It can be hard to justify business spending when web sites are often viewed as low-value assets. The fact that so much Internet content and services are free, and you can buy a web site for less than the cost of a colour TV licence in the UK reinforces this idea in many small and medium enterprises (SMEs).

Much of my work is related to dealing with security incidents, such as web sites which have been hacked, or where an organisation is having security requirements imposed by their own customers and clients. Often these activities are undertaken late in the project and are therefore less effective, and more costly, than they might need to be.

I adhere to the principle "prevention is better than cure", and encourage the early consideration of security and privacy matters—just like any other business process requirement. It was encouraging to read the useful guidance and pointers on Business Cases For Software Security Initiatives but for many organisations, the issues are too complex and they don't have any supporting data. For those I recommend, as a starting point, concentrating on four types of issue:

1. mandatory compliance issues (e.g. legislative and contractual)
2. problems which can assist theft or fraud
3. security events which would be severely disruptive and possibly put the organisation out of business
4. issues for customer trust and ongoing reputation

It's always organisation specific though. As organisations mature, they can be encouraged to look at wider security issues—but, let's get the basics right first.

The news that a the UK hosting company VAServ lost 100,000 web sites all at once is devastating for the organisations involved. It appears that many cannot be recovered and a considerable number do not have recent backups.

From the temporary status page dated 10th June:

The event was widely reported:

• Webhost Hack Wipes Out Data for 100,000 Sites
• Webhost Denies Poor Passwords Led to Catastrophic Hack
• U.K. Web Hoster, Customers Scramble After Attack Deletes 100,000 Sites

Particularly sobering is the news that the CEO of LxLabs, implicated as the developers of the software that was hacked, has committed suicide:

• LxLabs boss found hanged after vuln[erability] wipes websites
• Web Hacking Incident Database (WHID) 2009-45: Outcome: Death

Even if you don't have a formal disaster recovery plan, at least make sure you have backups of all your site code, database and other data.

There have been some good discussions recently on the security of cloud computing services. Are you using or considering using external cloud computing for data storage or to undertake business functions?

A recent post A follow-up on SaaS & Cloud Risk reminded me to raise the topic here. The posting highlighted comments on The Register regarding Multi-site Bug Exposes Cloud Computing's Dark Lining included one by Raife Edwards:

Does this affect you? Not sure? Does your business use any of the following (the categories and terminology overlap)?

• software as a service (SaaS)
• platform as a service (PaaS)
• infrastructure as a service (IaaS)
• hosted application
• application service provider (ASP)
• cloud computing
• online office application (e.g. Microsoft Business Productivity Online Standard Suite, Google Docs)
• external web mail (e.g. Hotmail, Gmail, Live Mail)
• peer-to-peer services (e.g. Skype)
• online backup and synchronisation (e.g. Iron Mountain, iDisk, Live Mesh)
• other people's content included directly into your software applications (e.g. news feeds, maps)
• third party online service (e.g. address lookups, payment gateways).

If so, perhaps answer these three questions. Does it matter...

• if someone else deletes, or an unauthorised person views, your data?
• in which geographic location your data are stored?
• if your data or service are unavailable for more than 10 minutes?

If you answered "yes" to any of the above, take time to consider what the effects would be if any of your data was stolen or the service was unavailable for an hour, a day or a week. The considerations are very similar to any other business decision, but it's easy to forget the trust we are placing in another party.

The key security issues to review are software liability, right to audit, service level agreement (SLA), security testing plans, authentication policies, intellectual property, storage locations, system isolation, data encryption in transit and at rest, backup and recovery, archival, support, complaints procedure, contract jurisdiction and legal compliance. If you have cyber liability insurance, you will also need to check whether these cloud services are covered.

In Part 2 (of 2) on Tuesday, I'll highlight some more recent cloud computing issues and provide links to additional discussions.

Update 27th November 2009: See also Cloud Computing Risks.

E-consultancy.com has many excellent online marketing and e-commerce resources, and I read the blogs and forums regularly. The following posting appeared on the forum a couple of days ago:

This cry for help worried me. Although the forum replies were helpful, it did make me wonder how many other web site owners have no idea where their web site is hosted.

If this is really the case here, it probably means the owner doesn't have all the resources to rebuild the site elsewhere and possibly is without back-ups of the data. And what about the intellectual property ownership? It's something which all developers should be discussing with their customers. My first suggestion would have been to contact the development company. A cursory examination of the source code reveals:

This company even showcases the site:

Now, we have no idea of the background and cannot guess if there is anything amiss. But the site is a card payment enabled e-commerce site, and surely the owner has had to comply with the Payment Card Industry (PCI) Security Standards Council's Data Security Standard (DSS)? Knowing where your web site is hosted would be one of the earlier things to discover.

Let's hope it's sorted soon.