Cloud Computing


TMCnews Featured Article


October 08, 2010

The Argument for Tokenization in Cloud Computing

By Susan J. Campbell, TMCnet Contributing Editor


The idea of cloud computing sounds like something from a B-rated movie, yet the concept is really a long time coming when you look at the associated technology. Using the Internet to manage processes and systems seems to make logical sense, yet a number of companies were apprehensive about the security of their information as it left the protection of their firewalls.

There are a few different security options available to those who implement cloud computing into their overall strategy and what is interesting is that there seem to be opposing views as to what will actually work and what will be a challenge. In a recent SC Magazines piece, end-to-end encryption and tokenization were examined as potential protections in a cloud computing world.

End-to-end encryption is often described as a compressive insurance policy as it promises to cover and secure data no matter what happens. Data is secured from the point it leaves your system and as it travels to its destination.

Tokenization is another method of securing data within the cloud computing space. And, while it is considered a valid approach to security; tokenization has been known to omit sensitive data that should be protected. Sensitive data needs to be confidently secure at all times and full encryption ensures you can operate your business with cloud computing without worrying that some element or piece of data is omitted.

As much benefit as end-to-end encryption can lend to your organization as you implement cloud computing, there are still concerns that this approach can have a negative impact on performance. In some cases, the affect is rather small and therefore acceptable as the benefits outweigh the risks.

For some, however, they see any degradation in quality as a negative consequence and therefore aim to implement tokenization instead. For Ulf Mattsson, CTO of Protegrity, next-generation tokenization is a better option to secure data in cloud computing as it is transparent, faster, more secure and more scalable.

The cloud is most certainly a high-risk environment as it decreases administrators’ ability to control the flow of all sensitive data. As cloud computing introduces risk, encryption keys become more vulnerable and put data at risk. Because tokenization eliminates keys, the chance that thieves can do anything with stolen data is mitigated.

It is still important that in cloud computing, the IT manager avoid home-grown tokenization solutions as shortcuts should never be taken where security of data is concerned. It is true that tokenization must be truly random in order to be effective and any solution that does not meet this standard will put data at risk.


Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Erin Monda