Gregg,
 
>>> So what about the path between the XML-SG and your application
>>
>> An option to consider for that would be 2-Way SSL for data in transit
>> protection and machine-to-machine authentication.

>Yes, that can work as long as you avoid man in the middle attacks...

The point of 2-Way SSL is not just protection of data in transit, but strong mutual authenticaion (at the machine level), which is one of the ways that you mitigate this type of attack. I am probably missing something in your question.. BTW, you did mean Digital Signature by "XML-SG" right?  Also, keep in mind that the Gateway does not strip off the Signature.. You can also verify it further in.
 
>other monetary or highly secure environments?  Wouldn't you want to make sure
>that all of your services provided secure management endpoints that included
>true authentication?

Certainly. I would make sure that all of my endpoints have a PEP. Depending on how that PEP is implemented would determine how I manage it. e.g. If that PEP was implemented in software by the service platform, it would make things a lot more complex. The XML Security Gateway really does not do anything for me at the endpoints.
 
Regards,
 
- Anil


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