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                  The Business Case for Data Security
  Business Case
                    The growing costs of security breaches and manual compliance efforts have given
                    rise to new data security solutions specifically designed to prevent data breaches and
                    deliver automated compliance.

                    This paper examines the drivers for adopting a strategic approach to data security,
                    compares and contrasts current approaches, and presents the Return on Security
                    Investment (ROSI) of viable data security solutions.




                    “                                                                         ”
                             With the growing threats to applications and data, from
                             large-scale, automated Web attacks to insider malfeasance,
                             proactive data security has become mandatory.
The Business Case for Data Security




                           Executive Summary
DatabaseFileWeb
                               Large-scale application attacks, targeted insider threats, and a swelling raft of regulations are compelling
                               organizations to adopt a new defense: data security. In this paper, we will address three key business questions:
                           1) What are the risks and regulatory drivers for data security?
                               We take a close look at today’s security and compliance landscape, current data security challenges, and the
                               auditing and reporting requirements in leading data privacy and data governance regulations. We conclude
                               that data security should be an executive focus, when businesses consider the devastating impact of data
                               breaches and the rising costs of regulatory compliance.
                           2) What are the alternative approaches to achieving data security?
                               We contrast Imperva’s holistic data security approach with other approaches, including “do it yourself” projects,
                               use of data security features within event management and application delivery products, and loosely
                               integrated data governance solutions. It is our contention that only a comprehensive and intelligent platform
                               can deliver the right level of security and control that is essential for effective data security.
                           3) What are the financial benefits of deploying a holistic data security solution like Imperva
                              SecureSphere?
                               Based on the analysis offered above, we determined that Imperva SecureSphere offers a cost reduction and
                               cost avoidance benefit of 274% compared to alternative approaches. Calculating the total costs over a five
                               year period, a typical large enterprise would spend $5,487,500 in data breach expenses, manual monitoring,
                               auditing, and reporting costs versus $1,467,850 with Imperva SecureSphere appliances, licenses, maintenance,
                               and operations costs. The cost savings are compelling, demonstrating why data security has moved to the
                               forefront of most organizations security strategy.




         Imperva White Paper
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The Business Case for Data Security




                            I. Data Security and Compliance: An Evolving Landscape
DatabaseFileWeb
                                Security and compliance are two of the most critical concerns for any organization. Between 2005 and 2010,
                                data breaches have cost organizations billions of dollars and exposed over 500 million sensitive records,1
                                leaving a litany of lawsuits, sanctions, fines, and lost revenue, in their wake. In addition, organizations are subject
                                to increasingly stringent regulatory compliance requirements. A growing number of regulations mandate
                                monitoring and auditing of user activity, application safeguards, and internal controls. To develop a cohesive
                                strategy for security and compliance, organizations must analyze their security risks and compliance needs.
                            Financial Impact of Security Incidents
                                Data breaches are financially devastating, averaging $6.75 million per incident and $204 per compromised
                                record.2 Data breaches not only impact organizations, but also affect the tens of millions of individuals who fall
                                victim to identity theft and fraud. Due to external attack or insider abuse, data breaches are perhaps the single
                                most damaging security event that an organization can endure. In addition to breaches, organizations must
                                fortify their valuable resources against denial of service, data loss, and data manipulation.
                                Hacking and External Threats
                                Hacking and external threats are the leading cause of data breaches, accounting for approximately 94%3
                                of all compromised records in 2009, according to an in-depth investigation of data breaches. And 92%3 of
                                compromised records from hacking-related attacks were attributed to Web application attacks. Based on this
                                forensic evidence, if organizations had fortified their Web applications against attack, they could have reduced
                                the total number of known compromised records from over 140 million to roughly 20 million.




                                                                                                Web Application (92%)              Network File Shares (1%)


                                                                                                Remote Access and Control (2%)     Physical Access (1%)


                                                                                                Backdoor or Control Channel (5%)   Wireless (1%)


                                                                                                                                   Unknown (1%)



                                Figure 1 Proportion of Breached Records Due to Hacking by Attack Method3



                                The rise in Web-related data breaches is due in part to more sophisticated attack techniques. Hackers have
                                become more organized, pooling resources, and delegating responsibilities based on skill set. They are also
                                creating automated capabilities to improve efficiency and scale building armies of bots – remotely controlled
                                computers – to unleash large-scale, automated attacks.4 These new methods have made Web application
                                attacks very effective and, unfortunately, very destructive, as is borne out in data breach investigations.




                        1
                            Privacy Rights Clearinghouse, www.privacyrights.org/500-million-records-breached
                        2
                            Ponemon Institute, “Cost of a Data Breach,” January 2010
                        3
                            Verizon Business, “2010 Data Breach Investigations Report
                        4
                            Imperva, “Industrialization of Hacking,” 2010

         Imperva White Paper
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The Business Case for Data Security




                                The Enemy Inside
DatabaseFileWeb
                                Risks associated with insider threats, ranging from sabotage and fraud to sensitive data theft, have also
                                increased, along with the opportunities for insiders to profit from their illicit activity. Many organizations have
                                overlooked insiders who may access sensitive networks, applications, and data on a daily basis. Privileged users
                                must have access to sensitive data in order to perform their job. Therefore, they can abuse these privileges
                                and gain control of such data more easily and more covertly than external users. It is not surprising, then, that
                                insiders accounted for 48% of all breaches and 3% of all compromised records in 2009.5
                            Rising Cost of Achieving and Maintaining Regulatory Compliance
                                Organizations of all sizes must comply with a raft of regulations designed to bolster security, reduce fraud, and
                                ensure privacy. These regulations were enacted for a variety of reasons: as the result of an extraordinary event,
                                as with the implosions of Enron and Worldcom that led to Sarbanes Oxley (SOX), or as the evolution of disparate
                                security standards that morphed into the industry-wide and influential Payment Card Industry Data Security
                                Standard (PCI DSS).
                                Addressing Multiple Compliance Mandates
                                In addition to SOX and PCI, organizations must adhere to a range of other industry and government
                                regulations. Healthcare companies must comply with HIPAA, the HITECH Act, and MAR. Federal institutions
                                must fulfill FISMA, ITAR, EAR, and DISA STIGs requirements. Energy companies must comply with NERC and
                                FERC. Organizations in Europe are governed by Basel II and EU data breach notification laws. The list goes on,
                                as does the amount of auditing and security requirements that organizations must address. On top of these
                                regulations, new regulations are introduced every year, and existing laws change.
                                While each regulation defines unique auditing and security requirements, it is possible to distinguish consistent
                                themes across most compliance mandates. Achieving compliance becomes much easier when organizations
                                develop well-defined and repeatable processes that track all user activities, maintain separation of duties, and
                                establish user accountability.
                                Demonstrating Compliance
                                All regulations require organizations to demonstrate compliance to external auditors and governmental
                                agencies. Organizations must prove that compliance processes are in place. They also have to collect pertinent
                                audit and security data and present it in a clear, understandable format. With these operationally taxing manual
                                processes, it is not surprising that U.S. businesses spend over $2.5 billion on SOX compliance each year.6




                        5
                            Verizon Business, “2010 Data Breach Investigations Report
                        6
                            AMR Research, “With GRC Spending at an All-Time High, What Happens to SOX?”



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The Business Case for Data Security




                           II. Data Security: Requirements and Alternative Approaches
DatabaseFileWeb
                               Organizations’ data security strategy should focus on the core business drivers of preventing external
                               attacks, mitigating insider abuse, and automating compliance processes. Some of the resulting operational
                               requirements include:
                                 » Accurate Protection for Business-Critical Applications and Data
                                   A data security solution should provide comprehensive protection of all critical data assets including
                                   Web applications, databases, and files from external attack and insider threats. Because of the complex
                                   nature of data-layer threats, a security solution should be able to detect known attack methods, malicious
                                   users, deviations from expected user behavior, and correlate multiple event attributes together for
                                   pinpoint accuracy.
                                 » Full Auditing with Separation of Duties
                                   Since audit trails of user activity have become an essential aspect of compliance, a complete data security
                                   solution must be able to audit all access and changes to databases and files. It should ensure audit
                                   data integrity and user accountability and identify material variances in user activity. Demonstrating
                                   compliance must be achieved through automated reports and analytical tools – the basis for forensic
                                   investigations.
                                 » Low Impact Deployment
                                   Any solution designed to improve security should not impact application uptime or impose management
                                   burden. The solution should meet availability and performance requirements while not introducing
                                   operational risks. In addition, it should support centralized management, monitoring, auditing, and
                                   reporting to streamline administration for large, distributed deployments.


                           Data Security: The Future of Security and Compliance
                               To address the full scope of today’s security and compliance requirements, Imperva has created a new
                               technology category, Data Security. With Data Security, organizations can mitigate data breach risks and directly
                               satisfy auditing and compliance mandates by implementing one, integrated, best-of-breed security solution.
                               Data Security protects business-sensitive data where it lives, in database and file servers and how it is accessed,
                               through applications. With data-layer protection, data security solutions can block the attacks that lead to costly
                               data compromises more accurately than any existing technology. It can also monitor users to prevent insider
                               abuse, and audit all activity with unmatched visibility for compliance.
                               The Imperva SecureSphere Data Security Suite
                               Imperva SecureSphere Data Security Suite encompasses the market-leading SecureSphere Web Application
                               Firewall, and the award-winning SecureSphere Database Security and File Security Solutions. Either deployed
                               alone, or together as one integrated, centrally managed solution, SecureSphere Data Security Solutions offer a
                               powerful defense against hackers and malicious insiders, streamline and automate regulatory compliance, and
                               prioritize and mitigate data risks.




         Imperva White Paper
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The Business Case for Data Security
DatabaseFileWeb




                               SecureSphere Data Security Solutions offer organizations several unique capabilities:
                                 » Complete, End-to-End Data Protection - SecureSphere protects data where it is stored – in databases
                                   and files – and how it is accessed – through applications – and addresses the full Data Security and
                                   compliance life cycle.
                                 » Automated Security – Imperva’s patented Dynamic Profiling automatically learns application and
                                   database usage without manual intervention. The unique ThreatRadar service further streamlines security
                                   by automatically stopping attacks from known, malicious sources.
                                 » Full Visibility with Separation of Duties – SecureSphere monitors and audits all database and file
                                   activity, including privileged user access, without relying on native auditing capabilities. Interactive audit
                                   analytics enable users to analyze, correlate and view activity from any angle.
                                 » Streamlined User Rights Management – SecureSphere simplifies the process of reviewing and
                                   managing user rights across distributed file servers and databases. SecureSphere aggregates access rights,
                                   identifies dormant accounts and highlights excessive privileges.
                                 » Zero-Impact Deployment – SecureSphere offers multiple, transparent deployment options for easy
                                   integration into any environment with no impact on existing applications, databases or files.




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The Business Case for Data Security




                           Contrasting Imperva’s Data Security with Alternative Approaches
DatabaseFileWeb
                               To meet security and compliance requirements, organizations may rely on a combination of native logging
                               tools, manual reporting processes, and manual application vulnerability fix and test procedures. The following
                               section investigates various approaches to prevent data breaches and address compliance mandates.
                               Security Information and Event Management
                               To manage the massive amounts of data collected, some organizations have turned to Security Information and
                               Event Management (SIEM) solutions. SIEMs aggregate log data across multiple servers and devices, correlate
                               events to identify anomalies, and streamline compliance reporting. However, SIEMs that rely on native logging
                               for audit data present the following challenges:
                                 » Complex configuration of native database and file server logging utilities by DBAs and IT Administrators
                                 » No separation of duties as logging policies and audit trails can be manipulated by the users that should
                                   be audited
                                 » Significant degradation database and file server performance
                               In addition, SIEMs, as cross-product security event aggregators, do not provide in-depth analysis or purpose
                               built reports for database and file activity, and cannot prevent unauthorized access or monitor activity in
                               real-time.
                               Data Governance and Information Management
                               Information Management vendors offer a broad spectrum of solutions for data management and governance.
                               This breadth enables organizations to use one supplier to address multiple data security and data management
                               requirements. However, such an approach often increases the cost, complexity, and duration of data security
                               and compliance projects. Broad-scale, non-specialized information management vendors may turn relatively
                               simple auditing projects into multi-year, company-wide consulting engagements. In addition, while broadening
                               project scope, information management vendors often fall short in terms of addressing all necessary auditing
                               and compliance requirements. For example, an information management vendor may be able to secure
                               database data, but not files nor applications. Organizations should assess their current and future security
                               requirements and determine if such a solution is aligned with project goals and will address monitoring and
                               security objectives within a desired timeframe and budget.
                               Integrated Application Delivery and Security
                               One approach to achieve Web application attack protection is to combine a Web Application Firewall with
                               a load balancer for combined application delivery and security. Such an approach can consolidate multiple
                               functions onto a single hardware platform. However, adding Web application security to existing application
                               delivery controllers (ADCs) can have a number of unexpected consequences, including drastically degrading
                               ADC performance and impacting the stability of mission-critical networking equipment. Most importantly,
                               ADCs only tackle one aspect of data security: application protection. They cannot monitor or protect
                               application data stored in databases, nor can they secure unstructured data in files.
                               Manual Vulnerability Management
                               Most organizations invest considerable effort to ensure that Web applications, databases, and file servers do not
                               contain vulnerabilities. Web developers must allocate time and resources to ensure that applications are written
                               according to secure coding best practices. IT administrators and DBAs must deploy vendor-supplied patches
                               into key applications and databases. Security personnel must test applications and servers for weaknesses and
                               then fix any discovered vulnerabilities.




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The Business Case for Data Security




                               However, while an essential aspect of any data security strategy, manual vulnerability patch processes:
DatabaseFileWeb
                                 » Burden developers and administrators with disruptive fix and test cycles (“fire drills”)
                                 » Can expose organizations to attack for weeks or months while vulnerabilities are being fixed
                               Based on extensive research, fixing a single Web application vulnerability takes on average between two to
                               four months.7 With 83% of Websites having had serious vulnerabilities, relying on manual fix and test processes
                               is not sufficient. The length of time to apply database security patches is even longer, often exceeding three
                               months after a patch is released.8 Unfortunately, attackers will not wait for weeks or months to unleash online
                               attacks. Organizations should evaluate solutions that can virtually patch vulnerabilities to eliminate this window
                               of exposure and reduce the costs associated with emergency fix and test cycles.


                           Approaches to Data Security

                                                                   SecureSphere     Native     Data Governance     Application       Manual
                                Function     Capability            Data Security   Logging     and Information     Delivery and    Vulnerability
                                                                       Suite       and SIEM     Management           Security      Management
                                Security     Purpose-Built
                                             Platform                                               

                                             End-to-End
                                             coverage of all                                                                          
                                             data assets
                                             Proactive Policy
                                             Enforcement                                                              

                                             Instant
                                             Vulnerability                                                            
                                             Mitigation
                                Compliance   Compliance
                                             Automation                                                              

                                             Separation of
                                             Duties                                                                   

                                             User Accountability                                                                      
                                Deployment   Rapid
                                             Time-to-Value                                                            

                                             No impact on
                                             systems and                                             
                                             business processes




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The Business Case for Data Security




                             III. Return on Security Investment (ROSI) with Imperva SecureSphere9
DatabaseFileWeb
                                  The SecureSphere Data Security Suite is designed from the ground up to meet all aspects of security and
                                  compliance for business-critical applications and data. SecureSphere provides conclusive cost-savings by
                                  offloading operationally-expensive logging from database and file servers and by driving down manual
                                  compliance reporting costs. More importantly, SecureSphere offers return on security investment (ROSI) by
                                  drastically reducing the risk and impact of a devastating data breach.
                                  In order to quantify the cost savings provided by Imperva, we compared the cost of implementing
                                  SecureSphere versus the cost of “doing nothing” and the subsequent expenses created by a data breach or
                                  manual auditing and reporting processes.
                                  The following table shows our assumptions. The number of protected records is an estimate for a medium size
                                  company, but this number will vary widely and should be adjusted according to the individual business profile.
                                  The average number of records lost in a data breach is extrapolated from results of the Ponemon Institute “2009
                                  Cost of a Data Breach” report. The probability of a data breach is estimated at 5%.


                                   Basic Assumptions                                                                   Value10
                                   Number of Protected Records                                                              100,000
                                   Average Number of Records Lost in a Data Breach                                           33,088
                                   Probability of a Data Breach                                                                  5%
                                   Annual Cost of a Full Time DBA or IT Security Administrator (in USD)                   $110,000



                             Reducing the Financial Impact of a Data Breach
                                  Data breaches are costly, averaging $6.75 million per incident.11 The expenses mount as organizations are forced
                                  to investigate breaches to assess affected records, notify customers, and pay legal fees and fines. However, the
                                  single highest cost is lost business, accounting for nearly half of the total financial impact of a breach.
                                  Statistics show 98% of compromised records originated from servers,12 predominantly Web application,
                                  database, and file servers. A dedicated data security solution could lower the cost of a data breach by accurately
                                  identifying the scope of the breach or preventing the breach from ever occurring.
                                  SecureSphere Database Activity Monitoring and File Activity Monitoring can audit every access to sensitive
                                  data and quickly identify the individual records that were compromised. Without this independent and
                                  tamper-proof audit trail, organizations often have to assume the worse and notify all potential victims – even
                                  if only a fraction of that data was accessed by a perpetrator. An Activity Monitoring solution can drastically
                                  reduce the extent of a data breach, by an estimated two thirds. A proactive defense such as a Web Application
                                  Firewall, Database Firewall and File Firewall can block attacks, avoiding the breach altogether for almost all
                                  application-related breaches. The following table shows the costs of a data breach with and without a data
                                  security solution.




                        9
                             In our opinion, the only viable alternative approach that fully addresses data security requirements is manual compliance and vulnerability mitigation.
                             The ROSI calculation therefore compares Imperva to a manual approach.
                        10
                             These numbers vary between organizations. They represent a typical number for a medium-to-large enterprise.
                        11
                             Ponemon Institute, “Cost of a Data Breach,” January 2010
                        12
                             Verizon Business, “2010 Data Breach Investigations Report”


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The Business Case for Data Security




                                 Impact of a Data Breach Due to Web, Database and File Security Threats
DatabaseFileWeb
                                                                                                                         SecureSphere                       SecureSphere
                                                                                              Without
                                                                                                                       Database and File                    Web, Database,
                                                                                            SecureSphere
                                                                                                                      Activity Monitoring13                  File Firewall14
                                   Number of Suspected Compromised Records                                33,088                               33,088                             0
                                   Number of Confirmed Compromised Records                        Not available                                11,029                             0
                                   Consulting Services and Investigation Costs                       $1,350,000                              $225,000                             0
                                   Notification Costs                                                  $742,000                              $247,000                             0
                                   Legal Costs                                                       $1,147,000                              $382,000                             0
                                   Identity Protection and Other Services                              $202,000                               $67,000                             0
                                   Lost Business and Related Costs                                   $3,307,000                            $1,102,000                             0
                                   Cost of a Data Breach                                            $6,750,000                             $2,023,000                             0



                             Vulnerability Remediation Efforts
                                 In addition to reducing the likelihood of an expensive data breach, a dedicated data security solution can also
                                 cut vulnerability remediation costs. First, Imperva SecureSphere can virtually patch application and database
                                 vulnerabilities, thereby eliminating disruptive emergency fix and test cycles. Vulnerabilities can be fixed as part
                                 of regular development schedules, which is significantly less expensive than fixing vulnerabilities in production.
                                 Second, SecureSphere typically allows organizations to delay minor patch updates until a cumulative patch is
                                 available or a new software version is released. This provides organizations considerable cost savings compared
                                 to the expense of developing, testing, staging, and implementing software patches.
                                 The following table compares the labor costs of remediating Web application and server vulnerabilities for an
                                 organization with 10 online applications, 15 Web servers, and 5 database servers.


                                 Annual Vulnerability Remediation Labor Costs
                                                                                                     Without SecureSphere                         With SecureSphere
                                   Emergency Fix and Test of Custom Vulnerabilities                                            $120,000                                          $0
                                   Custom Vulnerability Fixes in Scheduled Releases                                                   $0                                   $19,200
                                   Operating System Patches                                                                     $25,000                                    $12,500
                                   Web Server Patches                                                                           $25,000                                    $12,500
                                   Database Server Patches                                                                      $12,500                                     $6,250
                                   Total                                                                                      $182,500                                    $50,450




                        13
                             SecureSphere Database and File Activity Monitoring offer auditing but no access control;
                        14
                             When SecureSphere is implemented in “Firewall” mode, the risk of a Web, Database or File data breach is immeasurable. While auditing can reduce the
                             impact of a breach by identifying actual compromised records, when SecureSphere is deployed inline, it can proactively prevent attacks from occurring.



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The Business Case for Data Security




                           Labor Costs of Auditing and Reporting
DatabaseFileWeb
                               While both databases and file servers offer native logging capabilities, managing and maintaining audit log files
                               can be an expensive proposition. Database or IT administrators must determine what activity to audit, create
                               log rules, and then sort through reams of log messages to find materially relevant information for reports. Raw
                               data must be arranged into a presentable format for auditors. Organizations must also develop in-house tools
                               to prevent unauthorized access or manipulation of log data for separation of duties.
                               Native tools only address one aspect of the data security and compliance lifecycle. They cannot locate sensitive
                               data on the network, test databases for vulnerabilities, or patch these vulnerabilities. Organizations that use
                               native audit tools must also account for the costs of manually discovering and classifying sensitive data – two
                               requirements either implied or explicitly spelled out in many compliance regulations. Furthermore, many
                               regulations require that organizations limit user access rights to business need-to-know and remove dormant
                               accounts. For large enterprises, managing database and file access rights for thousands of users can be an
                               overwhelming task, leading many administrators to grant excessive privileges.
                               A dedicated data security solution such as SecureSphere can eliminate manual administrative tasks, automate
                               auditing and compliance reporting, and dramatically improve the overall security posture of the organization.
                               The following table compares the number of full time employees required to meet database and file security
                               compliance requirements, with and without a data security solution.


                                                                      Without SecureSphere                        With SecureSphere
                                                                Labor costs for        Labor costs for    Labor costs for        Labor costs for
                                Task                             initial setup      ongoing maintenance    initial setup      ongoing maintenance
                                Discovery                                 $55,000               $55,000             $11,000               $11,000
                                Classification and Assessment             $55,000               $55,000             $11,000               $11,000
                                Managing User Rights to                  $110,000              $110,000             $55,000               $11,000
                                Databases and Files
                                Enablement of Auditing                    $27,500               $27,500             $11,000                $1,100
                                Writing and Maintaining                  $165,000               $55,000             $11,000               $11,000
                                Custom Scripts
                                Creating Custom Reports                  $110,000               $55,000             $27,500               $11,000
                                Implementation of Workflow               $110,000               $55,000             $11,000               $11,000
                                and Business Processes
                                Total                                   $687,500               $412,500           $137,500                $67,100



                           Software and Hardware Investment for SecureSphere Versus Native Auditing
                               In addition to comparing the labor expenses of security and compliance, businesses must also analyze the
                               hardware and software investment. With SecureSphere, the costs are relatively straight forward: the price of the
                               SecureSphere Data Security Suite, which includes the price of the Web Application Firewall, Database Firewall
                               and File Firewall, plus the MX Management Server.
                               If organizations opt for native logging, then they will need to purchase additional hardware and software
                               licenses to maintain previous performance levels. This is because full logging of all activity can degrade server
                               performance by approximately 30 - 50%. The table below compares the infrastructure costs incurred by using
                               native logging tools versus deploying the SecureSphere Data Security Suite.




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The Business Case for Data Security
DatabaseFileWeb
                                                                                       Without SecureSphere                   With SecureSphere
                                Additional Database and File Server Hardware                               $50,000.00                             $0.00
                                Additional Database and File Server Software                              $200,000.00                             $0.00
                                SecureSphere Data Security Suite and                                            $0.00                        $73,600.00
                                MX Management Server
                                Annual Support and Maintenance Fees                                        $40,000.00                        $14,720.00
                                Hardware and Software Administration Costs                                 $20,000.00                        $20,000.00
                                Total                                                                 $310,000.00                           $108,320.00



                           Total Return on Security Investment
                               Because security and compliance must be addressed holistically, the following table compares the total
                               hardware, software, and management costs of the SecureSphere Data Security Suite to native logging and
                               manual compliance processes. In addition, a Return on Security Investment (ROSI) calculation must factor in
                               the cost and risk of a data security breach. The following table combines the data from the above tables to
                               provide the return on investment of the SecureSphere Data Security Suite versus no dedicated Web application,
                               database, or file security.


                                         Without SecureSphere                       Year 1       Year 2          Year 3         Year 4       Year 5
                                Vulnerability Remediation Costs                       $182,500    $182,500         $182,500      $182,500      $182,500
                                Auditing and Compliance Costs                         $687,500    $412,500         $412,500      $412,500      $412,500
                                Hardware and Software Costs                           $310,000     $60,000          $60,000       $60,000       $60,000
                                Data Breach Cost = Probability x Impact               $337,500    $337,500         $337,500      $337,500      $337,500
                                Total Cost without SecureSphere                     $1,517,500   $992,500         $992,500       $992,500     $992,500


                                SecureSphere Costs and Risk Posture                 Year 1       Year 2          Year 3         Year 4       Year 5
                                Vulnerability Remediation Costs                        $50,450     $50,450          $50,450       $50,450       $50,450
                                Auditing and Compliance Costs                         $137,500     $67,100          $67,100       $67,100       $67,100
                                Hardware and Software Costs                           $108,320     $34,720          $34,720       $34,720       $34,720
                                Data Breach Cost = Probability x Impact               $112,500    $112,500         $112,500      $112,500      $112,500
                                Total Costs with SecureSphere                        $408,770    $264,770         $264,770       $264,770     $264,770

                                Cost Savings with SecureSphere         $4,019,650
                                ROSI with SecureSphere                 274%

                                Investment Based Discount Rate         10%
                                NPV (Net Present Value)                $3,654,227



                               The total infrastructure, labor, and data breach costs of the SecureSphere Data Security Suite over five years
                               totaled $1.47 million, compared to $5.49 million for native logging, manual compliance processes and
                               no proactive Web, database or file security protection. Note that the projected data breach cost savings
                               for SecureSphere were conservative, assuming only the cost savings associated with monitoring traffic
                               and pinpointing individual breached records. With 98% of breached records originating from servers, the
                               SecureSphere Data Security Suite, with an integrated Web Application Firewall, should be able to prevent most
                               data breaches from ever occurring.


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White Paper

                           Summary
                               With the growing threats to applications and data, from large-scale, automated Web attacks to insider
                               malfeasance, proactive data security has become mandatory. Besides protecting critical assets, a host of
                               regulations have spurred the need to audit activity and streamline compliance processes. Unfortunately
                               existing security solutions cannot effectively stop data security attacks or address security and compliance
                               concerns holistically. A dedicated Data Security solution like Imperva SecureSphere not only satisfies today’s
                               security and compliance requirements, it also offers a return on investment of 274% compared to not using
                               a data security solution at all.
                               When compared to alternative solutions, Imperva SecureSphere is the only sensible and effective choice to
                               secure sensitive applications and data. With SecureSphere, organizations can:
                                   » Protect applications, databases, and files from internal and external threats
                                   » Lower the cost of auditing while implementing separation of duties
                                   » Automate compliance reporting
                                   » Virtually patch application and database vulnerabilities
                               With its indisputable value, it is not surprising that Imperva has become the market leader for Web, database,
                               and file monitoring and protection. Trusted by thousands of leading organizations around the world, Imperva
                               SecureSphere is the practical, cost-effective solution for Data Security.


                           About Imperva
                               Imperva is the global leader in data security. Our customers include leading enterprises, government
                               organizations, and managed service providers who rely on Imperva to prevent sensitive data theft by hackers
                               and insiders. The award-winning Imperva SecureSphere is the only solution that delivers full activity monitoring
                               for databases, Web applications and file systems.
                               To learn more about Imperva’s solution visit http://www.imperva.com.




  Imperva
  Headquarters
  3400 Bridge Parkway, Suite 200
  Redwood Shores, CA 94065
  Tel: +1-650-345-9000
  Fax: +1-650-345-9004

  Toll Free (U.S. only): +1-866-926-4678
  www.imperva.com

  © Copyright 2010, Imperva
  All rights reserved. Imperva, SecureSphere, and "Protecting the Data That Drives Business" are registered trademarks of Imperva.
  All other brand or product names are trademarks or registered trademarks of their respective holders. #WP-BC-DATA-SECURITY-1010rev1

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The Business Case for Data Security

  • 1. White Paper The Business Case for Data Security Business Case The growing costs of security breaches and manual compliance efforts have given rise to new data security solutions specifically designed to prevent data breaches and deliver automated compliance. This paper examines the drivers for adopting a strategic approach to data security, compares and contrasts current approaches, and presents the Return on Security Investment (ROSI) of viable data security solutions. “ ” With the growing threats to applications and data, from large-scale, automated Web attacks to insider malfeasance, proactive data security has become mandatory.
  • 2. The Business Case for Data Security Executive Summary DatabaseFileWeb Large-scale application attacks, targeted insider threats, and a swelling raft of regulations are compelling organizations to adopt a new defense: data security. In this paper, we will address three key business questions: 1) What are the risks and regulatory drivers for data security? We take a close look at today’s security and compliance landscape, current data security challenges, and the auditing and reporting requirements in leading data privacy and data governance regulations. We conclude that data security should be an executive focus, when businesses consider the devastating impact of data breaches and the rising costs of regulatory compliance. 2) What are the alternative approaches to achieving data security? We contrast Imperva’s holistic data security approach with other approaches, including “do it yourself” projects, use of data security features within event management and application delivery products, and loosely integrated data governance solutions. It is our contention that only a comprehensive and intelligent platform can deliver the right level of security and control that is essential for effective data security. 3) What are the financial benefits of deploying a holistic data security solution like Imperva SecureSphere? Based on the analysis offered above, we determined that Imperva SecureSphere offers a cost reduction and cost avoidance benefit of 274% compared to alternative approaches. Calculating the total costs over a five year period, a typical large enterprise would spend $5,487,500 in data breach expenses, manual monitoring, auditing, and reporting costs versus $1,467,850 with Imperva SecureSphere appliances, licenses, maintenance, and operations costs. The cost savings are compelling, demonstrating why data security has moved to the forefront of most organizations security strategy. Imperva White Paper < 2 >
  • 3. The Business Case for Data Security I. Data Security and Compliance: An Evolving Landscape DatabaseFileWeb Security and compliance are two of the most critical concerns for any organization. Between 2005 and 2010, data breaches have cost organizations billions of dollars and exposed over 500 million sensitive records,1 leaving a litany of lawsuits, sanctions, fines, and lost revenue, in their wake. In addition, organizations are subject to increasingly stringent regulatory compliance requirements. A growing number of regulations mandate monitoring and auditing of user activity, application safeguards, and internal controls. To develop a cohesive strategy for security and compliance, organizations must analyze their security risks and compliance needs. Financial Impact of Security Incidents Data breaches are financially devastating, averaging $6.75 million per incident and $204 per compromised record.2 Data breaches not only impact organizations, but also affect the tens of millions of individuals who fall victim to identity theft and fraud. Due to external attack or insider abuse, data breaches are perhaps the single most damaging security event that an organization can endure. In addition to breaches, organizations must fortify their valuable resources against denial of service, data loss, and data manipulation. Hacking and External Threats Hacking and external threats are the leading cause of data breaches, accounting for approximately 94%3 of all compromised records in 2009, according to an in-depth investigation of data breaches. And 92%3 of compromised records from hacking-related attacks were attributed to Web application attacks. Based on this forensic evidence, if organizations had fortified their Web applications against attack, they could have reduced the total number of known compromised records from over 140 million to roughly 20 million. Web Application (92%) Network File Shares (1%) Remote Access and Control (2%) Physical Access (1%) Backdoor or Control Channel (5%) Wireless (1%) Unknown (1%) Figure 1 Proportion of Breached Records Due to Hacking by Attack Method3 The rise in Web-related data breaches is due in part to more sophisticated attack techniques. Hackers have become more organized, pooling resources, and delegating responsibilities based on skill set. They are also creating automated capabilities to improve efficiency and scale building armies of bots – remotely controlled computers – to unleash large-scale, automated attacks.4 These new methods have made Web application attacks very effective and, unfortunately, very destructive, as is borne out in data breach investigations. 1 Privacy Rights Clearinghouse, www.privacyrights.org/500-million-records-breached 2 Ponemon Institute, “Cost of a Data Breach,” January 2010 3 Verizon Business, “2010 Data Breach Investigations Report 4 Imperva, “Industrialization of Hacking,” 2010 Imperva White Paper < 3 >
  • 4. The Business Case for Data Security The Enemy Inside DatabaseFileWeb Risks associated with insider threats, ranging from sabotage and fraud to sensitive data theft, have also increased, along with the opportunities for insiders to profit from their illicit activity. Many organizations have overlooked insiders who may access sensitive networks, applications, and data on a daily basis. Privileged users must have access to sensitive data in order to perform their job. Therefore, they can abuse these privileges and gain control of such data more easily and more covertly than external users. It is not surprising, then, that insiders accounted for 48% of all breaches and 3% of all compromised records in 2009.5 Rising Cost of Achieving and Maintaining Regulatory Compliance Organizations of all sizes must comply with a raft of regulations designed to bolster security, reduce fraud, and ensure privacy. These regulations were enacted for a variety of reasons: as the result of an extraordinary event, as with the implosions of Enron and Worldcom that led to Sarbanes Oxley (SOX), or as the evolution of disparate security standards that morphed into the industry-wide and influential Payment Card Industry Data Security Standard (PCI DSS). Addressing Multiple Compliance Mandates In addition to SOX and PCI, organizations must adhere to a range of other industry and government regulations. Healthcare companies must comply with HIPAA, the HITECH Act, and MAR. Federal institutions must fulfill FISMA, ITAR, EAR, and DISA STIGs requirements. Energy companies must comply with NERC and FERC. Organizations in Europe are governed by Basel II and EU data breach notification laws. The list goes on, as does the amount of auditing and security requirements that organizations must address. On top of these regulations, new regulations are introduced every year, and existing laws change. While each regulation defines unique auditing and security requirements, it is possible to distinguish consistent themes across most compliance mandates. Achieving compliance becomes much easier when organizations develop well-defined and repeatable processes that track all user activities, maintain separation of duties, and establish user accountability. Demonstrating Compliance All regulations require organizations to demonstrate compliance to external auditors and governmental agencies. Organizations must prove that compliance processes are in place. They also have to collect pertinent audit and security data and present it in a clear, understandable format. With these operationally taxing manual processes, it is not surprising that U.S. businesses spend over $2.5 billion on SOX compliance each year.6 5 Verizon Business, “2010 Data Breach Investigations Report 6 AMR Research, “With GRC Spending at an All-Time High, What Happens to SOX?” Imperva White Paper < 4 >
  • 5. The Business Case for Data Security II. Data Security: Requirements and Alternative Approaches DatabaseFileWeb Organizations’ data security strategy should focus on the core business drivers of preventing external attacks, mitigating insider abuse, and automating compliance processes. Some of the resulting operational requirements include: » Accurate Protection for Business-Critical Applications and Data A data security solution should provide comprehensive protection of all critical data assets including Web applications, databases, and files from external attack and insider threats. Because of the complex nature of data-layer threats, a security solution should be able to detect known attack methods, malicious users, deviations from expected user behavior, and correlate multiple event attributes together for pinpoint accuracy. » Full Auditing with Separation of Duties Since audit trails of user activity have become an essential aspect of compliance, a complete data security solution must be able to audit all access and changes to databases and files. It should ensure audit data integrity and user accountability and identify material variances in user activity. Demonstrating compliance must be achieved through automated reports and analytical tools – the basis for forensic investigations. » Low Impact Deployment Any solution designed to improve security should not impact application uptime or impose management burden. The solution should meet availability and performance requirements while not introducing operational risks. In addition, it should support centralized management, monitoring, auditing, and reporting to streamline administration for large, distributed deployments. Data Security: The Future of Security and Compliance To address the full scope of today’s security and compliance requirements, Imperva has created a new technology category, Data Security. With Data Security, organizations can mitigate data breach risks and directly satisfy auditing and compliance mandates by implementing one, integrated, best-of-breed security solution. Data Security protects business-sensitive data where it lives, in database and file servers and how it is accessed, through applications. With data-layer protection, data security solutions can block the attacks that lead to costly data compromises more accurately than any existing technology. It can also monitor users to prevent insider abuse, and audit all activity with unmatched visibility for compliance. The Imperva SecureSphere Data Security Suite Imperva SecureSphere Data Security Suite encompasses the market-leading SecureSphere Web Application Firewall, and the award-winning SecureSphere Database Security and File Security Solutions. Either deployed alone, or together as one integrated, centrally managed solution, SecureSphere Data Security Solutions offer a powerful defense against hackers and malicious insiders, streamline and automate regulatory compliance, and prioritize and mitigate data risks. Imperva White Paper < 5 >
  • 6. The Business Case for Data Security DatabaseFileWeb SecureSphere Data Security Solutions offer organizations several unique capabilities: » Complete, End-to-End Data Protection - SecureSphere protects data where it is stored – in databases and files – and how it is accessed – through applications – and addresses the full Data Security and compliance life cycle. » Automated Security – Imperva’s patented Dynamic Profiling automatically learns application and database usage without manual intervention. The unique ThreatRadar service further streamlines security by automatically stopping attacks from known, malicious sources. » Full Visibility with Separation of Duties – SecureSphere monitors and audits all database and file activity, including privileged user access, without relying on native auditing capabilities. Interactive audit analytics enable users to analyze, correlate and view activity from any angle. » Streamlined User Rights Management – SecureSphere simplifies the process of reviewing and managing user rights across distributed file servers and databases. SecureSphere aggregates access rights, identifies dormant accounts and highlights excessive privileges. » Zero-Impact Deployment – SecureSphere offers multiple, transparent deployment options for easy integration into any environment with no impact on existing applications, databases or files. Imperva White Paper < 6 >
  • 7. The Business Case for Data Security Contrasting Imperva’s Data Security with Alternative Approaches DatabaseFileWeb To meet security and compliance requirements, organizations may rely on a combination of native logging tools, manual reporting processes, and manual application vulnerability fix and test procedures. The following section investigates various approaches to prevent data breaches and address compliance mandates. Security Information and Event Management To manage the massive amounts of data collected, some organizations have turned to Security Information and Event Management (SIEM) solutions. SIEMs aggregate log data across multiple servers and devices, correlate events to identify anomalies, and streamline compliance reporting. However, SIEMs that rely on native logging for audit data present the following challenges: » Complex configuration of native database and file server logging utilities by DBAs and IT Administrators » No separation of duties as logging policies and audit trails can be manipulated by the users that should be audited » Significant degradation database and file server performance In addition, SIEMs, as cross-product security event aggregators, do not provide in-depth analysis or purpose built reports for database and file activity, and cannot prevent unauthorized access or monitor activity in real-time. Data Governance and Information Management Information Management vendors offer a broad spectrum of solutions for data management and governance. This breadth enables organizations to use one supplier to address multiple data security and data management requirements. However, such an approach often increases the cost, complexity, and duration of data security and compliance projects. Broad-scale, non-specialized information management vendors may turn relatively simple auditing projects into multi-year, company-wide consulting engagements. In addition, while broadening project scope, information management vendors often fall short in terms of addressing all necessary auditing and compliance requirements. For example, an information management vendor may be able to secure database data, but not files nor applications. Organizations should assess their current and future security requirements and determine if such a solution is aligned with project goals and will address monitoring and security objectives within a desired timeframe and budget. Integrated Application Delivery and Security One approach to achieve Web application attack protection is to combine a Web Application Firewall with a load balancer for combined application delivery and security. Such an approach can consolidate multiple functions onto a single hardware platform. However, adding Web application security to existing application delivery controllers (ADCs) can have a number of unexpected consequences, including drastically degrading ADC performance and impacting the stability of mission-critical networking equipment. Most importantly, ADCs only tackle one aspect of data security: application protection. They cannot monitor or protect application data stored in databases, nor can they secure unstructured data in files. Manual Vulnerability Management Most organizations invest considerable effort to ensure that Web applications, databases, and file servers do not contain vulnerabilities. Web developers must allocate time and resources to ensure that applications are written according to secure coding best practices. IT administrators and DBAs must deploy vendor-supplied patches into key applications and databases. Security personnel must test applications and servers for weaknesses and then fix any discovered vulnerabilities. Imperva White Paper < 7 >
  • 8. The Business Case for Data Security However, while an essential aspect of any data security strategy, manual vulnerability patch processes: DatabaseFileWeb » Burden developers and administrators with disruptive fix and test cycles (“fire drills”) » Can expose organizations to attack for weeks or months while vulnerabilities are being fixed Based on extensive research, fixing a single Web application vulnerability takes on average between two to four months.7 With 83% of Websites having had serious vulnerabilities, relying on manual fix and test processes is not sufficient. The length of time to apply database security patches is even longer, often exceeding three months after a patch is released.8 Unfortunately, attackers will not wait for weeks or months to unleash online attacks. Organizations should evaluate solutions that can virtually patch vulnerabilities to eliminate this window of exposure and reduce the costs associated with emergency fix and test cycles. Approaches to Data Security SecureSphere Native Data Governance Application Manual Function Capability Data Security Logging and Information Delivery and Vulnerability Suite and SIEM Management Security Management Security Purpose-Built Platform    End-to-End coverage of all     data assets Proactive Policy Enforcement    Instant Vulnerability    Mitigation Compliance Compliance Automation     Separation of Duties    User Accountability     Deployment Rapid Time-to-Value    No impact on systems and   business processes Imperva White Paper < 8 >
  • 9. The Business Case for Data Security III. Return on Security Investment (ROSI) with Imperva SecureSphere9 DatabaseFileWeb The SecureSphere Data Security Suite is designed from the ground up to meet all aspects of security and compliance for business-critical applications and data. SecureSphere provides conclusive cost-savings by offloading operationally-expensive logging from database and file servers and by driving down manual compliance reporting costs. More importantly, SecureSphere offers return on security investment (ROSI) by drastically reducing the risk and impact of a devastating data breach. In order to quantify the cost savings provided by Imperva, we compared the cost of implementing SecureSphere versus the cost of “doing nothing” and the subsequent expenses created by a data breach or manual auditing and reporting processes. The following table shows our assumptions. The number of protected records is an estimate for a medium size company, but this number will vary widely and should be adjusted according to the individual business profile. The average number of records lost in a data breach is extrapolated from results of the Ponemon Institute “2009 Cost of a Data Breach” report. The probability of a data breach is estimated at 5%. Basic Assumptions Value10 Number of Protected Records 100,000 Average Number of Records Lost in a Data Breach 33,088 Probability of a Data Breach 5% Annual Cost of a Full Time DBA or IT Security Administrator (in USD) $110,000 Reducing the Financial Impact of a Data Breach Data breaches are costly, averaging $6.75 million per incident.11 The expenses mount as organizations are forced to investigate breaches to assess affected records, notify customers, and pay legal fees and fines. However, the single highest cost is lost business, accounting for nearly half of the total financial impact of a breach. Statistics show 98% of compromised records originated from servers,12 predominantly Web application, database, and file servers. A dedicated data security solution could lower the cost of a data breach by accurately identifying the scope of the breach or preventing the breach from ever occurring. SecureSphere Database Activity Monitoring and File Activity Monitoring can audit every access to sensitive data and quickly identify the individual records that were compromised. Without this independent and tamper-proof audit trail, organizations often have to assume the worse and notify all potential victims – even if only a fraction of that data was accessed by a perpetrator. An Activity Monitoring solution can drastically reduce the extent of a data breach, by an estimated two thirds. A proactive defense such as a Web Application Firewall, Database Firewall and File Firewall can block attacks, avoiding the breach altogether for almost all application-related breaches. The following table shows the costs of a data breach with and without a data security solution. 9 In our opinion, the only viable alternative approach that fully addresses data security requirements is manual compliance and vulnerability mitigation. The ROSI calculation therefore compares Imperva to a manual approach. 10 These numbers vary between organizations. They represent a typical number for a medium-to-large enterprise. 11 Ponemon Institute, “Cost of a Data Breach,” January 2010 12 Verizon Business, “2010 Data Breach Investigations Report” Imperva White Paper < 9 >
  • 10. The Business Case for Data Security Impact of a Data Breach Due to Web, Database and File Security Threats DatabaseFileWeb SecureSphere SecureSphere Without Database and File Web, Database, SecureSphere Activity Monitoring13 File Firewall14 Number of Suspected Compromised Records 33,088 33,088 0 Number of Confirmed Compromised Records Not available 11,029 0 Consulting Services and Investigation Costs $1,350,000 $225,000 0 Notification Costs $742,000 $247,000 0 Legal Costs $1,147,000 $382,000 0 Identity Protection and Other Services $202,000 $67,000 0 Lost Business and Related Costs $3,307,000 $1,102,000 0 Cost of a Data Breach $6,750,000 $2,023,000 0 Vulnerability Remediation Efforts In addition to reducing the likelihood of an expensive data breach, a dedicated data security solution can also cut vulnerability remediation costs. First, Imperva SecureSphere can virtually patch application and database vulnerabilities, thereby eliminating disruptive emergency fix and test cycles. Vulnerabilities can be fixed as part of regular development schedules, which is significantly less expensive than fixing vulnerabilities in production. Second, SecureSphere typically allows organizations to delay minor patch updates until a cumulative patch is available or a new software version is released. This provides organizations considerable cost savings compared to the expense of developing, testing, staging, and implementing software patches. The following table compares the labor costs of remediating Web application and server vulnerabilities for an organization with 10 online applications, 15 Web servers, and 5 database servers. Annual Vulnerability Remediation Labor Costs Without SecureSphere With SecureSphere Emergency Fix and Test of Custom Vulnerabilities $120,000 $0 Custom Vulnerability Fixes in Scheduled Releases $0 $19,200 Operating System Patches $25,000 $12,500 Web Server Patches $25,000 $12,500 Database Server Patches $12,500 $6,250 Total $182,500 $50,450 13 SecureSphere Database and File Activity Monitoring offer auditing but no access control; 14 When SecureSphere is implemented in “Firewall” mode, the risk of a Web, Database or File data breach is immeasurable. While auditing can reduce the impact of a breach by identifying actual compromised records, when SecureSphere is deployed inline, it can proactively prevent attacks from occurring. Imperva White Paper < 10 >
  • 11. The Business Case for Data Security Labor Costs of Auditing and Reporting DatabaseFileWeb While both databases and file servers offer native logging capabilities, managing and maintaining audit log files can be an expensive proposition. Database or IT administrators must determine what activity to audit, create log rules, and then sort through reams of log messages to find materially relevant information for reports. Raw data must be arranged into a presentable format for auditors. Organizations must also develop in-house tools to prevent unauthorized access or manipulation of log data for separation of duties. Native tools only address one aspect of the data security and compliance lifecycle. They cannot locate sensitive data on the network, test databases for vulnerabilities, or patch these vulnerabilities. Organizations that use native audit tools must also account for the costs of manually discovering and classifying sensitive data – two requirements either implied or explicitly spelled out in many compliance regulations. Furthermore, many regulations require that organizations limit user access rights to business need-to-know and remove dormant accounts. For large enterprises, managing database and file access rights for thousands of users can be an overwhelming task, leading many administrators to grant excessive privileges. A dedicated data security solution such as SecureSphere can eliminate manual administrative tasks, automate auditing and compliance reporting, and dramatically improve the overall security posture of the organization. The following table compares the number of full time employees required to meet database and file security compliance requirements, with and without a data security solution. Without SecureSphere With SecureSphere Labor costs for Labor costs for Labor costs for Labor costs for Task initial setup ongoing maintenance initial setup ongoing maintenance Discovery $55,000 $55,000 $11,000 $11,000 Classification and Assessment $55,000 $55,000 $11,000 $11,000 Managing User Rights to $110,000 $110,000 $55,000 $11,000 Databases and Files Enablement of Auditing $27,500 $27,500 $11,000 $1,100 Writing and Maintaining $165,000 $55,000 $11,000 $11,000 Custom Scripts Creating Custom Reports $110,000 $55,000 $27,500 $11,000 Implementation of Workflow $110,000 $55,000 $11,000 $11,000 and Business Processes Total $687,500 $412,500 $137,500 $67,100 Software and Hardware Investment for SecureSphere Versus Native Auditing In addition to comparing the labor expenses of security and compliance, businesses must also analyze the hardware and software investment. With SecureSphere, the costs are relatively straight forward: the price of the SecureSphere Data Security Suite, which includes the price of the Web Application Firewall, Database Firewall and File Firewall, plus the MX Management Server. If organizations opt for native logging, then they will need to purchase additional hardware and software licenses to maintain previous performance levels. This is because full logging of all activity can degrade server performance by approximately 30 - 50%. The table below compares the infrastructure costs incurred by using native logging tools versus deploying the SecureSphere Data Security Suite. Imperva White Paper < 11 >
  • 12. The Business Case for Data Security DatabaseFileWeb Without SecureSphere With SecureSphere Additional Database and File Server Hardware $50,000.00 $0.00 Additional Database and File Server Software $200,000.00 $0.00 SecureSphere Data Security Suite and $0.00 $73,600.00 MX Management Server Annual Support and Maintenance Fees $40,000.00 $14,720.00 Hardware and Software Administration Costs $20,000.00 $20,000.00 Total $310,000.00 $108,320.00 Total Return on Security Investment Because security and compliance must be addressed holistically, the following table compares the total hardware, software, and management costs of the SecureSphere Data Security Suite to native logging and manual compliance processes. In addition, a Return on Security Investment (ROSI) calculation must factor in the cost and risk of a data security breach. The following table combines the data from the above tables to provide the return on investment of the SecureSphere Data Security Suite versus no dedicated Web application, database, or file security. Without SecureSphere Year 1 Year 2 Year 3 Year 4 Year 5 Vulnerability Remediation Costs $182,500 $182,500 $182,500 $182,500 $182,500 Auditing and Compliance Costs $687,500 $412,500 $412,500 $412,500 $412,500 Hardware and Software Costs $310,000 $60,000 $60,000 $60,000 $60,000 Data Breach Cost = Probability x Impact $337,500 $337,500 $337,500 $337,500 $337,500 Total Cost without SecureSphere $1,517,500 $992,500 $992,500 $992,500 $992,500 SecureSphere Costs and Risk Posture Year 1 Year 2 Year 3 Year 4 Year 5 Vulnerability Remediation Costs $50,450 $50,450 $50,450 $50,450 $50,450 Auditing and Compliance Costs $137,500 $67,100 $67,100 $67,100 $67,100 Hardware and Software Costs $108,320 $34,720 $34,720 $34,720 $34,720 Data Breach Cost = Probability x Impact $112,500 $112,500 $112,500 $112,500 $112,500 Total Costs with SecureSphere $408,770 $264,770 $264,770 $264,770 $264,770 Cost Savings with SecureSphere $4,019,650 ROSI with SecureSphere 274% Investment Based Discount Rate 10% NPV (Net Present Value) $3,654,227 The total infrastructure, labor, and data breach costs of the SecureSphere Data Security Suite over five years totaled $1.47 million, compared to $5.49 million for native logging, manual compliance processes and no proactive Web, database or file security protection. Note that the projected data breach cost savings for SecureSphere were conservative, assuming only the cost savings associated with monitoring traffic and pinpointing individual breached records. With 98% of breached records originating from servers, the SecureSphere Data Security Suite, with an integrated Web Application Firewall, should be able to prevent most data breaches from ever occurring. Imperva White Paper < 12 >
  • 13. White Paper Summary With the growing threats to applications and data, from large-scale, automated Web attacks to insider malfeasance, proactive data security has become mandatory. Besides protecting critical assets, a host of regulations have spurred the need to audit activity and streamline compliance processes. Unfortunately existing security solutions cannot effectively stop data security attacks or address security and compliance concerns holistically. A dedicated Data Security solution like Imperva SecureSphere not only satisfies today’s security and compliance requirements, it also offers a return on investment of 274% compared to not using a data security solution at all. When compared to alternative solutions, Imperva SecureSphere is the only sensible and effective choice to secure sensitive applications and data. With SecureSphere, organizations can: » Protect applications, databases, and files from internal and external threats » Lower the cost of auditing while implementing separation of duties » Automate compliance reporting » Virtually patch application and database vulnerabilities With its indisputable value, it is not surprising that Imperva has become the market leader for Web, database, and file monitoring and protection. Trusted by thousands of leading organizations around the world, Imperva SecureSphere is the practical, cost-effective solution for Data Security. About Imperva Imperva is the global leader in data security. Our customers include leading enterprises, government organizations, and managed service providers who rely on Imperva to prevent sensitive data theft by hackers and insiders. The award-winning Imperva SecureSphere is the only solution that delivers full activity monitoring for databases, Web applications and file systems. To learn more about Imperva’s solution visit http://www.imperva.com. Imperva Headquarters 3400 Bridge Parkway, Suite 200 Redwood Shores, CA 94065 Tel: +1-650-345-9000 Fax: +1-650-345-9004 Toll Free (U.S. only): +1-866-926-4678 www.imperva.com © Copyright 2010, Imperva All rights reserved. Imperva, SecureSphere, and "Protecting the Data That Drives Business" are registered trademarks of Imperva. All other brand or product names are trademarks or registered trademarks of their respective holders. #WP-BC-DATA-SECURITY-1010rev1