- 1 Requirements for globally regulated Azure solutions
- 2 The Azure solution
- 2.1 Security components
- 2.2 Governance components
- 2.3 Infrastructure components
- 3 Conclusion
Microsoft Azure is rapidly becoming the public cloud of choice for large financial services enterprises. Some of the biggest reasons Global Financial Services Institutions (GFIs) are choosing Azure to augment or replace on-premises application environments are:
- The high level of security that the Azure cloud provides.
- The exceptional control enterprises can have over compliance and security within their subscriptions.
- The many features that Azure has for data governance and protection.
- The long list of Global Regulatory Standards that the Azure cloud is compliant with. Please see the Microsoft Trust Center for more information.
Requirements for globally regulated Azure solutions
Azure is built to allow enterprises to control the flow of data between regions, and to control who has access to and can manage that data. Before we begin talking about solutions we need to define the requirements.
Examples of global regulation
Many governments and coalitions have developed laws and regulations for how data is stored, where it can be stored, and how it must be managed. Some examples of the more stringent and well know of these scenarios are:
European Union (EU)
General Data Protection Regulation (GDPR) is a legal framework that sets guidelines for the collection and processing of personal information from individuals who live in the EU.
Federal Data Protection Act is a law that deals with the conditions for processing employee data, and restrictions on the rights enjoyed by data subjects.
Data Localization and Management Law is a law that states that data collected about German citizens must be properly protected and encrypted, stored only on physical devices within Germany’s political boundaries, as well as managed only by German citizens.
Cyber Security Law (CSL) is a set of laws concerned with data localization, infrastructure, and management.
The Canadian Personal Information Protection and Electronic Documents Act (PIPEDA), protects consumer data across Canada, against misuse and disclosure.
Architecture and design requirements
Beyond the above-mentioned regulatory requirements there exist technical requirements specific to these scenarios. Cloud application and infrastructure architects are presented with the opportunity to develop solutions that provide business function while not violating international laws and regulations. The following are some of the requirements that need to be considered.
A globalized business model provides access to multiple financial markets on a continuous basis each day. These markets differ in operations, language, culture, and of course regulation. Despite these differences, the services placed in the cloud need to be architected to be consistent across these markets to ensure manageability and customer experience.
Services and data management
Germany and China are prime examples of countries that only allow their citizens to manage data and the infrastructure on which that data resides.
Many countries require at least some of the data sovereign to their country to remain physically within their borders. Regulated data cannot be transferred out of the country and data that does not meet regulatory requirements cannot be transferred into the country.
Due to many of the above requirements, it becomes slightly more complicated to design for high availability, data-replication, and disaster recovery. For example, data must be replicated only to a location consistent with the country or regions standards and laws. Likewise, if a DR scenario is triggered it must be ensured that the applications, running in the DR site, are not crossing legal or standards boundaries to access information.
Proper authentication to support role and identity based access controls must be in place to ensure that only intended and legally authorized individuals can access resources.
The Azure solution
Azure Active Directory (AAD)
Azure Active Directory (AAD) is the cloud-based version of Active Directory, so it takes advantage of the flexibility, scalability, and performance of the cloud while retaining the AD functionality that customers have grown used to. One of those functions is the ability to create sub-domains that can be managed and contain only those identities relevant to that country or region. AAD also provides functionality to differentiate between business-to-business relationships (B2B) and business-to-customer relationships (B2C). This differentiation can help clarify between customer access to their own data and management access.
Azure Sentinel is a scalable, cloud-native, security information event management (SIEM), and security orchestration automated response (SOAR) solution. Azure Sentinel delivers intelligent security analytics and threat intelligence across the enterprise, providing a single solution for alert detection, threat visibility, proactive hunting, and threat response.
Azure Key Vault
Azure Key Vault helps safeguard cryptographic keys and secrets that cloud applications and services use. Key Vault streamlines the key management process and enables you to maintain control of keys that access and encrypt your data. Developers can create keys for development and testing in minutes, and then migrate them to production keys. Security administrators can grant (and revoke) permission to keys, as needed.
Role based access control
Access management for cloud resources is a critical function for any organization that is using the cloud. Role based access control (RBAC) helps you manage who has access to Azure resources, what they can do with those resources, and what areas they have access to. RBAC is an authorization system built on Azure Resource Manager that provides fine-grained access management of Azure resources.
Azure Security Center
Azure Security Center is a unified infrastructure security management system that strengthens the security posture of your datacenters. It also provides advanced threat protection across your hybrid workloads in the cloud, whether they’re in Azure or not, as well as on premises.
Azure Blueprints helps you deploy and update cloud environments in a repeatable manner using composable artifacts such as Azure Resource Manager templates to provision resources, role-based access controls, and policies. Blueprints can be used to deploy certain policies or controls for a given location or geographic region. Sample blueprints can be found in our GitHub repository.
Azure Policy is a service in Azure that you use to create, assign, and manage policies. These policies enforce different rules and effects over your resources, so those resources stay compliant with your corporate standards and service level agreements. For example, a policy can be set to allow only certain roles to access a group of resources. Another example is setting a policy that only certain sized resources are allowed in a given resource group. If a new resource is added to the group, the policy automatically applies to that entity. Sample Azure Policy configurations can be found in our GitHub repository.
Azure Virtual Datacenter Program (VDC)
The Azure Virtual Datacenter Program (VDC) is a collection of methods are archetypes designed to help enterprises standardize deployments and controls across application and workload environments. VDC utilizes multiple other Azure products including Azure Policy and Azure Blueprints. VDC samples can be found in our GitHub repository.
Azure Site Recovery (ASR)
Azure Site Recovery (ASR) provides data replication and disaster recovery services between Azure Regions, or between on-premise environments and Azure. ASR can be easily configured to replicate and failover between Azure regions within or outside country/geographic-region.
- An Azure Availability Set (AS) is a group of virtual machines that are deployed across fault domains and update domains within the same Azure Datacenter. Availability sets make sure that your application is not affected by single points of failure, like the network switch or the power unit of a rack of servers. Azure Availability Sets provide a service level agreement (SLA) of 99.95%.
- An Availability Zone (AZ) is like an availability set in that the virtual machines are deployed across fault and update domains. The difference is that AZs provides a higher level of availability (SLA of 99.99%) by spreading the VMs across multiple Azure datacenters within the same region.
For Platform-as-a-Service (PaaS) high availability is built into the services, and need not be configured by the as the IaaS services above.
Data at rest encryption
Data at rest encryption is a common security requirement. In Azure, organizations can encrypt data at rest without the risk or cost of a custom key management solution. Organizations have the option of letting Azure completely manage encryption at rest. Additionally, organizations have various options to closely manage encryption or encryption keys.
The above capabilities are available across Azure’s industry leading regional coverage and extensive global network. Microsoft’s commitment to global regulatory compliance, data protection, data privacy, and security make Azure uniquely positioned to support GFSIs as they migrate complex mission critical workloads to the Cloud.
For more information on Azure compliance, please visit the Microsoft Trust Center compliance overview page.