BYOD in practice KPMG case study 13 March 2013 Agenda Aurelia Costache CIO KPMG Romania Page Tel: + 40 744 655 830 acostache@kpmg.com BYOD – why? 2 Business Case for Mobile devices 5 Implications 7 Challenges 11 Summary and lessons learnt 13 © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 1 BYOD – Why? Trend or necessity? Global telecom sector: An overview Global wireless subscriber base and net additions (Q1 2012) Global Mobile Services Revenues (US$ billion) 30.0 966 1,054 1,087 1,114 6.3 18.0 Data 680 650 2.3 1,014 26% 29% 32% 35% 37% 74% 71% 68% 65% 63% 2012F 2013F 2014F 260 330 5.9 540 9.9 6.2 billion total mobile subscriptions as of March 2012 1,160 29.0 2010 2011 Voice 600 900 1,000 Growing subscriber base: Mobile subscriptions at 6.2 billion in Q1 2012, 25.0 39.0 ( ~87 percent penetration). Adjusted active subscriptions 4.2 billion Sharp decline in revenue growth – down from double-digit increases between 2005 and 2008 to just 5 percent in 2011 ■ Mobile service revenue to grow at CAGR 3.2 percent during 2011-14 170 million net additions in the first quarter ending March 2012 ■ Data to drive revenue growth – CAGR 12.3 percent during 2011-14, only partly offsetting the decline of voice revenues Source: Ericsson; Informa Research © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 3 BYOD – What’s the buzz? Microsoft, 3% History Symbian, 1% BB, 7% Blackberry served the corporate world As of 2007 major growth market share of smartphones (iPhone, Android) Recent years Explosion of smartphone penetration Emergence of tablets iOS, 35% Android, 54% Corporate and private phones get mixed: “Bring your own device” Main Drivers Intuitive/Usable interface Internet/cloud integration Affordable pricing November 2012 U.S. Mobile Subscriber Market Share Source: comScore MobiLens © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 4 BYOD in KPMG Business Case The Business Case Main elements Analysis of national and roaming traffic data Estimation of new traffic requirements for BYOD (national and roaming) The used fleet was almost 2 years old and replacement had to be planned CAPEX is lower (less devices acquired by KPMG) OPEX is higher (more admin staff to support the new users, MDM licenses, additional traffic) KPMG people (they can select the smart-phone they want) Staff need for mobility (business efficiency by accessing KPMG resources on mobile devices) © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 6 BYOD in KPMG Implications Implications – Broader then expected KPMG Global Standards Data Privacy Technology Implications Legal Security © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 8 KPMG Global Standards, Technology and Security Main concerns Ensure the necessary security features to protect corporate data and prevent data loss as well comply with KPMG Global Standards – Security Requirements for Mobile Devices. What How will these What happens security when a device is happens features be lost or stolen? deployed? What happens with the data saved to local backup or iCloud? What happens when a device is infected with malware? What happens when the wrong PIN / password is entered too many times? KPMG Approach KPMG limited the BYOD program to main OS on the market: Android and iOS and implemented dedicated MDM solutions: FAMOC for iOS GOOD for Android © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 9 Legal and Data Privacy Main concerns MDM features may include activity monitoring, tracking, and remote lock & wipe. Employees must give explicit and fully-informed consent for any organization to access and process their personal data. Employee consent is also required should a business wish to install a MDM application on their device. KPMG Approach KPMG implemented a BYOD policy: •addresses the above concerns •formally communicated and acknowledged by all participants. Policies configurations enforced using the MDM were carefully reviewed to ensure compliance with legal and Data Privacy requirements. © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 10 BYOD in KPMG Challenges BYOD – Challenges Operational challenges Complete testing & configuring of the MDM solutions Plan the enrollment: centralize all demands trough service desk application, increase of the data traffic Enroll all devices at the same time: activate the data services, install the MDM application on the device, configure the user account on the email server and synchronize the KPMG data account. Security testing phase Vulnerabilities identified ..included MDM solution’s Internet facing components as well the client application installed on mobile devices: 1. 2. Application security testing (web specific attacks, application logic attacks) Testing the network communication between clients and server Data encryption / protection MITM, spoofing, etc Testing the client application (agent) Jailbreak Policy bypassing Local data storage / recovery Static application analysis, etc ..for all components of the solution: for web applications’ front-end interface for client installed on smartphones. operational/ functional vulnerabilities (eg the application did not detect that a phone is subject to jailbreak) © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 12 BYOD in KPMG Summary & lessons learnt Summary of BYOD in KPMG Romania Summary of 2012 BYOD program allowing employees to use their own smart phones to access relevant corporate data: In the past... Drivers for change Around 150 BB used by Managers and above Proliferation of smart devices Mainly used for corporate email access KPMG people Cloud based services (private cloud) Need for mobility Expensive solution, especially in roaming Cost management Today 260 smart devices (phones and tablets) activated Traffic volume increased by 30%, costs reduced by 10% Samsung Tab 10.1 2% Other (Android) 1% After 6 months review the business case was confirmed Legal and Data Privacy formalized in a BYOD policy aspects considered and MDM solution implemented but processes are complex and need time to stabilize Initiative well received by KPMG staff (user satisfaction increased) Behavior changed (efficiency & innovation) © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Iphone 4S 36% Samsung Galaxy SII 50% iPad 11% 14 Lessons learnt Enrolling mobile devices results in new risks Broader then expected, e.g. legal, technology, integration, backups Security controls work differently on mobile devices Technical Solutions Different security architectures to reduce risks of mobile devices No technical solution fixes it all, mitigate risks by people, processes and technology How to continue Perform risk assessment before implementation Consult with relevant experts Implement security controls for people, process and technology Test effectiveness of security controls Stay up-to-date with recent developments Structured approach, phase by phase Unexpectedly well received by users! © 2013KPMG Romania, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 15 © 2013 KPMG Romania, a Romanian member firm and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”).