Securing Identities in the Cloud: Simple Methods, Satisfied Customers VASCO Data Security

Transcription

1 Securing Identities in the Cloud: Simple Methods, Satisfied Customers Michael O Malley VP Marketing November 2013

2 Increasing need to protect our online activities End users ASP s Confidential data leakage Cyber bullying Gold farming Identity theft Lost revenues Tarnished brand Low data integrity Subscriber churn 2012: Hackers able to access users personal data for use in phishing attacks 2012: Hacker able to access billing information and other accounts 2012: Exposed 6 million user account passwords 2013: Hackers posted fake news about bombing of the White House, Dow Jones dropped 100 points 2013: 10 million people watch Netflix without paying for it by sharing passwords 2013: Hackers able to access customer names, credit/debit cards and expiration dates of 2.9 million customers, and up to 38 million ID s and passwords 2

3 Agenda Applications and pain points Cloud services Subscription services Gaming Quick VASCO background Sample business case Sample competitive comparison 3

4 Cloud Security Concerns Losing files Files not stored securely Loss of control Embarrassing files made public Computer viruses Source: Halon 2013 Security Survey 4

5 Cloud Providers Are Expected to Lead on Security Within five years, cloud security will become one of the primary drivers for adopting cloud computing. The reason for a shift of security from obstacle to driver is that Cloud Service Providers (CSPs) are expected to invest far more in the development of their security infrastructure and expertise than any typical enterprise Ernst and Young: Cloud Computing Issues and Impacts,

6 Subscription Sharing: New York Times Analysis BuzzFeed: It is representative of a rising generation of young people who 1) Like watching shows Online and 2) Cannot fathom paying for them 6

7 Subscription Account Sharing Impacts Eliminate revenue leakage from account sharing Account sharing is perceived as a back-end security problem. But for companies that rely on online subscriptions as a primary revenue stream, account sharing can mean lost income What we found was that about 33 percent of the accounts on the network were being shared Secure personal information Preserve data integrity for advertising/marketing "If you're running The Wall Street Journal or World of Warcraft, and you've got multiple people sharing a single subscription, you're losing customers." Source: AdmitOne 7

8 Tier 1 ASP Example Company Profile One of the world's largest insight, information and consultancy networks. By connecting its specialist companies, the group aims to become the pre-eminent provider of compelling insights for the global business community. Needs Protect online assets/revenues and control their IP Auditable and traceable accounts for Risk and Compliance Dept. No new overhead or code modification of existing web portals OpEx based purchases to tie to subscription services and improve cash flow Everything IT must move to the cloud In need of a cloud based two-factor authentication platform 8

9 Current state of Gaming Online gaming industry growing significantly....however ARPU is steadily declining $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $ Online Gaming Market Share by Geography (USD $B) ROW US Publishers need assistance to stabilize ARPU by providing additional value to paying customers Source: SuperData Research and Newzoo Games 9

10 US Gaming Demographics 117m Online Gamers in the US Affinity to online security Typical US Gamer Age Income $35k-$75k 60% male 79% college degree 1. Above average income and education 2. Tech savvy 3. Understand the value of security Sources: *Nielsen Entertainment's third annual Active Gamer Benchmark Study; ** StatGrab; ***SuperData Research/Newzoo 10

11 Gaming companies must capitalize on hits Example: Diablo 3 Fastest selling PC game to date Broke Amazon record for most preorders Sold 3.5m copies on the 1 st day Sold 6m copies in 1 st week Within 1 week, it became the most played game in Korea, 39% of Korean gamers logging in daily Securing new game revenue is a natural fit 11

12 Gaming ASP Pain Points Account sharing Increase revenues and subscriptions with stronger authentication New releases are very competitive, must capitalize on hits Account bullying Hackers stealing credentials to tamper with account holders Gold farming Dissatisfaction lowers switching costs and increases churn Less of an issue with advent of free to play and ability to buy/sell with real dollars User islands Create communities of users to increase stickiness and monetize free to play Cross sell gaming assets One credential to access all game sites MMO players are very dedicated gamers. As the majority already plays games on other screens, it will be interesting to see if publishers succeed in extending and monetizing their MMO experience across all screens. Peter Warman, CEO of Newzoo 12

13 Secure Portal to Web Apps App1 App2 Numerous Logins Passwords App3 QR code scan App4 Cloud Subscribers IPT OTP App5 App6 Complex Simple for for users, savings headache for IT for helpdesk IT helpdesk 13 13

14 Our Philosophy Security Ease Cost Find the optimal balance for ASPs and consumers Federal Reserve Briefing 14

15 VASCO Heritage in Banking Security 15

16 Cost Effective Cloud Cost per user Opex Model Pay as you grow Users or Authentications 16

17 MYDIGIPASS.COM Subscription Business Case ASP with 1M users per month Increased Subscription Assumptions: 20,000,000 Per a Tier 1 subscription account, 2FA will increase revenues by 10% in YR 1 increasing to 20% by YR 5 $100 annual subscription revenue $10 per user 2FA cost 16,000,000 12,000,000 Incremental revenues Incremental costs 8,000,000 4,000,000 - YR 1 YR 2 YR 3 YR 4 YR 5 MDP.com would return $17.5M net profit over 5 years. 17

18 Easily Deployed Two Factor Authentication 18

19 Spying on SMS Home Grown SMS Your unique code is w2z356 Your unique code is w2z356 Secure out of band QR code transmission Unsecure text message can be intercepted using off the shelf software 19

20 Top Things to Remember for ASP s Are you creating a secure cloud community? Application Delivery Is account vulnerability limiting your revenue growth? Losing potential customers High cost of fixing account hacking events Causing customer churn Could strong two-factor authentication in the cloud meet your needs? Speedy ROI Easy to manage / Easy for users More secure than SMS 20

21 For More Information Visit us at For Application Service Providers For End Users 21