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IT security typically has been deemed one of those services best provided in-house. But the stigma attached to outsourcing security and Security as a Service -- namely that an outsider does not know your company well enough to protect it -- may be falling away, as businesses look for more ways to cut costs. Certainly, some heavy-hitter providers believe attitudes are changing. This month, McAfee Inc. announced its new SaaS Security Business Unit. Headed by former Hewlett-Packard Co. SaaS executive Marc Olesen, the unit will oversee all McAfee products delivered over the Internet, including security scanning services, Web and email security services and remote managed host-based security software and hardware. Meanwhile, last April, IBM launched some hosted and managed services that it says help midsized businesses better manage risk and improve the security of their IT systems, all while offering cost savings over traditional products. Indeed, much of IBM's security strategy during the next 24 months will focus on moving security technologies into the cloud and expanding its managed services offerings, said Jason Hilling, an enterprise services business line executive with IBM Internet Security Systems. That includes providing some hosted implementations of technologies that once were located only at the customer premises. "Because the economy is struggling, I think there will be enough excitement in the marketplace over the cost benefits of Security as a Service that we are going to see a much higher degree of willingness to look at it as a real viable option," Hilling said. Hilling contended that a midmarket company with between 500 and 700 employees can realize costs savings from 35% to upwards of 60% by doing security as a managed service. Savings diminish as the deployment gets larger and more complicated, and the costs of managed services escalate. Yet outsourcing security is not just about cost. The world is becoming very hostile, said Sadik Al-Abdulla,

Look for almost a dozen consumer groups and privacy advocates to launch a full-court press on targeted behavioral advertising and online privacy on Capitol Hill next week. According to a source, those groups on Sept. 1 will release a background paper, letters to House members and other documents to make their case for stronger government oversight of online marketing targeted to kids. "A growing number of child advocacy and health groups have called on the FTC and Congress to prohibit the behavioral targeting of both children and teens, next week, many leading consumer and privacy groups will send a letter to congressional leaders calling for similar safeguards," confirms Jeff Chester, executive director of the Center for Digital Democracy. Chester saidd that 10 groups will be involved in the push, and that they will be "pressing Congress to write legislation that truly protects consumer privacy, but enables online marketing to flourish in a more responsible fashion." The effort comes as Congress prepares to return from its summer break. House Communications Subcommittee Chairman Rick Boucher (D-Va.) has made an online privacy bill a legislative priority in this session of Congress.

"As Congress makes headlines on healthcare and financial industry oversight reform, online data privacy watchdogs are hammering away behind the scenes on the Hill. A joint hearing on online and offline data collection scheduled for later this week, and a planned series of Federal Trade Commission data privacy events have advocacy groups from as far away as California visiting Washington to make sure their voices are heard. "What we're concerned about is the amount of surveillance and tracking going on without consumer consent," said Lee Tien, senior staff attorney at the San Francisco-based Electronic Frontier Foundation. Though often skeptical of government regulation, EFF recently joined lobbying groups including Center for Digital Democracy in recommending that Congress pass clear consumer privacy legislation. "

Internet companies came under fire on Capitol Hill on Thursday, with lawmakers questioning how well the companies protect information that they collect online about consumers for advertising purposes. "I think it's a big deal if someone tracks where you go and what you look at without your personal approval. We wouldn't like that in the non-Internet world and I personally don't like it in the Internet world," said Rep. Joe Barton (R., Texas). Lawmakers in the House are drafting Internet-privacy legislation designed to provide consumers more information about what is being collected online and to give them greater control about how that data can be used. It could also set rules for how consumers could prevent their personal data from being shared with advertisers. "Consumers are entitled to some baseline protections in the online space," said Rep. Rick Boucher (D., Va.) chairman of the House Internet subcommittee.

Privacy and civil liberties advocates are urging lawmakers working on the forthcoming economic stimulus package to ensure that any language to spur adoption of electronic medical records includes meaningful security safeguards. The American Civil Liberties Union, Consumer Action, the National Association of Social Workers, Patient Privacy Rights and others sent letters to House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid and President-elect Barack Obama Wednesday asking them to ensure individuals can control the use of their medical records and protect them from what they believe is a thriving industry of firms that share and sell medical data. "We all want to innovate and improve health care, but without privacy our system will crash as any system with a persistent and chronic virus will," Patient Privacy Rights executive director Ashley Katz said at a Capitol Hill briefing. Katz said her group has been pleased with progress that the House Energy and Commerce, and Ways and Means committees made last year.