service providers

Sarbox-inspired storage tape breakthrough?

Jim Kim — Sun, 20 Jul 2008 08:33:32 -0400

We've noted that Sarbanes-Oxley has really fueled the database and storage market. Data centers will certainly continue to draw IT resources, even in a tough budgetary environment. Reflecting the times, IBM and Sun have just come out with nuclear solutions. This month, within a day of each other, both announced enterprise tape drives capable of carrying 1 terabyte worth of data. The IT giants are aiming their nukes at financial services, life sciences and other companies with intense retention needs, reports eWeek. In this era of virtualized environments, do you really need this kind of capacity? My guess is that the products will slowly find markets in large companies and perhaps third-party data center service providers. They'll cost just under $40,000 each.

For more:
- here's an eWeek article

Related Article:
Data centers are hot again

Robert Half still riding Sarbox wave?

Tue, 29 Apr 2008 06:59:59 -0400

Sarbanes-Oxley has been good for a lot of companies that found ways to surf the wave. The Big Four top the list. GRC providers latched on. Lots of vendors oriented some of their marketing around the issue. One big winner early on was Robert Half, the temporary worker company that saw huge growth for financial and audit specialists. In addition, its Protiviti risk consulting and audit company had been seen as one of the big winners. It continues to draw good reviews from the media. So why has its stock price been halved since peaking in in early 2006? A Seeking Alpha piece (full disclosure: the author is long the stock) argues this is mere froth and volatility, and that the stock may be a bargain.

For more:
- here's the article

Oracle aims for GRC eco-system

Tue, 20 Nov 2007 06:59:59 -0500

The big boys--Oracle, IBM and SAP--are certainly aware of the demand for compliance-driven software solutions. The solutions span the entire business market, and Oracle's idea is to make this "eco-system" a little more accessible via its partner platform. The goal of the Oracle Enterprise Security and GRC Initiative is to make getting partner services out in front of customers a bit easier. So for Oracle-based service providers, the program can't hurt. The release notes data from AMR Research that shows GRC spending will reach $30 billion in this year, an increase of 8.5 percent over 2006. That's a bit misleading, as software in other high-growth categories, such as business intelligence, are often driven by compliance needs.

For more:
- see Oracle's release

Aberdeen looks at best-in-class security trends

Tue, 09 Oct 2007 06:59:59 -0400

When it comes to compliance-related security efforts, the benefits are pretty obvious. Most people would agree that automated approaches would work best, but resource issues and stubbornness at the top make it a somewhat lower priority than you might expect. Aberdeen Group has just issued a report that reiterates the benefits. Nearly 45 percent of "Best-in-Class organizations" reduced the cost associated with non-compliance incidents over the last year; 26% lowered their cost of grappling with security-related incidents. Nearly half were able to lower the number of security incidents. Overall, these marketing points, while interesting, are sort of obvious. But such projects compete with many others, including lots that are also compliance related.

For more:
- here's the report

Related articles:
- New world of network compliance and security emerges
- Don't let compliance overshadow security

Do you need help with your SEC filings?

Tue, 21 Aug 2007 06:59:58 -0400

Sarbanes-Oxley seems to have played a role in forcing companies to get more focused on their filings. The window in which they must file has been shortened over the years, and there is precious little room for error. One company, EDGARFilings of Houston, seems to have found a niche with its software to convert filings into Edgar format. AT&T just joined the list of clients, along with Lowe's, Carmax and Dominion Resources. Third-party filing agents say they have also experienced an uptick in business. The real issue here is XBRL. You have to think that many service providers may start transitioning to XBRL products. Something to think about as you ponder your options. Article

Shortage of financial talent at home--and abroad

Mon, 16 Jul 2007 20:01:39 -0400

There has obviously been a lot of talk about outsourcing certain internal processes. The software-as-a-service movement seems to be intact. More service providers indeed seem bent on easing their customers concerns about the legitimacy of their services. See the next item on Google. What about the outsourcing of core financial functions. Well, there's a huge lack of talent that might make the idea interesting to you. There are some domestic providers of course--what about going offshore? Well, the fact is that there is a shortage of financial talent around the world. Deloitte surveyed more than 600 senior finance executives from 73 countries and found two-thirds thought that Asia's talent was limited or inadequate. Sixty percent said the same about Europe. At the same time, 42 percent said that they were barely able or unable to meet the demand for finance professionals.

For more on the survey:
- here's a write-up

More jargon: What is a SAS Type II Exam?

Mon, 16 Apr 2007 20:01:39 -0400

We've touched on the rise of software-as-a-service and how it might affect compliance initiatives. We noted then that more SaaS solution providers in the GRC arena may feel the need to publicize that they have passed something called SAS 70 Type II examinations, which are performed by auditors. In the last week, a raft of companies have come forward with such announcements, notably Bwise but also AmeriVault and ViaWest. This all makes sense, though more jargon is the last thing we need. Companies are placing more pressure on service providers and their controls environment as a way to satisfy their auditors. Hosted-service providers these days are expected to do what they can to help. Passing the exam should provide some comfort. The Statement on Auditing Standards (SAS) No. 70 is the creation of the American Institute of Certified Public Accountants (AICPA). It basically means that the service providers has had an auditor take a look at their processes and controls and they have been deemed adequate.

For more:
- see this release from Bwise
- read this AmeriVault release
- and this release from ViaWest

Time for multifactor authentication?

Mon, 26 Feb 2007 19:01:38 -0500

Sarbanes-Oxley has focused attention on online security, especially for banks and brokerages. One solution that has gained more attention is multifactor authentication, which boils down to an approach requiring more than a user name and password to access a network. Now, many banks and other online service providers have moved to a multifactor approach. You would have to think that a similar approach might be worth pondering when it comes to the internal intranet, especially areas that contain proprietary information. There are some downsides to be sure. One is the cost. The other is sheer pain-in-the-neck factor that comes with a multi-layered approach. Employees will grumble. But it might be worth a shot. Article

Factor Sarbox into outsourcing plans

Mon, 01 Jan 2007 19:01:38 -0500

I would be amazed if any of you haven't considered outsourcing, if only in moderate doses. The trend is here to stay. Small companies in particular have been attracted to the many benefits of software-as-a-service offerings that are still in vogue. At first you might think Sarbanes-Oxley would be a reason not to proceed. Some might think that outsourced email management would service fly in the face of the Sarbox-driven security needs. But I think software-as-a-service providers will increasingly market compliance features, and you should pay attention in order to separate the wheat from the chaff, so to speak. Broadly speaking, outsourcing makes sense. But only if it can work from a compliance perspective. Article