Pub. 7 2016 Issue 3

www.wvbankers.org 20 West Virginia Banker Introduction. Over the years, the need for multiple operating systems and applica- tions has increased for all organizations: banks have not been an exception. With the increased need for the multiple oper- ating systems and applications, organiza- tions were required to obtain an increased number of file servers resulting in a growth of required resources and an increase in their information technology investment. There is a growing trend of organizations implementing virtual environments where software is used to simulate the existence of hardware and create virtual computer systems. This article focuses on the benefits, risks and controls of virtualization technology. Definition. Virtualization refers to the act of creating a virtual (rather than actual) version of something. This includes oper- ating systems, a server, a storage device or a network resource. There are numerous areas where virtualization may be imple- mented / utilized including the following: • Desktop virtualization – The operating system of a computer in which the Bank uses is hosted on a server located somewhere else. The operating system is presented to multiple thin client (main purpose is to connect to the network) for the end users to access. The approach is highly effective in patching and pushing updates to users’ desktops to ensure that all operating systems are up to date. Desktop virtual- ization assists in cutting down on software versioning. • Server Virtualization – The moving of physical servers into a virtual environment, which is hosted on one physical server. Allows for a reduction in the number of phys- ical servers and improves server availability. • Storage Virtualization – The com- bining of multiple physical hard drives into a single virtual storage environment. Allows for a more centralized storage of the hard drives and allocates free disk space to a specific host or server. • Hardware virtualization – The taking of components of a real machine and making them virtual. For example, a Windows personnel computer that runs a virtual version of Linux. Benefits. There are many benefits to a virtual environment including: • Scalability – Allows a computer to function appropriately while in a rescaled situation without adding physical resources. It is much easier to add additional RAM to a virtual machine than it is to a physi- cal machine. • Availability and reliability – Assists in the prevention of system crashes due to memory corruption caused by software like device drivers. In addition, a virtual machine can be implemented faster resulting in less downtime. • Performance – Performance monitoring is more efficient. In addition, the storage, processor, and memory allocated to each host can be efficiently monitored resulting in the ability to assess whether the virtual architecture was operating as designed. • Consolidation – By consolidating the physical hardware the number of systems are reduced resulting in lower network cost. This will also reduce the power consumption of the data center. Risks. However, there are risks involved with a virtual environment including: • Architectural vulnerabilities – The virtual system is just as suscepti- ble as the physical hardware to a potential attack. Security measures should be in place for the virtual machine as well as the physical hardware. • Software vulnerabilities – The most important software in the virtual environment is the hypervisor. Any By Trista Cline, Arnett Carbis Toothman LLP Virtualization Benefits, Risks and Controls