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Townsend Security Data Privacy Blog

Alliance Key Manager – No Log4Shell (Log4J) vulnerability

Posted by Patrick Townsend on Dec 18, 2021 4:37:43 PM

December 17, 2021

The Log4Shell (Log4j) vulnerability represents a potentially severe security threat to all companies who deploy internal or third-party applications that use the Java Log4j logging facility. The relevant security notice is CVE-2021-44228. Our customers and partners have inquired if Alliance Key Manager is subject to this new vulnerability.

Link to the CVE:


SQL Server Standard Edition & TDEAfter technical review and external application scanning (Nessus) we can report that Alliance Key Manager is not subject to this vulnerability. This applies to all platforms where Alliance Key Manager can be deployed including VMware, Microsoft Azure, Amazon AWS, and the Townsend Security HSM. The primary key management interface to Alliance Key Manager is a secure TLS interface that is implemented on the server side via ANSI C application code for both traditional and KMIP operations. All inputs are validated before processing. No use is made of Java for logging functions. The user, administrative, encryption and mirroring functions of key management interfaces are logged using native ANSI C functions. Some server management functions use logging via the Python language. 

Currently supported versions of Alliance Key Manager are 4.6 and newer including 5.x. If you are running an earlier version of Alliance Key Manager you are not subject to the Log4Shell vulnerability, but you should contact Townsend Security support to upgrade as soon as possible.

If customers and partners have any questions about this vulnerability then can contact Townsend Security through normal problem ticketing options. Others may send email to info@townsendsecurity.com.

Townsend SecurityEncryption Key Management for VMware Cloud Providers

Topics: MSP, CyberSecurity, Log4Shell, Log4j

The MSP Threat Report and Take-Aways

Posted by Patrick Townsend on Oct 26, 2021 2:51:26 PM

I’ve been reading the 2021 MSP Threat Report from Perch (a ConnectWise company). It has a great review of the evolving threats to MSPs and their customers from ransomware attackers this last year. What I like about this report that it puts a number of relevant factors into perspective. Why are MSPs a target? What do the attacks look like? Who are some of the groups that are behind these attacks? What do they want (doh)? How are MSPs responding, and how effective are these responses? And, of course, what should MSPs be doing to counter the ransomware threats.

You can find the report here:


Here are a few of the take-aways that I found interesting:

MSPs represent a valuable target. Why is that? Well, it turns out that MSPs are theVMware Cloud Providers & MSPs - Win New Business gateway to a lot of end customers. They call this the “Buffalo Jump”. If an attacker can compromise an MSP they can get downstream access to all of the MSP’s customers. Based on some industry averages Perch estimates that an MSP an its customers represent a $2 BILLION opportunity. Yeah, that’s Billion with a “B”. The attacker expects to collect a ransom payment from the MSP and from each of the MSP’s end customers. The financial incentives to attack and MSP are huge.

As we know from recent experience the MSPs who have been attacked were surprised by the event. In many cases the MSP systems were not compromised, but the software they used to manage their business became the path to the compromise. A so-called “supply chain” attack. However, the supply chain attack does not cover all of the MSPs who encountered problems – many experienced routine phishing attacks and credential compromises. But the multiplier effects of the supply chain attacks stretched the resources of many MSPs.

The characteristics of a ransomware attack are pretty well known now. The common sequence of events of a ransomware attack are:

  • Infiltration – access to the MSP and their end customer.
  • Planting malware on breached systems.
  • Exfiltration – steal copies of the data to the attacker’s server
  • Poisonous Encryption – deny you access to your data and systems using a secret key.
  • Extort the ransom – usually through cryptocurrency payments.
  • Release of the hostage – decryption of your hostage data (if you are lucky).

While theft of data is common in traditional data breaches, the Exfiltration step is relatively new in ransomware attacks, and this is where many ransomware defenses fail. The MSP and the end customer may be able to restore systems from backups, but that won’t stop the extortion attempt. The ransomware attacker now has your sensitive data and threatens to release publicly it if the ransom payment is not made. The release of sensitive information can be devastating to MSPs and to their end customers. The threat is real and substantial. You need a backup and restore strategy, but it won’t protect you from the threat of the release of sensitive data.

What can you do?

The Perch Threat Report does not discuss this, but you do have tools to protect against Exfiltration. You have the ability to encrypt your data before the attacker with your own secret key. And that is what I call “Defensive Encryption”. You must encrypt your sensitive data first. The attacker can’t use the Exfiltrated data against you if they can’t read it. This is where encryption becomes you friend. Defensive Encryption renders Exfiltration useless by denying the attacker the ability to extort the MSP and the end customer. You still have to restore from backup, but you are in a much stronger position to defeat the extortion attempt.

There is a lot to like about the 2021 Perch Threat Report. It is concise but at the same time covers a lot of ground. I think this is an excellent report to share with upper management in your company. If you are an MSP you can share this with your end customers to help get them motivated.

MSP Note:

If you want to move forward with Defensive Encryption we have a solution you are going to love. Proper encryption key management is crucial to an encryption defense, but MSPs can be put off by the cost of key management systems. We’ve solved that problem. More here:


PatrickEncryption Key Management for VMware Cloud Providers

Topics: Encryption, Partner, Ransomware, MSP

HIPAA, Ransomware and ePHI - Encrypt Your Data Now

Posted by Patrick Townsend on Jun 29, 2021 3:04:55 PM

Ransomware criminals have been going after Hospitals, Clinics, Radiologists, Physician practices and all manner of organizations in the medical sector. These are “Covered Entities” in HIPAA compliance lingo. In response to the Ransomware threat the US Department of Health and Human Services (HHS) Office for Civil Rights (OCR) made this strong statement this last week:

“OCR is sharing the following alerts from the White House and Cybersecurity and Infrastructure Security Agency (CISA).  Organizations are encouraged to review the information below and take appropriate action.

White House Memo: What We Urge You To Do To Protect Against The Threat of Ransomware

Anne Neuberger the Deputy Assistant to the President and Deputy National Security Advisor for Cyber and Emerging Technology has released a memo titled “What We Urge You To Do To Protect Against The Threat of Ransomware.”  

Here is the link in full:


In addition to the White House guidance, HHS/OCR provides this fact sheet and guidance:


Podcast on How to Avoid a Data Breach Notification with Encryption and Key ManagementThese are short documents that are non-technical in nature and provide clear guidance for any Covered Entity under HIPAA data security requirements. If you have management responsibility in any healthcare organization, these are probably the most important things you can read right now. If you are an IT or security professional in a healthcare organization, use this information to inform and motivate your management team. 

Here are few quick takeaways with a focus on encryption and avoiding breach notification:

  • Encrypt your patient information (ePHI) wherever it resides (servers, laptops, mobile phones, etc.). Here is what HHS/OCR says:

“If the electronic PHI (ePHI) is encrypted by the entity in a manner consistent with the Guidance to Render Unsecured Protected Health Information Unusable, Unreadable, or Indecipherable to Unauthorized Individuals such that it is no longer “unsecured PHI,” then the entity is not required to conduct a risk assessment to determine if there is a low probability of compromise, and breach notification is not required.”

Interpretation: Encryption is your “Get Out of Jail Free” card. If you do it right.

  • Full Disk Encryption (FDE) is not enough:

“If full disk encryption is the only encryption solution in use to protect the PHI and if the ransomware accesses the file containing the PHI, the file containing the PHI will be transparently decrypted by the full disk encryption solution and access permitted with the same access levels granted to the user.

Because the file containing the PHI was decrypted and thus “unsecured PHI” at the point in time that the ransomware accessed the file, an impermissible disclosure of PHI was made and a breach is presumed. Under the HIPAA Breach Notification Rule, notification in accordance with 45 CFR 164.404 is required unless the entity can demonstrate a low probability of compromise of the PHI based on the four factor risk assessment (see 45 C.F.R. 164.402(2)).”

Full disk encryption is pretty easy to deploy. However, it just does not provide enough security. Use database or application layer encryption that provides more granular control over the decryption of ePHI. Self-Encrypting Drives (SEDs) and full disk encryption will not pass muster.

  • Encryption Key Management is essential

You’ve heard this expression:

“A chain is only as strong as its weakest link.”

In an encryption strategy the weakest link is usually encryption key management. The encryption key is the secret you need to protect. Storing the encryption key on the same server or device as the ePHI will never be an acceptable practice. Always use a professional encryption key management solution that protects and stores the encryption key away from the sensitive ePHI data.

Encryption is not the only security effort you need to make, but in my experience it is the one thing healthcare organizations tend to ignore. I think this is because the HIPAA law considers encryption an “addressable” security control. This means you are not required to do it IF you have other equivalent controls in place. But if you are not encrypting your data and you have a data breach through Ransomware or other cyber attack, then you have “ipso facto” not protected your information well enough and you are in for a breach notification, OCR/HHS compliance action (ouch!), potential fines, and litigation. That won’t be fun, and it will be a lot more expensive than encryption.

We help a lot of healthcare providers meet the HIPAA security requirement. If you are storing ePHI in SQL Server, MongoDB, MySQL or in a VMware architecture or cloud platform, we have an affordable, easy solution for you. More information on our website:


If you are a Managed Service Provider (MSP) helping healthcare providers meet HIPAA compliance, we have a partner program for you that you are going to love. There is no entity so small that you can’t help them get secure. You can find out more here:



Achieve Safe-Harbor Status from HIPAA Breach Notification

Topics: Encryption, Encryption Key Management, HIPAA, MSP, CyberSecurity, ePHI


Posted by Patrick Townsend on Jun 15, 2021 3:22:26 PM

If you’ve been following this blog recently you know that I’ve been advocating for the use of encryption to help prevent ransomware attacks. Ransomware attackers have been adapting to the new reality that a lot of companies have deployed good backup strategies to recover their files. Without that leverage the attackers can’t extort payments for recovery of your systems.

So, what are they doing now? They are exfiltrating your sensitive data and using that as additional leverage. 

Encryption Strategies for VMware EnvironmentsOh, you have backups and you don’t want to pay? OK, we took your sensitive data and we are going to publish it. Do you have secret intellectual property or business plans? Do you have sensitive medical information on your patients? Do you have sensitive information about children in your care? 

Under this kind of pressure many ransomware victims decide to pay the ransom. 

That’s why it is important to encrypt your data before a ransomware attack. If the attacker can’t read your data because it is encrypted they can’t threaten to release it.

It has been frustrating to me that most security recommendations on how to protect yourself from a ransomware attack omit the step of encrypting your data first.

But that has now changed! And it is long overdue.

Here is what President Biden’s new executive order recommends (emphasis added):

What we urge you to do now:

Implement the five best practices from the President’s Executive Order:President Biden’s Improving the Nation’s Cybersecurity Executive Order is being implemented with speed and urgency across the Federal Government. We’re leading by example because these five best practices are high impact: multifactor authentication (because passwords alone are routinely compromised), endpoint detection & response (to hunt for malicious activity on a network and block it), encryption (so if data is stolen, it is unusable) and a skilled, empowered security team (to patch rapidly, and share and incorporate threat information in your defenses). These practices will significantly reduce the risk of a successful cyberattack. 

And  more ...

And this:

For Federal Agencies:

Modernize and Implement Stronger Cybersecurity Standards in the Federal Government. The Executive Order helps move the Federal government to secure cloud services and a zero-trust architecture, and mandates deployment of multifactor authentication and encryption within a specific time period. Outdated security models and unencrypted data have led to compromises of systems in the public and private sectors. The Federal government must lead the way and increase its adoption of security best practices, including by employing a zero-trust security model, accelerating movement to secure cloud services, and consistently deploying foundational security tools such as multifactor authentication and encryption.

Encryption is not the only thing you need to do, but it is a critical part of a ransomware protection strategy. It is heartening to see this being recognized.

There is some good news: Encryption is fast, easy and affordable. If you are a small or midsize organization you will be glad to know that there is an affordable solution for your encryption strategy. Encryption and encryption key management are no longer the headaches they once were. You or your IT Support organization can address your encryption needs in a rapid manner. 

If you are an IT Support Provider or Managed Service Provider trying to help your customers with security, you are going to love our MSP Partner program. Affordable key management for VMware and the cloud, usage-based billing, and no upfront fees. You will be profitable from the first customer. More information here: 


Ransomware attacks can be devastating to an organization, but you have tools to protect yourself. Give us a call.





Encryption & Key Management for VMware Cloud Providers

Topics: Alliance Key Manager, Encryption, Encryption Key Management, VMware, Ransomware, MSP

MSPs and Encryption - How to Talk to Your Customers

Posted by Patrick Townsend on May 6, 2021 9:36:39 AM

Managed Service Providers have a real challenge when they try to talk to their customers about the benefits of encrypting their sensitive data. If your experience is like mine, pretty soon their eyes glaze over and they are wanting to change the subject. I get that - encryption is a subject that only nerds can love. But we also know how important encryption is. So how do we convey that?

VMware Cloud Providers & MSPs - Win New BusinessOne of our MSP partners shared this bit of wisdom:

“Ask them if they carry cyber insurance”.

“Why?” I asked, more than a little confused about how this related to encryption.

“Have you read your policy?” she asked. “Take a look at the section on encryption.” And then she shared a short form application for cyber insurance from a large carrier.

Wow! I’ve had my head in the technical weeds of encryption and compliance for too long. Here is an extract from a short form insurance application:

Indicate whether the Applicant encrypts private or sensitive data:

  1. While at rest in the Applicant’s database or on the Applicant’s network __Yes __No
  2. While in transit in electronic form __Yes __No
  3. While on mobile devices __Yes __No
  4. While on employee owned devices __Yes __No
  5. While in the care, custody, and control of a third party service provider __Yes __No

I am guessing that many organizations just answer “Yes” to all of these questions without thinking about it. As my MSP partner pointed out, if you respond incorrectly on an insurance application you negate any benefits you might receive. Are they covered in the event of a data breach or ransomware attack? Maybe not. That can be a shocker to the end customer.

Rather than talk about encryption in an abstract way, this MSP talks about their cyber insurance policy and what they need to do to ensure coverage. She said that this is the most effective method she has ever used to get agreement from a customer to implement encryption of their data at rest. She’s never had someone decline to implement this important security control once they realize what is at stake.

My takeaway is this:  not everyone is as excited or interested in encryption as I am. But everyone knows how important it is to have insurance coverage. MSPs know that encryption is a core part of a defense against cyber attacks including ransomware. Modern ransomware attacks include encrypting your data to deny you access, as well as stealing your data and holding you hostage with the threat of making it public. You might have a good backup plan to recover your data, but you can’t defend yourself from the threat of public release if the hacker has your unencrypted data. If the attacker can’t read your data because you encrypted it, they can’t release it to the public.

I hope this practical example helps you talk with your customers about the importance of encryption.

How are we at Townsend Security helping MSPs get the job done?

Our MSP partner program helps MSPs protect VMware infrastructure by providing our key management solution, Alliance Key Manager, on a low cost, monthly usage basis. You can encrypt VMs, vSAN and deploy vTPM easily. Imagine offering encryption to your end customers and not incurring any upfront costs or annual minimum payments for the KMS. Imagine turning encryption into a profit center for your benefit and for your customer’s benefit. Imagine offering encryption to even your smallest customers and knowing that they can afford it!  And, imagine doing this for your hosting platform, for the cloud, and for your customer’s on-premise infrastructure.

Imagine the relief of your customers after a data breach when they learn that cyber criminals did not steal unencrypted data!

Our MSP partners are doing this every day.

If you are a Managed Service Provider and want to know more about our partner program, you can learn more here.

If you are an MSP I hope you will take advantage of our MSP partner program. Talk to us to find out more.


Encryption Key Management for VMware Cloud Providers

Topics: Data Security, Encryption, MSP

Some Common Questions and How to Get Started with the Townsend Security MSP Partner Program [Part 8 of 8]

Posted by Patrick Townsend on Nov 11, 2020 11:25:00 AM

Can I also resell Alliance Key Manager?

VMware Cloud Providers & MSPs - Win New BusinessYes, you can operate as an MSP and also as a reseller partner for those customers who are not using your MSP services. Reselling Alliance Key Manager is governed by a different agreement. Contact us if you have a resale opportunity.

I need to have our legal team review your MSP agreements. How is this done?

Just contact us. We will send you a copy of the MSP license agreement for legal review. 

We would like to use a copy of the key manager for training and customer demos. How is this done?

We will gladly support your internal training and demo needs. We do this through special Not For Resale (NFR) licenses. All MSP and Reseller partners qualify for NFR licenses for our key manager. There is no charge for NFR licenses.

How do you handle special bids?

While we believe that the MSP program provides you with a lot of flexibility, we understand that special bids are sometimes needed. Contact us to discuss the special bid requirements. We work with our partners around special bids on a frequent basis.

Are volume discounts available?

Yes, if you have a very large number of VMs to encrypt and would like to pay in advance for those we have a discount program available. 

How can I get started?

This web page has information about our MSP partner program and a form to get started. Complete the form and we will get in touch with you:


You can also contact us by email and phone:

Email: sales@townsendsecurity.com
Phone: (360) 359-4400
International: +1 360 359 4400


[For More Reading]

Part 1: Why Do MSP Customers Want Encryption of Their VMs and vSAN?

Part 2: What Has VMware Done to Help with Encryption Security

Part 3: What are the Biggest Obstacles to Offering VMware Encryption to Customers

Part 4: How Does Townsend Security Help and MSP Overcome the KMS Challenge?

Part 5: KMS for Multiple vCenter Clusters and Nodes

Part 6: As an MSP, How Do I Ensure High Availability (HA) for Encrypted VMs?

Part 7: How Can an MSP Use Encryption Security to Improve Revenues and Profitability?

Part 8: Some Common Questions and How to Get Started with the Townsend Security MSP Partner Program


Encryption Key Management for VMware Cloud Providers

Topics: VMware, MSP

How Can an MSP Use Encryption Security to Improve Revenues and Profitability? [Part 7 of 8]

Posted by Patrick Townsend on Nov 9, 2020 11:19:00 AM

Almost everyone considers encryption a sunk cost. You almost never see any type of Return On Investment (ROI) calculation when it comes to Key Management Server (KMS) systems. Acquiring a KMS system usually falls into the Capital Expense financial category when it comes to budgeting.

Let me change your thinking about KMS systems!

VMware Cloud Providers & MSPs: Winning New Business with Encryption and Key Management WebinarHere is a simple financial calculation based on a fictional MSP business. Let’s assume that as an MSP you charge your end customer $50 per month per managed VM. If you are managing 50 VMs for your customer your gross revenue for that customer is $2,500 per month.

However, you have costs, too. Hardware, VMware licenses, IT experts, administrative costs, etc. Let’s just guess that this might add up to $1,250 per month, or half of the gross revenue. Your margin after direct costs might be $1,250. 

This example is probably extremely generous in terms of your gross margin. I suspect that your costs are probably higher and margins much lower. But let’s run with this example where gross margins are 50% of revenue.

Imagine that you become a Townsend Security MSP Partner and pay $5 per month per encrypted VM on a usage basis. You charge your customer $8 per month per encrypted VM netting $3 per month gross revenue per encrypted VM. The direct costs are very minimal. Your hardware and infrastructure costs are minimal. There are no minimum KMS license fees. There are no extra charges as you expand your use of the KMS. And very minimal IT Expert costs due to the encryption and KMS automation provided by VMware.

You probably just gained an additional $150 in gross margin from this customer. 

That represents a whopping 12% increase in overall gross margin! It is not often that adding one simple service to your business offering can net that much gross margin gain.

This is, of course, a very simplified example. However, I believe that many of our MSP partners are recognizing larger gains as they add VMware encryption to their set of offerings. One MSP partner told me that it is a “no-brainer” for the customer to sign up for the small additional cost per VM for encryption due to its low cost. You can have that experience, too.


[For More Reading]

Part 1: Why Do MSP Customers Want Encryption of Their VMs and vSAN?

Part 2: What Has VMware Done to Help with Encryption Security

Part 3: What are the Biggest Obstacles to Offering VMware Encryption to Customers

Part 4: How Does Townsend Security Help and MSP Overcome the KMS Challenge?

Part 5: KMS for Multiple vCenter Clusters and Nodes

Part 6: As an MSP, How Do I Ensure High Availability (HA) for Encrypted VMs?

Part 7: How Can an MSP Use Encryption Security to Improve Revenues and Profitability?

Part 8: Some Common Questions and How to Get Started with the Townsend Security MSP Partner Program


Delivering Secure VMware Hosting with Encryption and Key Management

Topics: VMware, MSP

As an MSP, How Do I Ensure High Availability (HA) for Encrypted VMs? [Part 6 of 8]

Posted by Patrick Townsend on Nov 4, 2020 11:12:00 AM

Business continuity and resilience is at the heart of the value proposition MSPs provide to their customers. That means that the key management server (KMS) system at the center of VMware encryption must be able to provide real time recovery along with your service strategy. There are several components to a good high availability (HA) strategy, and these vary from one KMS solution to another. Here is how our Alliance Key Manager integrates with VMware to achieve high availability:

KMS Real Time Mirroring

Encryption & Key Management for VMware Cloud ProvidersAlliance Key Manager implements real-time, active-active key mirroring between a production and one or more high availability key servers. When VMware creates a new key on the KMS for an encrypted VM, that key is immediately mirrored by Alliance Key Manager to a high availability key server. Mirroring is done in real time so that you always have a KMS ready to take over. All transmission of encryption keys is performed over a TLS encrypted connection with mutual authentication, and you have the option to deploy a failover key server in a different vCenter environment.

vSphere KMS Cluster Configuration and Automatic KMS Failover

The purpose of the vSphere module called KMS Cluster is to define your key managers to VMware and to establish trust between vSphere and the key server. A KMS cluster is a list of key servers along with connection and credential information. Normally you would define two key servers in a KMS Cluster – one key server for production use and one key server for failover use. By default, the first entry in the KMS Cluster is the production key server, and failover key servers follow in the order that vSphere will use them. vSphere automatically connects to a failover key server in the event it cannot communicate with the production key server.

You are not limited to one KMS Cluster configuration. If you want to deploy a dedicated key manager for a particular customer you can create a new KMS Cluster configuration and define the dedicated key servers in this new configuration.

KMS Backup, Scheduled and On Demand

It is always a good idea to have a backup of your critical applications. Alliance Key Manager lets you define a schedule for automatic, secure backups. The backup server, usually a Linux instance running sFTP, can be located offsite.

Of course, you can always perform a manual backup on demand. This manual backup can go to a local directory on the key server and be downloaded by the administrator for secure offsite storage.

MSP Backup

Most MSPs offer a backup service to their end customers. Since Alliance Key Manager is a normal VMware virtual machine you can use your current backup strategy to back up the key server, too.

Disaster Recovery as a Service (DRaaS)

If you offer your customers a DRaaS service you can also offer them key management through the Townsend Security MSP partner program. You can deploy a key manager on the customer’s premises and mirror keys to your DRaaS service at your hosting site. 

VMware Monitoring

Lastly, we can’t forget that VMware offers a rich set of tools to monitor the health of VMs. You can use those tools to monitor the health of Alliance Key Manager, too. Your MSP license agreement allows you to install VMware Tools on the key manager server. 

In summary there are a number of layers of high availability built into the deployment of Alliance Key Manager. This will give you and your end customer a high level of confidence in the resilience of your encryption offering.


[For More Reading]

Part 1: Why Do MSP Customers Want Encryption of Their VMs and vSAN?

Part 2: What Has VMware Done to Help with Encryption Security

Part 3: What are the Biggest Obstacles to Offering VMware Encryption to Customers

Part 4: How Does Townsend Security Help and MSP Overcome the KMS Challenge?

Part 5: KMS for Multiple vCenter Clusters and Nodes

Part 6: As an MSP, How Do I Ensure High Availability (HA) for Encrypted VMs?

Part 7: How Can an MSP Use Encryption Security to Improve Revenues and Profitability?

Part 8: Some Common Questions and How to Get Started with the Townsend Security MSP Partner Program


Encryption & Key Management for VMware Cloud Providers

Topics: VMware, MSP

Key Management Server (KMS) for Multiple vCenter Clusters and Nodes [Part 5 of 8]

Posted by Patrick Townsend on Nov 2, 2020 11:04:00 AM

We often get questions from MSPs about deploying our Alliance Key Manager solution across multiple vCenter nodes. Here is some good news for our MSP partners:

Multiple MSP Hosting or Cloud Locations

VMware Cloud Providers & MSPs - Win New BusinessMany MSPs operate multiple regional hosting centers. Even small MSPs will typically have two locations in order to support high availability and backup. Each physical location will have one or more vCenter servers. Multiple vCenter clusters are not uncommon at a single data center location. Global MSPs often have to work within a country’s data sovereignty laws. This means a data center in each designated country. This increases the number of key management servers (KMSs) that must be deployed.

Production and High availability Key Servers

Under the Townsend Security MSP partner program, there are no licensing restrictions and you can run as many KMS servers as you wish. This typically means running two key servers in each vCenter environment – one for production and one for high availability (HA) failover. Since the MSP partner program involves a usage based cost model, you can deploy as many KMS servers as you need. You only pay for the encrypted VMs and vSAN directories regardless of physical location and number of key servers.

Customer Dedicated Key Servers

You may find the occasional customer who doesn’t want to share a key server with other customers. VMware makes this easy to accomplish. You can just create a new KMS Cluster definition and add the new production and failover key servers to this configuration. The start encryption of VMs and vSAN for that end customer using this new KMS Cluster configuration. Voila! Since there is no licensing cost for deploying key servers this is a cost effective way of meeting this customer requirement. You just report this customer’s encrypted VMs and vSAN directories during normal monthly reporting.

On-premise to Hosted or Cloud vCenter Nodes

If you are managing an end customer’s on-premise IT infrastructure, you can also deploy Alliance Key Manager on-premise and mirror to a hosted or cloud vCenter node. This is especially helpful to MSPs who are providing Disaster Recover as a Service (DRaas). The production environment can be in the end customer’s data center and you can mirror encryption keys to an Alliance Key Manager failover key server in your own environment. This helps achieve seamless failover for your customer.

Customer Dedicated vCenter Nodes

It is also not uncommon for an MSP to dedicate a vCenter server to a specific customer. That customer may have heightened security concerns, or may not want to share infrastructure with other customers. There may be corporate governance and security restrictions that require this. Again, MSPs only pay for the number of encrypted VMs and vSAN directories, regardless of the number of vCenter clusters and how they are used, and regardless of physical location.

In summary, we provide our MSP partners with all of the flexibility they need to support current customers and attract new customers. VMware encryption is a core security control that your customers demand, and you now have the tools to meet the need.


[For More Reading]

Part 1: Why Do MSP Customers Want Encryption of Their VMs and vSAN?

Part 2: What Has VMware Done to Help with Encryption Security

Part 3: What are the Biggest Obstacles to Offering VMware Encryption to Customers

Part 4: How Does Townsend Security Help and MSP Overcome the KMS Challenge?

Part 5: KMS for Multiple vCenter Clusters and Nodes

Part 6: As an MSP, How Do I Ensure High Availability (HA) for Encrypted VMs?

Part 7: How Can an MSP Use Encryption Security to Improve Revenues and Profitability?

Part 8: Some Common Questions and How to Get Started with the Townsend Security MSP Partner Program


Encryption Key Management for VMware Cloud Providers

Topics: VMware, MSP

How Does Townsend Security Help an MSP Overcome the KMS Challenge? [Part 4 of 8]

Posted by Patrick Townsend on Oct 28, 2020 9:12:00 AM

In this blog series we’ve put the focus on the MSP’s challenges. Now let’s talk about how we at Townsend Security are helping meet those challenges.

Two years ago Townsend Security treated its MSP customers the way most legacy KMS vendors do. That is, we were a part of the problem. Thanks to the coaching and mentoring of some MSP leaders, we came to understand the need for a new approach, and we launched our MSP partner program. 

Key elements of our MSP partner program:

VMware Cloud Providers & MSPs - Win New BusinessMSPs need confidence in the key management solutions they deploy. Townsend Security has been providing their Alliance Key Manager solution for VMWare for more than 10 years. Alliance Key Manager is certified by VMware for every release of vSphere and vSAN that support encryption, it is FIPS 140-2 compliant, and it is validated to PCI-DSS compliance.

The Townsend Security MSP partner program provides their key management server (KMS) to the MSP with no upfront license fees and no annual minimums. In fact, there is no perpetual or subscription license agreement at all, just a simple end user license agreement tailored for the MSP. The MSP gets training from Townsend Security and deploys the KMS into production. The cost of the solution is based on a low monthly charge per encrypted VM and vSAN directory. Just pay for what you use and nothing else. You can scale up and down your use of the KMS as needed. 

How many KMS servers can you deploy? As many as you want. You can share a KMS server across multiple customers, or deploy a dedicated KMS for a customer. You can deploy the KMS in your hosted environment, in the cloud (AWS, Azure, Google, IBM, etc.), and on the customer’s premises. No license or cost per KMS server, no restriction on the number of keys, no restriction on the number of encrypted VMs

Each month you will report the number of encrypted VMs and encrypted vSAN directories you are managing. Payment is also simple and is made electronically through ACH bank transfer, wire transfer, or credit card. 

Townsend security provides full 24/7 technical support for business interruption issues. There is no extra charge for software maintenance and support. 

It is not just all about technology. We also help you with marketing content, joint webinars, joint podcasts and security reviews. We understand that the typical MSP has a lot on their plate and does not need to spend time on deep security questions. We’ll help answer those tough customer questions about encryption and key management. 

We are committed to helping you be successful. We align with your business, service and revenue models. We will train your team. We will support your technical team. And we will help you with marketing support. Our goal is to lean in and help, and take risks with you. We want to be the KMS partner you’ve always wanted.

MSPs have told me that the current COVID crisis is impacting their business and revenue streams. They are losing some customers and revenue but are seeing increased demand from existing customers. Everyone seems to need more help from the experts. It’s a tough time for MSPs. Now is the time to migrate your existing KMS deployment to Alliance Key Manager and gain predictability and scalability in your KMS costs. It’s easy to do.


[For More Reading]

Part 1: Why Do MSP Customers Want Encryption of Their VMs and vSAN?

Part 2: What Has VMware Done to Help with Encryption Security

Part 3: What are the Biggest Obstacles to Offering VMware Encryption to Customers

Part 4: How Does Townsend Security Help and MSP Overcome the KMS Challenge?

Part 5: KMS for Multiple vCenter Clusters and Nodes

Part 6: As an MSP, How Do I Ensure High Availability (HA) for Encrypted VMs?

Part 7: How Can an MSP Use Encryption Security to Improve Revenues and Profitability?

Part 8: Some Common Questions and How to Get Started with the Townsend Security MSP Partner Program


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