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New Cloud Security Technology Can Save $20 Billion

 cloud security 20 billion New Cloud Security Technology Can Save $20 BillionIt sounds like a sensational claim, but it is actually a low-ball number.

The multi-billion-dollar problem started when the stories broke about the NSA surveillance scandal, as revealed by Snowden.  Then it escalated when there were news reports that the NSA and FBI demanded encryption keys from web firms.  All this sensational journalism led to a real lack of trust in the American cloud computing market.  How can companies (regardless of where they are based) trust American firms when it seems like the American government can get their hands on anything – by using the law to demand online providers hand over encryption keys?

The Information Technology and Innovation Foundation estimates that the US cloud security technology industry stands to lose $22 to $35 billion over the next three years as a result of the recent revelations about the NSA’s electronic surveillance program.

The questions on every company’s mind these days: how can I keep my cloud data secure?

The answer lies not in data encryption (after all, what difference does it make how you encrypt if your encryption keys are within reach?), but in how your encryption keys are handled.

Enter split key management and homomorphic key encryption.

Put simply, split-key management allows you to encrypt your data securely, then split encryption keys into 2 (or more) parts, with both parts needed to decrypt your data. As a metaphor, think of a safety deposit in a bank – it ahs two keys, one for the customer and one held by the banker. Same here, but in the cloud, using some advanced mathematics.

Homomorphic key encryption, which enables mathematical operations to be performed on encrypted data, is then used to keep encryption keys fully encrypted even when they are in use.

Revolutionary, indeed.

How does this cloud security technology help solve the problem?

With split key management and homomorphic key encryption, cloud providers no longer hold or manage encryption keys for their customers.  If the government (or a hacker or a malevolent cloud provider’s employee) try to take keys from an online provider, they will find the key isn’t there. The online provider simply cannot hand it over, since they do not have it – only a partial and encrypted representation of the key is there.

By utilizing this technology, companies don’t have to “trust” cloud providers. Only the data owner controls access no matter which cloud provider they choose and regardless of the government’s programs or the hackers’ schemes.

To summarize: some customers have lost faith in American cloud providers.  This exodus of cloud computing dollars from the US-controlled cloud marketplace is estimated to cost up to $35 billion.  By using split-key management and homomorphic key encryption, American firms do not need to be doubted.  This new technology ensures that only the data owner controls the decryption of his data.

Read more about it on this key management white paper.

The post New Cloud Security Technology Can Save $20 Billion appeared first on Porticor Cloud Security.

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More Stories By Gilad Parann-Nissany

Gilad Parann-Nissany, Founder and CEO at Porticor is a pioneer of Cloud Computing. He has built SaaS Clouds for medium and small enterprises at SAP (CTO Small Business); contributing to several SAP products and reaching more than 8 million users. Recently he has created a consumer Cloud at G.ho.st - a cloud operating system that delighted hundreds of thousands of users while providing browser-based and mobile access to data, people and a variety of cloud-based applications. He is now CEO of Porticor, a leader in Virtual Privacy and Cloud Security.