AKF Partners

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AKF is launching an Information Security Service for Clients

In today’s digital world, cyber security is one of the biggest areas that keep CEOs and business executives awake at night. Further, regulation and compliance are continually changing, as both governments and customers are modifying the rules in an attempt to keep pace with rapid changes in technology. Keeping up with these changes in regulation, and particularly how they will apply to your business, is a monumental challenge. As a very recent example, if you operate in both the U.S. and Europe, you’re probably familiar with Safe Harbor (https://en.wikipedia.org/wiki/International_Safe_Harbor_Privacy_Principles). Up until mid 2015, Safe Harbor permitted U.S. companies to store EU customer data on U.S. soil, so long as the infrastructure and usage met the privacy standards of the Safe Harbor Act. However, in October 2015, courts struck down the US-EU Safe Harbor agreement, leaving companies again wondering what approach they should take. Then on Feb 29, 2016, the European Commission introduced the EU-US Privacy Shield (http://europa.eu/rapid/press-release_IP-16-433_en.htm), which is similar to Safe Harbor but, in conjunction with the Judicial Redress Act signed by President Obama, extends the ability of European citizens to challenge U.S. companies that store sensitive personal information. With the changes coming quickly and furiously, what is your company to do?


In addition to those challenges, customers today put more and more demand on companies to not only protect sensitive customer data and IP, but many customers DO expect you to store and process sensitive data in a highly available and scalable manner. Balancing the needs of maintaining data on behalf of customers with regulation and compliance is one of the biggest challenges for any modern company, whether you store or process sensitive data for your customers or not. Sometimes just operating in a regulated industry subjects your company to the long reaches of compliance standards.

Finally, who is in charge of security in your company? Is it spread across teams? Is there a single CSO/CISO and security organization? How well do the security organizations work with your technology and business teams?

Our clients ask us frequently if we can assess their security programs and help develop plans for them, similar to the work we do with system architecture and product development. At AKF, we look at security the same way we look at availability and scaling. It is about managing risk. You can build a system that has nearly 100% availability, and you can build a system that scales nearly infinitely… but you don’t always need to, as it’s not always the most cost-effective way to run your business.


You want to build a system that achieves very high availability, up to the point where the cost of “near perfect” availability exceeds the value it brings to the business. Similarly, you may never be able to completely eliminate each and every risk to your information security. Some industries, like health care and credit card processors, need to be “near perfect.” But other may not need to be quite as perfect. Some may just require that you have ample controls, tightly monitored systems, secure coding practices, and top notch Security Incident Response plans.

Finally, there are plenty of overlaps in regulations that if applied once, can solve several of your security compliance concerns. For example, PCI, SOX, and HIPAA all have requirements about audibility and accessibility, although they apply to different types of data. If you’re subject to more than one of those, why not put controls in place that help solve them for ANY regulation?

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We have begun a new program to help our clients with their security needs. Our approach is to help you understand your regulation and compliance landscape, look at the security measures you’ve put in place, and work with you to design a program and projects to close the gaps, focusing on the highest value projects first. We’ll also help you understand where security fits into your organization, and guide you on how to break down barriers that prevent organizations from working cohesively to manage security across the enterprise.

If you are interested in our security program services, please contact us.

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Paying Down Your Technical Debt

During the course of our client engagements, there are a few common topics or themes that are almost always discussed, and the clients themselves usually introduce them. One such area is technical debt. Every team has it, almost every team believes they have too much of it, and no team has an easy time explaining to the business why it’s important to address. We’re all familiar with the concept of technical debt, and we’ve shared a client horror story in a previous blog post that highlights the dangers of ignoring it: Technical Debt


When you hear the words “technical debt”, it invokes a negative connotation. However, the judicious use of tech debt is a valuable addition to your product development process. Tech debt is analogous to financial debt. Companies can raise capital to grow their business by either issuing equity or issuing debt. Issuing equity means giving up a percentage of ownership in the company and dilutes current shareholder value. Issuing debt requires the payment of interest, but does not give up ownership or dilute shareholder value. Issuing debt is good, until you can’t service it. Once you have too much debt and cannot pay the interest, you are in trouble.

Tech debt operates in the same manner. Companies use tech debt to defer performing work on a product. As we develop our minimum viable product, we build a prototype, gather feedback from the market, and iterate. The parts of the product that didn’t meet the definition of minimum or the decisions/shortcuts made during development represent the tech debt that was taken on to get to the MVP. This is the debt that we must service in later iterations. Taking on tech debt early can pay big dividends by getting your product to market faster. However, like financial debt, you must service the interest. If you don’t, you will begin to see scalability and availability issues. At that point, refactoring the debt becomes more difficult and time critical. It begins to affect your customers’ experience.


Many development teams have a hard time convincing leadership that technical debt is a worthy use of their time. Why spend time refactoring something that already “works” when you could use that time to build new features customers and markets are demanding now? The danger with this philosophy is that by the time technical debt manifests itself into a noticeable customer problem, it’s often too late to address it without a major undertaking. It’s akin to not having a disaster recovery plan when a major availability outage strikes. To get the business on-board, you must make the case using language business leaders understand – again this is often financial in nature. Be clear about the cost of such efforts and quantify the business value they will bring by calculating their ROI. Demonstrate the cost avoidance that is achieved by addressing critical debt sooner rather than later – calculate how much cost would be in the future if the debt is not addressed now. The best practice is to get leadership to agree and commit to a certain percentage of development time that can be allocated to addressing technical debt on an on-going basis. If they do, it’s important not to abuse this responsibility. Do not let engineers alone determine what technical debt should be paid down and at what rate – it must have true business value that is greater than or equal to spending that time on other activities.


Additionally, be clear about how you define technical debt so time spent paying it down is not comingled with other activities. Generally, bugs in your code are not technical debt. Refactoring your code base to make it more scalable, however, would be. A good test is to ask if the path you chose was a conscious or unconscious decision. Meaning, if you decided to go in one direction knowing that you would later need to refactor. This is also analogous to financial debt; technical debt needs to be a conscious choice. You are making a specific decision to do or not to do something knowing that you will need to address it later. Bugs are found in sloppy code, and that is not tech debt, it is just bad code.

So how do you decide what tech debt should be addressed and how do you prioritize? If you have been tracking work with Agile storyboards and product backlogs, you should have an idea where to begin. Also, if you track your problems and incidents like we recommend, then this will show elements of tech debt that have begun to manifest themselves as scalability and availability concerns. We recommend a budget of 12-25% of your development efforts in servicing tech debt. Set a budget and begin paying down the debt. If you are working on less than the lower range, you are not spending enough effort. If you are spending over 25%, you are probably fixing issues that have already manifested themselves, and you are trying to catch up. Setting an appropriate budget and maintaining it over the course of your development efforts will pay down the interest and help prevent issues from arising.

Taking on technical debt to fund your product development efforts is an effective method to get your product to market quicker. But, just like financial debt, you need to take on an appropriate amount of tech debt that you can service by making the necessary interest and principle payments to reduce the outstanding balance. Failing to set an appropriate budget will result in a technical “bankruptcy” that will be much harder to dig yourself out of later.

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