Public Cloud Computing vs.

Private Cloud Computing: How Security Matters 1

Public Cloud Computing vs. Private Cloud Computing:

How Security Matters

Research Paper
Public Cloud Computing vs. Private Cloud Computing:
How Security Matters
Delvis Simmonds
Alli Wahab
Cameron University

IT Capstone
Dr. Diaz Gomez
April 27, 2012
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 2

Table of Contents
Abstract ......................................................................................................................3
Introduction……………………………………………………………………………………………………………….3
The growth of Cloud Computing ..................................................................................5
Public Cloud Security Issues ................................................................................................................................7
Private Cloud Computing ............................................................................................9
Private Cloud Security Issues ..............................................................................................................................9
Concise comparison .................................................................................................. 10
Conclusions & Future Work ....................................................................................... 11
Bibliography ............................................................................................................. 12
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 3

Public Cloud Computing vs. Private Cloud Computing:

How Security Matters
Delvis Simmonds, Alli Wahab
Computing and Technology Department, Cameron University, Lawton, OK, USA

Abstract
Cloud computing has promised to enhance efficiency, flexibility, greater agility,
less capital expenditure and to overcome geographic limitations to compete in a global
market. If adopted and implemented, businesses would require not only new
architectures, but also new ways to procure IT services. More and more companies are
shifting to Cloud based services, but at the same time they are concerned about the
security risks. One thing that is really unclear to many is the understanding of what a
Cloud really is. Hopefully after the definitions and illustrations of Cloud computing are
given you will understand it better. Much attention will be given to public and private
Cloud computing issues; as more businesses today utilize Cloud services and
architectures, more threats and concerns arise.

Introduction
Cloud computing represents a major change in how we store digital information
and run computer applications hosted in the “Cloud” (Miller, 2009). While still a
buzzword, the Cloud seems to be confusing, and the concept tends to evoke multiple
responses (Vorro, 2011). There are many definitions of Cloud computing, but they all
focus on certain characteristics of it. The several definitions stem from the three main
categories of Cloud computing which are Infrastructure-as-a-Service (IaaS), Platform-as-
a-Service (PaaS), and Software-as-a-Service (SaaS).
Furthermore, Cloud security is also a broad term and is of major concern. The
security challenges Cloud computing presents are formidable, including those faced by
public Cloud whose infrastructure and computational resources are owned and
operated by an outside party that delivers services to the general public via a multi-
tenant platform and for the private Cloud which is hosted on-premise, scales “only” into
the hundreds or perhaps thousands of nodes, connected primarily to the using
organization through private network links. Security concerns such as secure data
transfer, secure software interfaces, secure stored data, user access control and data
separation must be considered before moving to the Cloud (Beckham, 2011).
Attempting to address security and privacy issues after implementation and
deployment is not only much more difficult and expensive, but also exposes the
organization to unnecessary risk (Julie, 2011). As a result, many companies remain
skeptical about entrusting their data and computing tasks to outside vendors including
Microsoft, IBM Smart Cloud, and Google. Every trade publication and analyst firm has
done a survey of CIOs regarding Cloud adoption. Results showed that security was the
top reason why CIOs are not too anxious about adapting to the Cloud (see Figure 1).
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 4

Figure 1: The results in the graph above are gathered from a survey of CIOs,
organizations and IT professionals, which was carried out by the International Data
Corporation (IDC) in 2009. On a whole, the results have been quite steady up until now.
The highest challenge/issue related to the Cloud is security. Security is not the only
concern. Issues such as cost, availability, performance, and standardization are also very
high considerations.

This research paper will provide a definition of Cloud computing, the security
issues related to public and private Cloud computing, and give a concise comparison of
both models, focusing more on the security issues.

Definition of Cloud computing

The term Cloud computing entails many different notions. You will find that
some definitions have more meaning than others; Gartner defines Cloud computing as
being scalable, delivering IT-enabled services using the Internet (Gartner, 2012). On the
other hand, The 451 Group sees Cloud computing as a set of business models and
technologies that enables IT functions to be delivered and consumed via a third party.
(Rhoton, J. 2011). Furthermore, Forrester defines Cloud computing as complex
infrastructure that hosts end-customer applications and billed by consumption (Rhoton, J.
2011).

The definition mostly used today is the one expressed by the National Institute of
Standards and Technology (NIST), which states: “a model for enabling convenient, on-
demand network access to a shared pool of configurable computing resources (e.g.,
networks, servers, storage, applications, and services) that can be rapidly provisioned and
released with minimal management effort or service provider interaction” (Grance, T.,
Mell, P., 2009).

The NIST’s definition is much more detailed, and will be the one referenced to in this
paper.

Cloud computing is available in several service models. Each model has different
levels of responsibility for security management. See Figure 2 below for a depiction of
these service models.
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 5

Figure 2: Cloud computing models. Taken from (Buecker, Lodewijkx, Moss, Skapinetz,
Waidner, 2009).

Figure 2 above shows that Software as a Service (SaaS) provides a number of

ways to control access to the Web portal, such as the management of user identities,
application level configuration, and the ability to restrict access to specific IP address
ranges or geographies. Platform as a Service (PaaS) allow clients to assume more
responsibilities for managing the configuration and security for the middleware, database
software, and application runtime environments. Infrastructure as a Service (IaaS)
model transfers even more control, and responsibility for security, from the Cloud
provider to the client; access is available to the operating system that supports virtual
images, networking, and storage. (Buecker, Lodewijkx, Moss, Skapinetz, Waidner,
2009).

The growth of Cloud Computing

Over the past two years, the number of Cloud-based services implemented in
businesses has increased, according to a survey carried out in 2011 by Ernst and Young, a
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 6

global leader in assurance, tax, transaction and advisory services (see Figure 2).

Figure 2: A global information security survey of organizations carried out in 2011 by

Ernst and Young revealed a 13% growth in the number of organizations using Cloud-
based services from 2010 to 2011. However, in 2011 there was a 16% negative growth
for plans on using Cloud-based services (Ernst and Young, 2011).

Previous Work
The interesting debate of public Clouds vs. private Clouds has resulted in other
research. In an article by Beth Schultz entitled “Public Cloud vs. private Cloud” 76% of
IT-decision-makers would focus initially on the private Cloud, but private Clouds may
not always be the best solution. The better approach is to evaluate specific applications,
security and compliance considerations and then decide what is more appropriate for a
private Cloud and what is more appropriate for a public Cloud. The size and type of the
company are huge factors in the decision making process; if you are at a smaller
company and don’t have a huge data center, then a public Cloud service will be
acceptable. Whereas, if you are at a larger company which requires mission-critical
applications or data, then it would not be wise to place the more important stuff on a
public Cloud (Schultz, B. 2011). Microsoft TechNet has done some research and
documentation on the security issues in public and private Clouds, reminding us not to
ignore security, even when the CSP appears to control the entire stack (Microsoft
TechNet (1), 2012). Whether the choice is a private Cloud or public Cloud the security of
your data will be very important in both cases. Cloud computing is only as secure and
reliable as the Cloud vendor providing the service, whether it is you or a third-party
(Joyent, 2012).

Public Cloud Computing

There are three Cloud models which companies can choose from, which are
public Cloud computing, private Cloud computing and hybrid Cloud computing. Public
Cloud computing means relying on third parties to offer efficient IT services over the
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 7

Internet as needed. On the other hand, Private Cloud computing reassures the
organization that their information and processes are more secure since everything is
managed internally. Hybrid Cloud computing is a combination of both private and public
services. Hybrid Cloud computing is another extensive topic; therefore this paper will not
discuss it.

The National Institute of Standards and Technology defines a public Cloud as a

Cloud infrastructure that is made available to the general public or a large industry group.
Public Clouds are owned by the organization(s) selling Cloud services (Grance, T., Mell,
P., 2009). Figure 3 below gives a basic illustration of an organization using a public
Cloud.

Figure 3: Illustration of an organization using public Cloud services. (Diagram by Delvis

Simmonds and Alli Wahab, 2012).

Public Cloud Security Issues

Cloud infrastructures are just another computer network. This means that Clouds
will have the same security any network infrastructure will have (intrusion detection/
prevention etc.). It is up to the Cloud vendor (whether it be you or a third party) to
determine the level of security required (Joyent, 2012). The International Organization
for Standardization (ISO) provides some codes of practice for information security
management, namely the ISO 27001 and 27002. The ISO 27001 covers all types of
organizations. This document specifies the requirements for implementing security
controls customized to the needs of the organization (ISO (1), 2008). The ISO 27002 is
also customized to the needs of the organization, but it is intended to help meet
requirements identified by a security risk assessment (ISO (2), 2008).
There is an ongoing debate between IT professionals of whether or not private
Clouds are really more secure. According to some analysts and vendors, there’s been no
shortage of debate and consternation about the security threats public Cloud computing
poses. The concern can be understandable; especially if sensitive data and vital
applications are in the hands of a party not directly under your preview (Joe, 2011).
Besides from the common view that private Clouds should be more secure, there are
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 8

some interesting attributes/properties of public Clouds to consider.

Public Clouds are hardened through continual hacking attempts. The NIST
definition of public Clouds states that they are made available to the general public or a
large industry group. Therefore, public Cloud providers are much larger targets for
hackers than private Clouds. Public Clouds also attract the best security people available;
the biggest and best Cloud service providers have millions of customers relying on them.
They definitely would be meticulous about who they hire. Also public Cloud providers,
especially larger companies like Google, Amazon, and Facebook would get the latest
security gear much easier than a small to midsize private company. Here are some other
security issues related to Public Cloud Computing:

 Assessment of the CSP

Any small, young business can advertise Cloud-based services to the
world. How are you sure that that company is capable and safe to work with?
CSPs should hold industry certifications such as the SAS 70 Type II, which is an
audit that provides independent 3rd party verification that a service organization’s
policies and procedures are correctly designed (SAS 70, 2012).

 Security of the communication channels

Data and communication protection is paramount in Cloud computing. We
use the services provided even though the security mechanisms for secure
communication is abstract. Services can be accessed several ways, such as
through a thin client, laptop or mobile phone. The fact that your data is easily
accessible through these channels, data is transferred across multiple networks,
more especially if your CSP is extremely far away from your location. All
communication should be protected using encryption and key management.

 Transparency of security processes

- Some Cloud Service Providers may not explain their security processes
for their own security reasons.
 Compliance with Regulations
o Payment Card Industry Data Security Standard (PCI DSS)
o Health Insurance Portability and Accountability Act (HIPAA)
o Sarbanes-Oxley Act (SOA)
o Proper implementation of the CIA triad (Confidentiality, Integrity,
Assurance)
o Geographical borders
- The location of the customer’s data is significant. Public Cloud
service providers typically implement robust data replication mechanisms
as a safe guard for server failures. This means that the customer’s data
might be distributed across the globe in various geographies. This would
conflict with the customer’s need/requirements to keep their data within a
specified border (Microsoft Corporation, 2011).

 Potentials of a single security breach

- A single security breach not only destroys the CPS’s reputation but put
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 9

your data and many others’ in danger. A perfect example is Sony’s data
breaches in 2011. Sony faced customer relation fallouts, and lawsuits over its
failure (Schwartz. M, 2011).

 Access control mechanisms

 Data Loss
Cross-tenant data leakage
- vulnerabilities of shared network infrastructure components, such
as vulnerabilities in a DNS server, Dynamic Host Configuration Protocol, and IP protocol
vulnerabilities, might enable network-based cross-tenant attacks in an IaaS infrastructure
(Pfleeger, Irvine, Kwon, 2012).

Private Cloud Computing

According to the National Institute of Standards and Technology (NIST) a private
Cloud is a Cloud infrastructure that is operated solely for an organization. The
organization or a third party can manage it. Private Clouds can exist on-site or off-site
(Grance, T., Mell, P., 2009). Typically private Clouds are used when sensitive data is
involved. Figure 2 below gives a basic illustration of an organization using a private
Cloud.

Figure 2: Illustration of an organization with a private Cloud. (Diagram by Delvis

Simmonds and Alli Wahab, 2012).

Private Cloud Security Issues

Private Clouds have the same security concerns as public Clouds do, but typically
on a smaller scale since private Clouds are operated solely for an organization. However,
there are some specific concerns towards this Cloud model:
• Security Architecture
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 10

o Perimeter Security and insider attacks

- Very often, traditional perimeter security is not configured to
protect resources from attacks that come from within the organization
(Microsoft (2), 2012).

o Hypervisor vulnerabilities and network level authentication (IPSec,

IPS/IDS)
- Virtual machines are heavily used in Private Clouds. It is possible
that those virtual machines will be able to have virtual
communication with other virtual machines. Virtual machines
should only be communicating with the ones they need to.
Encryption and authentication mechanisms should be implemented
using IPSec and/or IPS/IDS (Microsoft (2), 2012).

• Security Zones
- Resources of different types and sensitivity levels should be located in
separate security zones (Stawowski, M., 2007).

Based on previous studies and the definition of a private Cloud, private Clouds
will immediately seem to be more secure than public Clouds because of how the
infrastructure is designed. It gives the organization more control over their policies and
security. According to NIST, the internal private Cloud is more suitable deployment
models that offer an organization greater oversight and authority over security and
privacy, and better limit the types of tenants that share platform resources, reducing
exposure in the event of a failure or configuration error in a control.
Private Clouds typically would suffer from perimeter complacency; thinking that
because it is on the internal network, it must be secure; the Internet and viruses are still
present. So, caution and security standards should not be lowered just because it is private
(Bloomberg, 2012). Moreover, the private Cloud requires that to have total control over
all layers of the stack, which includes any traditional network perimeter security you
might want to have in place. In a private Cloud model, the Cloud services are not
typically exposed to the general Internet users and remote access to private Cloud hosted
resources is enabled through mechanisms used in traditional data centers. Private Cloud
computing typically uses virtualization technologies to increase hardware utilization and
to abstract compute, memory, network, and storage component from Private Cloud
consumers (Thomas, 2011). See Table 1 below for a concise comparison of public
Clouds and private Clouds.

Concise comparison
Table 1: A concise comparison of public and private Clouds.
Public Cloud Private Cloud
Low investment hurdle High investment hurdle
Negative loss and control over data IT organization retains control over data
Higher risk of multi-tenancy data transfer Fewer security concerns
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 11

Conclusions & Future Work

In this paper we have provided a definition of Cloud computing and highlighted
the security issues/concerns related to public Clouds and private Clouds. As more
businesses today utilize Cloud services and architectures, more threats and concerns
arise. The attributes of both Cloud models shown in pages 7 to 10 and Table 1 definitely
would make one contemplate the direction to take. Nevertheless, the integration of
Cloud-based services in businesses is continuing. Both public and private Cloud models
have their own advantages and challenges; therefore security will always be an issue. The
needs and goals of each organization will vary. Therefore evaluating specific
applications, security and compliance considerations would help in deciding what is more
appropriate for a private Cloud and what is more appropriate for a public Cloud.
Cloud computing is a very wide subject area. Even though the scope was scaled
down to the security issues in public Cloud computing and private Cloud computing it
was still quite a challenge getting details on certain areas; most information found during
the research is related to either public Cloud computing or Cloud computing in general.
The reason for this is that the term “Private Cloud” is not as widely accepted as Cloud
computing.
Research in the future about Cloud computing will most likely be on Hybrid
Cloud Computing (the combination of services from public and private Clouds). Several
recent Cloud surveys confirm these high levels of interest in hybrid Cloud. A Unisys
survey in January 2011 indicated that 21% of IT organizations are focusing on hybrid
Clouds, and a Sand Hill Group survey of over 500 IT managers indicates that hybrid
Cloud use will triple over the next three years (Bitpipe, 2012).
 Public Cloud Computing vs. Private Cloud Computing: How Security Matters 12

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