1. technology and computing

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THE BUSINESS VALUE OF TECHNOLOGY
APRIL 4, 2011
PLUS
End user devices: Our exclusive survey >>
AT&T and T-Mobile fallout >>
New risks to industrial systems >>
CIO Profile: Concentra’s Kosub >>
The BrainYard, our new social business site >>
Table of contents >>
There’s no stopping this stuff,
so here’s how to make the most of it >>
informationweek.com
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CONTENTS
THE BUSINESS VALUE OF TECHNOLOGY
19 Under Pressure
Cloud computing, mobility, and
consumerization are stressing IT,
our survey finds
19
April 4, 2011 Issue 1,296
This all-digital issue of InformationWeek is part of our 10-year strategy to reduce the publication’s carbon footprint
3 Research And Connect
Reports, events, video, and more
COVER STORY
Consumer Tech’s Challenge
4 Down To Business
Here is advice on the strategy, security, and support
needed to make the consumerization of IT work for
you instead of against you
The BrainYard, our new Web site, is all about
the social enterprise
5 CIO Profiles
QUICKTAKES
6 AT&T’s Grand Plan
A female CIO gave Concentra’s Suzanne
Kosub insight into her own career path
Business professionals are highly skeptical of the
T-Mobile deal
8 Security Risk
CONTACTS
Industrial control systems, once obscure, are
now under attack
24 Editorial Contacts
25 Business Contacts
McAfee To Buy Sentrigo
Acquisition will beef up McAfee’s database
security offerings
Government Technology Expo + Conference
GTEC lets you connect with and learn from peers and
industry experts focused on driving government efficiency.
It happens in Washington, D.C., June 1-3.
Register
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April 4, 2011 2
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IN THIS ISSUE
Links
Resources to Research, Connect, Comment
Accept consumer tech >>
Pressure of end user devices >>
The BrainYard >>
AT&T and T-Mobile fallout >>
Table of contents >>
INFORMATIONWEEK ANALYTICS
Pitfalls Of Branch Office Consolidation
Consolidation can result in improved
service reliability, data protection, and
security—but it’s no panacea.
informationweek.com/analytics/branchpitfalls
Data Preservation Now
With regulations driving demand for
extended storage, IT pros need to understand the latest technology options.
informationweek.com/analytics/longtermdata
The Road To Unified Communications
Most large companies are using UC, but it
can be useful for smaller businesses, too.
informationweek.com/analytics/ucpath
Going All In
On Virtualization
Adoption of server
virtualization is a
no-brainer for
companies committed to producing the most
output in the least amount of time. The
desktop is the next efficiency frontier.
informationweek.com/analytics/vdimodels
Continuous Monitoring Action Plan
Federal agencies must transition from
static cybersecurity defenses to real-time
monitoring and response.
informationweek.com/analytics/continuous
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Fight Back Against Malicious Code Authors Just released
Mobile Unified Communications Just released
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2011 IT Outsourcing Survey Coming April 24
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DARK READING
DB2 Gets Safer
IBM finally focuses on protecting DB2 data, and the new
Dark Reading supplement
explains what’s changed.
informationweek.com/drdigital/march11
April 4, 2011 3
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The BrainYard >>
AT&T and T-Mobile fallout >>
Table of contents >>
informationweek.com
down to Business
The BrainYard: Big Thinking On Business Collaboration
The editors of InformationWeek are pleased to
launch a brand-new site and community, called
The BrainYard (at thebrainyard.com). It’s dedicated to helping business and IT pros with a
huge challenge: improving how their companies
hatch ideas, share best practices, manage and
execute projects, identify business opportunities, get closer to partners and suppliers, and tap
into and anticipate customer needs. It’s about
the latest technology tools, platforms, and services—as well as organizational approaches—
for fostering business collaboration, social networking, and community building. You may
know the subject matter by a couple of other
names: Enterprise 2.0 or the social enterprise.
Companies in a range of industries, from giants like Procter & Gamble and Coca-Cola to
small and midsize businesses, have identified
improving collaboration among far-flung employees, suppliers, partners, and customers as
one of their biggest strategic priorities. In our
recent InformationWeek Analytics IT Pro Survey
of 619 business technology professionals, 68%
say their companies have adopted at least one
Enterprise 2.0 application, and the rest are ei-
ther rolling them out or testing them. The most
entrenched vendors are Microsoft with SharePoint and Office, IBM with Lotus, and Salesforce.com with Chatter. But a range of smaller
software and service vendors are making their
mark, including Yammer, Drupal, Jive, OpenText,
and SuccessFactors.
Why do we call this site The BrainYard? Well,
this is heady stuff, and the practitioners, consultants, journalists, and other writers and participants will bring their expert perspectives.
The BrainYard shouldn’t imply theoretical or
wonky, however. Yes, plenty of big thinkers will
write for this site—the likes of Xerox Innovation Group’s Venkatesh Rao, Community
Roundtable co-founder Rachel Happe, CMS
Watch’s Tony Byrne, and collaboration strategist Michael Sampson. But our mission is to deliver news, case studies, opinion columns, and
other content that is practical and actionable.
And we won’t be a bunch of industry cheerleaders. We’ll analyze the best practices and
products that are delivering true business
value, but we’ll also extract the bloviation and
hyperbole. If we don’t, call us on it.
from the editor
ROB PRESTON
Along those lines, we invite you to not only
read and view what’s on the BrainYard site, but
also participate. After all, what would a site
dedicated to social business be without social
participation? Those who register will get
commenting privileges, our weekly BrainYard
email newsletter, access to certain InformationWeek Analytics in-depth reports, and other
premium content.
Later this year, in the site’s community area,
participants will be able to share documents,
upload files, participate in discussion forums,
and create private groups. All site registrants
also get attendee discounts at UBM TechWeb
events, including the Enterprise 2.0 Conference
in Boston and Interop in Las Vegas. (The BrainYard is a partnership between the editors of InformationWeek and the organizers of the E2.0
Conference.)
As always, we encourage your feedback.
Write to me at the address below, and please
dive directly into the site with your comments.
Rob Preston is VP and editor in chief of InformationWeek. You
can write to Rob at [email protected].
April 4, 2011 4
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CIOprofiles
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IN THIS ISSUE
Accept consumer tech >>
Pressure of end user devices >>
The BrainYard >>
AT&T and T-Mobile fallout >>
Table of contents >>
SUZANNE KOSUB
CAREER TRACK
ON THE JOB
How long at current company:
I’ve been with Concentra, which
operates medical centers and
clinics in 40 states, for 10 years.
IT budget: $27 million
Senior VP and CIO, Concentra
Colleges: University of the
Incarnate Word in San
Antonio, Texas
Leisure activity: Golf
Business-related pet peeve:
Talkers, not doers
Tech vendor I respect most:
Steve Jobs
Personal computer: Mac
Smartphone: iPhone
If I weren’t a CIO, I’d be ...
a lawyer or judge
Ranked No. 33 in the 2010
informationweek.com
Career accomplishment I’m
most proud of: Running a technology organization that’s viewed
as a value-added partner.
Most important career influencer:
Early in my IT career, I met the female CIO of a large tech company
and asked about her career path.
She told me that it took tremendous passion and bravery to do
the job. To be an effective CIO, you
must have passion for leading
technology people, enabling the
business through technology, and
being focused on customer service. You must also show bravery to
be a respected member of senior
management and be engaged in
strategy, finance, and operations.
allows us to understand the satisfaction of end users and make
improvements.
Size of IT team: 160 employees
VISION
Top initiatives:
>> We’re deploying a customer
management system, allowing us
to better track customer interactions over time.
>> The technology team is closely
aligned with the business side to
develop and execute a new clinical systems strategy.
>> Continued rollout of the Medical Informatics Engineering electronic health record management
system to all of our employer
worksite locations.
How I measure IT effectiveness:
Concentra ranks each business
unit annually, including the
technology organization. This
The next big thing for my
industry: The future of healthcare
is boundless. There are many opportunities we can obtain through
advanced information exchange,
automation, and operational and
quality improvement.
The federal government’s top
tech priority should be ... to lead
technology into more aspects of
the healthcare system, creating
more cost-efficient and quality
outcomes.
Kids and technology careers:
I’d encourage my child to find a
career she’s passionate about and
one that makes her happy. If that’s
in the technology industry, I would
support the decision.
April 4, 2011 5
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IN THIS ISSUE
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AT&T AND T-MOBILE MERGER
The BrainYard >>
Business Customers Not Thrilled But See Upside
AT&T and T-Mobile fallout >>
Table of contents >>
Get This And
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Become an InformationWeek
Analytics subscriber and get our
full report on the impact of the
proposed AT&T and T-Mobile
merger. This report includes 20
pages of action-oriented analysis,
packed with 15 charts.
What you’ll find:
> Respondents’ take on likely
impact of merger on coverage,
costs, and service plan options.
> Outlook on HSPA+ vs. LTE.
Those in the know see a dim
future for one 4G technology.
Download
informationweek.com
Following AT&T’s $39 billion deal to acquire
T-Mobile USA, InformationWeek Analytics research finds that the initial reaction among
business technology professionals is to wait
and see—unless they happen to be existing TMobile customers. For them, fully 77% say
they’ll be shopping around for a new mobile
communications carrier. And while it’s a good
bet that many would remain with the new
AT&T should the deal pass regulatory muster,
you can also bet that Verizon and Sprint are
cranking up their marketing engines to make
certain that T-Mobile customers of all stripes
are aware of their options.
Just 14% of our survey respondents say TMobile is their company’s preferred North
American mobile communications carrier.
But it has been the most aggressive price
competitor, providing a “foil against the duopoly pricing of AT&T and Verizon,” says
Berge Ayvazian, a consultant with market researcher Heavy Reading. Business customers
won’t like losing that leverage even if T-Mo-
bile hasn’t been a big part of their spending.
Business pros are polarized on whether the
Department of Justice and FCC should allow
the merger: 46% of our survey respondents
think the regulators should nix it—a standout
percentage, as our surveys rarely find so many
respondents eager for this level of government
intervention. Respondents worry that prices
will rise with fewer competitors.
Ayvazian notes that the deal comes with a
$3 billion breakup fee AT&T must pay T-Mobile’s parent, Deutsche Telekom, if the merger
can’t be completed. Deutsche Telekom would
also get rights to some of AT&T’s wireless
spectrum, so either AT&T has little doubt the
deal will go through or it will do whatever it
takes to get approval.
The merger isn’t likely to come without conditions. While customers might like some kind
of promise of lower rates, the discussion is
more likely to center on coverage and bandwidth utilization. “I’m worried about the future,” Ayvazian says. “We’ve spent the past 20
Should Regulators Let The Merger Happen?
48%
No, regulators
should halt
the deal
46%
Yes, there’s still
enough competition
in the market
6%
Yes, if AT&T does
certain things
Data: InformationWeek Analytics AT&T T-Mobile Merger Survey
of 1,922 business technology professionals, March 2011
years promoting competition and benefiting
from competition.”
Business pros have plenty of other palpable
reactions besides worry, with respondents to
the free-form section of our survey using
terms like “horrible,” “absolute worst,” “disaster,” “larceny” (and a few more that civility prevents us from publishing) to describe their
feelings about AT&T and its cellular and customer service. But the vitriol is far from universal. The glass-half-full types hope that innovaApril 4, 2011 6
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tive billing and other customer-care qualities
they appreciate in T-Mobile will brush off on
AT&T. But the real value AT&T is seeking isn’t
T-Mobile’s friendlier pricing and customer
service.
AT&T is well aware of its own coverage and
quality problems, and its rollout of LTE (its highspeed, 4G data transport technology of choice)
will further stress its network, which must remain backward-compatible with phones and
other devices users have now. In some markets,
buying spectrum is all but impossible, making
acquisitions AT&T’s only option.
T-Mobile, instead of moving straight to LTE,
had been pushing HPSA+, most recently to 42
Mbps in select markets—not quite 4G speeds,
but well past 3G. “Each time T-Mobile has set
the bar [on HPSA speeds], AT&T has had to
match it,” Ayvazian says. This deal would let
AT&T focus on its LTE investment rather than
have to match T-Mobile in HSPA+.
The problem is worse for T-Mobile, whose
spectrum holdings would make a true 4G
rollout using a technology like LTE very difficult without making obsolete existing users’
devices. In many ways, the management of TMobile has orchestrated a perfect George
Costanza moment for itself. By rolling out en-
Merger Outcomes
If the merger of AT&T and T-Mobile goes through, do
you agree or disagree with these statements?
3
1 Strongly disagree
Strongly agree 5
AT&T will have significantly
better national 4G coverage
3.3 (Mean average)
AT&T will have significantly
better national 3G coverage
3.3
AT&T customers will have a
better array of handsets
to choose from
3.0
Verizon will be the biggest
winner in this merger
3.0
Overall, North American
businesses will be better served
AT&T customers will have a
better array of business plan
options to choose from
3.0
2.8
AT&T customers will receive
better account service
2.6
Overall, North American businesses
will see their cellular
service costs go down
2.3
Data: InformationWeek Analytics AT&T T-Mobile Merger Survey
of 1,922 business technology professionals, March 2011
hancements to its HSPA technology, T-Mobile
has been an early provider of 4G-like performance, but it has no clear path to wider
coverage or higher speeds. As such, it’s now
taking a bow and selling to AT&T at the top
of its game. (T-Mobile reportedly also was in
merger talks with Sprint.)
Our data reveals that IT pros think the
biggest benefit of the merger would be in better 3G and 4G service from AT&T (see chart,
left). But at the same time, that’s about their
only positive expectation. Survey respondents
don’t think business customers will get any
more plans to choose from, nor are they confident customer service will improve. And
they’re convinced costs won’t go down.
So will T-Mobile customers flee? No doubt
AT&T thinks the long-term ramifications of the
merger won’t be as severe as our knee-jerk survey reactions indicate. AT&T’s research likely
showed the same thing ours does: T-Mobile
customers, particularly business customers,
chose the carrier in the face of the accepted
wisdom that only Verizon and AT&T are suitable business-class partners. The bottom line
is that customers that made that choice either
really like some aspect of T-Mobile service—
such as more predictable data and voice performance in certain markets—or they really
hate AT&T. —Art Wittmann ([email protected])
and Chris Murphy
April 4, 2011 7
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QUICKFACT
IN THIS ISSUE
$7B Revenue expected from SCADA sytems in 2016
Accept consumer tech >>
Pressure of end user devices >>
INDUSTRIAL CONTROL SYSTEMS
The BrainYard >>
Once Invincible,
Now Vulnerable
AT&T and T-Mobile fallout >>
Table of contents >>
Industrial control systems have been considered unlikely security risks because attackers
wouldn’t have the wherewithal and knowledge to break into the software, or the software doesn’t reside on a network. But as networked environments have become common,
supervisory control and data acquisition software, or SCADA, can no longer count on “security by obscurity.”
This danger was highlighted recently when security researcher Luigi Auriemma posted to
Bugtraq full-disclosure advisories and detailed
proof-of-concept attacks for 35 vulnerabilities in
SCADA systems. The disclosures raise questions
about whether SCADA vendors are paying sufficient attention to security. US-CERT’s Industrial
Control Systems Cyber Emergency Response
Team released four related security bulletins.
SCADA is getting more attention following
the emergence last year of the Stuxnet worm,
which showed that network-borne threats can
informationweek.com
not only infect control system PCs but can
damage physical equipment. SCADA systems,
which may have life spans of 10 years or more,
operate in some of the most critical industrial
settings: food processing plants, airports,
chemical refineries, and nuclear facilities.
The detailed vulnerabilities include buffer
overflows, which a sophisticated attacker could
exploit to run arbitrary code on SCADA systems,
notes Auriemma. Also, the Siemens’ Tecnomatix
FactoryLink 8.0.1.1473 software could be made
to download a file, raising the possibility of a remote code execution attack. And 7-Technologies’ Interactive Graphical SCADA System
9.00.00.11059 could be hit by arbitrary file execution. Other systems cited include Iconics’
Genesis32 and Genesis64 10.51 with 13 vulnerabilities, and Datac’s RealWin 2.1 with eight.
SCADA systems brought in $4.6 billion in revenue in 2009 and are expected to rise to nearly
$7 billion in 2016, according to Frost & Sullivan.
—Mathew J. Schwartz ([email protected])
DATABASE SECURITY
McAfee To Acquire Sentrigo
Intel-owned McAfee says it plans to acquire
database security software maker Sentrigo at
the same time it’s releasing a new database security architecture based heavily on Sentrigo’s
technology. Sentrigo can detect and profile all
databases used in a company, whitelist database applications, provide intrusion prevention, and track database changes.
McAfee is particularly effective in Oracle environments, says Martin Kuppinger, an analyst
at KuppingerCole, but it will need to improve
capabilities in other critical databases. The Sentrigo deal is expected to close in April.
The database security market is heating up.
IBM aquired Guardium and BigFix in the past
year, and Oracle recently released a database
firewall. Meantime, upstarts such as Imperva,
Bitkoo, and NetIQ are offering new options. The
activity is recognition that databases are more
vulnerable because of increasingly open Web
environments and advanced persistent threats.
—Mathew J. Schwartz ([email protected])
April 4, 2011 8
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[COVER STORY]
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Pressure of end user devices >>
The BrainYard >>
AT&T and T-Mobile fallout >>
Table of contents >>
Accept
Consumer Tech
The iPad’s rise reflects people’s willingness
to use IT in new ways. You need to channel this
excitement about technology, not try to block it.
By Michael Healey
informationweek.com
T
he 21-year-old intern didn’t mean to set off an email tornado. She simply asked the executive VP at a billion-dollar-a-year company why the e-commerce site didn’t work on
an iPhone. The executive VP is the type of non-IT exec your staff fears: tech junkie who
loves gadgets, from iPhone to Xbox to Xoom to Internet TV.
He didn’t have a good answer, especially since the company had been doing some major e-commerce upgrades over the last few years. You can guess what happened next—
April 4, 2011 9
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IT Must Create: 2011 Global CIO
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It explores how IT can drive product innovation, not just be a support function. You’ll find data on:
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CONSUMER TECH
[COVER STORY]
a frenzy of emails, phone calls, and quick meetings to
find out exactly where IT’s head was at for not iPhoneenabling the e-commerce site. A classic firestorm.
And a great opportunity for the company.
The truth is, the company’s IT leaders didn’t factor
mobile devices into their upgrade plan. That decision,
or nondecision, wasn’t based upon market research
or any data analysis; it just wasn’t on their radar. They
had bigger fish to fry and hadn’t really thought about
mobility. Not good.
But rather than come up with a half-baked fix, the
company’s IT leaders took a serious look at the opportunity. They started by analyzing existing customer buying patterns and interactions. Less than 1%
of visits came from mobile devices, they learned. But
that could be a chicken-and-egg problem; the company doesn’t have mobile visitors because the site
isn’t mobile-friendly. So the team dug deeper.
The company has an active email marketing program, so IT looked at what devices customers use to
open the email it sends. Less than 1% of the emails
were opened on mobile devices. Day of the week or
time of day didn’t matter. Customers just weren’t using mobile devices as part of their relationships with
the company.
This finding told IT it didn’t have to go into panic
mode, but it also created a benchmark data point to
watch—if the company sees more people opening
emails with mobile devices, a mobile site should
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informationweek.com
CONSUMER TECH
Next
move up the priority list. It also provided a
golden opportunity for the company’s IT
leaders to discuss customer data analytics
with the executive team. They were already
talking about the need for key performance
indicators beyond just sales figures. and this
led them to integrate stats such as Web activity, phone calls, and email volumes into analysis of customer behavior. Executives knew
there were some big gaps in the data warehouse and business intelligence tools they
needed to do that analysis, and this discussion
helped get that software funded.
What would your company have done?
Rush to implement a makeshift iPhone solution? Try to discount the intern as a kid who
doesn’t know the business? Play the “security
card” and walk away? Or would you have
stopped with the basic analytics that showed
low mobile usage and not dug any deeper?
Too many discussions around the consumerization of IT focus on how to defend
against it, or how to minimize the damage.
The consumerization of IT isn’t wrong; it isn’t
a threat. It’s an evolution that’s more about
the growth of technology in society, and not
particularly about your IT department. An in-
This is where IT just isn’t effective.
Too many IT professionals have
stopped talking to end users
about how they use technology
to do their jobs.
tern with an iPhone shouldn’t set the tech priorities for a business, but consumerization of
IT does mean you need to be open to great
tech ideas coming from employees throughout the company.
The reality is that some of the brightest tech
minds aren’t in IT anymore. They’re not just
“digital natives.” We now have users spanning
all age groups who understand, accept, and
[COVER STORY]
are proficient with a much wider range of
technologies than IT could ever shepherd.
These people not only have the potential to
bring in new ideas, but they can also become
the drivers of adoption and supporters of
budget increases.
IT Must Bring The Pieces Together
However, just because they’re smart and use
technology at home doesn’t make them IT
pros. Like the intern, they’re aware of the technology options that can help the business but
lack an understanding of how it all fits together.
This is where IT is falling down—big time. Too
many IT pros have stopped talking to end users
about how they use technology to do their
jobs. Sure, we still do road maps for governance
or finance groups, but when was the last time
your IT organization did any documentation,
training, or presentation for the entire company? When was the last time it solicited ideas
across the company on how to leverage tech-
April 4, 2011 11
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informationweek.com
CONSUMER TECH
[COVER STORY]
nology for competitive advantage? When was the last
time the security team laid out the actual security
threat, rather than just saying no?
Years ago, the end users just didn’t get it, and we
were the experts. Ten years ago, around 55% of U.S.
adults were online; now it’s around 80%. Usage of
technology has gone up in every age level and across
every category for the last decade, according to the
latest data from the Pew Research Center. Think of the
rise of iPads, iPhones, and other doodads as just the
market reacting to this growing comfort and understanding of what technology can do. And think of
yourself as having the same opportunity inside your
business. IT isn’t a department anymore; it pervades
the entire company.
But tapping into tech innovation from around the
company requires IT to give up some control and let
others in on decisions IT would rather own exclusively. Device selection, application interface design,
and new technology analysis are the three biggest
decisions that spring to mind. Opening these to a
broader discussion not only brings in fresh ideas, but
it also ensures that the entire company understands
and accepts the final selections.
The good news is this approach also means you get
to push other groups to take more responsibility for
their technology domains. HR will now need to own,
monitor, and enforce policies on social networking
and public comments about the company (once it
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CONSUMER TECH
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The BrainYard >>
gets around to writing those policies). Finance
can take over PCI compliance, since credit
card processing really is part of its function.
We’re not suggesting you begin a radical
reorganization but, rather, take a fresh look
at how you operate. Consumer tech is bringing more people closer to IT. You can defend,
block, or ignore it for now, but the next
[COVER STORY]
email tornado is going to come anyway.
Michael Healey is president of consulting firm Yeoman Technologies. Write to us at [email protected].
AT&T and T-Mobile fallout >>
Table of contents >>
Security Is No Excuse
You can’t stop consumer tech by claiming it’s not secure. Instead,
take this as an opportunity to advance security goals.
By Michael Davis
S
orry to break this to you, but if you’re
looking to use security as the reason
to keep consumer technologies out of
your company, you’ll have quite an uphill battle. Not because the security risks aren’t real
(they are), and not because you can guarantee
the data security on the devices (you can’t). It’s
because, as with virtualization, the business
benefits significantly outweigh the security
risks. As I heard one CIO say recently: “Consumerization is a parade. You can either get out
in front of it to stop it and get trampled, or you
can grab the baton and lead the parade.”
informationweek.com
Consumer devices are taking hold quickly
in enterprises in part because it’s easy to access company data without having to get IT
involved. Any employee with ActiveSync access to corporate email can get that email on
their personal smartphone or tablet in less
than a minute.
The first challenge in securing personal
smartphones and tablets is knowing when
those devices are being added and removed
from the company network, and knowing if
they adhere to company policy. Bob the engineer could connect with to his corporate email
with a BlackBerry today and a brand new Android phone tomorrow. The problem is your
company’s email server most likely can only
push a security policy to BlackBerry or Windows Mobile devices. Without proper management, you don’t even know that Bob is no
longer adhering to company policy.
Don’t despair. Securing the unknown starts
with a tried-and-true technique: default deny.
Through the use of mobile device management tools such as MobileIron, you can prevent devices your IT team hasn’t researched or
approved from connecting to company reApril 4, 2011 13
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CONSUMER TECH
Next
sources. Heck, you can even make it so that
any device needs your mobile application installed on it before it can receive a single corporate email. These mobile device management applications can prevent unwanted
applications from being installed, can force removal of certain apps, and can even remotely
wipe devices, even if your email platform
doesn’t support security policies on those devices. If a device is rooted or jail broken, you
can prevent it from connecting to your infrastructure altogether.
Oh, great, you’re thinking: This guy thinks
I’m going to default deny and then spend
my life managing a whitelist of every single
Android smartphone variation and every
firmware variation.
But that isn’t the point of this type of
whitelisting. The goal of preventing unauthorized devices from connecting isn’t about
figuring out if the device is capable and secure enough to connect to the company’s
network; it’s about identifying who is connecting that device to the network. Wouldn’t
you rather focus on whether the CFO, who
has critical earnings data in his email, is trying to connect email to his new tablet, instead of worrying whether iOS 4.2.1 is on the
approved list? I would. Focus your consumer
[COVER STORY]
Make Sure They’re Safe
How do you ensure security of end user devices that may contain company data?
End user education regarding device-specific security awareness
68%
Written policies in place governing use, no technology enforcement
62%
Technology enforcement of policies, such as NAC, remote wipe, and mandatory lock
50%
We rely on employees’ common sense
Require encryption of any data at rest on the device
48%
37%
Data: InformationWeek Analytics 2011 End User Device Management Survey of 551 business technology professionals, February 2011
IT security strategy around people and their
roles, not around products.
Focusing on people relates to another major
risk of these new devices: the speed at which
people replace them.
Think about how many employees are
changing or upgrading their smartphones—
some as often as twice a year. That can mean
the SD cards and internal memory stored on
their old phones are sitting at some store or
have been resold.
Mobile device management (MDM) software can prevent device churn from affecting
security by letting only one device connect
per user. When the new device is provisioned—since you have a default deny policy,
you’ll have to approve it—you can disable
and wipe the old device without having your
IT team physically touching the device. MDM
is gaining steam mostly because it lets companies offer employees a large range of devices, because most MDM technologies implement security policy using a custom-built
application that’s loaded on the device. You
no longer have to plead with Apple or Google
to implement a new security feature in the
next OS release. Most MDM vendors support
BlackBerry, iOS, Android, and Windows Mobile.
Those companies that can’t afford MDM
software need to look at data flows to these
devices and pick the points they can secure.
In our experience reviewing mobile risks, the
most critical and confidential data is stored
within the email app on the device, followed
April 4, 2011 14
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by the calendar, contact list, and any apps the
user has to write notes, such as Evernote. Start
with the basics: Force devices to be locked
when not in use, and encrypt the email stored
on the device if possible.
It’s unlikely that an attacker will access critical, confidential data in an enterprise application other than email, calendar, and contacts.
There are just too many variations of enterprise apps and devices to make it worth most
attackers’ time to write malicious code to get
at data from those other apps.
Value In What You Already Own
Your existing security technologies inside
the firewall also can help cope with consumer
tech, since the email, calendar, and contacts
sync with the corporate infrastructure. You can
use capabilities such as data loss prevention
and attachment monitoring to keep critical or
confidential data from reaching employees’
mobile email boxes. Still, that approach isn’t
informationweek.com
as effective as combining data loss prevention
with MDM.
When you start looking at the data flow,
you’ll see that most devices can’t access the
company’s file server or intranet without setting up VPN access. Most of these new smartphones and tablets do support VPNs out of
the box, but hopefully your VPN software can
prevent access from unauthorized devices. If
not, see if you can update the software so that
it performs a check before any device accesses the internal network, and then blocks
VPN access from devices that don’t meet security policies.
However, any time you block access, be
sure to also offer ways to let people securely
do their work with mobile devices. Otherwise, they’re more likely to just download
their own apps and work around you. For example, we recommend giving employees remote desktop access to a secure and lockeddown desktop via one of the many remote
[COVER STORY]
access apps, at the same time you’re blocking VPN access from mobile devices. This approach prevents files from being copied to
the device but lets the worker read and view
documents. If done properly, this approach
removes the risk of rogue apps and Trojan
horses because company data won’t be on
the device in the first place.
The companies we have worked with that
embrace consumer tech are getting a great
side benefit: centralization of security controls. If you take our remote access example,
this is actually an opportunity to provide
more robust controls on a virtual desktop,
while still giving employees what they want.
You get the ability to audit, monitor, and prevent data loss without having to worry about
the device the user is coming from—the perfect opportunity for a give and take. You give
mobile computing and anywhere access, in
exchange for more security controls. Remote
desktop client apps are available on all major
April 4, 2011 15
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The BrainYard >>
AT&T and T-Mobile fallout >>
device platforms, including Android, iOS, and
BlackBerry.
So get out and lead the parade. Doing so
will require some assessment of devices, software security tools, and MDM software. Do
these assessments even if you don’t have a
company policy governing consumer devices,
or if your policy is to flat-out ban them. In our
experience, when employees feel like IT is embracing change, they’re much more likely to
[COVER STORY]
work with you rather than against you.
Michael A. Davis is the CEO of Savid Technologies, a technology and security consulting firm based in Chicago. Write to
us at [email protected].
Table of contents >>
Support, Or Not?
There’s no consensus on whether to support employees using
consumer tech. But having no policy isn’t a strategy.
By Randy George
T
here’s a rule of thumb for most CIOs:
When the CEO makes a request, the
answer is YES. If you’re a systems administrator, therefore, you’re on the lookout for
your CIO saying YES to mobile device support,
because that means a big yellow school bus is
getting ready to run you over.
The consumer effect is turning companies’ IT
labs into something that resembles the return
bin at Best Buy, thanks to the variety of devices
they’re testing for business use. After CIOs make
the call on whether to allow consumer tech into
informationweek.com
their companies in the first place, based on risks,
costs, and benefits, the next big call is the glorious task of figuring out how to deploy, secure,
and manage the gadget of the week.
Should you even offer IT support to employees bringing in consumer tech? The answer is
all over the map, our survey of 551 business
technology pros finds. Only 22% say their companies draw a hard line of no support, but another 20% offer only very limited support.
About one-third don’t have any policy, so IT
helps where it can, while 23% encourage their
device mavens to contact tech support.
It’s not a simple decision. If these devices
were completely frivolous, you could make a
case for ignoring them. But if iPads become a
productivity boon to salespeople, then eventually you’ll need a scalable plan to support them.
Big companies for years flocked to the BlackBerry because its operating system is stable
and secure, and BlackBerry Enterprise Server
makes quick work of managing and deploying
a huge number of those devices. Sure, you
can’t play Angry Birds on your BlackBerry, but
April 4, 2011 16
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are company employees really supposed to
be playing games, watching movies, and listening to music on the job?
Not on the clock, perhaps, but many employees expect to use one device for personal
and professional tasks. Companies are starting
to meet them at least halfway. According to
our research, 67% of companies let employees get company email on their personal devices, and 48% let them connect those devices to the VPN.
So if you’ve accepted that you have little say
and even less control over what devices pop
onto your LAN, then you’re ahead of the
game. However, you still need a plan for supporting the wide range of consumer devices
headed your way. Prepare for some problems
in the following areas.
Messaging
Your support woes will begin with email,
and the amount of work will depend on the
device, the mobile OS, and the carrier. One of
the mistakes Google and the wireless carriers
made early on with Android was failing to
anticipate how many customers would want
to use the Droid device to access work email.
Early versions of Android OS had support for
Exchange ActiveSync that was shaky at best,
informationweek.com
[COVER STORY]
Standard ... Or Not
What’s the likelihood your company will standardize on these as primary end user technologies?
1 Won’t happen
Already have or will within six months 5
Laptop, desktop, or netbook with Windows 7
3.8 (Mean average)
BlackBerry
3.1
More focus on internal protocol or app standardization than end user device standardization
3.0
Virtual desktop infrastructure
2.7
iPhone
2.7
Android-based smartphone
2.5
Linux
2.4
iPad
2.3
Non-iPad tablet
Mac OS X
2.3
2.1
Data: InformationWeek Analytics 2011 End User Device Management Survey of 551 business technology professionals, February 2011
so systems admins (after letting some expletives fly) had to use third-party messaging
software such as Touchdown for Android.
Newer versions of Android have a rock-solid
ActiveSync client, but some Droid users
may still need third-party software to make
up for some of the controls they get from
Research In Motion for the BlackBerry.
The native ActiveSync client included with
Apple’s iOS works well. There are still plenty of
security issues (see story, p. 13), and some companies will turn to software such as Good Technology’s to add additional management benefits. But if you’re worried only about remotely
April 4, 2011 17
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wiping messaging data from the device, that’s
now available right from the Exchange Management Console. Just make sure you test it on
new devices that you need to support first.
Application Deployment
When it comes to supporting applications on
your mobile devices, setting expectations is
key. Before you give a shiny iPad 2 to top execs,
make sure they understand that a tablet can’t
do everything a laptop can, and they can’t go
to the App Store and install Microsoft Office.
However, at some point you’ll need to figure
out a way to serve the applications your company uses on every device. Today, that’s actually pretty easy thanks to application streaming technology.
Before the Citrix XenApp client, now available for many mobile operating systems, companies determined to deploy business applications on handheld devices had to build the
mobile app from scratch using development
tools from each manufacturer. Today, they can
stream corporate apps instantaneously to a
wide range of devices with very little effort
and cost.
With Citrix XenApp, for example, you can
launch a desktop session and run apps inside
that session. It looks and feels like a remote
desktop connection, but it works amazingly
well. Third-party management tools can push
out content and apps to a range of devices.
But get ready for some more work on the
support side, because as tablets and smartphones evolve, you’ll need to apply the same
desktop management tools and procedures
to them as you do to your fat clients. That
might mean supporting a management
client, or troubleshooting connectivity problems that prevent apps and content from being published. It might mean monitoring application usage and storage utilization on
mobile devices. Mobile devices aren’t (yet) as
prone to virus or malware infections as PCs
are, so managing consumer-oriented mobile
devices isn’t as onerous as managing a PC, but
it will add an additional burden nonetheless.
Provisioning And Management
You need a scalable way to manage the
mishmash of gadgets you’ll be supporting.
Neither Apple nor Google supplies a management server for devices based on iOS or Android. Microsoft offers a plug-in to System
Center for Windows Mobile management. As
a result, finding a way to somehow centrally
manage these devices is your problem.
For Apple and Google devices, third-party
[COVER STORY]
providers such as Zenprise, BoxTone, and AirWatch have stepped in with software for provisioning, deployment, management, reporting, and security tasks. You can use them to
keep an eye on mobile OS hot fixes, patches,
and updates. The reporting you’ll receive from
scalable mobile device management software
will be a huge help in keeping on top of who’s
running which mobile OS.
One last thing: If you have any interest in
getting out in front of stability and compatibility problems, make sure your support staff
has the devices they need to support in the
lab. There’s nothing more frustrating than not
being able to quickly support a device simply
because IT doesn’t own one.
Buying those devices costs money, but so
does most everything covered here, and CIOs
need to decide if the cost is worth what their
companies get from consumer IT. Companies
don’t have to provide support—as we note,
more than 40% offer none or little. But another
third leave IT to figure out how and when to
help employees. That’s not a policy. Consumer
IT is here to stay; CIOs need a strategy.
Randy George works in the professional sports industry and
has 15 years of experience in enterprise IT as a senior-level
systems analyst. Write to us at [email protected].
April 4, 2011 18
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Get This And
All Our Reports
Become an InformationWeek
Analytics subscriber and get our
full 2011 End User Device Survey.
This report includes 36 pages of
action-oriented analysis, packed
with 26 charts.
What you’ll find:
> Top barriers to widespread use
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Under
Pressure
Cloud, mobility, and consumerization are stressing corporate IT.
We asked 551 business technology pros how they plan to shine.
By Jonathan Feldman
hink you can hold the line against
the forces pressuring the corporate desktop as we
know it? Maybe, if you’re in an very security-conscious or heavily regulated company. But the better question is: Should you?
The InformationWeek Analytics 2011 End User
Device Management Survey of 551 business technology professionals shows that the device landscape has, in some ways, changed tremendously
since 2009, when we last surveyed our readership
on how they equip their companies’ employees.
The Android OS and tablets are now on everyone’s
radar, and virtual desktop infrastructure is making
gains. But some things have stubbornly remained
the same: 51% of us still equip the majority of our
users with fat desktops; laptops and smartphones
follow in popularity. We’re still trapped on a threeyear replacement cycle treadmill. And 24% are still
tied to expensive PC leasing arrangements.
In 2009, we predicted that native desktop applications would become less important, and we got
that one right. In our 2010 InformationWeek Analytics SaaS Survey, 47% of respondents were using
April 4, 2011 19
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[END USER DEVICES]
software as a service. In our April 2011 survey, 60% said
they were using applications in the cloud, up 13 points
in a year—an impressive jump for a technology category largely viewed with suspicion by IT.
Moreover, mobility continues to transform the nature of work. In 2009, 64% of respondents said screen
size was a major barrier to smartphone use, but in our
2011 survey just 51% worried about screen real estate.
We spoke with a large communications firm in North
Carolina that’s no longer issuing laptops to salespeople, because, frankly, speed trumps rich functionality.
The company’s portable computing platforms are
now built on the new generation of tablets.
Consumerization? Well, we said that it was coming
in our 2009 report and advised readers to prepare a
risk/benefit analysis that clearly states the dangers and
the costs of mitigation, as well as the upsides. As we discuss in our cover story, these include significantly lower
gear prices due to manufacturing volume and commoditization. Yeah, there’s going to be chaos, but there
also will be chances to shine. If you like the idea of experimenting with rapidly evolving, low-cost technologies and techniques, you’ve come to the right decade.
Take VDI: In 2009, just 18% had adopted or were considering it. Now, that number is up nine points, to 27%.
This year, we asked for the first time about tablet use,
and 15% say they see no barriers. We’ll bet that by next
year, that number also will jump significantly.
The ultimate purpose of IT is to innovate to improve
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[END USER DEVICES]
how business gets done—whether faster, cheaper, or
smarter. Yet IT pros tend to think that their main job
is to attain technology operational excellence. While
operational excellence is great, it tends to encourage
linear thinking: Keep doing X (say, change management) and you’ll get Y (uptime). Fail to do X exactly
the same way every time, and you might not get Y,
and that would be bad. Except, if you keep doing the
same thing all the time, by definition, there’s no innovation. And if you’re sticking with the same end user
device choices that you offered 10 or 15 years ago, let
us assure you that innovation just ain’t happening—
if for no other reason than you can’t afford it. Exhibit
A: 66% of respondents spend more than 10% of their
IT operating budgets on end user devices; 23% spend
more than 21%. In fact, the percentage of respondents who spend between 21% and 40% increased
by four points from 2009 to 2011.
Where’s the money to port your applications to
tablets, or invest in comprehensive mobile device
management? Here are some ways to free up funds:
>> Do you really need desktops? Terminals, for example, typically last six years or more, rather than the
three or four years you’ll get from PCs. Sure, smartphones and tablets will turn over faster, but they’re
also less pricey.
>> Start thinking “fleet management.” If a business has vehicles that hardly ever get driven, they
don’t get replaced. IT has spent years creating man-
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[END USER DEVICES]
Next
agement systems for desktops, but how many
of us run utilization reports on PCs? In our experience, not many.
>> Update your application plans. Our research shows that smartphones have already
outstripped cellphones (53% equip more
than 10% of employees), and they’re only
going to get less expensive and thus more
plentiful. Smart CIOs are already working to
port relevant business applications; in our
InformationWeek Analytics Application Mobilization Survey of 693 business technology
professionals, fully 50% of respondents say
they’re willing to develop their own mobile
applications. In fact, 25% say they’re ready to
develop mobile software that executes on the
device itself—in other words, a client that uses
the device’s native language.
>> Get away from PC leasing. Yes, it’s a
hard habit to break. But let’s be honest: We do
it because we want to protect our spending
on PCs. More than once we’ve heard, “I’ve got
Do Your Employees Have Better
Technology At Home?
Don’t know
5%
Yes
33%
No
31%
31%
It’s about the same
Data: InformationWeek Analytics 2011 End User Device Management
Survey of 551 business technology professionals, February 2011
a contract; we can’t stop now.” Seriously? How
about focusing more on agility than protecting your slice of the pie? Seven percent of respondents say they lease because operating
funds are more plentiful than capital dollars—
but a buck spent is a buck spent. If there’s
value in replacing 25% of your PCs every year,
your company will continue to fund it. If there
isn’t value, it needs to stop.
One way to quantify value is via chargebacks—or, if not formal chargebacks, at least
what’s referred to as “showback.” In our survey, we asked about both and came away
with an interesting theory: Maybe one reason
end user device expenditures as a percentage
of IT budgets haven’t gone down since 2009
is that over two-thirds of companies neither
charge back nor engage in cost allocation.
That means there’s no incentive to reduce, or
control in any way, the number of end user
devices being deployed.
In 2009, we asked respondents to rate the
likelihood they’d adopt the following policy by
2011: “Assuming an enterprise desktop suite,
including enterprise applications, can be provided as a virtual machine, Web-based desktop, or other network-delivered package, most
employees will be given a stipend to purchase
April 4, 2011 22
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whatever device they desire. “ Just 17% said
they’d be likely to go that route. But this year,
just 35% define their general approach to consumer-centric new technology as strict or restrictive. Now, whether or not you buy the
BYOD (bring your own device) model, there
are always costs involved in adding endpoints
to a network, whether it’s wireless access point
growth or additional application licenses. Fail
to reflect these costs, and business units will
add devices without thought. Interestingly, for
those respondents saying they do cost allocations or chargebacks, we found that most of
the time, expensive items like support staff,
desktop management, network ports, and cost
of server access aren’t taken into account.
Could it be that IT is scared of appearing too
expensive?
We also found that respondents are half as
likely to treat end user device replacement
simply as overhead in 2011 (24%) as in 2009,
when 57% answered that way. Overall, we see
unexplained overhead in IT becoming less
and less acceptable. That’s a good thing—
we’re big fans of IT transparency and would
ask those who disagree: Who exactly does
that overhead get charged to? Surely not IT.
Our mission is to provide expertise and services for the company. We don’t need a pile of
How Important Are These Device Capabilities?
1 Not important
Must have 5
High-speed Wi-Fi
“Fat client” (large screen, fast processor, keyboard, large memory)
4.1
3.3
Data encryption (hard drive, USB drive access control, mobile device data store encryption)
3.3
Lightweight or highly mobile
Mobile (3G, LTE, EV-DO)
3.3
3.2
Data: InformationWeek Analytics End User Device Management Survey of 551 business technology professionals, February 2011
PCs to do that. Maybe the devices are issued
according to IT’s strategy, but business units
are the ones that require the PCs to process
invoices, create airplane designs, and so on.
So, while accountability can be uncomfortable, the truth can set us free—or at least provide impetus for change.
Putting the cost for PCs as “IT overhead” is
totally missing the point, but even stranger is
that 39% of our respondents don’t calculate
ROI at all. The excuse we generally hear is, if the
business units are the ones using the PCs,
they’re really the only people who would understand how to calculate the return on investment. Our answer: Then you need to work
with business units to understand how the de-
vices are being used, how that use compares
with alternative scenarios like VDI or SaaS, and
how it translates into real cash flows.
IT isn’t large and in charge anymore, but we
still have influence. Cloud and consumerization have (hopefully) taught us that business
technology decisions are negotiations rather
than edicts. The end user device paradigm
shift offers significant opportunities for business technology innovation, but you’ll miss
out if you’re purely focusing on span of control and defensive IT.
Jonathan Feldman serves as the director of information technology services for a city in North Carolina. Write to us at
[email protected].
April 4, 2011 23
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IN THIS ISSUE
Accept consumer tech >>
Pressure of end user devices >>
The BrainYard >>
AT&T and T-Mobile fallout >>
Table of contents >>
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April 4, 2011 25