. >>Commentary, have any insights and outlook. Appreciate it. You bet. Thank you. Okay. We've got the great direction here from IDC analyst here on the queue. I'm John for a Dave, we're back more after this shirt break.

>> From theCUBE studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE in ETR. This is Breaking Analysis with Dave Vellante. >> Every CEO is figuring out the right balance for new hybrid business models. Now, regardless of the chosen approach, which is going to vary, technology executives, they understand they have to accelerate their digital and build resilience as well as optionality into their platforms. Now, this is driving a dramatic shift in IT investments. And at the macro level, we expect total spending to increase at as much as 8% or even more in 2021, compared to last year's contraction. Investments in cybersecurity, cloud collaboration that are enabling hybrid work as well as data, including analytics, AI, and automation are at the top of the spending priorities for CXOs. Hello everyone. And welcome to this week's Wiki Bond Cube insights, powered by ETR. In this Breaking Analysis, we're pleased to welcome back Erik Bradley, who is the chief engagement strategist at our partner, ETR. Now in this segment, we're going to share some of the latest findings from ETR's surveys and provide our commentary on what it means for the markets, for sellers, and for buyers. Erik, great to see you, my friend. Welcome back to Breaking Analysis. >> Thank you for having me, always enjoy it. We've got some fresh data to talk about on this beautiful summer Friday, so I'm ready to go. >> All right. I'm excited too. Okay, last year we saw a contraction in IT spending by at least 5%. And now we're seeing a snapback to, as I said, at least 8% growth relative to last year. You got to go back to 2007 just before the financial crisis to see this type of top line growth. The shift to hybrid work, it's exposed us to new insidious security threats. And we're going to discuss that in a lot more detail. Cloud migration of course picked up dramatically last year, and based on the recent earnings results of the big cloud players, for now we got two quarters of data, that trend continues as organizations are accelerating their digital platform build-outs, and this is bringing a lot of complexity and a greater need for so-called observability solutions, which Erik is going to talk about extensively later on in this segment. Data, we think is entering a new era of de-centralization. We see organizations not only focused on analytics and insights, but actually creating data products. Leading technology organizations like JP Morgan, they're heavily leaning into this trend toward packaging and monetizing data products. And finally, as part of the digital transformation trend, we see no slow down in spending momentum for AI and automation, generally in RPA specifically. Erik, anything you want to add to that top level narrative? >> Yeah, there's a lot to take on the macro takeaways. The first thing I want to state is that that 8, 8.5% number that started off at just 3 to 4% beginning of the year. So as the year has continued, we are just seeing this trend in budgets continue to accelerate, and we don't have any reason to believe that's going to stop. So I think we're going to just keep moving on heading into 2021. And we're going to see a banner year of spend this year and probably next as well. >> All right, now we're going to bring up a chart that shows kind of that progression here of spending momentum. So Erik, I'm going to let you comment on this chart that tracks those projections over time. >> Erik: Yeah. Great. So thank you very much for pulling this up. As you can see in the beginning part of the year, when we asked people, "What do you plan to spend throughout 2021?" They were saying it would be about a 4% increase. Which we were happy with because as you said last year, it was all negative. That continues to accelerate and is only hyper accelerating now as we head into the back half of the year. In addition, after we do this data, I always host a panel of IT end users to kind of get their feedback on what we collected, to a man, every one of them expects continued increase throughout next year. There are some concerns and uncertainty about what we're seeing right now with COVID, but even with that, they're planning their budgets now for 2022 and they're planning for even further increases going forward. >> Dave: Great, thank you. So we circled that 8%. That's really kind of where we thought it was going to land. And so we're happy with that number, but let's take a look at where the action is by technology sector. This chart that we're showing you here, it tracks spending priorities back to last September. When I believe that was the point, Erik, that cyber became the top priority in the survey, ahead of cloud collaboration, analytics, and data, and the other sectors that you see there. Now, Erik, we should explain. These areas, they're the top seven, and they outrank all the other sectors. ETR tracks many, many other sectors, but please weigh in here and share your thoughts on this data. >> Erik: Yeah. Security, security, security. It hasn't changed. It had really hasn't. The hybrid work. The fact that you're behind the firewall one day and then you're outside working from home the next, switching in and out of networks. This is just a field day for bad actors. And we have no choice right now, but to continue to spend, because as you're going to talk about in a minute, hybrid's here to stay. So we have to figure out a way to secure behind the firewall on-prem. We also have to secure our employees and our assets that are not in the office. So it is a main priority. One of the things that point out on this chart, I had a couple of ITN users talk to me about customer experience and automation really need to move from the right part of that chart to the left. So they're seeing more in what you were talking about in RPA and automation, starting to creep up heading into next year. As cloud migration matures, as you know, cybersecurity spending has been ramping up. People are going to see a little bit more on the analytics and a little bit more on the automation side going forward. >> Dave: Great. Now, this next data view- well, first of all, one of the great things about the ETR dataset is that you can ask key questions and get a time series. And I will tell you again, I go back to last March, ETR hit it. They were the first on the work from home trend. And so if you were on that trend, you were able to anticipate it. And a lot of investors I think took advantage of that. Now, but we've shown this before, but there's new data points that we want to introduce. So the data tracks how CIOs and IT buyers have responded to the pandemic since last March. Still 70% of the organizations have employees working remotely, but 39% now have employees fully returning to the office and Erik, the rest of the metrics all point toward positives for IT spending, although accelerating IT deployments there at the right peaked last year, as people realized they had to invest in the future. Your thoughts? >> Erik: Yeah, this is the slide for optimism, without a doubt. Of the entire macro survey we did, this is the most optimistic slide. It's great for overall business. It's great for business travel. This is well beyond just IT. Hiring is up. I've had some people tell me that they possibly can't hire enough people right now. They had to furlough employees, they had to stop projects, and they want to re accelerate those now. But talent is very hard to find. Another point to you about your automation and RPA, another underlying trend for there. The one thing I did want to talk about here is the hybrid workplace, but I believe there's another slide on it. So just to recap on this extremely optimistic, we're seeing a lot of hiring. We're seeing increased spending, and I do believe that that's going to continue. >> Yeah I'm glad you brought that up because a session that you and I did a while ago, we pointed out, it was earlier this year, that the skill shortage is one potential risk to our positive scenario. We'll keep an eye on that, but so I want to show another set of data that we've showed previously, but ETR again, has added some new questions in here. So note here that 60% of employees still work remotely with 33% in a hybrid model currently, and the CIO's expect that to land on about 42% hybrid workforce with around 30% working remotely, which is around, it's been consistent by the way on your surveys, but that's about double the historic norm, Eric. >> Erik: Yeah, and even further to your point Dave, recently I did a panel asking people to give me some feedback on this. And three of those four experts basically said to me, if we had greed run this survey right now, that even more people would be saying remote. That they believe that that number, that's saying they're expecting that number of people to be back in office, is actually too optimistic. They're actually saying that maybe if we had- cause as a survey launched about six, seven weeks ago before this little blip on the radar, before the little COVID hiccup we're seeing now, and they're telling me that they believe if we reran this now that it would be even more remote work, even more hybrid and less returned to the office. So that's just an update I wanted to offer on this slide. >> Dave: Yeah. Thank you for that. I mean, we're still in this kind of day to day, week to week, month to month mode, but I want to do a little double click on this. We're not going to share this data, but there was so much ETR data. We got to be selective. But if you double click on the hybrid models, you'll see that 50% of organizations plan to have time roughly equally split between onsite and remote with again around 30 or 31% mostly remote, with onsite space available if they need it. And Erik, very few don't plan to have some type of hybrid model, at least. >> Yeah, I think it was less than 10% that said it was going to be exclusively onsite. And again, that was a more optimistic scenario six, seven weeks ago than we're seeing right now throughout the country. So I agree with you, hybrid is here to stay. There really is no doubt about it. from everyone I speak to when, you know, I basically make a living talking to IT end users. Hybrid is here to stay. They're planning for it. And that's really the drive behind the spending because you have to support both. You have to give people the option. You have to, from an IT perspective, you also have to support both, right? So if somebody is in office, I need the support staff to be in office. Plus I need them to be able to remote in and fix something from home. So they're spending on both fronts right now. >> Okay. Let's get into some of the vendor performance data. And I want to start with the cloud hyperscalers. It's something that we followed pretty closely. I got some Wiki bond data, that we just had earnings released. So here's data that shows the Q2 revenue shares on the left-hand side in the pie and the growth rates for the big four cloud players on the right hand side. It goes back to Q1 2019. Now the first thing I want to say is these players generated just under $39 billion in the quarter with AWS capturing 50% of that number. I said 39, it was 29 billion, sorry, with AWS capturing 50% of that in the quarter. As you're still tracking around a third in Alibaba and GCP in the, you know, eight or 9% range. But what's most interesting to me, Erik, is that AWS, which generated almost 15 billion in the quarter, was the only player to grow its revenue, both sequentially and year over year. And Erik, I think the street is missing the real story here on Amazon. Amazon announced earnings on Thursday night. The company had a 2% miss on the top line revenues and a meaningful 22% beat on earnings per share. So the retail side of the business missed its revenue targets, so that's why everybody's freaked out. But AWS, the cloud side, saw a 4% revenue beat. So the stock was off more than 70% after hours and into Friday. Now to me, a mix shift toward AWS, that's great news for investors. Now, tepid guidance is a negative, but the shift to a more profitable cloud business is a huge positive. >> Yeah, there's a lot that goes into stock price, right? I remember I was a director of research back in the day. One of my analysts said to me, "Am I crazy for putting a $1,000 target on Amazon?" And I laughed and I said, "No, you're crazy if you don't make it $2,000." (both chuckling) So, you know, at that time it was basically the mix shift towards AWS. You're a thousand percent right. I think the tough year over year comps had something to do with that reaction. That, you know, it's just getting really hard. What's that? The law of large numbers, right? It's really hard to grow at that percentage rate when you're getting this big. But from our data perspective, we're seeing no slowdown in AWS, in cloud, none whatsoever. The only slowdown we're seeing in cloud is GCP. But to, you know, to focus on AWS, extremely strong across the board and not only just in cloud, but in all their data products as well, data and analytics. >> Yeah and I think that the AWS, don't forget folks, that funds Amazon's TAM expansion into so many different places. Okay. As we said at the top, the world of digital and hybrid work, and multi-cloud, it's more complicated than it used to be. And that means if you need to resolve issues, which everybody does, like poor application performance, et cetera, what's happening at the user level, you have to have a better way to sort of see what's going on. And that's what the emergence of the observability space is all about. So Erik, let me set this up and you have a lot of comments here because you've recently had some, and you always have had a lot of round table discussions with CXOs on this topic. So this chart plots net score or spending momentum on the vertical axis, and market share or pervasiveness in the dataset on the horizontal axis. And we inserted a table that shows the data points in detail. Now that red dotted line is just sort of Dave Vellante's subjective mark in the sand for elevated spending levels. And there are three other points here. One is Splunk as well off is two-year peak, as highlighted in the red, but Signal FX, which Splunk acquired, has made a big move northward this last quarter. As has Datadog. So Erik, what can you share with us on this hot, but increasingly crowded space? >> Yeah. I could talk about the space for a long time. As you know, I've gotten some flack over the last year and a half about, you know, kind of pointing out this trend, this negative trend in Splunk. So I do want to be the first one to say that this data set is rebounding. Splunk has been horrific in our data for going back almost two years now, straight downward trend. This is the first time we're seeing any increase, any positivity there. So I do want to be fair and state that because I've been accused of being a little too negative on Splunk in the past. But I would basically say for observability right now, it's a rising tide lifts all boats, if I can use a New England phrase. The data across the board in analytics for these observability players is up, is accelerating. None more so than Datadog. And it's exactly your point, David. The complexity, the increased cloud migration is a perfect setup for Datadog, which is a cloud native. It focuses on microservices. It focuses on cloud observability. Old Splunk was just application monitoring. Don't get me wrong, they're changing, but they were on-prem application monitoring, first and foremost. Datadog came out as cloud native. They, you know, do microservices. This is just a perfect setup for them. And not only is Datadog leading the observability, it's leading the entire analytics sector, all of it. Not just the observability niche. So without a doubt, that is the strongest that we're seeing. It's leading Dynatrace new Relic. The only one that really isn't rebounding is Cisco App Dynamics. That's getting the dreaded legacy word really attached to it. But this space is really on fire, elastic as well, really doing well in this space. New Relic has shown a little bit of improvement as well. And what I heard when I asked my panelists about this, is that because of the maturity of cloud migration, that this observability has to grow. Spending on this has to happen. So they all say the chart looks right. And it's really just about the digital transformation maturity. So that's largely what they think is happening here. And they don't really see it getting, you know, changing anytime soon. >> Yeah, and I would add, and you see that it's getting crowded. You saw a service now acquired LightStep, and they want to get into the game. You mentioned, you know, last deck of the elk stack is, you know, the open source alternative, but then we see a company who's raised a fair amount of money, startup, chaos search, coming in, going after kind of the complexity of the elk stack. You've got honeycomb, which has got a really innovative approach, Jeremy Burton's company observes. So you have venture capital coming in. So we'll see if those guys could be disruptive enough or are they, you know, candidates to get acquired? We'll see how that all- you know that well. The M and A space. You think this space is ripe for M and A? >> I think it's ripe for consolidation, M and A. Something has to shake out. There's no doubt. I do believe that all of these can be standalone. So we shall see what's happened to, you mentioned the Splunk acquisition of Signal FX, just a house cleaning point. That was really nice acceleration by Signal FX, but it was only 20 citations. We'd looked into this a little bit deeper. Our data scientists did. It appears as if the majority of people are just signaling spunk and not FX separately. So moving forward for our data set, we're going to combine those two, so we don't have those anomalies going forward. But that type of acquisition does show what we should expect to see more of in this group going forward. >> Well that's I want to mention. That's one of the challenges that any data company has, and you guys do a great job of it. You're constantly having to reevaluate. There's so much M and A going on in the industry. You've got to pick the right spots in terms of when to consolidate. There's some big, you know, Dell and EMC, for example. You know, you've beautifully worked through that transition. You're seeing, you know, open shift and red hat with IBM. You just got to be flexible. And that's where it's valuable to be able to have a pipeline to guys like Erik, to sort of squint through that. So thank you for that clarification. >> Thank you too, because having a resource like you with industry knowledge really helps us navigate some of those as well for everyone out there. So that's a lot to do with you do Dave, >> Thank you. It's going to be interesting to watch Splunk. Doug Merritt's made some, you know, management changes, not the least of which is bringing in Teresa Carlson to run go to market. So if you know, I'd be interested if they are hitting, bouncing off the bottom and rising up again. They have a great customer base. Okay. Let's look at some of the same dimensions. Go ahead. You got a comment? >> A few of ETR's clients looked at our data and then put a billion dollar investment into it too. So obviously I agree. (Dave laughing) Splunk is looking like it's set for a rebound, and it's definitely something to watch, I agree. >> Not to rat hole in this, but I got to say. When I look back, cause theCUBE gives us kind of early visibility. So companies with momentum and you talk to the customers that all these shows that we go to. I will tell you that three companies stood out last decade. It was Splunk. It was Service Now and Tableau. And you could tell just from just discussions with their customers, the enthusiasm in that customer base. And so that's a real asset, and that helps them build them a moat. So we'll see. All right, let's take a look at the same dimensions now for cyber. This is cybersecurity net score in the vertical, and market share in the horizontal. And I filtered by in greater than a hundred shared in because just gets so crowded. Erik, the only things I would point out here is CrowdStrike and Zscaler continue to shine, CyberArk also showing momentum over that 40% line. Very impressively, Palo Alto networks, which has a big presence in the market. They've bounced back. We predicted that a while back. Your round table suggested people like working with Palo Alto. They're a gold standard. You know, we had reported earlier on that divergence with four to net in terms of valuation and some of the challenges they had in cloud, clearly, you know, back with the momentum. And of course, Microsoft in the upper, right. It's just, they're literally off the charts and obviously a major player here, but your thoughts on cyber? >> Erik: Yeah. Going back to the backdrop. Security, security, security. It has been the number one priority going back to last September. No one sees it changing. It has to happen. The threat vectors are actually expanding and we have no choice but to spend here. So it is not surprising to see. You did name our three favorite names. So as you know, we look at the dataset, we see which ones have the most positive inflections, and we put outlooks on those. And you did mention Zscaler, Okta and CrowdStrike, by far the three standouts that we're seeing. I just recently did a huge panel on Okta talking about their acquisition of Auth Zero. They're pushed into Sale Point space, trying to move just from single sign on and MFA to going to really privileged account management. There is some hurdles there. Really Okta's ability to do this on-prem is something that a little bit of the IT end users are concerned about. But what we're seeing right now, both Okta and Auth Zero are two of the main adopted names in security. They look incredibly well set up. Zscaler as well. With the ZTNA push more towards zero trust, Zscaler came out so hot in their IPO. And everyone was wondering if it was going to trail off just like Snowflake. It's not trailing off. This thing just keeps going up into the right, up into the right. The data supports a lot of tremendous growth for the three names that you just mentioned. >> Yeah. Yeah. I'm glad you brought up Auth Zero. We had reported on that earlier. I just feel like that was a great acquisition. You had Okta doing the belly to belly enterprise, you know, selling. And the one thing that they really lacked was that developer momentum. And that's what Auth Zero brings. Just a smart move by Todd McKinnon and company. And I mean, so this, you know, I want to, I want to pull up another chart show a quick snapshot of some of the players in the survey who show momentum and have you comment on this. We haven't mentioned Snowflake so far, but they remain again with like this gold standard of net score, they've consistently had those high marks with regard to spending velocity. But here's some other data. Erik, how should we interpret this? >> Erik: Yeah, just to harp on Snowflake for a second. Right, I mean the rich get richer. They came out- IPO was so hyped, so it was hard for us as a research company to say, "Oh, you know, well, you know, we agree." But we did. The data is incredible. You can't beat the management team. You can't beat what they're doing. They've got so much cash. I can't wait to see what they do with it. And meanwhile, you would expect something that debuted with that high of a net score, that high of spending velocity to trail off. It would be natural. It's not Dave, it's still accelerating. It's gone even higher. It's at all time highs. And we just don't see it stopping anytime soon. It's a really interesting space right now. Maybe another name to look at on here that I think is pretty interesting, kind of a play on return to business is Kupa. It's a great project expense management tool that got hit really hard. Listen, traveling stopped, business expense stopped, and I did a panel on it. And a lot of our guys basically said, "Yeah, it was the first thing I cut." But we're seeing a huge rebound in spending there in that space. So that's a name that I think might be worth being called out on a positive side. Negative, If you look down to the bottom right of that chart, unfortunately we're seeing some issues in RingCentral and Zoom. Anything that's sort of playing in this next, you know, video conferencing, IP telephony space, they seem to be having really decelerating spending. Also now with Zoom's acquisition of five nine. I'm not really sure how RingCentral's going to compete on that. But yeah, that's one where we debuted for the first time with a negative outlook on that name. And looking and asking to some of the people in our community, a lot of them say externally, you still need IP telepany, but internally you don't. Because the You Cast communication systems are getting so sophisticated, that if I have Teams, if I have Slack, I don't need phones anymore. (chuckling) That you and I can just do a Slack call. We can do a Teams call. And many of them are saying I'm truly ripping out my IP Telepany internally as soon as possible because we just don't need it. So this whole collaboration, productivity space is here to stay. And it's got wide ranging implications to some of these more legacy type of tools. >> You know, one of the other things I'd call out on this chart is Accenture. You and I had a session earlier this year, and we had predicted that that skill shortage was going to lead to an uptick in traditional services. We've certainly seen that. I mean, IBM beat its quarter on the strength of services largely. And seeing Accenture on that is I think confirmation. >> Yeah that was our New Year prediction show, right Dave? When we made top 10 predictions? >> That's right. That was part of our predictions show. Exactly, good memory. >> The data is really showing that continue. People want the projects, they need to do the projects, but hiring is very difficult. So obviously the number one beneficiary there are going to be the Accentures of the world. >> All right. So let's do a quick wrap. I'm going to make a few comments and then have you bring us home, Erik. So we laid out our scenario for the tech spending rebound. We definitely believe last year tracked downward, along with GDP contraction. It was interesting. Gardner doesn't believe, at least factions of Gardner don't believe there's a correlation between GDP and tech spending. But, you know, I personally think there generally is some kind of relatively proportional pattern there. And I think we saw contraction last year. People are concerned about inflation. Of course, that adds some uncertainty. And as well, as you mentioned around the Delta variant. But I feel as though that the boards of directors and CEOs, they've mandated that tech execs have to build out digital platforms for the future. They're data centric. They're highly automated, to your earlier points. They're intelligent with AI infused, and that's going to take investment. I feel like the tech community has said, "Look, we know what to do here. We're dealing with hybrid work. We can't just stop doing what we're doing. Let's move forward." You know, and as you say, we're flying again and so forth. You know, getting hybrid right is a major priority that directly impacts strategies. Technology strategies, particularly around security, cloud, the productivity of remote workers with collaboration. And as we've said many times, we are entering a new era of data that's going to focus on decentralized data, building data products, and Erik let's keep an eye on this observability space. Lot of interest there, and buyers have a number of choices. You know, do they go with a specialist, as we saw recently, we've seen in the past, or did they go with the generalist like Service Now with the acquisition of LightStep? You know, it's going to be interesting. A lot of people are going to get into this space, start bundling into larger platforms. And so as you said, there's probably not enough room for all the players. We're going to see some consolidation there. But anyway, let me give you the final word here. >> Yeah, no, I completely agree with all of it. And I think your earlier points are spot on, that analytics and automation are certainly going to be moving more and more to that left of that chart we had of priorities. I think as we continue that survey heading into 2022, we'll have some fresh data for you again in a few months, that's going to start looking at 2022 priorities and overall spend. And the one other area that I keep hearing about over and over and over again is customer experience. There's a transition from good old CRM to CXM. Right now, everything is digital. It is not going away. So you need an omni-channel support to not only track your customer experience, but improve it. Make sure there's a two way communication. And it's a really interesting space. Salesforce is going to migrate into it. We've got Qualtrics out there. You've got Medallia. You've got FreshWorks, you've got Sprinkler. You got some names out there. And everyone I keep talking to on the IT end user side keeps bringing up customer experience. So let's keep an eye on that as well. >> That's a great point. And again, it brings me back to Service Now. We wrote a piece last week that's sort of, Service Now and Salesforce are on a collision course. We've said that for many, many years. And you've got this platform of platforms. They're just kind of sucking in different functions saying, "Hey, we're friends with everybody." But as you know Erik, software companies, they want to own it all. (both chuckling) All right. Hey Erik, thank you so much. I want to thank you for coming back on. It's always a pleasure to have you on Breaking Analysis. Great to see you. >> Love the partnership. Love the collaboration. Let's go enjoy this summer Friday. >> All right. Let's do. Okay, remember everybody, these episodes, they're all available as podcasts, wherever you listen. All you got to do is search Breaking Analysis Podcast, click subscribe to the series. Check out ETR's website at etr.plus. They've just launched a new website. They've got a whole new pricing model. It's great to see that innovation going on. Now remember we also publish a full report every week on WikiBond.com and SiliconAngle.com. You can always email me, appreciate the back channel comments, the metadata insights. David.Vellante@SiliconAngle.com. DM me on Twitter @DVellante or comment on the LinkedIn posts. This is Dave Vellante for Erik Bradley and theCUBE insights powered by ETR. Have a great week, a good rest of summer, be well. And we'll see you next time. (inspiring music)

>> Paige: Hello everybody and thank you for joining us today for the virtual Vertica BDC 2020. Today's breakout session is entitled End-to-End Security in Vertica. I'm Paige Roberts, Open Source Relations Manager at Vertica. I'll be your host for this session. Joining me is Vertica Software Engineers, Fenic Fawkes and Chris Morris. Before we begin, I encourage you to submit your questions or comments during the virtual session. You don't have to wait until the end. Just type your question or comment in the question box below the slide as it occurs to you and click submit. There will be a Q&A session at the end of the presentation and we'll answer as many questions as we're able to during that time. Any questions that we don't address, we'll do our best to answer offline. Also, you can visit Vertica forums to post your questions there after the session. Our team is planning to join the forums to keep the conversation going, so it'll be just like being at a conference and talking to the engineers after the presentation. Also, a reminder that you can maximize your screen by clicking the double arrow button in the lower right corner of the slide. And before you ask, yes, this whole session is being recorded and it will be available to view on-demand this week. We'll send you a notification as soon as it's ready. I think we're ready to get started. Over to you, Fen. >> Fenic: Hi, welcome everyone. My name is Fen. My pronouns are fae/faer and Chris will be presenting the second half, and his pronouns are he/him. So to get started, let's kind of go over what the goals of this presentation are. First off, no deployment is the same. So we can't give you an exact, like, here's the right way to secure Vertica because how it is to set up a deployment is a factor. But the biggest one is, what is your threat model? So, if you don't know what a threat model is, let's take an example. We're all working from home because of the coronavirus and that introduces certain new risks. Our source code is on our laptops at home, that kind of thing. But really our threat model isn't that people will read our code and copy it, like, over our shoulders. So we've encrypted our hard disks and that kind of thing to make sure that no one can get them. So basically, what we're going to give you are building blocks and you can pick and choose the pieces that you need to secure your Vertica deployment. We hope that this gives you a good foundation for how to secure Vertica. And now, what we're going to talk about. So we're going to start off by going over encryption, just how to secure your data from attackers. And then authentication, which is kind of how to log in. Identity, which is who are you? Authorization, which is now that we know who you are, what can you do? Delegation is about how Vertica talks to other systems. And then auditing and monitoring. So, how do you protect your data in transit? Vertica makes a lot of network connections. Here are the important ones basically. There are clients talk to Vertica cluster. Vertica cluster talks to itself. And it can also talk to other Vertica clusters and it can make connections to a bunch of external services. So first off, let's talk about client-server TLS. Securing data between, this is how you secure data between Vertica and clients. It prevents an attacker from sniffing network traffic and say, picking out sensitive data. Clients have a way to configure how strict the authentication is of the server cert. It's called the Client SSLMode and we'll talk about this more in a bit but authentication methods can disable non-TLS connections, which is a pretty cool feature. Okay, so Vertica also makes a lot of network connections within itself. So if Vertica is running behind a strict firewall, you have really good network, both physical and software security, then it's probably not super important that you encrypt all traffic between nodes. But if you're on a public cloud, you can set up AWS' firewall to prevent connections, but if there's a vulnerability in that, then your data's all totally vulnerable. So it's a good idea to set up inter-node encryption in less secure situations. Next, import/export is a good way to move data between clusters. So for instance, say you have an on-premises cluster and you're looking to move to AWS. Import/Export is a great way to move your data from your on-prem cluster to AWS, but that means that the data is going over the open internet. And that is another case where an attacker could try to sniff network traffic and pull out credit card numbers or whatever you have stored in Vertica that's sensitive. So it's a good idea to secure data in that case. And then we also connect to a lot of external services. Kafka, Hadoop, S3 are three of them. Voltage SecureData, which we'll talk about more in a sec, is another. And because of how each service deals with authentication, how to configure your authentication to them differs. So, see our docs. And then I'd like to talk a little bit about where we're going next. Our main goal at this point is making Vertica easier to use. Our first objective was security, was to make sure everything could be secure, so we built relatively low-level building blocks. Now that we've done that, we can identify common use cases and automate them. And that's where our attention is going. Okay, so we've talked about how to secure your data over the network, but what about when it's on disk? There are several different encryption approaches, each depends on kind of what your use case is. RAID controllers and disk encryption are mostly for on-prem clusters and they protect against media theft. They're invisible to Vertica. S3 and GCP are kind of the equivalent in the cloud. They also invisible to Vertica. And then there's field-level encryption, which we accomplish using Voltage SecureData, which is format-preserving encryption. So how does Voltage work? Well, it, the, yeah. It encrypts values to things that look like the same format. So for instance, you can see date of birth encrypted to something that looks like a date of birth but it is not in fact the same thing. You could do cool stuff like with a credit card number, you can encrypt only the first 12 digits, allowing the user to, you know, validate the last four. The benefits of format-preserving encryption are that it doesn't increase database size, you don't need to alter your schema or anything. And because of referential integrity, it means that you can do analytics without unencrypting the data. So again, a little diagram of how you could work Voltage into your use case. And you could even work with Vertica's row and column access policies, which Chris will talk about a bit later, for even more customized access control. Depending on your use case and your Voltage integration. We are enhancing our Voltage integration in several ways in 10.0 and if you're interested in Voltage, you can go see their virtual BDC talk. And then again, talking about roadmap a little, we're working on in-database encryption at rest. What this means is kind of a Vertica solution to encryption at rest that doesn't depend on the platform that you're running on. Encryption at rest is hard. (laughs) Encrypting, say, 10 petabytes of data is a lot of work. And once again, the theme of this talk is everyone has a different key management strategy, a different threat model, so we're working on designing a solution that fits everyone. If you're interested, we'd love to hear from you. Contact us on the Vertica forums. All right, next up we're going to talk a little bit about access control. So first off is how do I prove who I am? How do I log in? So, Vertica has several authentication methods. Which one is best depends on your deployment size/use case. Again, theme of this talk is what you should use depends on your use case. You could order authentication methods by priority and origin. So for instance, you can only allow connections from within your internal network or you can enforce TLS on connections from external networks but relax that for connections from your internal network. That kind of thing. So we have a bunch of built-in authentication methods. They're all password-based. User profiles allow you to set complexity requirements of passwords and you can even reject non-TLS connections, say, or reject certain kinds of connections. Should only be used by small deployments because you probably have an LDAP server, where you manage users if you're a larger deployment and rather than duplicating passwords and users all in LDAP, you should use LDAP Auth, where Vertica still has to keep track of users, but each user can then use LDAP authentication. So Vertica doesn't store the password at all. The client gives Vertica a username and password and Vertica then asks the LDAP server is this a correct username or password. And the benefits of this are, well, manyfold, but if, say, you delete a user from LDAP, you don't need to remember to also delete their Vertica credentials. You can just, they won't be able to log in anymore because they're not in LDAP anymore. If you like LDAP but you want something a little bit more secure, Kerberos is a good idea. So similar to LDAP, Vertica doesn't keep track of who's allowed to log in, it just keeps track of the Kerberos credentials and it even, Vertica never touches the user's password. Users log in to Kerberos and then they pass Vertica a ticket that says "I can log in." It is more complex to set up, so if you're just getting started with security, LDAP is probably a better option. But Kerberos is, again, a little bit more secure. If you're looking for something that, you know, works well for applications, certificate auth is probably what you want. Rather than hardcoding a password, or storing a password in a script that you use to run an application, you can instead use a certificate. So, if you ever need to change it, you can just replace the certificate on disk and the next time the application starts, it just picks that up and logs in. Yeah. And then, multi-factor auth is a feature request we've gotten in the past and it's not built-in to Vertica but you can do it using Kerberos. So, security is a whole application concern and fitting MFA into your workflow is all about fitting it in at the right layer. And we believe that that layer is above Vertica. If you're interested in more about how MFA works and how to set it up, we wrote a blog on how to do it. And now, over to Chris, for more on identity and authorization. >> Chris: Thanks, Fen. Hi everyone, I'm Chris. So, we're a Vertica user and we've connected to Vertica but once we're in the database, who are we? What are we? So in Vertica, the answer to that questions is principals. Users and roles, which are like groups in other systems. Since roles can be enabled and disabled at will and multiple roles can be active, they're a flexible way to use only the privileges you need in the moment. For example here, you've got Alice who has Dbadmin as a role and those are some elevated privileges. She probably doesn't want them active all the time, so she can set the role and add them to her identity set. All of this information is stored in the catalog, which is basically Vertica's metadata storage. How do we manage these principals? Well, depends on your use case, right? So, if you're a small organization or maybe only some people or services need Vertica access, the solution is just to manage it with Vertica. You can see some commands here that will let you do that. But what if we're a big organization and we want Vertica to reflect what's in our centralized user management system? Sort of a similar motivating use case for LDAP authentication, right? We want to avoid duplication hassles, we just want to centralize our management. In that case, we can use Vertica's LDAPLink feature. So with LDAPLink, principals are mirrored from LDAP. They're synced in a considerable fashion from the LDAP into Vertica's catalog. What this does is it manages creating and dropping users and roles for you and then mapping the users to the roles. Once that's done, you can do any Vertica-specific configuration on the Vertica side. It's important to note that principals created in Vertica this way, support multiple forms of authentication, not just LDAP. This is a separate feature from LDAP authentication and if you created a user via LDAPLink, you could have them use a different form of authentication, Kerberos, for example. Up to you. Now of course this kind of system is pretty mission-critical, right? You want to make sure you get the right roles and the right users and the right mappings in Vertica. So you probably want to test it. And for that, we've got new and improved dry run functionality, from 9.3.1. And what this feature offers you is new metafunctions that let you test various parameters without breaking your real LDAPLink configuration. So you can mess around with parameters and the configuration as much as you want and you can be sure that all of that is strictly isolated from the live system. Everything's separated. And when you use this, you get some really nice output through a Data Collector table. You can see some example output here. It runs the same logic as the real LDAPLink and provides detailed information about what would happen. You can check the documentation for specifics. All right, so we've connected to the database, we know who we are, but now, what can we do? So for any given action, you want to control who can do that, right? So what's the question you have to ask? Sometimes the question is just who are you? It's a simple yes or no question. For example, if I want to upgrade a user, the question I have to ask is, am I the superuser? If I'm the superuser, I can do it, if I'm not, I can't. But sometimes the actions are more complex and the question you have to ask is more complex. Does the principal have the required privileges? If you're familiar with SQL privileges, there are things like SELECT, INSERT, and Vertica has a few of their own, but the key thing here is that an action can require specific and maybe even multiple privileges on multiple objects. So for example, when selecting from a table, you need USAGE on the schema and SELECT on the table. And there's some other examples here. So where do these privileges come from? Well, if the action requires a privilege, these are the only places privileges can come from. The first source is implicit privileges, which could come from owning the object or from special roles, which we'll talk about in a sec. Explicit privileges, it's basically a SQL standard GRANT system. So you can grant privileges to users or roles and optionally, those users and roles could grant them downstream. Discretionary access control. So those are explicit and they come from the user and the active roles. So the whole identity set. And then we've got Vertica-specific inherited privileges and those come from the schema, and we'll talk about that in a sec as well. So these are the special roles in Vertica. First role, DBADMIN. This isn't the Dbadmin user, it's a role. And it has specific elevated privileges. You can check the documentation for those exact privileges but it's less than the superuser. The PSEUDOSUPERUSER can do anything the real superuser can do and you can grant this role to whomever. The DBDUSER is actually a role, can run Database Designer functions. SYSMONITOR gives you some elevated auditing permissions and we'll talk about that later as well. And finally, PUBLIC is a role that everyone has all the time so anything you want to be allowed for everyone, attach to PUBLIC. Imagine this scenario. I've got a really big schema with lots of relations. Those relations might be changing all the time. But for each principal that uses this schema, I want the privileges for all the tables and views there to be roughly the same. Even though the tables and views come and go, for example, an analyst might need full access to all of them no matter how many there are or what there are at any given time. So to manage this, my first approach I could use is remember to run grants every time a new table or view is created. And not just you but everyone using this schema. Not only is it a pain, it's hard to enforce. The second approach is to use schema-inherited privileges. So in Vertica, schema grants can include relational privileges. For example, SELECT or INSERT, which normally don't mean anything for a schema, but they do for a table. If a relation's marked as inheriting, then the schema grants to a principal, for example, salespeople, also apply to the relation. And you can see on the diagram here how the usage applies to the schema and the SELECT technically but in Sales.foo table, SELECT also applies. So now, instead of lots of GRANT statements for multiple object owners, we only have to run one ALTER SCHEMA statement and three GRANT statements and from then on, any time that you grant some privileges or revoke privileges to or on the schema, to or from a principal, all your new tables and views will get them automatically. So it's dynamically calculated. Now of course, setting it up securely, is that you want to know what's happened here and what's going on. So to monitor the privileges, there are three system tables which you want to look at. The first is grants, which will show you privileges that are active for you. That is your user and active roles and theirs and so on down the chain. Grants will show you the explicit privileges and inherited_privileges will show you the inherited ones. And then there's one more inheriting_objects which will show all tables and views which inherit privileges so that's useful more for not seeing privileges themselves but managing inherited privileges in general. And finally, how do you see all privileges from all these sources, right? In one go, you want to see them together? Well, there's a metafunction added in 9.3.1. Get_privileges_description which will, given an object, it will sum up all the privileges for a current user on that object. I'll refer you to the documentation for usage and supported types. Now, the problem with SELECT. SELECT let's you see everything or nothing. You can either read the table or you can't. But what if you want some principals to see subset or a transformed version of the data. So for example, I have a table with personnel data and different principals, as you can see here, need different access levels to sensitive information. Social security numbers. Well, one thing I could do is I could make a view for each principal. But I could also use access policies and access policies can do this without introducing any new objects or dependencies. It centralizes your restriction logic and makes it easier to manage. So what do access policies do? Well, we've got row and column access policies. Rows will hide and column access policies will transform data in the row or column, depending on who's doing the SELECTing. So it transforms the data, as we saw on the previous slide, to look as requested. Now, if access policies let you see the raw data, you can still modify the data. And the implication of this is that when you're crafting access policies, you should only use them to refine access for principals that need read-only access. That is, if you want a principal to be able to modify it, the access policies you craft should let through the raw data for that principal. So in our previous example, the loader service should be able to see every row and it should be able to see untransformed data in every column. And as long as that's true, then they can continue to load into this table. All of this is of course monitorable by a system table, in this case access_policy. Check the docs for more information on how to implement these. All right, that's it for access control. Now on to delegation and impersonation. So what's the question here? Well, the question is who is Vertica? And that might seem like a silly question, but here's what I mean by that. When Vertica's connecting to a downstream service, for example, cloud storage, how should Vertica identify itself? Well, most of the time, we do the permissions check ourselves and then we connect as Vertica, like in this diagram here. But sometimes we can do better. And instead of connecting as Vertica, we connect with some kind of upstream user identity. And when we do that, we let the service decide who can do what, so Vertica isn't the only line of defense. And in addition to the defense in depth benefit, there are also benefits for auditing because the external system can see who is really doing something. It's no longer just Vertica showing up in that external service's logs, it's somebody like Alice or Bob, trying to do something. One system where this comes into play is with Voltage SecureData. So, let's look at a couple use cases. The first one, I'm just encrypting for compliance or anti-theft reasons. In this case, I'll just use one global identity to encrypt or decrypt with Voltage. But imagine another use case, I want to control which users can decrypt which data. Now I'm using Voltage for access control. So in this case, we want to delegate. The solution here is on the Voltage side, give Voltage users access to appropriate identities and these identities control encryption for sets of data. A Voltage user can access multiple identities like groups. Then on the Vertica side, a Vertica user can set their Voltage username and password in a session and Vertica will talk to Voltage as that Voltage user. So in the diagram here, you can see an example of how this is leverage so that Alice could decrypt something but Bob cannot. Another place the delegation paradigm shows up is with storage. So Vertica can store and interact with data on non-local file systems. For example, HGFS or S3. Sometimes Vertica's storing Vertica-managed data there. For example, in Eon mode, you might store your projections in communal storage in S3. But sometimes, Vertica is interacting with external data. For example, this usually maps to a user storage location in the Vertica side and it might, on the external storage side, be something like Parquet files on Hadoop. And in that case, it's not really Vertica's data and we don't want to give Vertica more power than it needs, so let's request the data on behalf of who needs it. Lets say I'm an analyst and I want to copy from or export to Parquet, using my own bucket. It's not Vertica's bucket, it's my data. But I want Vertica to manipulate data in it. So the first option I have is to give Vertica as a whole access to the bucket and that's problematic because in that case, Vertica becomes kind of an AWS god. It can see any bucket, any Vertica user might want to push or pull data to or from any time Vertica wants. So it's not good for the principals of least access and zero trust. And we can do better than that. So in the second option, use an ID and secret key pair for an AWS, IAM, if you're familiar, principal that does have access to the bucket. So I might use my, the analyst, credentials, or I might use credentials for an AWS role that has even fewer privileges than I do. Sort of a restricted subset of my privileges. And then I use that. I set it in Vertica at the session level and Vertica will use those credentials for the copy export commands. And it gives more isolation. Something that's in the works is support for keyless delegation, using assumable IAM roles. So similar benefits to option two here, but also not having to manage keys at the user level. We can do basically the same thing with Hadoop and HGFS with three different methods. So first option is Kerberos delegation. I think it's the most secure. It definitely, if access control is your primary concern here, this will give you the tightest access control. The downside is it requires the most configuration outside of Vertica with Kerberos and HGFS but with this, you can really determine which Vertica users can talk to which HGFS locations. Then, you've got secure impersonation. If you've got a highly trusted Vertica userbase, or at least some subset of it is, and you're not worried about them doing things wrong but you want to know about auditing on the HGFS side, that's your primary concern, you can use this option. This diagram here gives you a visual overview of how that works. But I'll refer you to the docs for details. And then finally, option three, this is bringing your own delegation token. It's similar to what we do with AWS. We set something in the session level, so it's very flexible. The user can do it at an ad hoc basis, but it is manual, so that's the third option. Now on to auditing and monitoring. So of course, we want to know, what's happening in our database? It's important in general and important for incident response, of course. So your first stop, to answer this question, should be system tables. And they're a collection of information about events, system state, performance, et cetera. They're SELECT-only tables, but they work in queries as usual. The data is just loaded differently. So there are two types generally. There's the metadata table, which stores persistent information or rather reflects persistent information stored in the catalog, for example, users or schemata. Then there are monitoring tables, which reflect more transient information, like events, system resources. Here you can see an example of output from the resource pool's storage table which, these are actually, despite that it looks like system statistics, they're actually configurable parameters for using that. If you're interested in resource pools, a way to handle users' resource allocation and various principal's resource allocation, again, check that out on the docs. Then of course, there's the followup question, who can see all of this? Well, some system information is sensitive and we should only show it to those who need it. Principal of least privilege, right? So of course the superuser can see everything, but what about non-superusers? How do we give access to people that might need additional information about the system without giving them too much power? One option's SYSMONITOR, as I mentioned before, it's a special role. And this role can always read system tables but not change things like a superuser would be able to. Just reading. And another option is the RESTRICT and RELEASE metafunctions. Those grant and revoke access to from a certain system table set, to and from the PUBLIC role. But the downside of those approaches is that they're inflexible. So they only give you, they're all or nothing. For a specific preset of tables. And you can't really configure it per table. So if you're willing to do a little more setup, then I'd recommend using your own grants and roles. System tables support GRANT and REVOKE statements just like any regular relations. And in that case, I wouldn't even bother with SYSMONITOR or the metafunctions. So to do this, just grant whatever privileges you see fit to roles that you create. Then go ahead and grant those roles to the users that you want. And revoke access to the system tables of your choice from PUBLIC. If you need even finer-grained access than this, you can create views on top of system tables. For example, you can create a view on top of the user system table which only shows the current user's information, uses a built-in function that you can use as part of the view definition. And then, you can actually grant this to PUBLIC, so that each user in Vertica could see their own user's information and never give access to the user system table as a whole, just that view. Now if you're a superuser or if you have direct access to nodes in the cluster, filesystem/OS, et cetera, then you have more ways to see events. Vertica supports various methods of logging. You can see a few methods here which are generally outside of running Vertica, you'd interact with them in a different way, with the exception of active events which is a system table. We've also got the data collector. And that sorts events by subjects. So what the data collector does, it extends the logging and system table functionality, by the component, is what it's called in the documentation. And it logs these events and information to rotating files. For example, AnalyzeStatistics is a function that could be of use by users and as a database administrator, you might want to monitor that so you can use the data collector for AnalyzeStatistics. And the files that these create can be exported into a monitoring database. One example of that is with the Management Console Extended Monitoring. So check out their virtual BDC talk. The one on the management console. And that's it for the key points of security in Vertica. Well, many of these slides could spawn a talk on their own, so we encourage you to check out our blog, check out the documentation and the forum for further investigation and collaboration. Hopefully the information we provided today will inform your choices in securing your deployment of Vertica. Thanks for your time today. That concludes our presentation. Now, we're ready for Q&A.

>> Narrator: Live from New York City, it's the CUBE covering CyberConnect 2017 brought to you by Centrify and the Institute for Critical Infrastructure Technology. >> Okay welcome back everyone. This is the CUBE's live coverage in New York City exclusively with the CyberConnect 2017, it's an inaugural event presented by Centrify. It's not a Centrify event. Centrify one of the fastest growing security startups in Silicon Valley and around the world. It is underwriting this great event bringing industry, government and practitioners together to add value on top of the great security conversations. I'm John Furrier, your host with Dave Vellante, my co-host, my next guest is Bill Mann who's the Chief Product Officer with Centrify. Welcome back to the CUBE, great to see you. >> Hey, great to be here. >> Thanks and congratulations for you guys doing what I think is a great community thing, underwriting an event, not just trying to take the event, make it about Centrify, it's really an organically driven event with the team of customers you have, and industry consultants and practitioners, really, really great job, congratulations. >> Bill: Thank you. >> Alright so now let's get down to the meat of the conversation here at the show in the hallways is general's conversation, General Alexander talking about his experience at the NSA and the Fiber Command Center. Really kind of teasing out the future of what cyber will be like for an enterprise whether it's a slow moving enterprise or a fast moving bank or whatever, the realities are this is the biggest complexity and challenge of our generation. Identity's at the heart of it. You guys were called the foundational element of a new solution that has people have to coming together in a community model sharing data, talking to each other, why did he call you guys foundational? >> I think he's calling us foundational because I think he's realizing that having strong identity in an environment is kind of the keys to getting yourself in a better state of mind and a better security posture. If we look at the kind of the foundational principles of identity, it's really about making sure you know who the people are within your organization, by doing identity assurance so that's a foundational principle. The principle of giving people the least amount of access within an organization, that's a foundational principle. The principle of understanding what people did and then using that information and then adjusting policy, that's a foundational principle. I think that's the fundamental reason why he talks about it as a foundational principle and let's face it, most organizations are now connected to the Cloud, they've got mobile user, they've got outsourced IT so something's got to change, right. I mean the way we've been running security up until now. If it was that great, we wouldn't have had all the threats, right? >> And all kinds of silver bullets have been rolling out, Dave and I were commenting and Dave made a point on our intro today that there's no silver bullet in security, there's a lot of opportunities to solve problems but there's no, you can't buy one product. Now identity is a foundational element. Another interesting thing I want to get your reaction to was on stage was Jim from Aetna, the Chief Security Officer and he was kind of making fun with himself by saying I'm not a big computer science, I was a history major and he made a comment about his observation that when civilizations crumble, it's because of trust is lost. And kind of inferring that you can always connect the dots that trust in fundamental and that email security and most of the solutions are really killing the trust model rather than enhancing it and making it more secure so a holistic view of trust stability and enhancement can work in security. What's your reaction to that? >> So it's a complicated area. Trust is complicated let me just kind of baseline that for the moment. I think that we unfortunately, need to have better trust but the way we're approaching trust at the moment is the wrong way so let me give you a simple example. When we go, when we're at home and we're sleeping in our homes and the doors and windows are closed, we inherently trust the security of our environment because the doors and windows are closed but reality is the doors and windows can be really easily opened right, so we shouldn't be trusting that environment at all but we do so what we need to instead do is get to a place where we trust the known things in our environment very, very well and understand what are the unknown things in our environment so the known things in our environment can be people right, the identity of people, can be objects like knowing that this is really Bill's phone, it's a registered phone and it's got a device ID is better than having any phone being used for access so like I said, trust, it's complicated. >> John: But we don't know it has malware on there though. You could have malware. >> You could have malware on there but look, then you've got different levels of trust, right. You've got zero trust when you don't know anything about it. You've got higher levels of trust when you know it's got no malware. >> So known information is critical. >> Known information is critical and known information can then be used to make trust decisions but it's when we make decisions on trust without any information and where we infer that things are trustworthy when they shouldn't be like the home example where you think the doors are closed but it's so easy to break through them, that's when we infer trust so trust is something that we need to build within the environment with information about all the objects in the environment and that's where I think we can start building trust and that's I think how we have to approach the whole conversation about trust. Going back to your example, when you receive an email from somebody, you don't know if it came from that person right. Yet I'm talking to you, I trust that I'm talking to you, right, so that's where the breakdown happens and once we have that breakdown, society can breakdown as well. >> But going back to your device example so there are situations today. I mean you try to log on to your bank from your mobile device and it says do you want to remember this device, do you want to trust this device? Is that an example of what you're talking about and it might hit me a text with a two factor authentication. >> That's an example, that's absolutely an example of trust and then so there's a model in security called the zero trust model and I spoke about it earlier on today and that model of security is the foundational principles of that is understanding who the user is, understanding what endpoint or device they're coming from and that's exactly what you've described which is understanding the context of that device, the trustworthy of the device, you know the location of that device, the posture of that device. All of those things make that device more trustworthy than knowing nothing about that device and those are the kind of fundamental constructs of building trust within the organization now as opposed to what we've got at the moment is we're implying trust without any information about really trust right. I mean most of us use passwords and most of us use password, password so there's no difference between both of you, right and so how can I trust-- >> I've never done that. >> I know but how can we trust each other if we're using you know, data like that to describe ourselves. >> Or using the data in your Linkedin profile that could be socially engineered. >> Bill: Exactly. >> So there's all kinds of ways to crack the passwords so you brought up the trust so this is a, spoofing used to be a common thing but that's been resolved that some, you know same calling some techniques and other things but now when you actually have certificates being compromised, account compromised, that's where you know, you think you know who that person is but that's not who it is so this is a new dynamic and was pointed out in one of the sessions that this account, real compromises of identity is a huge issue. What are you guys doing to solve that problem? Have you solved that problem? >> We're addressing parts of solving that problem and the part of the problem that we're trying to solve is increasing the posture of multi factor authentication of that user so you know more certainty that this is really who that person is. But the fact of the matter is like you said earlier on, trying to reduce the risk down to zero is almost impossible and I think that's what we have to be all clear about in this market, this is not about reducing risk to zero, it's about getting the risk down to something which is acceptable for the type of business you are trying to work on so implementing MFA is a big part of what Centrify advocates within organizations. >> Explain MFA real quick. >> Oh, multi factor authentication. >> Okay, got it. >> Something that we're all used to when we're using, doing online banking at the moment but unfortunately most enterprises don't implement MFA for all the use cases that they need to be able to implement before. So I usually describe it as MFA everywhere and the reason I say MFA everywhere, it should be for all users, not a subset of the users. >> Should be all users, yeah. >> And it should be for all the accesses when they're accessing salesforce.com for concur so all the application, all the servers that they access, all the VPNs that they access, all the times that they request any kind of privilege command, you should reauthenticate them as well at different points in time. So implementing MFA like that can reduce the risk within the organization. >> So I buy that 100% and I love that direction, I'd ask you then a hard question. Anyone who's an Apple user these days knows how complicated MFA could be, I get this iCloud verification and it sends me a code to my phone which could be hacked potentially so you have all these kinds of complexities that could arise depending upon how complicated the apps are. So how should the industry think about simplifying and yet maintaining the security of the MFA across workloads so application one through n. >> So let me kind of separate the problems out so we focus on the enterprise use case so what you're describing is more the consumer use case but we have the same problem in the enterprise area as well but at least in the enterprise area I think that we're going to be able to address the problems sooner in the market. >> John: Because you have the identity baseline? >> One, we have the identity and there's less applications that the enterprise is using. >> It's not Apple. >> It's not like endpoints. >> But take Salesforce, that's as much of a pain, right. >> But with applications like Salesforce, and a lot of the top applications out there, the SaaS applications out there, they already support SAML as a mechanism for eliminating passwords altogether and a lot of the industry is moving towards using API mechanisms for authentication. Now your example for the consumer is a little bit more challenging because now you've got to get all these consumer applications to tie in and so forth right so that's going to be tougher to do but you know, we're focused on trying to solve the enterprise problem and even that is being a struggle in the industry. It's only now that you're seeing standards like SAML and OWASP getting implemented whereby we can make assertions about an identity and then an application can then consume that assertion and then move forward. >> Even in those situations if I may Bill, there's take the trust to another level which is there's a trusted third party involved in those situations. It might be Twitter, Linkedin, Facebook or Google, might be my bank, it might be RSA in some cases. Do you envision a day where we can eliminate the trusted third party with perhaps blockchain. >> Oh I actually do. Yeah, no, I do, I think the trusted third party model that we've got is broken fundamentally because if a break in to the bank, that's it, you know the third party trust but I'm a big fan of blockchain mainly because it's going to be a trusted end party right so there's going to be end parties that are vouching for Bill's identity on the blockchain so and it's going to be harder to get to all those end minors and convince them that they need to change their or break into them right. So yeah I'm a big fan of the trust model changing. I think that's going to be one of the biggest use cases for blockchain when it comes to trust and the way we kind of think about certificates and browsers and SSL certificates and so forth. >> I think you're right on the money and what i would add to that is looking at this conference, CyberConnect, one theme that I see coming out of this is I hear the word reimagining the future here, reimagining security, reimagining DNS, reimagining so a lot of the thought leaders that are here are talking about things like okay, here's what we have today. I'm not saying throwing it away but it's going to be completely different in the new world. >> Yeah and I think you know the important thing about the past is got to learn from the past and we got to apply some of the lessons to the future and things are just so different now. We know with microservices versus monolithic application architectures you know security used to be an afterthought before but you know, you talk to the average developer now, they want to add security in their applications, they realize that right so, and that's going to, I mean, maybe I'm being overly positive but I think that's going to take us to a better place. >> I think we're in a time. >> We need to be overly positive Bill. >> You're the chief officer, you have to have a 20 mouth stare and I think you know legacy always has been a thing we've heard in the enterprise but I just saw a quote on Twitter on the internet and it was probably, it's in quotes so it's probably right, it's motivating, a motivating quote. If you want to create the future, you've got to create a better version of the past and they kind of use taxis versus Uber obviously to answer of a shift in user behavior so that's happening in this industry. There's a shift of user experience, user expectations, changing internet infrastructure, you mentioned blockchain, a variety of other things so we're actually in a time where the better mouse trap actually will work. If you could come out with a great product that changes the economics and the paradigm or use case of an old legacy. So in a way by theory if you believe that, legacy shouldn't be a problem. >> You know and I certainly believe that. Having a kid who's in middle school at the moment, and the younger generation, to understand security way more than we ever used to and you know, this generation, this coming generation understands the difference between a password and a strong password and mobile be used as a second factor authentication so I think that the whole tide will rise here from a security perspective. I firmly believe that. >> Dave: You are an optimist. >> Well about government 'cause one thing that I liked about the talk here from the general was he was pretty straight talk and one of his points, I'm now generalizing and extrapolating out is that the HR side of government has to change in other words the organizational behavior of how people look at things but also the enterprise, we've heard that a lot in our Cloud coverage. Go back eight years when the Clouderati hit, oh DevOps is great but I can't get it through 'cause I've got to change my behavior of my existing staff. So the culture of the practitioners have to change. >> Bill: Yes, absolutely. >> 'Cause the new generation's coming. >> Oh absolutely, absolutely. I was speaking to a customer this morning who I won't mention and literally they told me that their whole staff has changed and they had to change their whole staff on this particular project around security because they found that the legacy thinking was there and they really wanted to move forward at a pace and they wanted to make changes that their legacy staff just wouldn't let 'em move forward with so basically, all of their staff had been changed and it was a memorable quote only because this company is a large organization and it's struggling with adopting new technologies and it was held back. It was not held back because of product or strategies, >> John: Or willingness. >> Or willingness. It was held back by people who were just concerned and wanted to stick to the old way of doing things and that has to change as well so I think you know, there's times will change and I think this is one of those times where security is one of those times where you got to push through change otherwise I mean I'm also a believer that security is a competitive advantage for an organization as well and if you stick with the past, you're not going to be able to compete in the future. >> Well, and bad user behavior will always trump good security. It was interesting to hear Jim Routh today talk about unconventional message and I was encouraged, he said, you know spoofing, we got DMARC, look alike domains, we got sink holes, display name deception, we've got, you know we can filter the incoming and then he talked about compromised accounts and he said user education and I went oh, but there's hope as an optimist so you've got technologies on the horizon to deal with that even right so you. >> I'm also concerned that the pace at which the consumer world is moving forward on security, online banking and even with Google and so forth that the new generation will come into the workforce and be just amazed how legacy the environments are right, 'cause the new generation is used to using you know, Google Cloud, Google Mail, Google everything and everything works, it's all integrated already and if they're coming to the workplace and that workplace is still using legacy technologies right, they're not going to be able to hire those people. >> Well I'll give you an example. When I went to college, I was the first generation, computer science major that didn't have to use punch cards and I was blown away like actually people did that like what, who the hell would ever do that? And so you know, I was the younger guy coming up, it was like, I was totally looking down. >> Dave: That's ridiculous. >> I would thank God I don't do that but they loved it 'cause they did it. >> I mean I've got the similar story, I was the first generation in the UK. We were the first Mac-Lab in the UK, our university had the first large Mac, Apple Macintosh Lab so when I got into the workplace and somebody put a PC in front of me, I was like hold on, where's the mouse, where's the windows, I couldn't handle it so I realized that right so I think we're at that kind of junction at the moment as well. >> We got two minutes left and I want to ask you kind of a question around the comment you just made a minute ago around security as a competitive advantage. This is really interesting, I mean you really can't say security is a profit center because you don't sell security products if you're deploying state of the art security practices but certainly it shouldn't be a cost center so we've seen on our CUBE interviews over the past year specifically, the trend amongst CCOs and practitioners is when pressed, they say kind of, I'm again generalizing the trend, we're unbundling the security department from IT and making it almost a profit center reporting to the board and or the highest levels, not like a profit center but in a way, that's the word they use because if we don't do that, our ability to make a profit is there so you've brought up competitive strategy, you have to have a security and it's not going to be underneath an IT umbrella. I'm not saying everyone's doing it but the trend was to highlight that they have to break out security as a direct report as if it was a profit center because their job is so critical, they don't want to be caught in an IT blanket. Do you see that trend and your comment and reaction to that statement? >> I see that trend but I see it from a perspective of transparency so I think that taking security out of the large umbrella of IT and given its own kind of foundation, own reporting structure is all about transparency and I think that modern organizations understand now the impact a breach can have to a company. >> John: Yeah, puts you out of business. >> Right, it puts you out of business right. You lose customers and so forth so I think having a security leader at the table to be able to describe what they're doing is giving the transparency for decision makers within the organization and you know, one of my other comments about it being a competitive advantage, I personally think let's take the banking arena, it's so easy to move from bank A to bank B and I personally think that people will stay with a certain bank if that bank has more security features and so forth. I mean you know, savings, interest rates going to be one thing and mortgage rates are going to be one thing but if all things are even. >> It's a product feature. >> It's a product feature and I think that again, the newer generation is looking for features like that, because they're so much more aware of the threat landscape. So I think that's one of the reasons why I think it's a competitive advantage but I agree with you, having more visibility for an organization is important. >> You can't make a profit unless the lights are on, the systems are running and if you have a security hack and you're not running, you can't make a profit so it's technically a profit center. Bill I believe you 100% on the competitive strategy. It certainly is going to be table stakes, it's part of the product and part of the organization's brand, everything's at stake. Big crisis, crisis of our generation, cyber security, cyber warfare for the government, for businesses as a buzz thing and business, this is the Centrify presented event underwritten by Centrify here in New York City. CyberConnect 2017, the CUBE's exclusive coverage. More after this short break. (electronic jingle)