Managed Service Providers (MSPs) are an important part of the growing IT ecosystem as more and more enterprises outsource parts or most of their infrastructure to MSPs.
This evolution has led to MSPs getting access to highly valuable targets in customer environments, typically using what are called privileged accounts.
As MSPs grow and take on more customers, it naturally increases the complexity of managing access to these targets and the security responsibilities of MSPs. Let’s investigate how MSPs turn this challenge into an opportunity.
Getting to Know MSPs and PAM for Privileged Access
The Role of Managed Service Providers (MSPs)
Managed Service Providers (MSPs) are third-party companies that remotely manage a customer's IT infrastructure and end-user systems, typically on a proactive basis and under a subscription model.
MSPs are tasked with the continuous oversight of technology assets, ensuring that systems are updated, secure, and running efficiently. Their role extends to managing cybersecurity, network operations, and cloud services, which allows their clients to alleviate the burden of day-to-day IT tasks.
This support is vital for organizations looking to optimize their IT performance without the overhead of an extensive in-house IT team.
The Importance of Privileged Access Management (PAM) in Cybersecurity
Privileged Access Management (PAM) refers to the cybersecurity strategies and technologies for exerting control over the elevated ("privileged") access and permissions for users, accounts, processes, and systems across an IT environment.
PAM plays a critical role in an organization's overall security strategy by limiting the potential for unauthorized access and reducing the risk of security breaches. It provides a secure, streamlined way to authorize and monitor all privileged users for all relevant systems.
By managing and auditing privileged accounts and access, PAM helps to protect sensitive data and assets from internal and external threats, ensuring that only the right people have the right access at the right times, and for the right reasons.
MSPs and Privileged Accounts
Privileged accounts are those that have elevated permissions to access and manage critical systems and data within an IT infrastructure.
Privileged Accounts are used by IT Admins, DevOps teams and application support - to name a few groups- to gain administrative access to critical customer infrastructure and applications, including:
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Windows, Linux and UNIX servers
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Hypervisors & container management systems
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Firewalls & Network Switches
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Databases
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System Controllers
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Mainframes
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Cloud Administration Consoles
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Operational Technology (OT) Devices
For Managed Service Providers (MSPs), these accounts are essential tools that enable them to perform necessary maintenance, updates, and manage security protocols. However, due to their high-level access, these accounts are also highly valuable targets for cyberattacks. MSPs must therefore exercise stringent control and oversight over privileged accounts to ensure the security and integrity of their clients' environments.
Security Challenges Faced by MSPs
Cybersecurity Risks
Cybersecurity risks include targeted cyberattacks such as phishing, malware, and ransomware, which can be especially damaging when privileged accounts are compromised. MSPs must also be vigilant against more sophisticated threats like Advanced Persistent Threats (APTs), which can lurk undetected within networks for extended periods.
The interconnected nature of MSPs' services means that a breach in one area can have cascading effects across multiple clients. Therefore, MSPs must employ comprehensive security measures to protect against these risks and ensure the confidentiality, integrity, and availability of client data and systems.
Operational Complexity
Managed Service Providers face operational complexities that stem from the need to manage and secure multiple clients' IT environments simultaneously. Each client may have a unique set of systems, tools, and processes, which can result in a challenging multi-tenant architecture.
MSPs must tackle this complexity while ensuring consistent service delivery and maintaining a centralized management approach. This includes managing a diverse array of devices, applications, and security tools, as well as ensuring that all client environments are up to date with the latest patches and security measures.
Compliance Requirements
For Managed Service Providers, compliance is not just a matter of following best practices; it's a mandate. MSPs are required to comply with various regulations and standards, such as GDPR, HIPAA, and PCI-DSS, depending on the industries they serve.
These regulations dictate how data should be handled, protected, and audited. Non-compliance can result in significant penalties, legal repercussions, and damage to reputation.
MSPs must, therefore, have robust processes in place to ensure that they and their clients meet these regulatory requirements, which often involves implementing stringent PAM protocols to monitor and control access to sensitive data.
Addressing MSP Challenges with PAM: Why It's a Triple Win
WIN #1 - Improved Secure Access to Customer Environments
1.1 Mitigate credential risk and stay compliant
Let’s address risks. By compromising MSP access, bad actors can gain entry to many customers’ infrastructure, intellectual property and data. Therefore, it is imperative that MSPs treat their own admin access to customer networks as privileged. If a data breach for a key customer is attributed to MSP access, this will cause severe reputational & long-term revenue-impacting damage to the MSP.
In the cloud hopper breach, a hacker group infiltrated MSP systems to gain access to their customers‘ applications, networks, and infrastructure. The group stole legitimate administrator credentials that granted access to the MSP and its customers' shared infrastructure. Such powerful credentials allowed the group to laterally move into the client’s network, penetrating the system even deeper.
MSPs will also need to adhere to the compliance and regulatory requirements (like the EU’s NIS 2.0 and the recently launched US Presidential Executive order) to retain and win new customers. Providing audit trails, session recordings and reports to show exactly who did what, with what rights, and when is essential. Additionally, proving that you have controls in place around providing, modifying, and removing access to privileged accounts is a must-have for many customers.
Privileged Access Management (PAM) tools are purpose-built to manage access to critical targets and manage privileged credentials. It is no surprise that Gartner has placed PAM projects as the #2 most important for businesses to deliver adequate controls. Deploying effective PAM solutions has proven to be one of the most impactful projects to undertake in terms of reducing cybersecurity risk.
Additionally, Gartner has stated that businesses will mostly move away from using password based access by 2022. This takes us to the next topic.
1.2 Improve security with fewer credentials to manage
Using passwords and encryption keys (like SSH keys) to provide MSP access to customer environments can be reduced by adopting modern PAM solutions that use Just-in-time security tokens (like ephemeral certificates) for authentication. The certificates are created on the fly upon establishing the privileged connection and automatically expire after the authorization, leaving no credentials behind for misuse.
This approach will reduce the risk of password compromise and the implied dangers mentioned earlier (reputational damage, service outage or data theft). Analysts agree:
“It’s an innovative approach but one that does bring functional and security advantages – access is faster, onboarding and offboarding of privileged users is quick and there are not passwords to issue or lose, since there are no permanent, leave-behind credentials.”
Adopting an effective Privileged Access Management solution for access to customer environments should give MSPs peace of mind that they are able to meet the compliance and regulatory needs of any new or existing customer
WIN #2 - Simplified Access Administration
2.1 One UI to rule them all
An effective PAM solution should not only improve the security of providing access to customer environments, it should also simplify the processes around access administration and customer onboarding.
A PAM solution with a centralized, easy-to-use, intuitive web-based UI makes it much easier to launch connections to customer environments rather than using a variety of different clients. The UI is also the go-to place to see which accounts and targets MSP admins have access to. The UI also allows managing access to new accounts with a minimal amount of effort and manual work.
2.2 Stay in sync with joiners, movers and leavers
Privileged Access associated with MSP admins needs to be easily administered. The joiner-mover-leaver process of MSP admins should be built into the solution: add, modify, and remove associated privileged access automatically without having to use multiple registries or manual steps. Easily providing multi-factor authentication (MFA) to certain admins or for access to specific systems can be made a lot simpler with the right PAM solution.
2.3 Auto-discover hosts
New customers and associated hosts should be easily on-boarded. PAM solutions that offer auto-discovery of hosts can reduce the time and effort taken to on-board new customers and to provide access to their IT environment. As new assets (servers/switches/apps) are provisioned, the PAM solution should be able to be easily coordinated with the changing IT landscape under management.
2.4 Reduce the complexity of credential management
Typically, MSPs have been provided access to customer environments using passwords or encryption keys. These keys or passwords are often exposed to the MSP admins and need to be managed at significant risk, time, and effort.
Privileged Access Management solutions should avoid using passwords for authentication where possible. Modern PAM solutions offer Just-In-Time certificates for authentication which not only eliminate the need for credential exposure, but remove the need for their rotation and distribution. This is a big boost to operational efficiency and a way to keep the environment under management lean and free from unnecessary changes. This approach is also known as immutable infrastructure.
2.5 Vault when needed
Where passwords are still necessary to use (some environments don’t support passwordless authentication), these should be role-base controlled in a multi-tenant vault. Customers should be able to update the vaulted passwords or keys on the MSP PAM solution without exposing the credentials to the MSP admins. Where vaulted passwords or keys are still used, a PAM solution should allow the MSP admins to use vaulted passwords without being able to see them.
2.6 Go beyond VPNs and firewalls
A common approach for MSPs to access customer environments is through the management of many VPN or firewall configurations. Customer VPNs are commonly overloaded, particularly with the dramatic increase in remote working from home in recent times.
Additionally, VPNs and firewalls can grant too much access to MSPs than is required to do their tasks. Adopting a PAM solution with reverse proxy capabilities can eliminate the need for using multiple VPNs altogether and provides a much safer and granular level of access to the MSP admin.
WIN #3 - Increased MSP Revenue Opportunities
MSPs can offer to run a managed on-premise PAM service or a cloud-based PAMaaS for existing and new customers. When done right, a PAM service that is fully integrated with customer deployment, service desk ticketing, and user provisioning workflows becomes an incredibly sticky solution.
The right selection of PAM solutions can lead to significant, long-term service revenue opportunities. We have successfully worked with Global System Integrators to develop their own cloud-hosted PAMaaS solution for their customers. Just In order to maximize revenue, an MSP will need to select a PAM solution with low TCO (Total Cost Of Ownership).
This is not merely in terms of licensing, but also deploying and maintaining the service. A PAM solution with high levels of automation (user/server/customer on/off-boarding) capability will certainly help reduce TCO, which will lead to higher profit margins for MSPs.
Many large customers have deployed traditional, market-leading PAM solutions and have grown tired of the monster infrastructure and poor performance. There is a growing opportunity for modern & lean PAM service offerings as replacement projects that can be delivered and managed long-term by capable MSPs.
MSPs offering a multi-cloud supporting, cloud-native PAM solution will be able to use this deployment to offer additional consultancy services assisting their customers with moving workloads to the cloud. New service offerings and revenue opportunities can also be built around cloud migration strategies.
Turn Your MSPs Challenges into Opportunities with PrivX™
PrivX, our cutting-edge solution streamlines secure access management, offering a scalable multi-tenant architecture and robust data segregation to meet the complex needs of MSPs. PrivX ensures swift and secure privileged access with auto-elevate and just-in-time access capabilities, making it an indispensable tool for protecting against cyber threats and achieving compliance goals.
By now, I’m sure you are aching to know how all this can be achieved. In that case, check out the two-minute PrivX video below or download our white paper on how MSPs and PAM systems are a WIN. WIN, WIN.
FAQ
What are the key challenges MSPs face in managing privileged access to sensitive customer data?
MSPs face several challenges in managing privileged access, including mitigating cybersecurity threats, ensuring compliance with cybersecurity solutions, and balancing access security with operational efficiency. The use of privileged accounts introduces risks that require robust audit events and real-time alerts. Implementing a central console for remote monitoring and project management can help manage privileges and create rules to secure sensitive data.
How does PAM enhance cloud security and transparency for MSPs using SaaS and cloud computing solutions?
PAM enhances cloud security by offering a central console for managing privileged activities, ensuring transparency through audit events, and providing real-time alerts. MSPs using SaaS and cloud computing can implement single sign-on to streamline access security and integrate SIEM for continuous threat monitoring. These measures help MSPs manage privileges effectively and demonstrate cybersecurity best practices to their client base.
What is the business justification for implementing role-based access and reducing standing privileges within MSP environments?
Implementing role-based access and reducing standing privileges minimizes threat factors and enhances access security. Automating ticket requests and using a management platform for privileged activities provide a clear business justification by improving operational efficiency and cybersecurity posture, aligning with cyber insurance coverage requirements.
How can MSPs ensure compliance and access transparency while managing privileged access to customer data?
MSPs can ensure compliance and access transparency by integrating PAM with their ticketing system and SIEM for real-time alerts and audit events. Using a central console for remote monitoring, they can approve requests and manage privileges in line with cybersecurity best practices. Automating ticket requests and regularly demonstrating compliance through reports help maintain transparency and meet regulatory requirements.
Why is it essential for MSPs to adopt PAM to address challenges in contracted services and cloud security?
Adopting PAM is essential for MSPs to address challenges in contracted services and cloud security by providing a central console for privileged activities, real-time alerts for security breaches, and automated management of local admin rights. PAM solutions help MSPs manage privileges, create rules, and ensure robust audit events, enhancing overall access security and aligning with cybersecurity best practices for a diverse client base.
