Hardware Security Modules (HSMs)

HSM stands for hardware security module. HSMs are cryptographic devices that serve as physically secure processing environments. Within these physically secure environments, you are able to perform cryptographic operations with the lowest risk possible for cyberattacks or data breaches. The types of cryptographic operations an HSM can perform are generally determined by the manufacturer. Operations can range from encrypting data to managing the overall health of your cryptographic infrastructure. If there are any cryptographic operations you need to perform, an HSM is the most secure way to do it.

Simply put, HSMs are the cornerstone of enterprise data security. The tamper resistance of hardware security modules helps keep IT infrastructure safe from cyberattacks and breaches, while mitigating the tremendous costs those disasters could potentially entail for business organizations.

A hardware security module (HSM) performs encryption. But encryption is only the tip of the iceberg in terms of capability. In reality, HSMs are capable of performing nearly any cryptographic operation an organization would ever need. Some common functions that HSMs do include:

• Encrypt data for payments, applications, databases, etc.
• Manage infrastructure with load balancing, monitoring, alerting, and device clustering
• Create and manage encryption keys for hundreds of applications
• Generate digital signatures to validate messages, software, and financial transactions
• Sign digital certificates to authenticate devices, users, websites, and more
• Among many other practical uses

In terms of encryption uses, HSMs encompass two main categories: payments and general-purpose. HSMs are used to process payment transaction data and manage the encryption keys involved. They can also be used to issue card and mobile EMV credentials.

Hardware security modules also specialize in key management. That is to say, logically managing the encryption keys used to encrypt and decrypt data. This process involves the use of algorithms to create encryption keys, distribute those keys to different applications, and then set policies that determine when keys should be retired from use, and ultimately deleted. Additionally, users can also configure HSMs to generate asymmetric key pairs. This means that a public key is used to encrypt data and a private key is used to decrypt it. Users can also secure the private key and establish a certificate authority (CA) in the process.

Put plainly, hardware security modules are used to establish complete and total network security for organizations of all sizes.

The primary users of HSMs are organizations that need to protect sensitive data. This could include a software developer that wants to encrypt files and applications, a bank that needs to secure mobile payments, or a government organization that must protect personally identifiable information (PII) for private citizens. So, if your organization needs to protect sensitive data, then it may be a good idea to consider using a hardware security module.

Many organizations deploy physical hardware security modules on-premises, but it is becoming more common to deploy HSMs through a cloud service. Cloud HSMs are based on their physical counterparts, and offer the same levels of functionality and compliance. Cloud HSMs are often deployed and managed from a single web interface, which helps reduce the costs associated with deploying HSMs. They also help streamline cryptographic infrastructure overall. Cloud HSMs are ideal for large enterprise needing to streamline and centralize infrastructure, as well as small-to-medium organizations that want to deploy cryptography for the first time.

For over 40 years, Futurex has been a trusted provider of hardened, enterprise data security solutions for more than 15,000 organizations worldwide. Customers choose Futurex for our best-in-class technology solutions and our exceptional customer support.

Futurex hardware security modules protect your organization’s most sensitive data with strong encryption, tamper resistance, and logical security. All Futurex HSMs are FIPS 140-2 Level 3 and PCI HSM-validated, support vendor-neutral APIs, and include the RESTful web API. This is why Futurex has led innovation among HSM providers for 40+ years.

Yes, absolutely. You can request a free demo for yourself or your organization here.