SEMA News—February 2015

INTERNET
By Joe Dysart

Securing the Cloud

Key Contract Provisions

While untold numbers of businesses are saving money by moving to the cloud, IT experts say that these companies need to ensure that their cloud contracts include ironclad security protections or they’ll suffer an uncertain future.

“Look at the news on any given day,” said Ron Zalkind, chief technology officer at CloudLock, a service provider that helps companies secure public cloud accounts, such as Google Apps and Sales Force. “You’ll clearly see that the number of risks and data breaches is accelerating.” Moreover, getting from “uncertainty” to “protected” can be more difficult than you might expect, given that many providers of cloud services are reluctant to put their security assurances in writing.

“We continue to see frustration among users of cloud services over the form and degree of transparency they are able to obtain from prospective and current service providers,” said Alexa Bona, a managing vice president at Gartner, a market research group.

Not surprisingly, the cat-and-mouse game between users and cloud providers is taking a toll. Many companies are simply delaying a move to the cloud due to their concerns over security, according to a 2014 study released by Bitglass, a cloud security firm. Specifically, Bitglass researchers found that more than half of large companies (52%) and approximately one-third of small- to medium-size companies (33%) cite security as their primary concern when it comes to cloud-based IT. Plus, the percentage of companies concerned about cloud security is increasing, according to the survey. While 25% of companies expressed security concerns in October 2011, the figure increased to 42% in July 2013, according to Bitglass researchers.

Fortunately, federal governments are stepping in to help assuage concerns. For example, EU regulators are aggressively pushing for more-detailed cloud security agreements between providers and companies and rolled out a set of guidelines in 2014. They worked out the guidelines with key global cloud service providers, such as IBM, SAP and Microsoft.

“A competitive digital single market needs high standards of data protection,” said Viviane Reding, vice president of the European Commission. “The new guidelines are a step in the right direction.”

Similar efforts are underway at the U.S. National Institute of Standards and Technology. Essentially, the standards—which will apply to cloud service providers doing business with the federal government—are expected to serve as best-practice cloud security contract templates for all of industry in the United States.

Of course, despite hoped-for government protections, it’s always good business sense to make sure that provisions for the security of your data are made explicit before you ink any cloud contract. Here’s what cloud security experts recommend (consult with your attorney before implementing any):

• Be sure that there are limitations on where your data will be geographically located. Nail this down, or your company’s data could end up on a server in Iran.
• Be sure that you have a detailed exit strategy from your cloud-services provider. Should you decide to move on to another provider, you’ll want to be sure that there is a clear pre-agreement on the transition. Specifically, nail down how you’ll move your data and in what format your data will be sent to you for the transition. You’ll also want in writing the kind of cooperation your old provider will give you and the amount of time you’ll have to secure your data. Otherwise, with nothing in writing, you could simply lose all of your data with a move.

• 	IBM’s cloud center in Beijing.

  Beware of cloud providers that insist on the unilateral right to change contract terms. This right can give your cloud service provider a blank check to make changes to your contract terms on a whim and leave your data in the lurch. If the provider refuses to budge, be sure you can live with this provision.
• Get documentation on how your provider will secure your data. Any decent cloud provider will have internal protocols in place designed to safeguard your data and your company’s privacy. Get those protocols in writing. And get a guarantee that your provider’s security standards will be certified annually.
• Get documentation that your provider is aware of all local, regional, national and international laws regarding the security and privacy of your data. And get documentation and descriptions of the systems your provider has in place to comply with those laws. Also, make sure get similar documentation that your provider is aware of and can comply with such laws that are specific only to companies in
  your industry.
• Ensure that your provider will be able to provide usable data should your institution be faced with an e-Discovery request during litigation against your institution. Your attorney should know how to ensure that this request is properly fulfilled.
• Ensure that the cloud contract clearly states that your company retains ownership over all its data and that the cloud-services provider has no right to use your data. Otherwise, the cloud provider may try to resell your data to third parties.
• Ensure that your legal agreements extend to the subcontractors hired by your cloud provider. This is an easy provision to overlook and could wreak havoc on your contract with your provider if forgotten.
• If possible, ensure that your IT director will be able to meet with the cloud security chief to evaluate the provider’s security protocols. Also ensure that your IT director will get immediate notice when any changes are made to those security protocols.
• Ensure that you will be notified if your cloud provider suffers a security breach or is hacked in any way. As we’ve all discovered the hard way, companies are often reluctant to inform clients that they’ve been breached.
• Ensure that you’re able to encrypt your data before it leaves your company’s computers. This provision can save untold headaches. Once encrypted, your data becomes much less of a problem for you in the cloud, no matter what goes on there.
• Ensure that your data will be wiped clean from servers and other computerized storage devices that are taken out of service by your cloud provider. Otherwise, a server or external hard disk with all your company’s trade secrets could pop up on eBay and be sold to a pimply faced 15-year-old—or a competitor.
• Secure a detailed agreement with your provider on how a system crash involving your data will be handled. Also secure an agreement on how a security breach of your data will be handled. Don’t assume that your cloud provider will be diligent.

For the latest ideas and developments in cloud security, monitor the Cloud Security Alliance. Its specific mission is to work on establishing international standards for security and privacy in cloud service agreements.

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
joe@joedysart.com
www.joedysart.com

SEMA News—February 2015

INTERNET
By Joe Dysart

Securing the Cloud

Key Contract Provisions

While untold numbers of businesses are saving money by moving to the cloud, IT experts say that these companies need to ensure that their cloud contracts include ironclad security protections or they’ll suffer an uncertain future.

“Look at the news on any given day,” said Ron Zalkind, chief technology officer at CloudLock, a service provider that helps companies secure public cloud accounts, such as Google Apps and Sales Force. “You’ll clearly see that the number of risks and data breaches is accelerating.” Moreover, getting from “uncertainty” to “protected” can be more difficult than you might expect, given that many providers of cloud services are reluctant to put their security assurances in writing.

“We continue to see frustration among users of cloud services over the form and degree of transparency they are able to obtain from prospective and current service providers,” said Alexa Bona, a managing vice president at Gartner, a market research group.

Not surprisingly, the cat-and-mouse game between users and cloud providers is taking a toll. Many companies are simply delaying a move to the cloud due to their concerns over security, according to a 2014 study released by Bitglass, a cloud security firm. Specifically, Bitglass researchers found that more than half of large companies (52%) and approximately one-third of small- to medium-size companies (33%) cite security as their primary concern when it comes to cloud-based IT. Plus, the percentage of companies concerned about cloud security is increasing, according to the survey. While 25% of companies expressed security concerns in October 2011, the figure increased to 42% in July 2013, according to Bitglass researchers.

Fortunately, federal governments are stepping in to help assuage concerns. For example, EU regulators are aggressively pushing for more-detailed cloud security agreements between providers and companies and rolled out a set of guidelines in 2014. They worked out the guidelines with key global cloud service providers, such as IBM, SAP and Microsoft.

“A competitive digital single market needs high standards of data protection,” said Viviane Reding, vice president of the European Commission. “The new guidelines are a step in the right direction.”

Similar efforts are underway at the U.S. National Institute of Standards and Technology. Essentially, the standards—which will apply to cloud service providers doing business with the federal government—are expected to serve as best-practice cloud security contract templates for all of industry in the United States.

Of course, despite hoped-for government protections, it’s always good business sense to make sure that provisions for the security of your data are made explicit before you ink any cloud contract. Here’s what cloud security experts recommend (consult with your attorney before implementing any):

• Be sure that there are limitations on where your data will be geographically located. Nail this down, or your company’s data could end up on a server in Iran.
• Be sure that you have a detailed exit strategy from your cloud-services provider. Should you decide to move on to another provider, you’ll want to be sure that there is a clear pre-agreement on the transition. Specifically, nail down how you’ll move your data and in what format your data will be sent to you for the transition. You’ll also want in writing the kind of cooperation your old provider will give you and the amount of time you’ll have to secure your data. Otherwise, with nothing in writing, you could simply lose all of your data with a move.

• 	IBM’s cloud center in Beijing.

  Beware of cloud providers that insist on the unilateral right to change contract terms. This right can give your cloud service provider a blank check to make changes to your contract terms on a whim and leave your data in the lurch. If the provider refuses to budge, be sure you can live with this provision.
• Get documentation on how your provider will secure your data. Any decent cloud provider will have internal protocols in place designed to safeguard your data and your company’s privacy. Get those protocols in writing. And get a guarantee that your provider’s security standards will be certified annually.
• Get documentation that your provider is aware of all local, regional, national and international laws regarding the security and privacy of your data. And get documentation and descriptions of the systems your provider has in place to comply with those laws. Also, make sure get similar documentation that your provider is aware of and can comply with such laws that are specific only to companies in
  your industry.
• Ensure that your provider will be able to provide usable data should your institution be faced with an e-Discovery request during litigation against your institution. Your attorney should know how to ensure that this request is properly fulfilled.
• Ensure that the cloud contract clearly states that your company retains ownership over all its data and that the cloud-services provider has no right to use your data. Otherwise, the cloud provider may try to resell your data to third parties.
• Ensure that your legal agreements extend to the subcontractors hired by your cloud provider. This is an easy provision to overlook and could wreak havoc on your contract with your provider if forgotten.
• If possible, ensure that your IT director will be able to meet with the cloud security chief to evaluate the provider’s security protocols. Also ensure that your IT director will get immediate notice when any changes are made to those security protocols.
• Ensure that you will be notified if your cloud provider suffers a security breach or is hacked in any way. As we’ve all discovered the hard way, companies are often reluctant to inform clients that they’ve been breached.
• Ensure that you’re able to encrypt your data before it leaves your company’s computers. This provision can save untold headaches. Once encrypted, your data becomes much less of a problem for you in the cloud, no matter what goes on there.
• Ensure that your data will be wiped clean from servers and other computerized storage devices that are taken out of service by your cloud provider. Otherwise, a server or external hard disk with all your company’s trade secrets could pop up on eBay and be sold to a pimply faced 15-year-old—or a competitor.
• Secure a detailed agreement with your provider on how a system crash involving your data will be handled. Also secure an agreement on how a security breach of your data will be handled. Don’t assume that your cloud provider will be diligent.

For the latest ideas and developments in cloud security, monitor the Cloud Security Alliance. Its specific mission is to work on establishing international standards for security and privacy in cloud service agreements.

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
joe@joedysart.com
www.joedysart.com

SEMA News—February 2015

REQUIRED READING

SEMA Show Ends With an After Party

For the first time in its long history, the 2014 SEMA Show ended with an “after party” called SEMA Ignited, where the general public viewed hundreds of cars and trucks from the trade-only event. Thousands of enthusiasts came out to get up close with one-of-a-kind cars, trucks and SUVs. Reporters flocked to SEMA Ignited as well to witness the thrill and excitement of this brand-new venue. Read on to see what reporters had to say about the first-ever SEMA Ignited. And tune in to the one-hour TV special scheduled to air on the Velocity Network in March 2015 to see footage of the event and the Battle of the Builders competition that culminated at SEMA Ignited.

SEMA News—February 2015

REQUIRED READING

SEMA Show Ends With an After Party

For the first time in its long history, the 2014 SEMA Show ended with an “after party” called SEMA Ignited, where the general public viewed hundreds of cars and trucks from the trade-only event. Thousands of enthusiasts came out to get up close with one-of-a-kind cars, trucks and SUVs. Reporters flocked to SEMA Ignited as well to witness the thrill and excitement of this brand-new venue. Read on to see what reporters had to say about the first-ever SEMA Ignited. And tune in to the one-hour TV special scheduled to air on the Velocity Network in March 2015 to see footage of the event and the Battle of the Builders competition that culminated at SEMA Ignited.

SEMA News—February 2015

REQUIRED READING

SEMA Show Ends With an After Party

For the first time in its long history, the 2014 SEMA Show ended with an “after party” called SEMA Ignited, where the general public viewed hundreds of cars and trucks from the trade-only event. Thousands of enthusiasts came out to get up close with one-of-a-kind cars, trucks and SUVs. Reporters flocked to SEMA Ignited as well to witness the thrill and excitement of this brand-new venue. Read on to see what reporters had to say about the first-ever SEMA Ignited. And tune in to the one-hour TV special scheduled to air on the Velocity Network in March 2015 to see footage of the event and the Battle of the Builders competition that culminated at SEMA Ignited.

SEMA News—February 2015

REQUIRED READING

SEMA Show Ends With an After Party

For the first time in its long history, the 2014 SEMA Show ended with an “after party” called SEMA Ignited, where the general public viewed hundreds of cars and trucks from the trade-only event. Thousands of enthusiasts came out to get up close with one-of-a-kind cars, trucks and SUVs. Reporters flocked to SEMA Ignited as well to witness the thrill and excitement of this brand-new venue. Read on to see what reporters had to say about the first-ever SEMA Ignited. And tune in to the one-hour TV special scheduled to air on the Velocity Network in March 2015 to see footage of the event and the Battle of the Builders competition that culminated at SEMA Ignited.

SEMA News—February 2015

REQUIRED READING

SEMA Show Ends With an After Party

For the first time in its long history, the 2014 SEMA Show ended with an “after party” called SEMA Ignited, where the general public viewed hundreds of cars and trucks from the trade-only event. Thousands of enthusiasts came out to get up close with one-of-a-kind cars, trucks and SUVs. Reporters flocked to SEMA Ignited as well to witness the thrill and excitement of this brand-new venue. Read on to see what reporters had to say about the first-ever SEMA Ignited. And tune in to the one-hour TV special scheduled to air on the Velocity Network in March 2015 to see footage of the event and the Battle of the Builders competition that culminated at SEMA Ignited.

SEMA News—February 2015

REQUIRED READING

SEMA Show Ends With an After Party

For the first time in its long history, the 2014 SEMA Show ended with an “after party” called SEMA Ignited, where the general public viewed hundreds of cars and trucks from the trade-only event. Thousands of enthusiasts came out to get up close with one-of-a-kind cars, trucks and SUVs. Reporters flocked to SEMA Ignited as well to witness the thrill and excitement of this brand-new venue. Read on to see what reporters had to say about the first-ever SEMA Ignited. And tune in to the one-hour TV special scheduled to air on the Velocity Network in March 2015 to see footage of the event and the Battle of the Builders competition that culminated at SEMA Ignited.

SEMA News—February 2015

PEOPLE
By Mike Imlay

Rich Barsamian SEMA Person of the Year

Over the course of his career, Rich Barsamian has forged an impressive list of accomplishments while working for some of the industry’s most recognized companies, including Grant, Edelbrock, GT Performance Products and Advanced Clutch Technology. Along the way, he has also served on SEMA select committees for the Young Executive Network (YEN), the Motorsports Parts Manufacturer Council (MPMC), the Hot Rod Industry Alliance (HRIA) and the SEMA Scholarship Committee.

His dedication to these and other initiatives has earned him numerous accolades, including the YEN Executive of the Year award, the YEN Vanguard award, and the 2011 Performance Warehouse Association Person of the Year award. Now he can add the 2014 SEMA Person of the Year award to his many achievements, having received the honor at the recent 2014 SEMA Show Industry Awards Banquet in Las Vegas.

“I am so grateful and humbled by this award,” said Barsamian, who recently returned to Advanced Clutch Technology as its vice president of sales and marketing. “It is very surreal. Anyone who knows me knows that I could talk to a wall even if it wouldn’t listen to me. But when they called my name at the ceremony, I was speechless.”

Ranking among SEMA’s most prestigious honors, the Person of the Year award recognizes outstanding contributions to the automotive specialty-equipment market over a year-long period by an industry individual employed by a SEMA-member company.

“SEMA is extremely pleased to honor Rich Barsamian as our 2014 Person of the Year,” said SEMA President and CEO Chris Kersting. “Rich is well known within both the association and industry at large for his professional achievements, enthusiasm, energy, approachability and spirit of volunteerism. He has been a driving force in so many SEMA initiatives and continues to give back to the specialty-equipment industry in countless ways, most especially through the mentoring of young people seeking to make their careers in our industry.”

While thanking his wife Sandra for her continued support of his endeavors, Barsamian also credited his father with first introducing him to the specialty-equipment industry some three decades ago.

“He was an automotive buyer for a Southern California membership department store called Fedco,” Barsamian explained. “He got me some side work with some local rep agencies doing demos at grand openings of new stores.”

Soon, a rep principal named Charlie Sumrall took note of Barsamian’s ability to work well with people and sell products for the now-defunct store chain, and Sumrall offered Barsamian a job at the Berkhoff, Hyatt and Sumrall rep agency, which later split and reorganized to become Sumrall, Odell and Anderson.

“I worked my first several years as a field merchandiser and later as a sales rep,” Barsamian recalled. “I can hardly believe that was 30 years ago. I attended my first SEMA Show 28 years ago.”

That participation in the SEMA Show eventually led to deeper and deeper involvement in the trade association.

“I began volunteering in 1994 as part of YEN,” he said. “It allowed me to springboard eventually to the HRIA, the SEMA Memorial Scholarship Committee and later to the MPMC. I had many mentors who helped me when I first started. Now I use what they taught me and what helped me starting out as the basis for helping others. In fact, the most rewarding part of my career has been the opportunity to mentor young people in the industry and help them navigate their career paths to find their place volunteering within SEMA. The main thing is for them to find their passion. Once they identify their passion, everything else will happen naturally as they grow in their jobs and volunteerism.”

Reflecting on lessons learned over the years, Barsamian noted how difficult it can be at times to stay on top of a marketplace in constant flux.

“It has been especially challenging pushing myself to grow and adapt to this industry as it continues to evolve and change,” he said. “The temptation is to drag your feet in the sand, but we just can’t. We need to remain motivated. I like the saying that we never stop learning until they slam the coffin lid. I know that I will never know it all, and I love the opportunities that change eventually brings.”

Ultimately, however, Barsamian believes that true professional growth derives from service to others.

“Become the go-to person at your job and when volunteering,” he advised. “Be the person that people can count on to get things done. Good things will happen. When they do, pay it forward and get others involved. Help them the way you would’ve liked to have been helped. You will be successful, and there’s no better feeling than knowing you left things better than how you found them.”

SEMA News—February 2015

PEOPLE
By Mike Imlay

Rich Barsamian SEMA Person of the Year

Over the course of his career, Rich Barsamian has forged an impressive list of accomplishments while working for some of the industry’s most recognized companies, including Grant, Edelbrock, GT Performance Products and Advanced Clutch Technology. Along the way, he has also served on SEMA select committees for the Young Executive Network (YEN), the Motorsports Parts Manufacturer Council (MPMC), the Hot Rod Industry Alliance (HRIA) and the SEMA Scholarship Committee.

His dedication to these and other initiatives has earned him numerous accolades, including the YEN Executive of the Year award, the YEN Vanguard award, and the 2011 Performance Warehouse Association Person of the Year award. Now he can add the 2014 SEMA Person of the Year award to his many achievements, having received the honor at the recent 2014 SEMA Show Industry Awards Banquet in Las Vegas.

“I am so grateful and humbled by this award,” said Barsamian, who recently returned to Advanced Clutch Technology as its vice president of sales and marketing. “It is very surreal. Anyone who knows me knows that I could talk to a wall even if it wouldn’t listen to me. But when they called my name at the ceremony, I was speechless.”

Ranking among SEMA’s most prestigious honors, the Person of the Year award recognizes outstanding contributions to the automotive specialty-equipment market over a year-long period by an industry individual employed by a SEMA-member company.

“SEMA is extremely pleased to honor Rich Barsamian as our 2014 Person of the Year,” said SEMA President and CEO Chris Kersting. “Rich is well known within both the association and industry at large for his professional achievements, enthusiasm, energy, approachability and spirit of volunteerism. He has been a driving force in so many SEMA initiatives and continues to give back to the specialty-equipment industry in countless ways, most especially through the mentoring of young people seeking to make their careers in our industry.”

While thanking his wife Sandra for her continued support of his endeavors, Barsamian also credited his father with first introducing him to the specialty-equipment industry some three decades ago.

“He was an automotive buyer for a Southern California membership department store called Fedco,” Barsamian explained. “He got me some side work with some local rep agencies doing demos at grand openings of new stores.”

Soon, a rep principal named Charlie Sumrall took note of Barsamian’s ability to work well with people and sell products for the now-defunct store chain, and Sumrall offered Barsamian a job at the Berkhoff, Hyatt and Sumrall rep agency, which later split and reorganized to become Sumrall, Odell and Anderson.

“I worked my first several years as a field merchandiser and later as a sales rep,” Barsamian recalled. “I can hardly believe that was 30 years ago. I attended my first SEMA Show 28 years ago.”

That participation in the SEMA Show eventually led to deeper and deeper involvement in the trade association.

“I began volunteering in 1994 as part of YEN,” he said. “It allowed me to springboard eventually to the HRIA, the SEMA Memorial Scholarship Committee and later to the MPMC. I had many mentors who helped me when I first started. Now I use what they taught me and what helped me starting out as the basis for helping others. In fact, the most rewarding part of my career has been the opportunity to mentor young people in the industry and help them navigate their career paths to find their place volunteering within SEMA. The main thing is for them to find their passion. Once they identify their passion, everything else will happen naturally as they grow in their jobs and volunteerism.”

Reflecting on lessons learned over the years, Barsamian noted how difficult it can be at times to stay on top of a marketplace in constant flux.

“It has been especially challenging pushing myself to grow and adapt to this industry as it continues to evolve and change,” he said. “The temptation is to drag your feet in the sand, but we just can’t. We need to remain motivated. I like the saying that we never stop learning until they slam the coffin lid. I know that I will never know it all, and I love the opportunities that change eventually brings.”

Ultimately, however, Barsamian believes that true professional growth derives from service to others.

“Become the go-to person at your job and when volunteering,” he advised. “Be the person that people can count on to get things done. Good things will happen. When they do, pay it forward and get others involved. Help them the way you would’ve liked to have been helped. You will be successful, and there’s no better feeling than knowing you left things better than how you found them.”