The five technological forces disrupting security: how cloud, social, mobile, big data and iot are t

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TheFiveTechnological ForcesDisruptingSecurity

Bethesda,MD,UnitedStates

SteveVanTill

Butterworth-HeinemannisanimprintofElsevier

TheBoulevard,LangfordLane,Kidlington,OxfordOX51GB,UnitedKingdom 50HampshireStreet,5thFloor,Cambridge,MA02139,UnitedStates

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ABOUTTHEAUTHOR ...................................................................................xiii PREFACE .......................................................................................................xv ACKNOWLEDGMENTS ..................................................................................xix

CHAPTER1

FromPackagestoPeople....................................................1

TheConsumerizationofSecurity.....................................................3

EarlyClouds,SunnySkies................................................................4 AnIoTStory......................................................................................5

FromPremobiletoMobileFirst......................................................7

BigDatainItsInfancy......................................................................8

SocialSpaces....................................................................................9 Dot-ComReduxinPhysicalSecurity.............................................11

TechnologyAdoptioninPhysicalSecurity.....................................11

Section1TheCloud

CHAPTER2 TheRun-UptoCloud..........................................................17

CloudMeetsanIndustryofLateAdopters....................................17 SkatingtoWherethePuckHasBeen...........................................18 SaaSbyAnyOtherName...............................................................19 MarketersRunWithIt....................................................................20

InternetProtocolBlazestheTrail.................................................21 BeforeWeCalledIt"Cloud"...........................................................22 FiveEssentialCharacteristicsandWhyTheyMatter....................22 ServiceModels:ApplicationsvsInfrastructure............................25 DeploymentModels:PublicCloudsvsPrivateClouds.................26

CHAPTER3 TheTippingPoint................................................................29

TheDriversofAdoption..................................................................29

ABalancedViewofCyberRisks....................................................30

BeyondStack-a-Box.......................................................................30 AreWeMoreConservativeThanOurCustomers?.......................31

WhatAboutResidential?................................................................73

Biometrics&MultifactorAuthentication.......................................74 Transformation...............................................................................75

What’sMyMobileStrategy?...........................................................76

Section3TheInternetofThings(IoT)

CHAPTER8 WhyIoTMattersinSecurity...............................................83

Security:AlreadyanIoTBusiness.................................................84 GroundZero....................................................................................85

WhatIsIoT,Anyway?......................................................................86 AProjection....................................................................................87

It’sAllAbouttheData....................................................................89

Cheaper,Smaller,andMoreDiscreet...........................................90 BigWaveorTheBiggestWave?....................................................91

IoTWillBecomePartofEverything...............................................92

TheIndustrialInternetofThings...................................................94

CHAPTER9 AllSecurityIsNowCybersecurity......................................97 LifeImitatingArt.............................................................................98 AGlobal,Residential,Commercial,andEven UniversalRisk.................................................................................99

CloudSecurityRedux ButWorse..............................................100 DeviceAuthentication:DoIKnowYou?.......................................101 OrphansWithoutGovernance......................................................102 TheUpdateTreadmill...................................................................103 APathForward.............................................................................105

CHAPTER10 IoTTechnologyandStandards..........................................107

TheNeedforStandards...............................................................109 ArchitectureMatters....................................................................111 BuildingBlocks.............................................................................112 GatewaystotheFuture................................................................114 WirelessWhirlwind.......................................................................115 TheStandardsBattlefield............................................................117 CurrentStateofPlay....................................................................119 StandardsOrganizationsandConsortia......................................120 ProprietaryFrameworks..............................................................123

CHAPTER11 TheNewPlayingField.......................................................127

What’sOldIsNew—AtLeastforStartups..................................128 LargeTech&TelecomEyePhysicalSecurity—Again................130 ConsumerizationandIoT.............................................................132 WillIoTbeDisruptive?.................................................................134

Section4Data:Bigger,Smarter,Faster

Section5Social+Identity

CHAPTER17 SocialSavesLives..............................................................191

VirtualSocialMediaWorkingGroup............................................192 TheUnitedNations.......................................................................192 SocialMediaforEmergencyManagement(#SMEM)..................193 PowerShift...................................................................................193

NotYourKid’sSocialMedia.........................................................195

CHAPTER18 OntheInternet,NoOneKnowsYou’reaDog..................197 IdentityasaService.....................................................................198 WhatIsanIdentityStandard?......................................................199 AuthenticationvsAuthorization...................................................199 AuthenticationStandards.............................................................200

CHAPTER19 SocialSpaces.....................................................................203 WhatDoesitMeantobeaSocialSpace?...................................204 It’sAllAboutIdentity....................................................................206 CommunicationandCrowdsourcing............................................206 SecurityasaCustomerExperience.............................................207 Disruption.....................................................................................208 Strategy.........................................................................................209

Section6TheFuture

CHAPTER20 TheSecretsoftheUniverse..............................................213 AdoptionScorecard......................................................................214 MyGeneration...............................................................................218 ANewMissionforSecurity..........................................................219 WhatGoesAroundComesAround..............................................219

AbouttheAuthor

SteveVanTillisthecofounder,president,andCEOofBrivoSystems,apioneeringcloudservicesproviderofaccesscontrol,videosurveillance,mobile,and identitysolutionsdeliveredasaSaaSoffering.Healsoservedsince2011as chairmanoftheStandardsCommitteeoftheSecurityIndustryAssociation. Heisafrequentauthorandspeakerfornumeroussecuritypublicationsand forumsandtheinventorofnumerouspatentsinthefieldofphysicalsecurity. In2009,StevewashonoredbySecurityMagazineasoneof“thetop25most influentialpeopleinthesecurityindustry.”

Mr.VanTillwaspreviouslyDirectorofInternetconsultingforSapientCorporation,whereheledclientstrategyengagementsforthefirstwaveofthedotcomera.Atthehealth-careinformaticscompanyHCIA,Stevewasresponsible forInternetstrategyfordataanalyticsservices.Stevealsohasover10years’ experienceinwirelesscommunicationsasVicePresidentofsoftwaredevelopmentatGeoStarandasDirectorofSystemsEngineeringatCommunications SatelliteCorporation(Comsat).

StevelivesinFulton,Maryland,withhiswife,Robin.

Preface

Wearefortunatetobelivinginoneofthemostexcitingtimesinthehistoryof moderntechnology.Dozensoftechnologicalcurrentshaveconvergedand amplifiedandremixedwitheachothertoacceleratethepaceofinnovation beyondanythingmankindhaseverseen.Wearesimultaneouslylivinginatime whenphysicalsecurity—or,moretothepoint,lapsesinphysicalsecurity—has becomearegularandunfortunatepartofthedailynews.Butphysicalsecurityis nolongerjustphysical.Modernsecuritysystemsarenowthoroughly cyber-physicalsystems,whichmeansthattheyhaveinheritedboththepowerandthepitfallsofthedigitalworld.

Thepast30yearshavewitnessedmanymajortechnologyexplosionsthathave changedthewayweinteractwitheachotherandourworld.Millionsgained theirfirstcomputingexperienceduringthePCera.TheInternet—withalittle helpfromsomefriends—coalescedtheseindividualcomputingexperiences intothecollectiveexperienceofsocialnetworksthathavethepotentialtoconnecteverypersonontheplanet.Thesmartphonethenassuredthatwedidn’t havetoleavehomewithoutit.Andnow,beforeoureyes,wearewatching theriseoftheInternetofthings,alongwiththebigdataandanalyticsystems necessarytomakesenseoftheunprecedentedvolumesofdatatheycreate.

Physicalsecurityisrightinthemiddleoftheseupheavals.Itisbeingtransformedbythefivetechnologicalforcesthathavebecomethesignaturechange agentsofourera:cloud,mobile,IoT,bigdata,andsocialnetworks.Howand wherethesechangesaretakingplace,aswellastheeffectstheywillhaveonthe practiceandbusinessofsecurity,arethesubjectsofthisbook.

Thetechnologyadoptionlifecycleisawidelyusedframeworkforunderstandingtheacceptanceofnewtechnologies,anditfitsthechangewearewitnessing acrossthephysicalsecuritymarket.Thelifecycleconsistsoffivestagesofadoption.Theso-called“innovators”and“earlyadopters”and“earlymajority”are atthefrontend,whilethe“latemajority”and“laggards”takeuptherear.

WhenIventuretoobservetoindustryinsidersthatthephysicalsecurityindustryhasgenerallyfalleninthemiddleoftheadoptionpack—somewhere betweentheearlyandlatemajority—mostofthemremarkthatImightbea littletoogenerous.Theindustryisslowerthanthat,theysay.ThelanguidadoptionrateofInternetProtocol(IP)technologyisacaseinpoint,wheresecurity productswerelatetothegamebyagood10yearscomparedwithourbrethren inIT.Morerecently,foramarketshiftasmajorascloudcomputing,theindustryhasbeenjustbarelyinfrontofthelaggards.Needproof?Contrastthecurrentsub-five-percentcloudadoptionrateincommercialsecuritywiththe eighty-plus-percentadoptionacrosstherestoftheITspectrum.

Thiscircumspectionisn’tallbad:customersknowwhattobuy,producersknow whattomake,andinvestorsknowwheretoplacetheirbets.

Buttheplayingfieldischanging.Thefiveforcesoftechnologicaltransformation—cloud,mobile,IoT,bigdata,andsocialnetworks—havebecometoo strongtoignore,eveninacontextofcautiousadoption.Incombination,they areproducingsecurityproductsthatarevastlybetterthantheirforebears.In combination,theyareloweringthecostofentryforinnovators.Incombination,thehistoricalbarrierswillnotstand.

Whiletheinterplayandinterdependencebetweenthefiveforcesareimpossible toignore,thisbookisorganizedtoexamineeachoftheseforcesinturn.Naturally,thereissomecrossoverwithineachtopic,butforthemostpart,youcan followyourinterestsalongthelinesofthefivemajorsections.

InSection1,welookatthecurrentstateofcloudcomputinginthephysical securityindustryandhowitisdisruptingtheon-premisecomputingparadigm. Whiletheindustryhasalwaysrecognizedthepowerofcentralizedcomputing foralarmmonitoring,ithasbeenparadoxicallyslowtowidenthatstancefor cloudcomputingingeneral.Bythesametoken,thesubscriptionmodelof software-as-a-service(SaaS)shouldhavebeenacinchforanindustrythat hasbeenlargelystructuredaroundrecurringrevenuebusinessmodels.Instead, theinertiaofperennialconcernsaboutcloudsecurityandreliabilityhasdampenedtheaccelerationcommonacrossothermarkets.We’lllookatwhat’shappeningnextasfearssubside,distributionmodelsadapt,andnewentrants disruptthestatusquo.

InSection2,welookathowmobiletechnologiesarechangingsecurityadministration,theinteractionbetweenbuildingsandtheiroccupants,andidentity andaccessmanagement.Asinalmosteveryothersoftwaredomain,thenotion of“mobilefirst”ischangingtheproductprioritiesofsecuritysystemdevelopers andchangingthejobdescriptionofpractitionersfromguardstoCSOs.Previouslyconstrainedtothedesktop,professionalswhointeractwithmodernelectronicsecuritysystemsarefreedfromtheirdesksyetretainthesamerichnessof

data,command,andcontrol.Aseverymajorsecurityeventremindsus,the ubiquityandconnectivityofmobilenetworksareanindispensabletoolin emergencyresponse.Onalessdramaticnote,mobileischangingthecustomer experienceofemployee,tenant,andguestinteractionsfromaninconvenience toapositive“customerinteraction”opportunityforsecurityorganizations.

InSection3,weseethattheInternetofthings(IoT)phenomenonfindsoneof itsmostfertilefieldsofuseinthephysicalsecuritydomain.That’snosurprise, becauseconceptually,theelectronicsecurityindustryhasbeenusingIoTsince wellbeforeitcrestedthecurrenthypecycle.ThelargestcontributionthatIoT willmaketosecurityisintheproliferationofsensorsthataddtothedataavailablefordecision-making.Evendevicesthatarenotformallyapartofthesecuritysystemwillgenerate“dataexhaust”withsecurityvaluewecanallmine.But alongwiththisriseofavailabledata,therewillbeahugeincreaseintheavailableattacksurfacetobeexploitedbyhackers.Thechallengeforpractitioners willbetoleveragethesetechnologieswhileharnessingthedataandprotecting bothphysicalandnetworkinfrastructures.

InSection4,smartdata,theuseoflargescaledataanalysisisexaminedasan up-and-comingtoolinthefutureofsecurity.Butwearenotthereyet.Whilebig datahasmadehugeinroadsinfieldsfrommedicinetophysicstoretailbehaviorandstockmarketanalysis,ithasbeencuriouslyabsentfromthephysical securitydomain.Thedelayedadoptionofcloudcomputinghasbeenamajor impedimentinthisregard,becauseitistheplatformonwhichbigdatasystems naturallyflourish.Instead,whatwefindacrosstheelectronicsecuritylandscape isanarchipelagoofmillionsofsmallsystemsthateachkeeptheirdataseparate fromtheothers,therebythwartinglargescaleanalysis.

InSection5,socialnetworkingtechnologiesareviewedasanexampleofhow identityandaccessmanagement(IAM)ismovingontonewplatforms.Using theorganizingprincipleof“socialspaces,”weidentifyhowsocialtechnologies willimpactthephysicalsecuritydomain.Theuseofsociallog-ins,previously confinedtoaccessingvirtualspacessuchaswebsites,isbecomingavailableasa meanstoauthenticateourselvestorealphysicalspaces.Thisworksbecause socialidentitiesareauniqueidentifierthatcanreplacethemanytokenswe carryaroundforeachindividualspaceweinteractwithtoday.Currentlyused bybillionsofpeople,socialnetworksmayalsoprovetobeavaluablecommunicationchanneltoenhancethepracticeofsecurity.Withthenetworksin place,crowdsourcingmaybecomeawaytoharnessthepowerofthecrowd forparticipatorysecurity.

Inclosing,welookatadoptionratesforeachtechnologyandwhatthese changesmightmeantothefutureofthephysicalsecurity.Theconsumerization ofcommercialsecurityisathreadthatrunsthroughmanyoftheanticipated

changes,shadowingtheconsumerizationofITthathasbeenremakingthat industrysincethenewmillennium.

I’vetakentheliterarylicenseofopeningthisbookwithasomewhatpersonal narrativethatdescribestheoriginstoryofBrivoSystems.Thisstart-upwasmy vehicleintothesecurityindustryandfollowedapaththatwoveitswaythrough allfiveoftheseforces.Ihopethatinsharingthisjourney,Icanconveythedeep passionandoptimismthatIhaveforourindustryandourfuture.

Bethesda,MD,UnitedStates

Acknowledgments

Abookneverhasjustoneauthor,becauseexperienceistheauthorofeverything,andit’salargestagewithmanyplayers.

First,IthankmywifeRobin,whoquietlysupportedmethroughthemany weekendsofforegonesocialplans,the4:00a.m.dailywritingregimen,and myalmostconstantobsessionwith“thebook”overthesepast2years.

IofferspecialthankstoBobFealy—aninvestor,amentor,and,mostimportantly,afriend.WhileBobwasthepresidentofDuchossoisTechnologyPartners,hewasamongthefirsttounderstandthevisionofInternet-enabled devicesimprovinglifeformillionsofpeople.Hisongoingsupportandadvice werecriticaltothegrowthofthecompanythattookmeonthisjourney,asIam suretheyaretothemanyothershehasadvised.

IwouldalsoliketothankthecofoundersofBrivo—Carter,Mark,andTim—for convincingmetoleavemydayjobtocreateasuccessfuldot-comcompanyand livetotellaboutit.

AndIthankallemployeesofBrivo—presentandpast—forthepartofyourselvesthatyoucontributedtothesuccessofthisstoryandforyourhelpin changinganindustry.

FromPackagestoPeople

ThestoryofhowIcametolearnaboutthefivebigforcestransformingsecurity startsoffinanunlikelyplace.Thesummerof1999inNewYorkCitywasoneof thehottestonrecordinacentury.MyfellowentrepreneursandIhadback-tobackinvestormeetingsalldaytosecurefundingforournewdot-com.

AswesloggedalongtheradiatingManhattansidewalksinourbusinesssuits, Ifantasizedaboutjumpinginfrontofthegiantsprinklerstheyhookuptofire hydrantsondayslikethat.Theair-conditionedlobbiesofferedarespiteof10or 15minuteswherewetriedtobecomehumanagainbeforeannouncingourselvestoournexthost.Ourlastmeetingofthedaycouldn’tcomesoonenough. Wepitchedourthen-novelbusinessmodelofane-commerceserviceforautomaticallyreplenishingconsumableproductslikediapersandcleaningproducts,commoditiespeopleneededeveryweekoreverymonth.Unlikethe upsanddownsofordinaryconsumerdemand,thisbusinesswouldprovide apredictablerevenuestreammonthinandmonthout,deliveringtheinvestor catnipknownasrecurringmonthlyrevenue(RMR).

Earliermeetingstaughtusthateveryinvestorwantedtoknowhowwewould physicallysecurethisstreamofperpetualproductsagainstthetwintidesof crimeandvandalism.Asoneinvestorputit,“it’sfinetodeliverthingstopeople’sdoorsteps,butonlyiftheystaythere.Nobodywantsrecurringdeliveriesto becomerecurringthefts.”

Toanswerthisrecurringquestion,wehadalreadysketchedoutacrude,backof-the-envelopedrawingofadishwasher-sizedconnectedappliancewherewe dubbedthe“SmartBox.”Thedesignwasahybridofasafeandanoversized mailbox,withelectronicaccesscontroltyingitbacktoacentraldatabase. Dynamically,assignedkeypadcodes—credentialsinsecurity-speak—would provideaccesscontrolforitsfrontdoor.Thecentralwebsystemwouldassign credentialstopeoplewhowereauthorizedtoputthingsinortakethingsout: deliverycompanies,homeowners,familymembers,orperhapsevenaneighbor pickingupaborroweditem.Theentirecostoftheproduct—hardwareand

ongoingaccessmanagement—wouldbebundledintoamonthlysubscription plan,justlikecellphones.

Afterourlongwaitintheornateconferenceroom,asingleharriedbankerbarged inlookinglikehe’dalreadyheardenoughpitchesforoneday—orperhapsan entirelifetime.Theprofessionalskepticismwaspalpable.Wewereinthemiddle ofthedot-comboom,andideasforonlinebusinesseswereadimeadozen.

Wetookhimthroughourpitchdeckalittlefasterthanusual.Likemostinvestors,hewasconcernedaboutsecurity,packagetheft,whowouldhaveaccess, andhowitwouldbemanaged.Asifforthefirsttime,weunfurledoursketch oftheSmartBoxontotheconferenceroomtable.Itoldhimitwouldprovide physicalsecuritywithasteelframeandinformationsecuritywithdigitalsignaturesandencryption.BecauseitwasconnectedtotheInternet,italsoservedasa remotelogisticsensorthatprovidedstatusupdatesaboutpackagedeliveries andaccesseventsviae-mailortext.

“Soit’salsoaninformationservice,”Iexplained.“Wethinkthatwillhelpmake itstickybecausepeopleliketoknowwhat’sgoingon.”

Withthat,hewasdone.Runningahandthroughaheadfulofsilverhair,alittle exasperatedperhaps,heleanedforwardandtookanotherlookatourrough sketch.Hisnextwordschangedthecourseofourprofessionallivesandultimatelythecourseofphysicalsecurity.

“Youre-commerceideaisstupid.Noone’sgoingtowantthat”—Icanhear Amazonlaughingfromhere—“Butyour box now that’s somethingIwould beinterestedin.”

Thatmomentmarksthebirthofthefirstconnecteddevicedesignedtoprovidesecureaccesscontrolfromamultitenantsoftware-as-a-service(SaaS) platform.Thedeviceitselfwasnobiggerthanalargedishwasherorsmall washingmachine,butithadadoorandacontrolpanelandanInternetconnection.Doesthatsoundfamiliar?Itsh ould.Commercialofficebuildingsare equippedthesameway.Thedot-combusttookitstollonouroriginalideafor consumerlogistics,butwithsomegoodadvicefrominvestors,wewereableto pivotthetechnologyandbusinessmodeltocommercialaccesscontrol.After all,abuildingisreallyjustabigbox,andeveryoneofthemcannowbea smartbox.

Butthisisn’tabookaboutthecompanythatinventedtheSmartBox,norisit aboutthatconnectedappliance,exceptasavividexampleofthefiveprimary forcestransformingphysicalsecurity.Ittookmedownmyownpathwayinto cloud,mobility,Internetofthings(IoT),bigdata,andultimatelysocialnetworksappliedtoasecurityproblem.Moreimportantly,itisanillustration ofhowinnovationintheconsumerproductsegmentcandrivecommercial

productdesign.Itexplainswhysecuritytechnologynowlooksalotmorelike consumertechnologythaneverbefore.Itshowshowwecanexpectourindustrytoevolve.

Wesetouttoprotectpackages;wewoundupprotectingpeople.

THECONSUMERIZATIONOFSECURITY

TheevolutionoftheSmartBoxintoanaccesscontrolsystemprovidesbotha hopefulandcautionarytaletotheentiresecurityindustry.Hopefulbecause innovationisalwayswelcome;cautionarybecauseyouneverknowwhereor whenorhowdisruptionwillappear.Commercialsecurityisarelativelysmall industry,servinghighlyspecializedverticalmarkets.Untilrecently,thethought ofconsumerproductsinfiltratingthesemarketswasnotespeciallyworrisome. Newsecurityproductsdon’tusuallycomeoutofleftfieldanddisruptthismarketthewaythatsmartphonesdidtocamerasortheclouddidtoenterprisecomputing.ButIexpectwewillbeseeingmoreofit.Isaythatassomeonewhowas partofdoingjustthat,ifonlybypureserendipity.

EmergingIoTproductsinresidentialautomationandsecurityhaveshownthat theycandoabetterjobatalowercostthanmanylegacysystemsdesignedyears ago.Nosurprisethere,justthesteadymarchofnewtechnologyreplacingold. Evenso,virtuallyeveryindustryhasatribalcomplacencythatsays“itcan’thappentous.”Andyet,foreveryoneofthem,wecanfindabundantexamplesto showthatanythingandeverythingcanbedisrupted:healthcare,automobiles, energy,insurance,investing,andlodging.Evensuchindeliblyphysicalenterprisesastaxisandtransportationarenotimmune,asamplydemonstrated byUber,Lyft,andothers.

TheconsumerizationofITdescribestheeffectofnewtechnologyemerginginthe consumermarketandthenmovingintotheworkplace.Foremployeeswho wouldratherusetheirmorehighlyevolvedpersonalelectronicsthanaging, company-issuedrelicsarethecarriersofthistrend.Alloftheseproductssuch assmartphones,tablets,andmobileappsthensetthebarforthetoolsusedin aprofessionalsetting,andthecyclebeginsanotherround.Intheshortspanof timesincewebandmobilebecameawayoflife,wehaveseenthistimeandagain. Consumertechnologyexperiencesriseexpectationsforworkplacetechnology, andtheinnovatorswhoareabletoclearthenewbarcomeoutwinners.Userinterfacesonbusinessproducts,forexample,havetrackedthedesigninsightsandconventionsthatfirstappearedinconsumerapplications.Tabletsforworkandplay areoneandthesame.Consumerpopularitydrivesprofessionaladoption.

Thedebttoconsumertechnologygoesfarbeyondwhat’svisibletooureyesor clickablebyourthumbs:itgoesrighttothecoreofwhat’spossible.Wewould

nothavemobilecredentialsinsecurityunlesswefirsthadmobilepaymentsin thegrocerystore.Wewouldnothavemobilevideounlesswefirsthadmobile gaming.Wewouldnotevenhavethebroadbandpipesforit,sincethebandwidthneededforremotesurveillancewasfirstdrivenbyconsumerserviceslike YouTube,Netflix,andHulu.

Noonesawthatcoming—northeoutcomesofmanyoftheothertechnology forcesthatarenowtransformingthepracticeofphysicalsecurity.Wewilllook atfiveoftheseforces,withasectionofthebookdevotedtoeach:cloud,mobile, Internetofthings,bigdata,andsocial.

EARLYCLOUDS,SUNNYSKIES

TheSmartBoxwentfrombeingafront-porchconsumerconveniencetoanelectronicsecurityfixturealmostovernight—ifyoucount6monthsofnonstopreengineeringasovernight.Thewebappsportedanewuserinterfacedesignedfor physicalaccesscontrolworkflows,butunderthehood,itretaineditsoriginal cloudarchitecture.Thecloudbackendwasdesignedtoservetensofmillions ofconsumersmakingonlinepurchasesandcheckingfordeliverieswhilebehind thescenesprocessingtransactionswithmillionsofsmartlockboxes.Thismission demandedarobustplatformthatcouldserveeveryshopperwhovaluedsecure deliveryandeveryshipperwhovaluedcustomersatisfaction.

Thatwasachallenge.

Atthetime,therewasnothingofthisscalethatoperatedasbothawebservice forcustomersandadistributedtransactionplatformformillionsofsmart devicesspreadacrossageographythesizeoftheUnitedStates.Therewere large-scalee-commercesiteslikeAmazon,whichwasalreadydoingafewbilliondollarsayearinsalesatthetime.Andtherewereprecursorslikethewellestablishedcreditcardnetworksthatinteractedwithmillionsofpoint-of-sale terminalsontheirownprivatenetworks.Buttherewasnothingweknewofthat combinedinteractivityofawebsitewithamachine-to-machine(M2M)distributedaccessnetwork.TheSmartBoxserviceisneededtobeavailabletoanyone withabrowser,processmillionsoftransactionsperhour,and—most importantly—besecure.Afterall,thepromiseofsecuritywasthecorevalue propositionofthebusiness.

Ihadworkedonconsumer-scalesystemsinpreviouslives,andIwasconfident thatwebtechnologycouldsupportthisvision.Iwasequallyconfidentthatan enterprisearchitectureapproachwouldn’tstandachance.MydaysasaconsultanthadtakenthroughenoughFortune500companiesstuckinthatmorass, spendingyearstodisentanglecomplexenterpriseresourceplanning(ERP)systemsbeforetheycouldsupportacustomer-facingwebbusiness.Thecritical

differencewassoftwaremultitenancy,asystemarchitecturethatallowsallyour customerstointeractwithasingleinstanceofsoftware. Salesforce.com wasan earlyandarticulateevangelistofthisfundamentaldesignprinciple,andwe wererighttherewiththem.

Intermsofabusinessmodel,itwasclearthatasecuredeliveryservicewould havetobesoldthewaymostcloudservicesaretoday—asamonthlysubscriptionthatpeoplecouldpayforastheywerereceivingvalue.Thiswasnotaradicalconcept,eventhen,butitwasnowherenearasprevalentasitisnow.To understandtheleapoffaithinvestorsmadewiththismodel,rememberthat therewaslessbroadbandthandial-upInternet;Amazononlysoldbooksmade ofpaper,NetflixstilldeliveredDVDsbymail,anditwouldbeanother6years beforeSpotifysoldmusicasaservice.Mostofthebusinessworldstilldeeply rootedintheone-timewidgetsalesmodel,andrecurringservicesweretesting manynewwaters.

TheSmartBoxbroughtthecloudintophysicalsecuritybywayofconsumer logistics.Oncethereengineeringwasdone,wethoughthalfthebattlewasover. Itseemedclearthateverythingwouldgotothecloudeventually,includingthis newworldofaccesscontrolwehadjustdiscovered.Andwithinthenext 10years,mostthingsdid:banking,telephony,entertainment,mail,chat,photography,books,transportation,petcare,hospitality,evenpizza,andhundreds morethatwouldfillupthispage.Inshort,almosteverythingexceptcommercialsecurityhasstubbornlychosentofollowalongerroute.Butthecloudsare breaking(ahem),andthemoreforward-lookingcompaniesintheindustry havebeguntoplaycatch-up.Manystillcan’tquitetaketheplunge.

People,ifyoudidn’tgetthememo,we’reallgoingtothecloud.

ANIoTSTORY

Attheturnofthemillennium,lessthan3%ofadultAmericanshadbroadband athome.Inanenvironmentofsuchpatchworkconnectivity,itwasfar fromcertainthathomeownerswouldunderstandthepowerofasmart appliance—orwhatwouldnowbecalledanInternetofthings(IoT)device. Itneededanalways-onInternetconnectionandanalways-upcloudservice, bothofwhichwereoutsidetheexperienceofthevastmajorityofconsumers. Itisdifficultnowtoimaginehownovelaconnecteddevicewasatthetime,but theyweresorarethattherewasn’tevenanagreeduponcategorytodescribe them.ThetermIoThadjustrecentlybeencoinedin1999,butnoonehad heardit,anditenjoyednoneofthebuzzwordstatusithassinceacquired.

PeopleweredelightedbytheearlyIoTtechnologiesthatseemedtoinchus towardafuturelike TheJetsons.Theyweremagicalanddazzling.Lessobvious

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