Microsoft Integrates Marvell NIST FIPS 140-3 Level-3 Compliant LiquidSecurity HSMs into Azure Key Vault and Managed HSM Services

Rhea-AI Summary

Marvell Technology, Inc. (NASDAQ: MRVL) announced that Microsoft will update its fleet of LiquidSecurity HSMs to the FIPS 140-3, Level-3 standard to enhance security in Azure services. Marvell's LiquidSecurity 1 and 2 hardware security modules (HSMs) achieved this certification in June 2024. This stringent certification is important for financial institutions and government organizations.

LiquidSecurity HSMs, powered by OCTEON DPUs, are designed for dense multi-tenant cloud environments. A single LiquidSecurity2 card can manage 100,000 encryption key pairs and process over one million operations per second. According to ABI Research, revenue from cloud-based HSMs is expected to grow from under 15% today to over 40% by 2028.

Positive

• Microsoft's adoption of Marvell's FIPS 140-3 Level-3 certified HSMs for Azure services
• LiquidSecurity2 card's capability to manage 100,000 encryption key pairs and process over 1 million operations per second
• Expected growth of cloud-based HSM revenue from 15% to 40% by 2028
• Marvell's leadership position in cloud-based HSM market

Negative

• None.

Insights

Cybersecurity Expert

Microsoft's integration of Marvell's FIPS 140-3 Level-3 certified LiquidSecurity HSMs into Azure services is a significant upgrade in cloud security. This move addresses the growing demand for robust encryption in cloud environments, particularly from government and financial sectors. The FIPS 140-3 certification, which supersedes FIPS 140-2, introduces enhanced security features, making Azure's key management services among the most secure in the industry.

The shift from traditional appliance-based HSMs to PCIe-based devices is a game-changer for cloud infrastructure. Marvell's LiquidSecurity2 card's capability to manage 100,000 key pairs and process over 1 million operations per second significantly improves efficiency and scalability. This could lead to more widespread adoption of HSM services, potentially improving overall cybersecurity practices across various industries.

Cloud Computing Analyst

This partnership between Microsoft and Marvell represents a strategic move in the cloud services market. By integrating FIPS 140-3 Level-3 compliant HSMs, Azure is positioning itself as a leader in secure cloud solutions, particularly appealing to highly regulated industries. The projected growth of cloud-based HSMs from 15% to over 40% by 2028 indicates a significant market opportunity.

The LiquidSecurity HSMs' efficiency in power consumption and space utilization addresses key challenges in data center operations. This could translate to cost savings and improved performance for Azure, potentially leading to competitive pricing or enhanced services for customers. The move also aligns with the broader industry trend of shifting from hardware management to service-based models, which could accelerate the adoption of advanced security measures across various sectors.

Financial Technology Analyst

The integration of FIPS 140-3 Level-3 certified HSMs into Azure services is a major development for the fintech sector. Many financial institutions are mandated to use NIST FIPS-certified HSMs for encryption and key management. This upgrade allows these institutions to leverage cloud services while maintaining compliance with stringent security standards.

The ability to process over 1 million operations per second is particularly relevant for high-volume financial transactions. This could enable more efficient and secure processing of credit card purchases, ATM withdrawals and other financial operations. The shift to cloud-based HSM services could also lower barriers to entry for smaller fintech companies, potentially fostering innovation in secure financial services. However, it's important to monitor how this transition impacts overall system resilience and regulatory compliance in the long term.

SANTA CLARA, Calif., Aug. 6, 2024 /PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today announced that Microsoft—which extensively uses the Marvell^® LiquidSecurity^® family of HSMs to perform encryption, key management, and other security functions within Azure—will update its fleet of LiquidSecurity HSMs to the FIPS 140-3, Level-3 standard to further enhance its internal security posture and the portfolio of security services offered to its customers.

Marvell LiquidSecurity 1 and LiquidSecurity 2 hardware security modules (HSMs) achieved FIPS 140-3 Level-3 certification from the National Institute of Standards and Technology (NIST) in June. Stringent FIPS 140-3 certification is required by many financial institutions and government organizations and, to date, has largely been available only with traditional HSMs for on-premise use.

"We congratulate Marvell on achieving NIST FIPS 140-3, Level-3 certification of its LiquidSecurity HSMs which power our Azure Key Vault and Azure Key Vault Managed HSM services, and on which we continue to innovate new offerings," said Soumya Subramanian, VP of Cloud Security Engineering at Microsoft Azure. "Through our collaboration with Marvell, we are able to offer Azure's customers the most secure and compliant key management services available in Public, Sovereign or Government clouds today."

FIPS 140 (Federal Information Processing Standard) is a set of security requirements established by NIST (National Institute of Standards and Technology) and managed by both the United States and Canada as part of the CMVP (Cryptographic Module Validation Program). They specify the security requirements that will be satisfied by a cryptographic module, providing four increasingly stringent levels intended to cover a wide range of potential applications and environments. Many government organizations and financial institutions are mandated to use NIST FIPS-certified HSMs for encryption and key management. Because of the rigorous testing required to meet this certification, the use of HSMs has grown across all markets and use cases have proliferated.

FIPS 140-3 introduces several new security enhancements over FIPS 140-2. This new NIST FIPS 140-3 certification will eventually replace FIPS 140-2 certification as the latter will be moved to Historical List by September 21, 2026.

Transforming Encryption Through Optimized Processors

LiquidSecurity devices were created to eliminate the friction associated with achieving better security. A critical element of global commerce, HSMs perform the authentication and encryption processes behind secure key protection and management, credit card purchases, ATM withdrawals, sign-in services and other high-volume transactions. HSMs have historically been packaged as 1U and 2U server appliances running standard microprocessors. These appliances are managed directly by HSM users and deployed on their premises.

LiquidSecurity HSMs, by contrast, are PCIe-based devices powered by OCTEON^® DPUs and designed for use in dense multi-tenant cloud environments. Six of the ten largest cloud service providers use LiquidSecurity in their operations. A single LiquidSecurity2 card can manage 100,000 pairs of encryption keys and process more than one million operations per second. As a result, cloud service providers can deliver HSM services while consuming a fraction of the power, rack space and hardware required by traditional HSMs. Meanwhile, HSM users can switch from the complexity of managing hardware to the ease of subscribing to HSM services. The cloud-based model for HSMs also reduces barriers to employing HSM and encryption services for secure medical records and other transactions.

Revenue from cloud-based HSMs is expected to grow from under 15% today to over 40% by 2028, according to ABI Research.

"Marvell is uniquely positioned to take advantage of cloud-based HSM demand in the market, and remains an industry leader in the space," said Michela Menting, senior analyst at ABI Research. "FIPS 140-3 represents the latest milestone toward a more diverse and larger market for HSM services."

"Marvell has been leading the effort to transform HSMs into cloud-based devices since 2015," said Will Chu, senior vice president and general manager of Custom Compute and Storage at Marvell. "Microsoft has shared in this vision of modernizing the HSM market and we are thrilled to continue working side by side with Microsoft to help Azure customers benefit from the latest security standards for the most demanding applications deployed at cloud scale."

About Marvell

To deliver the data infrastructure technology that connects the world, we're building solutions on the most powerful foundation: our partnerships with our customers. Trusted by the world's leading technology companies for over 25 years, we move, store, process and secure the world's data with semiconductor solutions designed for our customers' current needs and future ambitions. Through a process of deep collaboration and transparency, we're ultimately changing the way tomorrow's enterprise, cloud, automotive, and carrier architectures transform—for the better.

Marvell and the M logo are trademarks of Marvell or its affiliates. Please visit www.marvell.com for a complete list of Marvell trademarks. Other names and brands may be claimed as the property of others.

This press release contains forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future events, results or achievements. Actual events, results or achievements may differ materially from those contemplated in this press release. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict, including those described in the "Risk Factors" section of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed by us from time to time with the SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and no person assumes any obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

For further information, contact:
Kim Markle
pr@marvell.com

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FAQ

What certification did Marvell's LiquidSecurity HSMs achieve in June 2024?

Marvell's LiquidSecurity 1 and 2 hardware security modules (HSMs) achieved FIPS 140-3 Level-3 certification from the National Institute of Standards and Technology (NIST) in June 2024.

How will Microsoft use Marvell's LiquidSecurity HSMs in Azure services?

Microsoft will update its fleet of LiquidSecurity HSMs to the FIPS 140-3, Level-3 standard to enhance security in Azure Key Vault and Azure Key Vault Managed HSM services.

What are the key features of Marvell's LiquidSecurity2 HSM card?

A single LiquidSecurity2 card can manage 100,000 pairs of encryption keys and process more than one million operations per second, making it highly efficient for cloud-based HSM services.

What is the projected growth for cloud-based HSM revenue according to ABI Research?

According to ABI Research, revenue from cloud-based HSMs is expected to grow from under 15% today to over 40% by 2028.