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The controversial “Open Cloud Manifesto” is intended to ensure users
of Web-based applications such as those offered by, IBM
and Microsoft have the ability to port their data to new providers
should they choose to switch services. However, the limitation of cloud
services is the lack of secure inter-cloud communications and data
exchange between hosted applications.

The availability of ubiquitous and reliable high-speed connectivity
has created a boom in software-as-a-service and Web-based applications.
According to Gartner, SAAS will be a $53 billion market in 2009 and
will grow to more than $150 billion in annual sales by 2013.

With that kind of growth, IBM and Cisco Systems this week unveiled
the Open Cloud Manifesto, a pledge among leading vendors supplying
cloud-based services to maintain open standards to give customers the
ability to exercise choice in selecting and changing services. Part of
the concern behind the manifesto is to ensure that no one service
provider monopolizes the market or unfairly locks customers into one

"It’s not that everything is going to be perfectly compatible, but
it is going to be somewhat similar so that you can move from one vendor
to another. It gives businesses the comfort level they need to buy,"
said Stephen O’Grady, an analyst with technology research firm RedMonk
told Reuters news service.

Some vendors—most notably Microsoft—have criticized the manifesto as
being a ploy for trying to shape the SAAS marketplace. However, some
say the real inhibiter to widespread SAAS adoption and unlocking its
value to business-technology users is some form of secure exchange of
data between cloud-based applications and services—a form of federated
identity management for the Web services.

“This isn’t a new problem; it’s a reflection of a level of
maturity,” says Nick Nikols, vice president of product management for
identity and security at Novell. “Identity provides the right context
for a lot of these problems. You can have flexibility of providing
access without some context of identity.”

Recently, electronic privacy and security public interest groups
raised concerns to federal regulators about the security of data stored
by Web services providers. Some even called for investigations into the
security of data stored by Google’s Doc services and Amazon’s S3
storage service. Secure access to cloud-based information and data is
relatively straight forward, with users granted accounts and
provisioned access rights and privileges based on their account
settings. Levels of authentication can vary based on the security
requirements of the contracting companies and sophistication of the
service provider. Today, many SAAS and Web services are protected by
common password access control mechanisms and SSL encrypted connections.

Users can have multiple instances of various hosted and Web-services
open on their desktops, authenticating to each of them for access or
creating a simulated single sign-on through a locally administered
password vault. Most applications will enable cutting-and-pasting of
information between applications. However, there’s few ways that these
applications can automatically port information seamlessly and
transparently between them, especially across multiple domains. For
instance,’s CRM application today cannot easily share
information with a Web-based Oracle database or SAP finance

In years past, security evangelists thought public key
infrastructure (PKI) would provide the means for sharing information
across disparate domains. The federal government spent millions of
dollars building a PKI bridge so federal agencies—each operating their
own domain—could digitally share information and documents. The Food
and Drug Administration did successfully implement a PKI infrastructure
to expedite data submissions by drug companies for market approvals.
But few enterprise-level PKI implementations achieved a measurable
level of success.

Federal identity management may hold a model for opening
Web-services to application-to-application data exchange. In a
federated identity management scheme, two domains agree to trust the
credentials past between each based on a relationship established
out-of-band. Federated identity management often works well in theory,
but the logistics and audit trails get murky when a third domain with
no relation to one of the original parties is introduced to the

The answer to the cloud computing identity management conundrum may
just be putting identity management in the cloud, too, says JG
Chirapurath, director of identity management and security marketing at
Microsoft’s identity and security unit. He believes having some or all
identity management as a cloud-based services that’s kept in synch with
the on-premise user activity may provide the means for cross-domain
data exchange between cloud applications.

“It comes back to a matter of trust. SharePoint trusts me under a
certain set of conditions, but how do you get SharePoint to trust
Siebel?” Chirapurath says. “Across boundaries, you can share
information in a fairly fine grained way that’s based on identity, so
you need a flexible scheme of identity; an identity you use at work and
that will go with you to use in different places.”

Cloud-based identity management could be a big business opportunity
for solution providers, since most identity management platforms are
designed for large enterprise environments with 5,000 or more
employees. By pushing identity management into the cloud, solution
providers could deliver and manage identity services for small and
midsized companies.

“It’s a tremendous opportunity for solution providers and partners,
as rich as the on-premise world,” says Chirapurath. “It’s an amazing
opportunity for partners because you can’t do this level of
implementation without partners.”

Major providers of SAAS applications and hosted services—including
Microsoft, Google and Amazon—did not sign the Open Cloud Manifesto but
are participating in talks for its further development. For now, the
manifesto is focused on ensuring data and service migration, not
necessarily real-time, cross-domain data sharing.