With cutting-edge technology advancements and innovations in fintech and other industries, various software apps have become integral to our daily lives. Still, the rise of software usage calls for greater transparency and accountability, mainly when the application contains open-source or commercial software components.
This is where the software bill of materials (SBOM) — a fundamental component of secure software development practices — comes into play. So what is a software bill of materials? How does it improve the software development lifecycle? Why is it important to businesses? Find the answers in this guide.
What is a software bill of materials?
The term “bill of materials” is nothing new. It’s been borrowed from the manufacturing industry, where it refers to a centralised source of information on raw materials, components, and parts constituting vehicles, electronics, or even food products.
A bill of materials performs the function of a production roadmap, providing details on each component’s journey across the entire supply chain. As a result, bills of materials allow companies to quickly spot and fix production issues, enhancing safety and performance.
Likewise, a software bill of materials, or an SBOM, is a list of software components making up a software product. The concept of the software bill of materials is much talked about today, and for a good reason.
It’s a common practice for software developers to use commercial and open-source software components from third-party providers, making visibility over what is included in a software application crucial.
A software bill of materials provides a detailed list of third-party components, allowing organisations to effortlessly identify and address software vulnerabilities and thus strengthen software supply chain security.
The SBOM data covers software component names, known vulnerabilities, license information, version numbers, and third-party software vendors.
Why do companies need a software bill of materials?
Due to the ever-increasing complexity of software and the growing number of software components used in modern applications, managing software security and compliance has become a challenge for many organisations.
Luckily, a software bill of materials changes the game by providing a complete inventory of all the components and dependencies that comprise a software application, including their respective versions and sources.
Let’s take a more detailed look at why organisations need a software bill of materials.
Enhanced transparency
One of the most substantial benefits of using a software bill of materials is greater transparency of software projects. By providing a comprehensive list of all components used in a system, an SBOM enables organisations to gain a clear understanding of the software’s functionality and potential vulnerabilities. This level of transparency is essential for eliminating security risks and ensuring regulatory compliance.
Stronger security
As already mentioned, a software bill of materials can go a long way toward enhanced software security. An SBOM details all components used in software applications, including any third-party software components. SBOM data is critical to detecting potential security vulnerabilities and helping effectively address them, which is crucial for organisations where security is vital, such as fintech startups. By knowing the exact software components used in an application, you can quickly identify and tackle any security issues.
Robust compliance
Many industries have strict compliance requirements that software applications should meet. A software bill of materials allows companies to ensure that they keep up with all the necessary compliance standards. What is more, an SBOM helps organisations demonstrate due diligence in complying with various regulatory standards, such as HIPAA, GDPR, and PCI-DSS.
Greater resilience
Another critical advantage of an SBOM is that it allows software development teams to identify issues in the early phases of the software development life cycle. This helps reduce the impact of disruptions on the software supply chain. Whether it’s a cyber incident or another disruption, a software bill of materials is an excellent solution if you focus on mitigating software supply chain risk and ensuring it remains resilient.
Next-level software management
A software bill of materials enables companies to manage software applications more effectively by providing a comprehensive inventory list of all their components. This information creates a better understanding of the dependency relationship between different software components, making it easier to manage and update software applications.
Reduced cost
Last but not least, an SBOM can help you significantly reduce the overall cost of software development and maintenance. Absolute visibility into all application components lets companies make more informed decisions about which external component to use and which to steer clear of. As a result, this can reduce licensing costs and minimise the risk of costly software failures.
Creating a software bill of materials
A software bill of materials can be created in two ways: manually and with the help of an automated tool. Let’s take a closer look at each.
Manual SBOM creation
Creating a software bill of materials (SBOM) manually involves identifying and documenting all the components and dependencies used in a piece of software. Although this method can be time-consuming and calls for meticulous attention to detail, it’s a common choice for smaller applications.
Below are the key steps to manually creating a software bill of materials:
- identify software components (software libraries, open-source components, third-party tools, and any custom code developed in-house);
- determine each component’s version — this information is essential for identifying vulnerabilities or security issues associated with specific versions of the component;
- create a list of all dependencies — any software components necessary to run the application but not explicitly included in the application;
- determine the license for each component;
- develop the software bill of materials document, including all the information gathered in the previous steps, and ensure you regularly update it to remain accurate and up-to-date.
Creating an SBOM with the help of automated tools
This method suggests using specialised software to identify and document all the components and dependencies used in a software application. It’s faster and more efficient than the manual method, especially for larger applications or those with complex dependencies.
Generating a software bill of materials automatically involves the following steps:
- select an SBOM tool — here, you have two options: software composition analysis (SCA) tools and open-source command-line interface (CLI) tools;
- install and configure the tool;
- run the tool — it will automatically identify and document all the components and dependencies used in the application, including version information and license details;
- review and regularly update the SBOM.
Wrapping up
The software bill of materials is critical for ensuring security, safety, and transparency when building software. By providing a nested inventory of components and dependencies within a software product, an SBOM can help effectively mitigate security vulnerabilities and ensure regulatory compliance.
An SBOM can also enhance communication and collaboration among software engineers, suppliers, and end-users. Without any doubt, a software bill of materials is a robust tool for creating a safer and more secure software ecosystem.
