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#ITFAIL
IN 2011
Application Failures

        In a year when we saw one major outage,
          malfunction and security breach after
       another befall organizations that rely upon
          technology, we should heed a lesson.

         The sad part is nearly all, if not all of these
          outages, malfunctions and breaches had
          in common a structural flaw somewhere
         down in the bowels of the application that
                   had gone undetected.

CAST Confidential     2           Achieve Insight. Deliver Excellence.
April Patch Tuesday: released a
          record-tying 17 bulletins
patching a record 64 vulnerabilities
           including kernel patches



              November Patch Tuesday: avoided patching
              a zero-day vulnerability used in the Duqu
              malware attacks that allowed hackers to run
              arbitrary code in kernel mode

                  http://blog.castsoftware.com/it%E2%80%99s-tuesday-do-you-know-where-your-patches-are/
                                                        http://blog.castsoftware.com/microsoft-ducks-duqu/
Apple has a bug in its new iOS 5 operating
system that causes serious battery drain issues
       with the new iPhone 4S handset

                              http://blog.castsoftware.com/marketing-over-matter/
Dropbox encounters
a bug during a code
update that disables
customer passwords
for several hours




                       http://blog.castsoftware.com/dropbox-drops-the-ball/
JP Morgan, Chase & Capital One reveal that
email management vendor Epsilon detected an
"unauthorized entry" into its system, exposing
    customer names and e-mail addresses
Hackers backed by a foreign
      government steal 24K
 sensitive files by exploiting
software vulnerabilities at a
 Dept of Defense contractor

                                   Defense Secretary Leon Panetta




                                 http://blog.castsoftware.com/the-enemy-within/
Sony suffers more than a dozen attacks
   at the hands of the LulzSec Group,
  which exposes customer accounts via
                SQL Injection attacks
                                              Sony president Howard Stringer




                Attacks result in 55 class action
                law suits and cost Sony $178M

                                     http://blog.castsoftware.com/sony-oops-i-did-it-again/
London Stock Exchange
                          halts trading on its main
                          market due to a technical
                          fault in its barely 2-week-
                          old MilleniumIT trading
                          system




http://blog.castsoftware.com/london-bourse-is-falling-down-%E2%80%93-time-to-analyze-its-structure/
A malware attack exposes
 names, account numbers
     and email addresses
       of around 200,000
     Citigroup customers




                           http://blog.castsoftware.com/hackers-are-getting-smarter/
A spate of computer outages in the
  airline industry was blamed on bad
hardware, corrupted software & failure
      of backup systems to kick in




                         http://blog.castsoftware.com/stranded-by-software/
A technical fault causes levels to be
           incorrectly displayed for nearly an hour
           following the start of trading on Euronext



    Borsa Italiana suspends
trading for almost six hours
    blaming technical issues


 Australian Stock Exchange has trading halted
 due to an ICT systems error traced back to a
 software problem


                     http://blog.castsoftware.com/stock-exchange-failures-what-next/
A computer service vendor of
Boston’s Beth Israel Hospital
failed to restore proper security
settings on a computer following
maintenance, leading it to be
infected with a virus that
transmitted data files to an
unknown location



        http://blog.castsoftware.com/hacking-up-a-hospital/
discovers data leak vulnerability
                                             resulting from pre-existing
                                             security hole from old Froyo
                                             operating system




 More than 50 malicious
applications infect Android                         Google pulls Gmail app
      devices through                               from iPhone App stores
  DroidDream malware



                                                    due to a bug that causes
                                                     a “notification error”
             http://blog.castsoftware.com/serving-up-some-humble-pie-with-google%E2%80%99s-%E2%80%98ice-
                                                                                        cream%E2%80%99/
RSA allowed their own
   information to be stolen
when a phishing email with
a zero-day exploit installed
     a backdoor through an
 Adobe Flash vulnerability




                         http://blog.castsoftware.com/to-be-forewarned-is-to-be-forearmed/
RIM experiences worldwide outage of
the BlackBerry system when a software
  upgrade on its database resulted in
 corruption problems and attempts to
  switch back to older version led to
         collapse of system


                          http://blog.castsoftware.com/falling-off-the-rim/
Researchers demonstrate hackers have
capabilities to send radio signals that exploit
  vulnerabilities in embedded software and
could reprogram or shut down devices such
      as pacemakers or insulin pumps




                           http://blog.castsoftware.com/hacking-the-heart-of-the-matter/
Dept of Energy contractor
 Pacific Northwest National
Laboratory shuts down most
    of its internal network
  services when a sustained
     cyber attack exploits
undisclosed bug in the server



     http://blog.castsoftware.com/seeking-independence-from-being-hacked/
Bank of America customers
                            are unable to log in to their
                            online bank accounts due to
                            problems following routine
                            software upgrades.




Later in year their website
goes off-line due to a “Denial
of Service” attack



                                 http://blog.castsoftware.com/stock-exchange-failures-what-next/
A computer virus infects
  software that manages
Predator and Raptor drones

               http://blog.castsoftware.com/what-we-dont-know-is-hurting-us/
UK’s East Coast Main Line left
more than 3,000 rail passengers
  stranded or delayed for more
 than five hours on a Saturday
    afternoon due to software
 malfunction that knocked out
signaling system and its backup



                                  http://blog.castsoftware.com/when-good-software-goes-bad/
39 recalls of medical devices resulting
from software defects and malfunctions
                    http://blog.castsoftware.com/software-quality-is-a-matter-of-life-death/
PREVENT
 #ITFAIL
   WITH
APPLICATION
STRUCTURAL
  QUALITY
Application Structural Quality


       Whatever the reason these
   structural quality errors happened,
          they shouldn’t have.
  Hopefully in 2012, companies will look back
  on all the problems in 2011 and realize that
 they need to increase the structural analysis of
   their application software to ensure they
            won’t be the next victim.

CAST Confidential   24           Achieve Insight. Deliver Excellence.
CAST Structural Quality Metrics


         Most enterprises measure everything but the product delivered to the business
            CAST Application Intelligence Platform (AIP) measures the product itself



                                           Process       Product

                                                                                 Robustness
                                                                                 Performance
                                           Time &       Quality                  Security          CAST AIP
                     Planning             Duration     &Size                    Changeability
                     Estimation                                                 Transferability
                     Scheduling                                                 Size
                     Time Tracking
                     Cost Tracking                                             Requirements
                                                        Function &
                                      Effort & Budget
                                                          Scope
                                                                                Earned Value
                                                                                User Acceptance
                                                                                Usability




CAST Confidential                     25                    Achieve Insight. Deliver Excellence.
CAST Inserts Actionable Visibility

         CAST Application Intelligence Center                                          CxO & VP, …
                                                                                       Dashboard, reports
                               CAST Application
                               Intelligence PlatformTM
                                 AI Management Studio
                                 Knowledge Base
                                 Approx one thousand rules and
                                   best practices                                      PM, QA, Architects…
                                 Decade of software engineering                        Std enforcement
                                   expertise                                            Early ID of violations
               CAST Application Analysis Engine                                         Drill down to root cause

             CAST Native       CAST UA       3rd party
            Analyzers (28)      scripts     analyzers




     Delivered Source Code:                                                            Dev Teams, Suppliers
        CICS, IMS, COBOL, DB2 z/OS, PL/I                                               Arch. visibility / Quick wins
        J2EE, .NET and all Major RDBMS                                                 Software engineering expertise
        Web Apps, BI, EAI, C/C++, VB, PB                                               Continuous training/coaching
        Siebel, SAP, PSFT, OBS, Amdocs




CAST Confidential                     26                       Achieve Insight. Deliver Excellence.
Tangible and Measured Value

        Mitigate business risks with improved structural quality
               Better applications for higher business resiliency and continuity
               Risk-proofed projects more likely to deliver business benefits on time
        Make IT and suppliers more productive
               Eliminate waste in ADM
                       Prevent coding errors in development: 10x savings in rework per coding error
                       Keep technical debt from growing: up to 10% saving in maintenance cost
                       Benchmark then optimize resources: maintenance savings potential
                       Better reuse of frameworks and components: up to 10% of dev budget
               Reduce waste in operations
                       Improve efficiency of large complex transactions & batch processes: up to 5% mips
                       Reduce troubleshooting and rollover costs: lower Ops staff overtime
               Apply consistent measurement & KPIs for superior visibility
                       Up to 10% of ADM budget, esp. ADM outsourcing

               “Applying the principles of lean manufacturing to ADM can increase productivity
                  by 20 to 40 percent while improving the quality and speed of execution.”
                                                - Ranjit Tinaikar, Principal, Head of NA IT Management Practice


CAST Confidential                          27                           Achieve Insight. Deliver Excellence.
Market Leader and Pioneer
              250 Global Leaders Rely on CAST




SIsUse/Resell CAST
SIs Resell CAST                                                           Industry Groups Engage CAST




             Key Influencers Endorse CAST




 CAST Confidential                28            Achieve Insight. Deliver Excellence.
Learn more about CAST

     www.castsoftware.com
      blog.castsoftware.com
 www.facebook.com/castonquality
 www.slideshare.net/castsoftware
       Twitter: @OnQuality

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2011 App Failures - Year in Review CAST

  • 2. Application Failures In a year when we saw one major outage, malfunction and security breach after another befall organizations that rely upon technology, we should heed a lesson. The sad part is nearly all, if not all of these outages, malfunctions and breaches had in common a structural flaw somewhere down in the bowels of the application that had gone undetected. CAST Confidential 2 Achieve Insight. Deliver Excellence.
  • 3. April Patch Tuesday: released a record-tying 17 bulletins patching a record 64 vulnerabilities including kernel patches November Patch Tuesday: avoided patching a zero-day vulnerability used in the Duqu malware attacks that allowed hackers to run arbitrary code in kernel mode http://blog.castsoftware.com/it%E2%80%99s-tuesday-do-you-know-where-your-patches-are/ http://blog.castsoftware.com/microsoft-ducks-duqu/
  • 4. Apple has a bug in its new iOS 5 operating system that causes serious battery drain issues with the new iPhone 4S handset http://blog.castsoftware.com/marketing-over-matter/
  • 5. Dropbox encounters a bug during a code update that disables customer passwords for several hours http://blog.castsoftware.com/dropbox-drops-the-ball/
  • 6. JP Morgan, Chase & Capital One reveal that email management vendor Epsilon detected an "unauthorized entry" into its system, exposing customer names and e-mail addresses
  • 7. Hackers backed by a foreign government steal 24K sensitive files by exploiting software vulnerabilities at a Dept of Defense contractor Defense Secretary Leon Panetta http://blog.castsoftware.com/the-enemy-within/
  • 8. Sony suffers more than a dozen attacks at the hands of the LulzSec Group, which exposes customer accounts via SQL Injection attacks Sony president Howard Stringer Attacks result in 55 class action law suits and cost Sony $178M http://blog.castsoftware.com/sony-oops-i-did-it-again/
  • 9. London Stock Exchange halts trading on its main market due to a technical fault in its barely 2-week- old MilleniumIT trading system http://blog.castsoftware.com/london-bourse-is-falling-down-%E2%80%93-time-to-analyze-its-structure/
  • 10. A malware attack exposes names, account numbers and email addresses of around 200,000 Citigroup customers http://blog.castsoftware.com/hackers-are-getting-smarter/
  • 11. A spate of computer outages in the airline industry was blamed on bad hardware, corrupted software & failure of backup systems to kick in http://blog.castsoftware.com/stranded-by-software/
  • 12. A technical fault causes levels to be incorrectly displayed for nearly an hour following the start of trading on Euronext Borsa Italiana suspends trading for almost six hours blaming technical issues Australian Stock Exchange has trading halted due to an ICT systems error traced back to a software problem http://blog.castsoftware.com/stock-exchange-failures-what-next/
  • 13. A computer service vendor of Boston’s Beth Israel Hospital failed to restore proper security settings on a computer following maintenance, leading it to be infected with a virus that transmitted data files to an unknown location http://blog.castsoftware.com/hacking-up-a-hospital/
  • 14. discovers data leak vulnerability resulting from pre-existing security hole from old Froyo operating system More than 50 malicious applications infect Android Google pulls Gmail app devices through from iPhone App stores DroidDream malware due to a bug that causes a “notification error” http://blog.castsoftware.com/serving-up-some-humble-pie-with-google%E2%80%99s-%E2%80%98ice- cream%E2%80%99/
  • 15. RSA allowed their own information to be stolen when a phishing email with a zero-day exploit installed a backdoor through an Adobe Flash vulnerability http://blog.castsoftware.com/to-be-forewarned-is-to-be-forearmed/
  • 16. RIM experiences worldwide outage of the BlackBerry system when a software upgrade on its database resulted in corruption problems and attempts to switch back to older version led to collapse of system http://blog.castsoftware.com/falling-off-the-rim/
  • 17. Researchers demonstrate hackers have capabilities to send radio signals that exploit vulnerabilities in embedded software and could reprogram or shut down devices such as pacemakers or insulin pumps http://blog.castsoftware.com/hacking-the-heart-of-the-matter/
  • 18. Dept of Energy contractor Pacific Northwest National Laboratory shuts down most of its internal network services when a sustained cyber attack exploits undisclosed bug in the server http://blog.castsoftware.com/seeking-independence-from-being-hacked/
  • 19. Bank of America customers are unable to log in to their online bank accounts due to problems following routine software upgrades. Later in year their website goes off-line due to a “Denial of Service” attack http://blog.castsoftware.com/stock-exchange-failures-what-next/
  • 20. A computer virus infects software that manages Predator and Raptor drones http://blog.castsoftware.com/what-we-dont-know-is-hurting-us/
  • 21. UK’s East Coast Main Line left more than 3,000 rail passengers stranded or delayed for more than five hours on a Saturday afternoon due to software malfunction that knocked out signaling system and its backup http://blog.castsoftware.com/when-good-software-goes-bad/
  • 22. 39 recalls of medical devices resulting from software defects and malfunctions http://blog.castsoftware.com/software-quality-is-a-matter-of-life-death/
  • 23. PREVENT #ITFAIL WITH APPLICATION STRUCTURAL QUALITY
  • 24. Application Structural Quality Whatever the reason these structural quality errors happened, they shouldn’t have. Hopefully in 2012, companies will look back on all the problems in 2011 and realize that they need to increase the structural analysis of their application software to ensure they won’t be the next victim. CAST Confidential 24 Achieve Insight. Deliver Excellence.
  • 25. CAST Structural Quality Metrics Most enterprises measure everything but the product delivered to the business CAST Application Intelligence Platform (AIP) measures the product itself Process Product  Robustness  Performance Time & Quality  Security CAST AIP  Planning Duration &Size  Changeability  Estimation  Transferability  Scheduling  Size  Time Tracking  Cost Tracking  Requirements Function & Effort & Budget Scope  Earned Value  User Acceptance  Usability CAST Confidential 25 Achieve Insight. Deliver Excellence.
  • 26. CAST Inserts Actionable Visibility CAST Application Intelligence Center CxO & VP, … Dashboard, reports CAST Application Intelligence PlatformTM  AI Management Studio  Knowledge Base  Approx one thousand rules and best practices PM, QA, Architects…  Decade of software engineering  Std enforcement expertise  Early ID of violations CAST Application Analysis Engine  Drill down to root cause CAST Native CAST UA 3rd party Analyzers (28) scripts analyzers Delivered Source Code: Dev Teams, Suppliers  CICS, IMS, COBOL, DB2 z/OS, PL/I  Arch. visibility / Quick wins  J2EE, .NET and all Major RDBMS  Software engineering expertise  Web Apps, BI, EAI, C/C++, VB, PB  Continuous training/coaching  Siebel, SAP, PSFT, OBS, Amdocs CAST Confidential 26 Achieve Insight. Deliver Excellence.
  • 27. Tangible and Measured Value  Mitigate business risks with improved structural quality  Better applications for higher business resiliency and continuity  Risk-proofed projects more likely to deliver business benefits on time  Make IT and suppliers more productive  Eliminate waste in ADM  Prevent coding errors in development: 10x savings in rework per coding error  Keep technical debt from growing: up to 10% saving in maintenance cost  Benchmark then optimize resources: maintenance savings potential  Better reuse of frameworks and components: up to 10% of dev budget  Reduce waste in operations  Improve efficiency of large complex transactions & batch processes: up to 5% mips  Reduce troubleshooting and rollover costs: lower Ops staff overtime  Apply consistent measurement & KPIs for superior visibility  Up to 10% of ADM budget, esp. ADM outsourcing “Applying the principles of lean manufacturing to ADM can increase productivity by 20 to 40 percent while improving the quality and speed of execution.” - Ranjit Tinaikar, Principal, Head of NA IT Management Practice CAST Confidential 27 Achieve Insight. Deliver Excellence.
  • 28. Market Leader and Pioneer 250 Global Leaders Rely on CAST SIsUse/Resell CAST SIs Resell CAST Industry Groups Engage CAST Key Influencers Endorse CAST CAST Confidential 28 Achieve Insight. Deliver Excellence.
  • 29. Learn more about CAST www.castsoftware.com blog.castsoftware.com www.facebook.com/castonquality www.slideshare.net/castsoftware Twitter: @OnQuality