

The confluence of social, mobile and cloud has created an “app-etite” for all things tech, laying the groundwork for the next big tech revolution: the Internet of Things (IoT). The IoT has the power to transform lowly mechanical and electronic devices into modern marvels, disrupting entire markets in the process.
With disruption comes dollars. According to a recent report by Gartner, the IoT market, which excludes PCs, tablets and smartphones, is projected to grow to 26 billion units by 2020, up from 0.9 billion today, with an economic impact in the trillions.
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While the IoT promises better living through connected devices and the data and insights they generate, it will also usher in a new era of privacy and security concerns. One area of increased security risk is the number and magnitude of new “attack surfaces” associated with the IoT. From a security perspective, an attack surface is defined as:
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Now, take the NEST Learning Thermostat. NEST can sense your presence, learn your schedule and adjust the temperature accordingly while constantly streaming your preferences and usage data to the cloud. Let’s apply the concepts of attack surface to connected thermostats. There are roughly 28 million businesses in the US, and the vast majority probably has a thermostat. Thus, just one small fraction of the IoT market represents 10X the Attack Surface of Windows XP.
Of course, not all of thermostats will be of the smart, connected kind, but you catch my drift. And if you think that a thermostat or connected HVAC (heating, ventilation and air conditioning) systems can’t lead to a security exploit, think again. Incident analysis confirms that ground zero of the recent Target exfiltration of personal data of 70 million customers was an HVAC contractor with network access. From there, hackers used the contractor as an intermediary and ultimately penetrated Target’s store network, embedding malware on point-of-sale machines.
The Target breach is a poignant example of the challenges associated with the IoT—you’re only as strong as your weakest link. The IoT represents an interconnected ecosystem in which third-party IT infrastructures of information providers, consumers and brokers are interwoven in a service-oriented manner with networks of devices/sensors and clouds providing computing, apps, storage and analytics. One weak link can expose the entire chain.
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In order to foster the potential of the IoT and minimize security risks, a new network paradigm centered on cloud-based networks is required:
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The IoT represents a massive, disruptive opportunity that will have far reaching implications. It’s not just about connected devices, but rather an entirely new interconnected ecosystem of information stakeholders and processes that will require a network of clouds and cloud-based, service-rich virtual network overlays in order to be fully realized. This new networking paradigm is already taking shape as companies begin fusing cloud, SDN and Network Service Virtualization into secure, scalable and agile cloud networks.
About the author: Todd Krautkremer is a vice president at Pertino, a company that provides network services virtualization products and services.
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