Why FIPS 140-3 Certification Matters

1. Meeting Regulatory Compliance Requirements

FIPS 140-3 certification is often required by regulatory bodies, especially in sectors like government/defense, healthcare, and finance, where sensitive data must be protected by law. Here are a few industry-specific regulations that FIPS 140-3-certified modules help with:

• Defense: DFARS, NIST SP 800-171
• Healthcare: HIPAA
• Finance: PCI-DSS
• Energy: NERC CIP
• Education: FERPA

Compliance with FIPS 140-3 also makes it easier for organizations to meet audit requirements, reducing the risk of fines or penalties for security lapses.

2. Strengthening Customer Trust

End users and customers expect that their data is handled with care and protected against breaches. By using FIPS 140-3-certified solutions, organizations can demonstrate their commitment to securing customer data with recognized, government-endorsed security standards. FIPS certification is a valuable trust signal, showing customers that their information is being managed with the highest level of protection available.

3. Protecting Against Emerging Cyber Threats

Relying on uncertified or outdated cryptographic solutions increases the risk of data breaches. FIPS 140-3-certified solutions are tested to withstand advanced attacks and tampering, which is an important safeguard against threats that continue to evolve in complexity. Certified modules help prevent unauthorized access to sensitive data, whether through intercepted communications, phishing, or other cyber threats.

FIPS 140-3 certification gives assurance, especially for organizations that handle high volumes of data, that they have adequate encryption to protect against sophisticated attacks.

4. Ensuring Business Continuity and Operational Resilience

According to IBM’s Cost of a Data Breach Report 2024, data breaches now cost $4.88 million (global average), with healthcare being the most costly at $9.8 million per breach. The financial impact is staggering, but the ongoing operational disruption and recovery efforts determine whether an organization can fully bounce back from a breach. With FIPS 140-3 certification, there’s an added layer of resilience to an organization’s infrastructure, which reduces the likelihood of breaches and ensures a secure base for maintaining continuity (such as through an Isolated Recovery Environment). By implementing FIPS-certified encryption, businesses can minimize downtime, maintain access to encrypted systems, and recover more smoothly from potential incidents.

5. Gaining a Competitive Advantage in Security-Conscious Markets

Organizations that follow rigorous data security standards are more likely to gain the trust of clients, stakeholders, and customers, especially in industries where security is non-negotiable. Organizations that adopt FIPS 140-3-certified infrastructure can differentiate themselves as having a reputation for security, which can be a competitive advantage that attracts customers and partners who value data protection.

Key Applications of FIPS 140-3 in Network Infrastructure

For organizations managing large amounts of customer data, FIPS 140-3-certified solutions can be applied to several critical areas within network infrastructure:

• Network Firewalls and VPNs: FIPS-certified encryption ensures that data moving across networks remains private, protecting it from interception by unauthorized users.
• Access Control Systems: Identity-based access controls with FIPS-certified modules add another layer of security to protect against unauthorized access to sensitive data.
• Out-of-Band Management: Using FIPS 140-3-certified encryption in OOB management ensures the same stringent security level for OOB traffic as for in-band network traffic.
• Data Storage and Backup: FIPS-certified encryption secures data at rest, protecting stored customer information from unauthorized access or tampering.
• Cloud and Hybrid Environments: For companies using cloud or hybrid environments, FIPS-certified encryption helps protect data across multiple infrastructure layers, ensuring consistent security whether data resides on-premises or in the cloud.

Discuss FIPS 140-3 With Our Network Infrastructure Experts

FIPS 140-3 certification gives organizations the ability to reassure customers, meet compliance requirements, and protect critical data across every layer of the network. Get in touch with our network infrastructure experts to discuss FIPS 140-3, isolated management infrastructure, and other resilience best practices.

Explore FIPS 140-3 for Out-of-Band Management

Read about 7 benefits of implementing FIPS 140-3 across your out-of-band management infrastructure. This article discusses the benefits it brings to remotely accessing devices, protecting against physical attacks, and securing edge infrastructure.

More Resources

• View ZPE Systems’ FIPS 140-3 Certification
• ZPE Systems’ Supply Chain Security Assurance
• Analysis of the American Water Cyberattack
• Why Securing IT Means Replacing End-of-Life Console Servers
• What To Do if You’re Ransomware’d: A Healthcare Example
• The CrowdStrike Outage: How to Recover Fast and Avoid the Next Outage

7 Security Benefits of Implementing FIPS 140-3 for Out-of-Band Management

1. Secure Encryption of Management Traffic

OOB management often involves remote access to routers, switches, servers and other critical devices. FIPS 140-3 certification guarantees that all cryptographic modules used in these systems have been rigorously tested to secure data in transit. Encrypting management traffic is crucial to prevent interception or manipulation by unauthorized users, particularly for tasks such as command execution, configuration updates, and device monitoring.

With FIPS-certified encryption, companies can protect OOB traffic between management devices and network components, so that only authorized administrators have access to sensitive system commands and device settings.

2. Enhanced Authentication and Access Control

OOB management solutions typically support different user roles, each with its own access privileges. FIPS 140-3-certified modules, like ZPE Systems’ Nodegrid, feature multi-factor authentication (MFA) to control who can initiate OOB management sessions. Certified solutions also include secure key management practices that prevent unauthorized access, ensuring that only verified users can control and modify network devices.

These protections mean FIPS-certified solutions help mitigate the risk of unauthorized users accessing high-value assets. This is especially important during ransomware recovery efforts, when teams need to launch a secure, Isolated Recovery Environment to combat an active attack in a compromised environment.

3. Protection Against Tampering and Physical Attacks

Many organizations deploy IT infrastructure in locations where physical device security is lacking. For example, remote colocations, unmonitored drilling sites, or rural health clinics can easily expose network infrastructure to device tampering. FIPS 140-3 certification mandates tamper-evident and tamper-resistant features to protect the cryptographic modules used in OOB systems. OOB solutions like ZPE Systems’ Nodegrid provide robust protection against tampering, with features including:

• UEFI secure boot: Prevents the execution of unauthorized software during the boot process.
• TPM 2.0: Ensures secure key generation and storage, so only authorized software can run.
• Secure erase: Allows for deletion of all data from storage, so no data can be recovered from devices that have been tampered with.

These features prevent unauthorized individuals from physically accessing OOB equipment to intercept or modify management traffic. In remote and edge locations, FIPS-certified cryptographic modules provide robust protection against physical attacks, making it harder for adversaries to compromise OOB management pathways.

4. Compliant and Secure Logging of Access Activities

Because OOB management systems provide access to critical equipment, organizations need transparency into OOB users and their management activities. This means logging and auditing are essential to maintaining security and compliance. FIPS 140-3-certified modules support secure logging of all management activities, creating a clear audit trail of access attempts and security events. These logs are stored securely to prevent unauthorized users from altering or erasing them, providing valuable insights for security monitoring and incident response.

Secure logging is not only critical for monitoring access but also necessary for meeting regulatory compliance. FIPS 140-3 ensures that OOB management systems can satisfy audit requirements, making compliance easier and protecting organizations from potential regulatory penalties.

5. Meeting Regulatory Requirements in Sensitive Environments

Many industries handle sensitive data, especially government, healthcare, and finance. For organizations in these industries, it’s often mandatory to use FIPS-certified cryptographic solutions. FIPS 140-3 certification helps OOB management systems align with federal security regulations and standards like HIPAA and PCI-DSS. By deploying FIPS-certified encryption, organizations can comply with these standards, streamline audits, reduce the risk of regulatory penalties, and reinforce trust with customers.

6. Consistent Security Across Main and OOB Networks

It’s easy for organizations to focus mostly on securing the main network, while overlooking the security protections that they employ on their out-of-band network. FIPS-certified solutions help establish consistent security standards across both paths. This is especially important in protecting against lateral attacks, where hackers infiltrate one network and are then able to jump to the other. In cases where attackers gain access to one segment of the network, matching security protocols across the main and OOB networks prevents them from moving laterally into sensitive management channels.

Using FIPS 140-3-certified encryption across both networks also strengthens the organization’s ability to monitor, manage, and control devices, even when the primary network is under threat.

7. Securing Remote and Edge Devices

For organizations with remote infrastructure, such as telecom and retail, OOB management is critical for managing network devices in distant locations. However, these environments often lack the physical security of centralized data centers, making them vulnerable to tampering. FIPS-certified solutions ensure that all communication with remote OOB devices is encrypted, which protects management data from unauthorized access.

FIPS 140-3 certification also supports the resilience of IoT and edge devices, which often require OOB management for secure monitoring, patching, and configuration.

Implement the Most Secure Out-of-Band Management with ZPE Systems

ZPE Systems’ Nodegrid is the industry’s most secure out-of-band management solution. Not only do we carry FIPS 140-3, SOC 2 Type 2, and ISO27001 certifications, but we also feature a Synopsys-validated codebase and dozens of security features across the hardware, software, and cloud layers. These are all part of a multi-layered, secure-by-design approach that ensures the strongest physical and cyber safeguards.

Download our pdf to explore more of our security assurance.

See FIPS-Certified Out-of-Band in Action

Our engineers are ready to walk you through our industry-leading out-of-band management. Use the button below to set up a 15-minute demo and explore FIPS 140-3 security features first-hand.

1. Edge Diversity

Every industry has its unique edge computing requirements. For example, manufacturing often needs low-latency processing to ensure real-time control over production, while retail might focus on real-time data insights to deliver hyper-personalized customer experiences.

Challenge: Edge computing solutions are usually deployed to address an immediate need, without taking into account the potential for future changes. This makes it difficult to adapt to diverse and evolving use cases.

2. Ongoing Digital Transformation

Gartner predicts that by 2029, 30% of enterprises will rely on edge computing. Digital transformation is catalyzing its adoption, while use cases will continue to evolve based on emerging technologies and business strategies.

Challenge: This rapid transformation means environments will continue to become more complex as edge computing evolves. This complexity makes it difficult to integrate, manage, and secure the various solutions required for edge computing.

3. Data Growth

The amount of data generated at the edge is increasing exponentially due to digitalization. Initially, this data was often underutilized (referred to as the “dark edge”), but businesses are now shifting towards a more connected and intelligent edge, where data is processed and acted upon in real time.

Challenge: Enormous volumes of data make it difficult to efficiently manage data flows and support real-time processing without overwhelming the network or infrastructure.

4. Business-Led Requirements

Automation, predictive maintenance, and hyper-personalized experiences are key business drivers pushing the adoption of edge solutions across industries.

Challenge: Meeting business requirements poses challenges in terms of ensuring scalability, interoperability, and adaptability.

5. Technology Focus

Emerging technologies such as AI/ML are increasingly deployed at the edge for low-latency processing, which is particularly useful in manufacturing, defense, and other sectors that require real-time analytics and autonomous systems.

Challenge: AI and ML make it difficult for organizations to determine how to strike a balance between computing power and infrastructure costs, without sacrificing security.

1. Edge Diversity: Adapting to Industry-Specific Needs

Nodegrid is built to handle diverse requirements, with a flexible architecture that supports containerized applications and virtual machines. This architecture enables organizations to tailor the platform to their edge computing needs, whether for handling automated workflows in a factory or data-driven customer experiences in retail.

2. Ongoing Digital Transformation: Supporting Continuous Growth

Nodegrid supports ongoing digital transformation by providing zero-touch orchestration and management, allowing for remote deployment and centralized control of edge devices. This enables teams to perform initial setup of all infrastructure and services required for their edge computing use cases. Nodegrid’s remote access and automation provide a secure platform for keeping infrastructure up-to-date and optimized without the need for on-site staff. This helps organizations move much of their focus away from operations (“keeping the lights on”), and instead gives them the agility to scale their edge infrastructure to meet their business goals.

3. Data Growth: Enabling Real-Time Data Processing

Nodegrid addresses the challenge of exponential data growth by providing local processing capabilities, enabling edge devices to analyze and act on data without relying on the cloud. This not only reduces latency but also enhances decision-making in time-sensitive environments. For instance, Nodegrid can handle the high volumes of data generated by sensors and machines in a manufacturing plant, providing instant feedback for closed-loop automation and improving operational efficiency.

4. Business-Led Requirements: Tailored Solutions for Industry Demands

Nodegrid’s hardware and software are designed to be adaptable, allowing businesses to scale across different industries and use cases. In manufacturing, Nodegrid supports automated workflows and predictive maintenance, ensuring equipment operates efficiently. In retail, it powers hyperpersonalization, enabling businesses to offer tailored customer experiences through edge-driven insights. The vendor-neutral Nodegrid OS integrates with existing and new infrastructure, and the Net SR is a modular appliance that allows for hot-swapping of serial, Ethernet, computing, storage, and other capabilities. Organizations using Nodegrid can adapt to evolving use cases without having to do any heavy lifting of their infrastructure.

5. Technology Focus: Supporting Advanced AI/ML Applications

Emerging technologies such as AI/ML require robust edge platforms that can handle complex workloads with low-latency processing. Nodegrid excels in environments where real-time analytics and autonomous systems are crucial, offering high-performance infrastructure designed to support these advanced use cases. Whether processing data for AI-driven decision-making in defense or enabling real-time analytics in industrial environments, Nodegrid provides the computing power and scalability needed for AI/ML models to operate efficiently at the edge.