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GLOBAL ENCRYPTION TRENDS STUDY Middle East | May 2017

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Page 1: GLOBAL ENCRYPTION TRENDS STUDY - Key Managementgo.thalesesecurity.com/rs/480-LWA-970/images/2017-Global-Encrypti… · Attitudes About Key Management 8 Importance of Hardware Security

GLOBAL ENCRYPTIONTRENDS STUDYMiddle East | May 2017

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2 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Sponsored by Thales e-Security INDEPENDENTLY CONDUCTEDBY PONEMON INSTITUTE LLC

PART 1. EXECUTIVE SUMMARY 3 PART 2. KEY FINDINGS 4

Strategy and Adoption of Encryption 5

Deployment Choices 7

Attitudes About Key Management 8

Importance of Hardware Security Modules (HSMs) 11

Cloud Encryption 12

APPENDIX 1. METHODS & LIMITATIONS 13 APPENDIX 2. SURVEY DATA TABLES 16

TABLE OF CONTENTS

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3PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Ponemon Institute is pleased to present the findings of the 2017 Global Encryption Trends Study: Middle East, sponsored by Thales e-Security. We surveyed 316 individuals in the Middle East to examine the use of encryption and the impact of this technology on the security posture of organizations in this country.

The first encryption study trends study was conducted in 2005 for a U.S. sample of respondents. Since then we have expanded the scope of the research to include respondents in 11 countries – the United States, United Kingdom, Germany, France, Australia, Japan, Brazil, the Russian Federation, Mexico, India and the Middle East (which is a combination of respondents located in Saudi Arabia and the United Arab Emirates).1

Mega breaches and cyber attacks have increased companies’ urgency to improve their security posture. In fact, 78 percent of organizations represented in this study embrace some type of encryption strategy, as shown in Figure 1. We believe this and other findings demonstrate the importance of encryption and key management in achieving a strong security posture.

Following is a summary of our key findings. More details are provided for each key finding listed below in the next section of this report.

IT operations has the most influence in directing encryption strategies. While responsibility for the encryption strategy is dispersed throughout the organization, IT operations (33 percent of respondents) has the most influence. Twenty-nine percent of respondents say no one single function is responsible for encryption strategy.

Which data types are most often encrypted? Human resource data is the most likely data type to be encrypted – suggesting that encryption has now moved into the realm where it needs to be addressed by companies of all types. The least likely data type is health-related information.

Employee mistakes are the most significant threats to sensitive data. The most significant threats to the exposure of sensitive or confidential data are employee mistakes, according to 55 percent of respondents. Thirty-two percent of respondents say temporary or contract workers and 29 percent of respondents say third party service providers pose the biggest threat.

1 In addition to this Middle East report, country-level reports are available for Australia (AU), Brazil (BZ), France (FR), India (IN), Japan (JP), and Mexico (MX).

We have a limited encryption plan or strategy that is applied to certain applications and data types

We have an overall encryption plan or strategy that is applied consistently across the entire enterprise

We don’t have an encryption plan or strategy

Figure 1. What best describes your organization's encryption strategy?

48%

30%

22%

0

10%

20%

30%

40%

50%

PART 1. EXECUTIVE SUMMARY

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4 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Protection of intellectual property is the main driver to using encryption technologies. Sixty-three percent of respondents report that encryption is used to protect the enterprise’s intellectual property. Other drivers are protection of customers’ personal information and to protect information against specific, identified threats (56 percent and 53 percent of respondents, respectively).

Discovering where sensitive data resides is the biggest challenge. Fifty-four percent of respondents say discovering where sensitive data resides in the organization is the number one challenge and 38 percent of respondents say initially deploying encryption technology is difficult.

Encryption of Internet communications, databases and laptop hard drives dominate encryption technologies. Encryption of Internet communications, databases and laptop hard drives is most likely to be extensively deployed. In contrast, big data repositories are least likely to be extensively or partially encrypted.

Certain encryption features are considered more critical than others. Respondents were asked to rate encryption technology features considered most important to their organization’s security posture. According to the findings, system performance and latency, management of keys, and support for cloud and on-premise deployment are the top three valued features.

How painful is key management? Sixty percent of respondents say key management is very painful. The top reasons are: no clear ownership, isolated and fragmented systems, and inadequate key management tools. The types of keys viewed as most difficult to manage are: keys for external cloud or hosted services including Bring Your Own Key (BYOK) keys, end user encryption keys (e.g. email, full disk encryption), SSH keys and keys associated with SSL/TLS.

Key management systems most commonly used. The most commonly deployed key management systems are: manual process (e.g. spreadsheet, paper-based), formal key management infrastructure (KMI) and formal key management policy (KMP).

The importance of Hardware Security Modules (HSMs) to an encryption or key management strategy will grow in the next 12 months. We asked respondents in organizations that currently deploy HSMs how important they are to their encryption or key management strategy. Forty percent of respondents say they are important and 50 percent of respondents say they will be important in the next 12 months. The top three choices today and in the next 12 months are database encryption, application level encryption and public cloud encryption, including for Bring Your Own Key (BYOK).

How organizations are using HSMs. Sixty-seven percent of respondents say they have a centralized team that provides cryptography as a service and 36 percent of respondents say each individual application owner/team is responsible for their own cryptographic services.

Most organizations transfer sensitive or confidential data to the cloud. Forty-five percent of respondents say their organizations currently transfer sensitive or confidential data to the cloud (whether or not it is encrypted or made unreadable via some other mechanism) and 26 percent of respondents plan to in the next 12 to 24 months.

How is data at rest in the cloud protected? Forty-two percent of respondents say encryption is performed on-premise prior to sending data to the cloud using keys the organization generates and manages. In contrast, encryption is performed in the cloud using keys generated/managed by the cloud provider according to 37 percent of respondents.

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5PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Lines of business (LOB)or general management

IT operations

Security

Compliance

No single function has responsibility

33%

29%

19%

16%

3%

0 5% 10% 15% 20% 25% 30% 35%

Figure 2. In�uence of IT operations, lines of business and security

Employee/HR data 70%

Payment related data

51%Financial records

45%

Intellectual property 44%

Customer information 31%

Non-�nancial business information

Healthcare information

25%

15%

0 10% 20% 30% 40% 50% 60% 70% 80%

Figure 3. Data types routinely encryptedMore than one choice permitted

PART 2. KEY FINDINGSIn this section, we present an analysis of the key findings. The complete audited findings are presented in the appendix of the report. We have organized the report according to the following themes:

• Strategy, threats and main drivers

• Deployment choices

• Attitudes about key management

• Importance of hardware security modules (HSMs) • Cloud encryption

Strategy, threats and main drivers IT operations has the most influence in directing encryption strategies. As shown in Figure 2, while responsibility for the encryption strategy is dispersed throughout the organization, IT operations (33 percent of respondents) has the most influence. Twenty-nine percent of respondents say no one single function is responsible for encryption strategy.

Which data types are most often encrypted? Figure 3 provides a list of seven data types that are routinely encrypted by respondents’ organizations. As shown, employee/HR data is most often encrypted, suggesting that encryption has now moved into the realm where it needs to be addressed by companies of all types. The least likely data type to be encrypted is healthcare information.

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6 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Employee mistakes are the most significant threats to sensitive data. Figure 4 reveals the most significant threats to the exposure of sensitive or confidential data are employee mistakes, according to 55 percent of respondents. Thirty-two percent of respondents say temporary or contract workers and 29 percent of respondents say third party service providers pose the biggest threat.

Protection of intellectual property is the main driver to using encryption technologies. Eight drivers for deploying encryption are presented in Figure 5. Sixty-three percent of respondents report it is to protect the enterprise’s intellectual property. Other drivers are protection of customers’ personal information and to protect information against specific, identified threats (56 percent and 53 percent of respondents, respectively).

Figure 4. The main threats that might expose of sensitive or con�dential dataTwo responses permitted

Employee mistakes

Temporary or contract workers

Third party service providers

System or process malfunction

Hackers

Malicious insiders

Lawful data request (e.g., by police)

Government eavesdropping

55%

32%

29%

24%

24%

15%

12%

9%

To comply with external privacy or datasecurity regulations and requirement

To protect enterprise intellectual property

To protect information against speci�c,identi�ed threats

To protect customer personal information

To limit liability from breaches orinadvertent disclosure

To reduce the scope of compliance audits

To comply with internal policies

To avoid public disclosure after a databreach occurs

63%

56%

53%

38%

28%

28%

19%

15%

0 10% 20% 30% 40% 50% 60% 70%

Figure 5. The main drivers for using encryption technology solutionsThree responses permitted

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7PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Discovering where sensitive data resides in the organization is the biggest challenge. Figure 6 provides a list of six challenges to the organization’s effective execution of its data encryption strategy in descending order of importance. Fifty-four percent of respondents say it is the challenge of discovering where sensitive data resides in the organization and 38 percent of respondents say it is initially deploying the encryption technology.

Deployment choices Encryption of Internet communications, databases and laptop hard drives dominates in organizations. We asked respondents to indicate if specific encryption technologies are widely or only partially deployed within their organizations. “Extensive deployment” means that the encryption technology is deployed enterprise-wide. “Partial deployment” means the encryption technology is confined or limited to a specific purpose (a.k.a. point solution).

As shown in Figure 7, encryption of Internet communications, databases, and laptop hard drives are most likely to be extensively deployed. In contrast, docker containers and big data repositories are least likely to be extensively or partially encrypted.

Discovering where sensitive data residesin the organization

Initially deploying the encryption technology

Ongoing management of encryption and keys

Training users to useencryption appropriately

Determining which encryptiontechnologies are most effective

Classifying which data to encrypt

54%

38%

34%

31%

30%

13%

0 10% 20% 30% 40% 50% 60%

Figure 6. Biggest challenges in planning and executing a data encryption strategyTwo responses permitted

Internet Communications (e.g., SSL)

Data Center Storage

Internal Networks (e.g., VPN/LPN)Laptop Hard Drives

Backup and Archives

EmailCloud Gateway

File Systems

Private Cloud Infrastructure

Public Cloud Services

Big Data RepositoriesDocker Containers

0 20% 40% 60% 80% 100%

65% 27% 8%6%

14%

7%23%

32%35%

22%45%

48%

56%

49%

61%60%

47%

45%38%

33%

31%31%

22%

18%

21%

33%26%

36%

48%39%

31%

47%

29%

26%

31%

Extensively deployed Partially deployed Not deployed

Figure 7. The use of encryption technologies

Databases

17%

37%

32%

24%

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8 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Certain encryption features are considered more critical than others. Figure 8 lists 12 encryption technology features. Each percentage defines the very important response (on a four point scale). Respondents were asked to rate encryption technology features considered most important to their organization’s security posture.

According to the findings, system performance and latency, management of keys, and support for cloud and on-premise deployment are the top three valued features.

Attitudes about key management

How painful is key management? Using a 10-point scale, respondents were asked to rate the overall “pain” associated with managing keys within their organization, where 1 = minimal impact to 10 = severe impact. Figure 9 shows that 60 percent (19 + 41) of respondents chose ratings at 7 or above, thus suggesting a fairly high pain threshold.

Why is key management painful? Figure 10 shows the reasons why the management of keys is so difficult. The top reasons are: no clear ownership, systems are isolated and fragmented and key management tools are inadequate.

0 10% 20% 30% 40% 50% 60% 70% 80% 90%

System performance and latency 82%

Enforcement of policy

75%

Support for cloud and on-premise deployment 71%

Management of keys

62%

System scalability

61%

Support for emerging algorithms (e.g., ECC)

59%

Integration with other security tools (e.g., SIEM and ID management)

56%

Formal product security certi�cations (e.g., FIPS 140)

54%

Tamper resistance by dedicated hardware (e.g., HSM)

47%Support for multiple applications or environments

46%

Separation of duties and role-based controls 44%

Support for regional segregation (e.g., data residency) 39%

Figure 8. Most important features of encryption technology solutionsVery important and important response combined

1 or 2 3 or 4 5 or 6 7 or 8 9 or 100

5%

10% 8%

14%

18% 19%

41%

15%

20%

25%

30%

35%

40%

45%

Figure 9. How painful is key management?1 = minimal impact to 10 = severe impact

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9PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Which keys are most difficult to manage? According to Figure 11, the types of keys viewed as most difficult to manage are: keys for external cloud or hosted services including Bring Your Own Key (BYOK) keys, end user encryption keys (e.g., email, full disk encryption), SSH keys and keys associated with SSL/TLS.

No clear ownership 69%

Lack of skilled personnel

51%Systems are isolated and fragmented

50%Key management tools are inadequate

45%

Insuf�cient resources (time/money) 30%

No clear understanding of requirements 27%

Technology and standards are immature 16%

Manual processes are prone toerrors and unreliable 12%

0 10% 20% 30% 40% 50% 60% 70%

Figure 10. What makes the management of keys so painful?Three responses permitted

Keys for external cloud or hosted servicesincluding Bring Your Own Key (BYOK) keys

Signing keys (e.g., codesigning, digital signature)

End user encryption keys(e.g., email, full disk encryption)

Payments-related keys(e.g., ATM, POS, etc.)

Keys to embed into devices (e.g., at the time of manufacture in device production

environments, or for IoT devices you use)

SSH Keys

Keys associated with SSL/TLS

Encryption keys for archived data

Encryption keys for backups and storage

62%

50%

49%

45%

44%

39%

39%

20%

12%

0 10% 20% 30% 40% 50% 60% 70%

Figure 11. Types of keys most dif�cult to manageVery painful and painful response combined

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PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Key management systems currently used. As shown in Figure 12, respondents’ companies continue to use a variety of key management systems. The most commonly deployed systems are: manual process (e.g., spreadsheet, paper-based), formal key management infrastructure (KMI) and formal key management policy (KMP).

Manual process (e.g., spreadsheet, paper-based)

Formal key management policy (KMP)

Formal key management infrastructure (KMI)

Central key management system/server

Removable media (e.g., thumb drive, CD-ROM)

Hardware security modules

Smart cards

Software-based key stores and wallets

53%

42%

42%

27%

24%

16%

12%

10%

0 10% 20% 30% 40% 50% 60%

Figure 12. What key management systems does your organization presently use?More than one response permitted

FORTY PERCENT OF RESPONDENTS SAY HSMS ARE IMPORTANT AND 50 PERCENT OF RESPONDENTS SAY THEY WILL BE IMPORTANT IN THE NEXT 12 MONTHS.

10

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11PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

32%39%

31%32%

30%

28%32%

23%24%

23%24%

21%20%

19%20%

18%

11%12%

6%9%

6%6%

6%3%

13%17%

1%1%

18%

31%

0 5% 10% 15% 20% 25% 30% 35% 40%

Deployed now Deployed in the next 12 months

Figure 13. How HSMs are deployed or will be deployed in the next 12 monthsMore than one response permitted

SSL/TLS

Application level encryption

Database encryption

Public cloud encryption including for Bring Your Own Key (BYOK)

PKI or credential management

Payment transaction processing

Payment credential issuing (e.g., mobile, EMV)

Private cloud encryption

With Cloud Access Security Brokers (CASBs) for encryption key management

Document signing (e.g., electronic envoicing)

Big data encryption

Internet of Things (IoT) device authentication

None of the above

Code signing

Other

Importance of hardware security modules (HSMs)

HSMs importance to an encryption or key management strategy will grow in the next 12 months. We asked respondents in organizations that currently deploy HSMs how important they are to their encryption or key management strategy. Forty percent of respondents say they are important and 50 percent of respondents say they will be important in the next 12 months.

Figure 13 summarizes the primary purposes or use cases for deploying HSMs. As shown, the top three choices are database encryption, application level encryption and public cloud encryption, including for Bring Your Own Key (BYOK).

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12 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

How organizations are using HSMs. According to Figure 14, 67 percent of respondents say they have a centralized team that provides cryptography as a service and 36 percent of respondents say each individual application owner/team is responsible for their own cryptographic services.

Cloud encryption

Most organizations transfer sensitive or confidential data to the cloud. As shown in Figure 15, 45 percent of respondents say their organizations currently transfer sensitive or confidential data to the cloud (whether or not it is encrypted or made unreadable via some other mechanism) and 26 percent of respondents plan to in the next 12 to 24 months. Fifty percent of respondents say it is the cloud provider who is most responsible for protecting sensitive or confidential data transferred to the cloud.

We have a centralized team that provides cryptography as a service (including HSMs) to multiple applications/teams within our

organizations (i.e., private cloud model)67%

33%Each individual application owner/team is responsible for their

own cryptographic services (including HSMs) (i.e., traditional siloed application-speci�c data center deployment)

0 10% 20% 30% 40% 50% 60% 70%

Figure 14. Which statement best describes how your organization uses HSMs?

45%

26%29%

Yes, we are presently doing so

We are likely to do so in the next 12 to 24 months

No0

10%

20%

30%

40%

50%

Figure 15. Do you currently transfer sensitive or con�dential data to the cloud?

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13PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

How is data at rest in the cloud protected? As shown in Figure 16, 42 percent of respondents say encryption is performed on-premise prior to sending data to the cloud using keys the organization generates and manages. Encryption is performed in the cloud using keys generated/managed by the cloud provider according to 37 percent of respondents.

Encryption performed on-premise prior to sending data to the cloud using keys my organization generates and manages

Encryption performed in the cloud using keys generated/managed by the cloud provider

Encryption performed in the cloud using keys my organization generates and manages on-premise

Tokenization performed by the cloud provider

None of the above

Tokenization performed on-premise prior to sending data to the cloud

42%

37%

18%

13%

12%

5%

0 10% 20% 30% 40% 50%

Figure 16. How does your organization protect data at rest in the cloud?

APPENDIX 1. METHODS & LIMITATIONSTable 2 reports the sample response for the Middle East. The sample response for this study was conducted over a 49-day period ending in February 2017. Our consolidated sampling frame of practitioners in the Middle East consisted of 9,146 individuals who have bona fide credentials in IT or security fields. From this sampling frame, we captured 369 returns of which 53 were rejected for reliability issues. Our final Middle East 2017 sample was 316, thus resulting in an overall 3.5% response rate.

Table 2. Sample response

Total Sampling frame

Total returns

Rejected or screened surveys

Final sample

Freq

9,146

369

53

316

Pct%

100%

4.0%

0.6%

4.4%

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14 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Figure 17 summarizes the approximate position levels of respondents in our study. As can be seen, almost half of the respondents (47 percent) are at or above the supervisory level.

Figure 18 reports the respondents’ functional area. As shown, 51 percent of respondents are located in IT operations and 17 percent are in security.

51%

16%

26%

2% 2%3%

Senior Executive

Vice President

Director

Manager/Supervisor

Associate/Staff/Technician

Other

Figure 17. Distribution of respondentsaccording to position level

17%

5%

51%

12%

8%

7%

Figure 18. Distribution of respondentsaccording to functional area

IT operations

Security

Compliance

Lines of business (LOB)

Finance

Other

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15PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

21%

16%

13%9%

9%

7%

6%

5%

5%4%

2% 3%

Figure 19. Distribution of respondentsaccording to primary industry classi�cation

Energy & Utilities

Services

Financial Services

Manufacturing & Industrial

Public sector

Transportation

Technology & Software

Communications

Health & Pharmaceutical

Retail

Education & Research

Other

Figure 19 reports the respondents’ organizations primary industry segments. As shown, 21 percent of respondents are located in the energy and utilities industry, 16 percent are located in the services industry. Thirteen percent are located in financial services, which includes banking, investment management, insurance, brokerage, payments and credit cards.

According to Figure 20, more than half (72 percent) of respondents are located in larger-sized organizations with a global headcount of more than 1,000 employees.

17%

22%

11%8%

6%

36%

Less than 500

500 to 1,000

1,001 to 5,000

5,001 to 25,000

25,001 to 75,000

More than 75,000

Figure 20. Distribution of respondentsaccording to organizational headcount

Energy & Utilities

Services

Financial Services

Manufacturing & Industrial

Public sector

Transportation

Technology & Software

Communications

Health & Pharmaceutical

Retail

Education & Research

Other

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Limitations

There are inherent limitations to survey research that need to be carefully considered before drawing inferences from the presented findings. The following items are specific limitations that are germane to most survey-based research studies.

Non-response bias: The current findings are based on a sample of survey returns. We sent surveys to a representative sample of IT and IT security practitioners in the Middle East, resulting in a large number of usable returned responses. Despite non-response tests, it is always possible that individuals who did not participate are substantially different in terms of underlying beliefs from those who completed the survey.

Sampling-frame bias: The accuracy of survey results is dependent upon the degree to which our sampling frames are representative of individuals in the Middle East who are IT or IT security practitioners.

Self-reported results: The quality of survey research is based on the integrity of confidential responses received from respondents. While certain checks and balances were incorporated into our survey evaluation process including sanity checks, there is always the possibility that some respondents did not provide truthful responses.

Survey response

Sampling frame

Total returns

Rejected or screened surveys

Final sample

Response rate

Sample weights

ME

9,146

369

53

316

3.5%

7%

Part 1. Encryption Posture

ME

30%

48%

22%

100%

Q1. Please select one statement that best describes your organization’s approach to encryption implementation across the enterprise.

We have an overall encryption plan or strategy that is appliedconsistently across the entire enterprise

We have a limited encryption plan or strategy that is appliedto certain applications and data types

We don’t have an encryption plan or strategy

Total

APPENDIX 2. SURVEY DATA TABLESThe following tables provide the results for the Middle East country sample.

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17PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q2. Following are areas where encryption technologies can be deployed. Please check those areas where encryption is extensively deployed, partially deployed or not as yet deployed by your organization.

Q2a-1 Backup and archives

Extensively deployed

Partially deployed

Not deployed

Total

ME

45%

48%

7%

100%

Q2b-1. Big data repositories

Extensively deployed

Partially deployed

Not deployed

Total

ME

18%

26%

56%

100%

Q2c-1 Cloud gateway

Extensively deployed

Partially deployed

Not deployed

Total

ME

31%

24%

45%

100%

Q2d-1. Data center storage

Extensively deployed

Partially deployed

Not deployed

Total

ME

38%

39%

23%

100%

Q2e-1. Databases

Extensively deployed

Partially deployed

Not deployed

Total

ME

61%

33%

6%

100%

Q2f-1 Docker containers

Extensively deployed

Partially deployed

Not deployed

Total

ME

21%

31%

48%

100%

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18 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q2g-1 Email

Extensively deployed

Partially deployed

Not deployed

Total

ME

31%

47%

22%

100%

Q2h-1 Public cloud services

Extensively deployed

Partially deployed

Not deployed

Total

ME

37%

31%

32%

100%

Q2i-1 File systems

Extensively deployed

Partially deployed

Not deployed

Total

ME

33%

32%

35%

100%

ME

61%

33%

6%

100%

Q2j-1 Internet communications(e.g., SSL)

Extensively deployed

Partially deployed

Not deployed

Total

ME

65%

27%

8%

100%

Q2k-1 Internal networks(e.g., VPN/LPN)

Extensively deployed

Partially deployed

Not deployed

Total

ME

47%

36%

17%

100%

Q2l-1 Laptop hard drives

Extensively deployed

Partially deployed

Not deployed

Total

ME

60%

26%

14%

100%

Q2m-1 Private cloudinfrastructure

Extensively deployed

Partially deployed

Not deployed

Total

ME

22%

29%

49%

100%

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19PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q4. What are the reasons why your organization encrypts sensitiveand con�dential data? Please select the top three reasons.

To protect enterprise intellectual property

To protect customer personal information

To limit liability from breaches or inadvertent disclosure

To avoid public disclosure after a data breach occurs

To protect information against speci�c, identi�ed threats

To comply with internal policies

To comply with external privacy or data security regulations and requirements

To reduce the scope of compliance audits

Total

ME

63%

56%

38%

15%

53%

28%

28%

19%

300%

Q5. What are the biggest challenges in planning and executinga data encryption strategy? Please select the top two reasons.

Discovering where sensitive data resides in the organization

Classifying which data to encrypt

Determining which encryption technologies are most effective

Initially deploying the encryption technology

Ongoing management of encryption and keys

Training users to use encryption appropriately

Total

ME

54%

34%

13%

38%

31%

30%

200%

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20 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q7. What types of data does your organization encrypt? Please select all that apply.

Customer information

Non-�nancial business information

Intellectual property

Financial records

Employee/HR data

Payment related data

Healthcare information

ME

31%

25%

44%

51%

70%

45%

15%

Q6. How important are the following features associated with encryption solutions that may be used by your organization? Very important and important response combined.

Enforcement of policy

Management of keys

Support for multiple applications or environments

Separation of duties and role-based controls

System scalability

Tamper resistance by dedicated hardware (e.g., HSM)

Integration with other security tools (e.g., SIEM and ID management)

Support for regional segregation (e.g., data residency)

System performance and Latency

Support for emerging algorithms (e.g., ECC)

Support for cloud and on-premise deployment

Formal product security certi�cations (e.g., FIPS 140)

ME

59%

75%

47%

44%

46%

56%

61%

39%

82%

54%

71%

62%

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21PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q8. What are the main threats that might result in the exposure of sensitive or con�dential data? Please select the top two choices.

Hackers

Malicious insiders

System or process malfunction

Employee mistakes

Temporary or contract workers

Third party service providers

Lawful data request (e.g. by police)

Government eavesdropping

Total

ME

24%

15%

24%

55%

32%

29%

12%

9%

200%

Q9. Please rate the overall “pain” associated with managing keys within your organization, where 1 = minimal impact to 10 = severe impact?

1 or 2

3 or 4

5 or 6

7 or 8

9 or 10

Total

ME

8%

14%

18%

19%

41%

100%

Part 2. Key Management

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22 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q11. Following are a wide variety of keys that may be managed by your organization. Please rate the overall “pain” associated with managing each type of key. Very painful and painful response combined.

Encryption keys for backups and storage

Encryption keys for archived data

Keys associated with SSL/TLS

SSH keys

End user encryption keys (e.g., email, full disk encryption)

Signing keys (e.g., code signing, digital signatures)

Payments-related keys (e.g., ATM, POS, etc.)

Keys to embed into devices (e.g. at the time of manufacture in deviceproduction environments, or for IoT devices you use)

Keys for external cloud or hosted services including Bring Your Own Key (BYOK) keys

ME

20%

39%

45%

49%

50%

44%

39%

12%

62%

Q10. What makes the management of keys so painful?Please select the top three reasons.

No clear ownership

Insuf�cient resources (time/money)

Lack of skilled personnel

No clear understanding of requirements

Key management tools are inadequate

Systems are isolated and fragmented

Technology and standards are immature

Manual processes are prone to errors and unreliable

Total

ME

69%

30%

45%

27%

50%

51%

16%

12%

300%

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23PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q12a. What key management systems does your organization presently use?

Formal key management policy (KMP)

Formal key management infrastructure (KMI)

Manual process (e.g., spreadsheet, paper-based)

Central key management system/server

Hardware security modules

Removable media (e.g., thumb drive, CDROM)

Software-based key stores and wallets

Smart cards

Total

ME

42%

42%

53%

27%

10%

24%

12%

16%

226%

Q12b. What key management systems does your organization not presently use, or you are not aware of use?

Formal key management policy (KMP)

Formal key management infrastructure (KMI)

Manual process (e.g., spreadsheet, paper-based)

Central key management system/server

Hardware security modules

Removable media (e.g., thumb drive, CDROM)

Software-based key stores and wallets

Smart cards

Total

ME

55%

56%

47%

72%

82%

75%

83%

80%

550%

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24 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q11. Following are a wide variety of keys that may be managed by your organization. Please rate the overall “pain” associated with managing each type of key. Very painful and painful response combined.

Encryption keys for backups and storage

Encryption keys for archived data

Keys associated with SSL/TLS

SSH keys

End user encryption keys (e.g., email, full disk encryption)

Signing keys (e.g., code signing, digital signatures)

Payments-related keys (e.g., ATM, POS, etc.)

Keys to embed into devices (e.g. at the time of manufacture in deviceproduction environments, or for IoT devices you use)

Keys for external cloud or hosted services including Bring Your Own Key (BYOK) keys

Q14b-1. HSMs used today

Application level encryption

Database encryption

Big data encryption

Public cloud encryption including for Bring Your Own Key (BYOK)

Private cloud encryption

SSL/TLS

PKI or credential management

Internet of Things (IoT) device authentication

Document signing (e.g. electronic invoicing)

Code signing

Payment transaction processing

Payment credential issusing (e.g., mobile, EMV)

With Cloud Access Security Brokers (CASBs) for encryption key management

None of the above

Other

Total

ME

31%

32%

6%

30%

23%

28%

21%

19%

6%

6%

11%

18%

23%

13%

1%

268%

Q14b. For what purpose does your organization presently deploy or plan to use HSMs? Please select all that apply.

Q13. What best describes your level of knowledge about HSMs?

Very knowledgeable

Knowledgeable

Somewhat knowledgeable

No knowledge (skip to Q17a)

Total

ME

22%

26%

20%

32%

100%

Q14a. Does your organization use HSMs?

Yes

No (skip to Q17a)

Total

ME

34%

66%

100%

Part 3. Hardware Security Modules

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25PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q14b-2. HSMs planned to be deployed in the next 12 months

Application level encryption

Database encryption

Big data encryption

Public cloud encryption including for Bring Your Own Key (BYOK)

Private cloud encryption

SSL/TLS

PKI or credential management

Internet of Things (IoT) device authentication

Document signing (e.g. electronic invoicing)

Code signing

Payment transaction processing

Payment credential issusing (e.g., mobile, EMV)

With Cloud Access Security Brokers (CASBs) for encryption key management

None of the above

Other

Total

ME

32%

39%

3%

31%

24%

32%

20%

20%

6%

9%

12%

18%

24%

17%

1%

288%

Q14c-1. If you use HSMs in conjunction with public cloud based applications, what models do you use today? Please select all that apply.

Rent/use HSMs from public cloud provider, hosted in the cloud

Own and operate HSMs on-premise at your organization, accessed real-time by cloud-hosted applications

Own and operate HSMs for the purpose of generating and managing BYOK (Bring Your Own Key) keys to send to the cloud for use by the cloud provider

Own and operate HSMs that integrate with a Cloud Access Security Broker to manage keys and cryptographic operations (e.g., encrypting data on the way to the cloud, managing keys for cloud applications)

None of the above

Total

ME

40%

49%

14%

12%

3%

118%

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26 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q14c-2. If you use HSMs in conjunction with public cloud based applications, what models do you plan to use in the next 12 months Please select all that apply.

Rent/use HSMs from public cloud provider, hosted in the cloud

Own and operate HSMs on-premise at your organization,accessed real-time by cloud-hosted applications

Own and operate HSMs for the purpose of generating and managing BYOK (Bring Your Own Key) keys to send to the cloud for use by the cloud provider

Own and operate HSMs that integrate with a Cloud Access Security Broker to manage keys and cryptographic operations (e.g., encrypting data on the way to the cloud, managing keys for cloud applications)

None of the above

Total

ME

43%

62%

33%

23%

2%

163%

Q15. In your opinion, how important are HSMs to your encryption or key management strategy? Very important and important response combined

Q15a. Importance today

Q15b. Importance in the next 12 months

ME

40%

50%

Q16. Which statement best describes how your organization uses HSMs?

We have a centralized team that provides cryptography as a service (including HSMs) to multiple applications/teams within our organization (i.e. private cloud model).

Each individual application owner/team is responsible for their own cryptographic services (including HSMs) (i.e. traditional siloed, application-speci�c data center deployment).

Total

ME

67%

33%

100%

Q17a. Are you responsible for managing all or part of your organization’s IT budget this year?

Yes

No (skip to Q18)

Total

ME

53%

47%

100%

Part 4. Budget Questions

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27PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Part 6: Cloud encryption: When responding to the following questions, please assume they refer only to public cloud services.

Q17b. Approximately, what percentage of the 2017 IT budget will go to IT security activities?

ME

11.5%

Q17c. Approximately, what percentage of the 2017 IT security budget will go to encryption activities?

ME

16.5%

Q35a. Does your organization currently use cloud computing services for any class of data or application – both sensitive and non-sensitive?

Yes, we are presently doing so

No, but we are likely to do so in the next 12 to 24 months

No (Go to Part 7 if you do not use cloudservices for any class of data or application)

Total

ME

51%

30%

19%

100%

Q35b. Do you currently transfer sensitive or con�dential data to the cloud(whether or not it is encrypted or made unreadable via some other mechanism)?

Yes, we are presently doing so

No, but we are likely to do so in the next 12 to 24 months

No (Go to Part 7 if you do not use or plan to use any cloudservices for sensitive or con�dential data)

Total

ME

45%

26%

29%

100%

Q35c. In your opinion, who is most responsible for protecting sensitiveor con�dential data transferred to the cloud?

The cloud provider

The cloud user

Shared responsibility

Total

ME

50%

25%

25%

100%

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28 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

Q35d. How does your organization protect data at rest in the cloud?

Encryption performed in the cloud using keysgenerated/managed by the cloud provider

Encryption performed in the cloud using keys my organizationgenerates and manages on-premise

Encryption performed on-premise prior to sending data to the cloudusing keys my organization generates and manages

Tokenization performed by the cloud provider

Tokenization performed on-premise prior to sending data to the cloud

None of the above

Total

ME

37%

18%

42%

13%

12%

5%

128%

Q35e. For encryption of data at rest in the cloud,my organization’s strategy is to . . .

Only use keys controlled by my organization

Only use keys controlled by the cloud provider

Use a combination of keys controlled by my organization and by the cloud provider, with a preference for keys controlled by my organization

Use a combination of keys controlled by my organization and by the cloud provider, with a preference for keys controlled by the cloud provider

Total

ME

47%

17%

14%

22%

100%

Q35f. Do you currently encrypt, or plan to encrypt, with any of the following SaaS applications (please check all that apply)?

Microsoft Of�ce 365

Salesforce.com

Box

Concur

Workday

Google Apps

ServiceNow

DocuSign

ZenDesk

Other

Total

ME

50%

38%

24%

10%

9%

23%

3%

15%

12%

6%

190%

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29PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

D1. What organizational level best describes your current position?

Senior Executive

Vice President

Director

Manager/Supervisor

Associate/Staff/Technician

Other

Total

ME

2%

3%

16%

26%

51%

2%

100%

Part 7: Role and organizational characteristics

D2. Select the functional area that best describes your organizational location.

IT operations

Security

Compliance

Finance

Lines of business (LOB)

Other

Total

ME

51%

17%

12%

7%

8%

5%

100%

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30 PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

D3. What industry best describes your organization’s industry focus?

Agriculture & food services

Communications

Consumer products

Defense & aerospace

Education & research

Energy & utilities

Entertainment & media

Financial services

Health & pharmaceutical

Hospitality

Manufacturing & industrial

Public sector

Retail

Services

Technology & software

Transportation

Other

Total

ME

0%

5%

0%

0%

2%

21%

0%

13%

5%

0%

9%

9%

4%

16%

6%

7%

3%

100%

D4. What is the worldwide headcount of your organization?

Less than 500

500 to 1,000

1,001 to 5,000

5,001 to 25,000

25,001 to 75,000

More than 75,000

Total

ME

11%

17%

36%

22%

8%

6%

100%

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31PONEMON INSTITUTE© RESEARCH REPORT – MIDDLE EAST

About Ponemon Institute

The Ponemon Institute© is dedicated to advancing responsible information and privacy management practices in business and government. To achieve this objective, the Institute conducts independent research, educates leaders from the private and public sectors and verifies the privacy and data protection practices of organizations in a variety of industries.

About Thales e-Security

Thales e-Security is the leader in advanced data security solutions and services that deliver trust wherever information is created, shared or stored. We ensure that the data belonging to companies and government entities is both secure and trusted in any environment – on-premise, in the cloud, in data centers or big data environments – without sacrificing business agility. Security doesn’t just reduce risk, it’s an enabler of the digital initiatives that now permeate our daily lives – digital money, e-identities, healthcare, connected cars and, with the internet of things (IoT), even household devices. Thales provides everything an organization needs to protect and manage its data, identities and intellectual property, and meet regulatory compliance – through encryption, advanced key management, tokenization, privileged-user control and high-assurance solutions. Security professionals around the globe rely on Thales to confidently accelerate their organization’s digital transformation. Thales e-Security is part of Thales Group.

About Thales

Thales is a global technology leader for the Aerospace, Transport, Defence and Security markets. With 64,000 employees in 56 countries, Thales reported sales of €14.9 billion in 2016. With over 25,000 engineers and researchers, Thales has a unique capability to design and deploy equipment, systems and services to meet the most complex security requirements. Its exceptional international footprint allows it to work closely with its customer all over the world.

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32©2017 Thales