Osterman Research

On Messing Up…and Bouncing Back

BlackBerry used to be the dominant mobile messaging platform in the enterprise, but (by their own admission) they become arrogant as the market leader in the absence of serious competition.  Then along came the iPhone and Android on a variety of innovative devices – and several hundred thousand cool applications for both platforms.  Then came IT’s decision to more or less capitulate and let consumers dictate the mobile environment in their organizations.  The result was that the BlackBerry became relegated to a distant third place and it lost mindshare, no better indication of which was its stock price that fell roughly 95% in a remarkably short time.  The net result was that not only would fewer users opt for BlackBerry devices, but IT would also reduce support for BlackBerry Enterprise Server (BES) – our own research shows that anticipated support for BES will be lower by early 2014 than it is today.

Clearly, RIM-then/BlackBerry-now messed things up quite seriously and squandered its enviable position as leader of a large and rapidly growing market.  Arguably, they did so at about the worst possible time – just as mobile was becoming the dominant computing platform for millions of users.  Compounding the problem, the company recognized their shortcomings, but then was late in delivering their next-generation handset and its enterprise platform.

However, BlackBerry seems to have righted what some might consider to be a sinking ship:

  • They introduced an advanced, elegantly designed, touch-only device, the Z10.
  • They announced a more traditionally designed, but equally advanced device, the Q10 that has a physical keyboard.
  • They introduced BlackBerry Enterprise Service 10 that supports not only BlackBerry devices, but also Android and iOS.
  • The company also just announced a lower cost device, the Q5, aimed at increasing the company’s penetration in emerging markets.
  • BlackBerry Balance provides one of the better platforms for segregating and managing company-owned and personal data on employee-owned devices.
  • The company will be making some very interesting announcements over the next several months that currently are under NDA.
  • The leadership team was replaced last year and seems to have given the company some traction once again.

Has BlackBerry turned the corner?  I’m convinced the answer is yes, but the company still has a significant amount of work ahead of it convincing others of that.  As noted above, our research shows that support for BES is still declining, at least in terms of the number of companies that plan to support it by next year.  I think this reflects an outdated perception by many IT decision makers that BlackBerry is still on the decline from a feature and function standpoint – in essence, many decision makers are basing their decisions on old information that BlackBerry will need to continue working hard to wean out of the IT mindset.

Similarly, many users don’t think that BlackBerry devices are nearly as cool as the iPhone 5 or many Android-based devices like the Nexus 4 or Galaxy S4.  Again, most of these people have probably not played with the Z10 and so think of “the BlackBerry” as the somewhat stodgy workhorse that it used to be – another hurdle that BlackBerry will have to overcome.  Complicating the problem is that most don’t consider BlackBerry a leader in the mobile space – a report we will publish within the next two weeks discusses the results of an in-depth survey we conducted on the mobile market in North America.  That survey shows that while 46% of IT decision makers and influencers believe that Apple is “definitely a leader” in the mobile messaging space, only 17% think this about BlackBerry; even Microsoft received a higher rating.

BlackBerry will have to continue working hard to regain its lost market share in the mid-market and enterprise space in North America, despite the fact that it currently dominates some markets, such as Latin America and South Africa.  However, I believe the company will be able to take back much of their share because they have several compelling arguments that should resonate nicely with IT decision makers: a solid, multi-platform mobile management system; new handsets that will appeal to many users; robust technology for addressing the BYOD issue; the company’s venerable security model that its competitors cannot match; and its ability to offer all of these capabilities from a single vendor.  The company’s serious missteps of the past – and their new management’s response to them – may end up being the best thing that could have happened to the company.

Some Thoughts from EMC World

I spent some time at EMC World last week in Las Vegas.  As always, it was time well spent in informative sessions and in individual meetings – and, gauging by the difficulty of traversing the hallways between sessions and after keynotes, the show was very well attended.

Although my bent in visiting a show like this is normally geared more toward security, archiving, encryption and other topics related to what Osterman Research does, two of the major themes I took from the conference were the growing importance of Big Data in the context of improving security; as well as the need to view backup, archiving and disaster recovery along a continuum of data and information protection instead of individual point solutions.

With regard to the issue of Big Data and security, I believe that EMC and many others are correct in viewing Big Data as an important way to significantly improve the security of systems, networks, messaging and virtually every application on which we rely to get work done.  The issue of Big Data in a security context is a simple one: analyzing vast amounts of data from email, social media posts, transactions, various applications, location-generating systems and other data sources with the goal of determining when systems have been breached or are about to be.  The goal is less about preventing the ingress of bad guys and malicious content and more about analyzing the sometimes extremely subtle anomalies that occur when they do.  This is not to say that intrusion prevention or blocking content is irrelevant or futile, but rather that Big Data can be useful in keeping bad guys out, but more useful once they’re inside.

A good analogy that one speaker used – and that I am extending here – is that of the human body: your skin and other systems were designed to prevent intrusions of bacteria, viruses and other nasty stuff and it keeps most of this unwanted content out quite well.  However, when the inevitable intrusion occurs through a cut or some other breakdown of this intrusion prevention system, the immune system detects the sometimes very subtle anomaly and immediately goes to work in identifying, finding, encapsulating and destroying the intruding content.  In a sense, Big Data can act as the information source the enables the immune system in a corporate network or a cloud-based system, for example.

The second major theme – viewing backup, archiving and disaster recovery holistically – is an issue that I think will get more play simply because it make so much sense.  Many decision makers tend to view these systems as point solutions with fundamentally different goals and often use different vendors to implement each capability.  While there’s nothing at all wrong with that approach, it might more sense in some environments to view these solutions along the continuum of data protection, information protection and business protection.  Yes, backups are designed to protect snapshots of data to restore servers; archiving systems are designed to protect information for purposes of e-discovery, regulatory compliance or end-user self-service; and disaster recovery systems are designed to protect data and information from disruptions large and small.  However, all of these solutions are designed to protect an organization and its data along a continuum of sorts, and so it makes sense to manage them as parts of a whole instead of islands unto themselves.

The Evolution of Cloud Data Management

We have contended for some time that many organizations will migrate to a hybrid of on-premises and cloud infrastructure for many of their key systems, such as email, archiving, security, etc. While migrating completely to the cloud for things like archiving is quite feasible and the right decision for many companies, some decision makers want to maintain their data behind the corporate firewall. Reasons might include a fundamental mistrust of leaving sensitive corporate data in the hands of a third-party cloud provider, or it might be as simple as not wanting to invest in higher bandwidth pipes to move large amounts of data to and from the cloud.

As an example of this, Sherpa Software has recently introduced Attender Online. Attender Online is a cloud-based data management system that allows an organization to manage their Electronically Stored Information (ESI) via a cloud interface while leaving it in place on-premise. Attender Online is designed to meet a number of requirements, including storage management for both network file shares and desktop hard drives; ESI management on desktop computers, Exchange servers and file servers; and email content management in Exchange environments.

Attender Online allows management of on-premises content completely from a Web browser and permits administrators to create a customized, Windows 8-like interface to manage various content sources. The system maintains logs of policy behavior so that a complete audit trail is maintained.  Attender Online integrates with Active Directory and allows management of ESI content sources by associating them with individual computers or individuals within the organization. A key capability of the system is that allows organizations to actively delete content that is no longer required, supporting defensible deletion policies—a critical issue for many organizations.

Although Attender Online is a useful solution and combines the ease of cloud management with on-premises data management, it is not without its limitations. It manages email only in Microsoft Exchange environments and .pst files, and it works only with Windows desktops. The latter is perhaps the more important limitation for many organizations given the large number of them that have mixed Windows and Mac desktops and laptops.

Even with some limitations, Attender Online is a useful capability that decision makers should seriously investigate.

The Workforce of the Future: Yes, You Should Be Worried

A good friend in Washington recently posted this on Facebook:

“I follow on Instagram almost all of my 6th grade youth group girls and I am continually amazed at how many of them have public profiles and post screen shots of their personal information. I wonder how many parents actually know what pictures they’re posting and if they really care…”

This is troubling on a couple of levels. First, many social media users tend to overshare their personal information and so are more susceptible to online fraud like email phishing. They’re opening themselves to a potentially higher likelihood of home burglary when they post near real-time photos of themselves on vacation or otherwise away from home. Young people, in particular, might be opening themselves to the worst kind of child abuse—a British newspaper did a search on Twitter and within two minutes found 20 users who expressed interest in “under-age images and child abuse”; within two hours they found 200.

Young people are typically the worst offenders because they care less about the privacy of their personal information. Lest you think I’m just some old guy making sweeping generalizations about young people, a new survey from the USC Annenberg Center for the Digital Future and Bovitz, Inc. found that while 77% of those 35 years of age or older agreed with the statement, “No one should ever be allowed to have access to my personal data or Web behavior,” only 70% of younger people agreed. I anticipate that as people grow up in an age of continual connectedness via social media, the proportion that care about personal privacy will continue to shrink.

However, employers need to be concerned about this, as well, since these are the people that will be your employees in the years to come. We hear on a regular basis how businesses must adapt their communication practices to young people entering the workforce—they need to make social media easily accessible, permit the use of personally owned smartphones and tablets, and generally migrate away from an email-centric mode of communication and collaboration. While that’s true, business decision makers also need to be concerned about the very real potential for oversharing employees to overshare corporate content. While much of this might be accidental, an employee with a predispostion toward oversharing personally is likely to do so with corporate information, as well.

It’s important to note that by oversharing, I’m not talking about sending things like trade secrets, confidential financial reports, or other really sensitive information through social media or other channels. While that can and does happen, quite often the oversharing can be more subtle. For example, an employee of a consumer products company who continually posts about business travel to Minneapolis or Atlanta or Issaquah might be giving clues about an upcoming retail deal with Target or Home Depot or Costco—information that could be valuable to competitors, but that was shared with no intention of revealing confidential information.

What should businesses do? First and foremost, establish policies focused on how devices and applications should be used—lots of organizations don’t have these policies, and they should. Second, implement a data leak prevention solution that will monitor all of the channels over which employees communicate, including email, social media, instant messaging, etc. The goal of the DLP solution should be to monitor communications and take appropriate action, which might include encrypting some content, blocking some messages, reminding senders about corporate policies before the send actually occurs, or routing some messages to a supervisor or compliance officer for further review.

Entering a new age of communication and collaboration with employees who might be less concerned about privacy means that decision makers need to be proactive in order to mitigate risk to the extent they can.

The Encryption Disconnect

Most content is not sent or stored with any sort of encryption. For example, attachments sent through email, files sent using many file transfer solutions, form data sent over the Internet, content stored in repositories like file servers, desktop computers, laptop computers, tablets, smartphones, removable storage devices like USB sticks, etc., are not sent or stored with encryption. The result is that a wide range of sensitive or confidential data is left vulnerable to interception by unauthorized parties, sometimes with very damaging results.

Decision makers are clearly not happy with the current state of their email policies in the context of encryption. For example, Osterman Research found in a study published in August 2012 that only 38% of mid-sized and large organizations find that their policies for encryption of confidential email and attachments meet their needs. Moreover, only about one-half of organizations have automated systems in place to scan outbound content for policy violations, sensitive information, credit card numbers, and information that should be encrypted. The predominant actions with outbound email at such organizations is to automatically apply policy requirements (such as encryption or distribution through a secure channel), or to remind users of corporate policies through a pop-up message.

Making the encryption problem worse—dramatically in some cases—is the proliferation of cloud-based file synchronization and storage tools that are widely used in organizations of all sizes. For example, Dropbox is widely employed and currently has about 55 million users worldwide. An Osterman Research survey conducted in the first quarter of 2013 found that Dropbox is used extensively in organizations of all sizes, often without IT’s blessing or even their knowledge.

Dealing with encrypted messages in an end-to-end encryption solution presents a dilemma for content monitoring: allow the message to flow through unchanged thus respecting the encryption, or decrypt messages to check for policy and content violations. If the message is allowed to flow through unchanged, but the message is in violation of policy and compliance rules, this presents a problem for organizations. Encryption is being used to hide violations, and that creates a risk. On the other hand, if messages are authentically encrypted due to following policy and compliance rules for confidential or sensitive information, unnecessarily decrypting those messages creates the risk that the decrypted message will be accessible to people who should not have access to it. On balance, Osterman Research believes the most appropriate course of action is to decrypt inbound messages to check for policy violations.

On the other hand, integrated gateway encryption solutions take this issue into account as a core part of their design. For example, inbound messages found to be encrypted with an “approved” encryption solution are decrypted in memory at the gateway, scanned for various policies (which may include spam, malware and compliance policies), and sent in encrypted form to the appropriate destination based on policy. By default, both the gateway and the intended recipient have access to the unencrypted contents of the message and its attachments. In such a system, inbound messages encrypted with other forms of encryption (which the gateway cannot decrypt and analyze), are typically handled by an “acceptable encryption policy.” Typically, these policies specify some set of trusted recipients that may be allowed to receive arbitrary encrypted messages, but these messages will be quarantined if directed to others.

For more information on these issues and our recommendations for dealing with them, please see the white paper we published recently, Why Securing Communications and Content 
is a Critical Best Practice.