Legacy HSMs vs. Modern HSMs: Understanding the Key Differences

Hardware Security Modules (HSMs) provide the highest level of security for sensitive data and cryptographic operations. For decades various industries, such as finance, banking, government, defense, insurance, and healthcare, have used HSMs to protect cryptographic keys, authenticate users, and ensure data integrity.   

However, as technology advances and the threat landscape change, so do the capabilities and requirements of HSMs. As a result, modern HSMs have been developed with enhanced features and functionalities such as cloud integration, remote management, and support for modern cryptographic algorithms.  

In this context, it is critical to understand the differences between legacy and modern HSMs, their strengths and weaknesses, and how they can meet organizations' evolving security needs. 

What are legacy HSMs? 

Legacy HSMs, also known as traditional HSMs, use physical security measures such as tamper-evident seals and secure rooms to protect sensitive data and keys. 

Legacy HSMs are frequently physically large and stored in dedicated server racks or cabinets, with multiple security controls, such as biometric authentication, access controls, and tamper-resistant enclosures to protect against physical attacks.  

They also offer high cryptographic performance based on hardware-accelerated encryption and decryption operations. However, if the manufacturer does not regularly update them, it can lead to security vulnerabilities and limit the HSM's ability to integrate with newer technologies. 

In today's rapidly evolving cybersecurity landscape, HSMs, once proved to be cutting-edge solutions for securing sensitive data, may no longer provide adequate protection. One of the most significant drawbacks of legacy HSMs is their lack of scalability and flexibility.  

They may not support more recent cryptographic algorithms or standards and may be difficult to integrate into modern IT environments. In terms of key management and deployment, they are also less adaptable. 

Who uses legacy HSMs? 

Organizations that demand high security for their sensitive data and cryptographic keys employ legacy HSMs extensively. This covers financial firms, government entities, healthcare organizations, and other sectors that handle sensitive data. 

Legacy HSMs are frequently favored by businesses that have been using them for a long time and are reluctant to convert to newer technology due to their longevity and dependability. With the transition towards cloud-based services and the requirement for more scalability and flexibility, many organizations are evaluating modern HSMs as a potential alternative to traditional HSMs. 

Why do organizations still use legacy HSMs? 

Legacy HSMs have a proven track record of dependability and security, which has earned them the confidence of several organizations. 

Numerous legacy HSMs have undergone stringent certification procedures, such as FIPS 140-2 or Common Criteria, which are usually necessary for industry compliance. And they are often already incorporated into an organization's infrastructure, making their replacement time-consuming and resource intensive. 

Finally, in special uses cases, organizations may be concerned with the security of cloud-based HSMs and hence choose to execute key management and cryptographic activities on-premises. 

What are modern HSMs? 

Modern HSMs are effective for cloud and hybrid environments. Modern HSMs, as opposed to legacy HSMs, are designed to be scalable, flexible, and simple to integrate with cloud-based services.  

They use cutting-edge technologies like Intel SGX to create tamper-proof enclaves that enable secure key management and cryptographic operations even in compromised systems. Modern HSMs offer centralized key management, making managing keys across multiple environments and applications more accessible. 

Modern HSMs can be deployed on-premises and in the cloud, allowing organizations to select the best deployment model for their requirements. Fortanix Data Security Manager, is an example of modern HSMs. 

Who uses modern HSMs? 

Organizations that must comply with stringent regulatory laws and require a cloud approach to key management and cryptographic operations are increasingly deploying modern HSMs. This includes organizations in the fintech, banking, insurance, healthcare, federal, and government sectors that need to secure cloud-based applications.  

What are the advantages of modern HSMs? 

• Improved Performance: Modern HSMs are built with faster processors, more memory, and more advanced cryptographic algorithms, allowing them to perform cryptographic operations at higher speeds and with lower latency. They can perform up to 10,000 RSA 2048-bit operations per second, making them ideal for high-performance applications such as banking and finance. 
• Cloud integration: Organizations operating in a hybrid cloud environment can use modern HSM, to securely generate and manage encryption keys in the cloud and use them to encrypt data when moving between on-premises and cloud environments, ensuring data remains secure during transit. External key management services such as AWS and EKM provide an additional layer of security to cloud-based services by ensuring that encryption keys are not managed by the cloud provider and instead stored and managed by organizations in modern HSMs. 
• Remote Management: Administrators can use a web-based interface to manage modern HSMs from a central location anywhere globally, reducing the need for physical device access. This is especially useful in large organizations where HSMs are deployed in multiple locations. 
• Flexible Deployment Options: Modern HSMs can be deployed as a physical, virtual, or cloud-based service, depending on the needs of the business. This adaptability enables organizations to select the most cost-effective and secure deployment option for their specific use case. 

How to Choose the Best HSM for Your Business?  

• Identify security needs: Understand the types of data you must protect, the level of security required, and any compliance requirements. For example, if you are a financial institution, you will need a PCI DSS-certified HSM. 
• Assess the performance: Consider the number of cryptographic operations performed per second, latency, and scalability. For example, if you need an HSM for a high-traffic e-commerce site, you'll need one that can handle a high number of transactions per second with low latency. 
• Consider deployment options: Depending on your requirements, select between a physical appliance, a virtual appliance, and a cloud-based service. A cloud based HSM service may be the most cost-effective if you are a small business with limited resources.   
• The level of integration: Select an HSM that works in tandem with your existing infrastructure and applications. For example, if you use Microsoft Azure, you may want to select an HSM that integrates with Azure Key Vault. 
• Evaluate pricing: This includes the initial, ongoing, and licensing fees. A pay-as-you-go HSM solution is ideal for small and medium-sized businesses. 
• Vendor's customer service and reputation: Review the vendor's clients and success stories. Understand the level of support you can expect in case of an issue or breach. Get a dedicated support system and a manager.  

What are the benefits of Fortanix HSM over Legacy HSMs? 

Fortanix HSM is a modern HSM that leverages the power of confidential computing to deliver flexible and scalable data security solutions to organizations of all sizes. Below are some benefits. 

• Secure Enclaves: Fortanix HSMs can protect cryptographic keys with secure enclaves even when the system is compromised, unlike traditional HSMs that rely solely on physical security measures. 
• Cloud-Native: Traditional HSMs are typically designed for on-premise deployment and require significant infrastructure and configuration to integrate with cloud environments. With Fortanix HSMs, cloud-based applications and services can benefit from secure key management and cryptographic operations without compromising security or performance. 
• High Performance: With Fortanix HSMs, organizations can execute cryptographic operations at scale, supporting high-traffic environments such as e-commerce sites, financial services, and cloud services. 
• Centralized Key Management: Traditional HSMs typically require separate deployments for each application or service. With Fortanix HSMs, organizations can simplify key management across multiple environments and applications, reducing the complexity and costs associated with key management. 
• DevOps Friendly: By collaborating with data security teams, developers can leverage data security interfaces to manage secrets, integrate cryptographic functions into applications during the coding phase, and replace sensitive data with tokens using a REST API. This team collaboration can help ensure that data is secured throughout the development process.  

Conclusion

Data security is incomplete without Hardware Security Modules (HSMs). However, traditional HSMs have limitations, such as physical security vulnerabilities, difficulty integrating with cloud environments, and limited scalability. Fortanix HSMs offer a modern, cloud-native, scalable solution that addresses these limitations.  

As more organizations move towards cloud-based services and applications, they can benefit from secure enclaves, high performance, centralized key management, and DevOps-friendliness, among other advantages.  

Fortanix HSMs ensure complete confidentiality, integrity, and availability of data and cryptographic keys.