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[AD] Issue dated - 24th June 2002 -  CURRENT I SSUE INDIA NEWS SOFTWARE NEXT COMPANY WATCH STOCK FILE OPINIONS NETWORKING SPECIAL PRODUCTS EVENTS EC SERVICES ARCHIVES/ SEARCH IT APPOINTMENTS EMERGING CAREERS WRITE TO US SUBSCRIBE/RENEW CUSTOMER SERVICE ADVERTISE ABOUT US Network Sites  IT People  Network Magazine  Business Traveller  Exp. Hotelier & Caterer  Exp. Travel & Tourism  Exp. Backwaters  Exp. Pharma Pulse  Exp. Healthcare Mgmt.  Express Textile Group Sites  ExpressIndia  Indian Express  Financial Express  Front Page > Networking Special > Story Print this Page| Email this page Network security: Going beyond firewalls  A few years ago, security for Indian enterprises meant putting a firewall in place. Today, with the Internet impacting the banking and financial services industry (BFSI) and the manufacturing segment, companies in these areas are looking beyond mere firewalls.  Pankaj Mishra finds out that Indian enterprises are adopting more robust and sophisticated means of network security The overall size of the Indian security market is pegged at around Rs 200 crore, 0.8 percent of the total IT spending in the country (Rs 26,000 crore). Growing at 35 percent annually, the Indian market is 5-10 percent ahead of APAC growth rates. However, the market is tiny when compared with overall IT spend and analysts opine that information security should be 5-10 percent of this number. Indian enterprises have come a long way in realising the implications of lacking well defined network security policies. According to a recent KPMG survey, the total cost of computer crimes over the last five years was $10 billion globally and India ranks in the top five li st when it comes to e-commerce security br eaches. “Companies in the country have been focusing on firewalls till now. In terms of technology, the Indian market is still in its infancy, enterprises are not very receptive to advanced t echnologies because they are expensive,” says Purushottam Goel, architect, Aztec Software. However, he adds that the MNC subsidiaries in India are better when it comes to advanced security. Though most of Indian enterprises are still in the early stages of implementing security when compared to their global counterparts, the Indian banking and financial services industry (BFSI) is spearheading the move to evolved security policies. The BFS sector is very receptive when it comes to dr afting an end-to-end security solution because any intrusion or downtime can result in immense loss here. Moreover, the Reserve Bank of India has mandated that banks have to document a security policy and conduct audits at regular intervals. “The significance of IS security in the financial services sector is reflected by the fact that 93 percent of respondents have ranked it as high priority. Comprehensive security policy documentation exists for 67 percent of respondents,” says a report by CII-PwC. 81 percent of financial services enterprises in India are looking at strengthening network security. The Indian network security market consists of vendors like Cisco, Symantec, Nortel and system integrators (SIs) or consultants like Microland, KPMG and Bangalore Labs. Of the Rs 200 crore security market, services and consultancy account for Rs 100 crore. With the advent of the Internet, Indian enterprises became aware of network security during 1997-98. That was the time when enterprises were getting exposed to the Web. “That can be described as phase one of Indian network security. There was a gradual shift to internal security, apart from basic security against external threats. Some 18 According to Cisco’s ramana, enterprises have gone beyond firewall protection and are now deploying intrusion detection systems Page 1 of 3 Networ k security: Going beyond firewalls - Networ king Special- Express Computer India 07-Jan-08 http://www.expresscomputeronline.com/20020624/network5.shtml

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months later, firewalls and virus scanning solutions started creeping inand CIOs started looking out for more comprehensive solutions,” saysGanesan K S, CTO and VP-engineering, Microland. The awarenessand need for a comprehensive security policy started building up onlyafter companies incurred a loss on account of networks beingcompromised. According to a survey conducted by CII and PwC,

around 8 percent of security breaches in India caused a loss in excess of Rs 50,000, anexcess of Rs 5,00,000 in each case in 3 percent of cases. However, the survey admits thatIndian enterprises do not prefer to quantify business losses resulting from securitybreaches. This shows a lack of maturity.

“Indian enterprises have now gone beyond primitive firewall protection. Intrusiondetection systems are now being developed and deployed. The increased number of seminars and workshops by vendors is creating awareness,” says S V Ramana, VP,System Engineering, Cisco. The advent of Public Key Infrastructure (PKI) has alsotriggered the need for securing networks. The PwC-CII survey states that 74 percent(respondents) of Indian businesses increased their security budgets while only 6 percentdecreased their security spend in 2000-2001. The survey also adds that 63 percent of corporates have allocated less than Rs 25,00,000 for security, while 5 percent allocated

over Rs 5 crore for strengthening IT security.

The survey also talks about barriers to security amongst enterprises. Capital expenses,complexity of technology, lack of training, time and qualified staff, the rapid pace of change, poorly defined policies, lack of mature tools, group co-operation and managementsupport and labour expenses are the barriers discovered by PwC and CII. “49 percent of Indian corporates attribute capital expense as a barrier to the effective deployment of secure systems, as against 55 percent globally. During 2001, technology related concernslike pace of change of technology, complexity of technology and lack of trainedmanpower were the primary barriers,” says the report.

Ganesan of Microland says the market is now entering into what he calls the ‘third phase’of its lifecycle. “Indian CIOs are now looking at outsourcing security managementprocesses like vulnerability management services. 24/7 monitoring and support is whatthey are seeking.” Microland is offering such services to Blue Dart. “We have a team of 50 security consultants and 22 security operations engineers who are certified by variousproduct vendors like Cisco. In India, we were the first to launch managed securityservices and vulnerability management services,” says Vikram Chandna, productmanager, Microland.

“68 percent of respondents accord a high priority to security, but it is surprising to notethat only 41 percent have a comprehensive security policy document,” says the PwC-CIIsurvey. Risk analysis, classification of business data sets, end user awareness, procedurefor partners and monitoring standards are some of the missing components in the policydocuments of Indian businesses.

Most Indian enterprises still don’t calculate Return on Investment (RoI) when it comes to

investing in network security. Access control, encryption, firewalls, intrusion detectionsystems (IDS), vulnerability assessment tools and virtual private networks (VPN) aresome of the methods being used. Interestingly, around 12 percent of corporates are usingPublic Key Infrastructure (PKI) technologies. “Though PKI will become very critical innon-physical banking, problems in implementing PKI still remain the biggest challenge,”says Milind V Dikshit, head, technology solutions and security, Bangalore Labs.

The Indian manufacturing segment remains ‘not very receptive’ to security. According tothe PwC-CII survey, only 56 percent of them have given high priority to security asagainst the overall Indian average of 68 percent. Surprisingly, around 70 percent of themare using complex and advanced IT applications like ERP and CRM.

Microland's ganesan 

feels that companiesare entering a phase

where they are lookingat outsourcing theirsecurity managementprocesses

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Analysts believe that the use of VPNs for end-to-end authentication and encryption isrising in India. One of the important trends set to emerge in 2002 is the outsourcing of firewalls and intrusion detection monitoring by Indian enterprises. They are also planningto enhance network security by taking advantage of OS and application security andconducting security audits. Other tools like smart cards and biometrics are also expectedto gain ground in 2002. Firewalls are expected to come with authentication services andcontent filtering facilities as vendors seek to add value.

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