Anyway, I want to keep a few pointers to good articles and websites for later. Once again from Taosecurity :-)
Russ McRee followed his excellent discussion of NSM and Sguil in the October InfoSecMag with a new article called Argus – Auditing network activity (.pdf), published in the November 2007 ISSA Journal. It's another great read.
UPDATE 1:
Great NSM demo from Taosecurity, using session analysis and full content, basically perfect for education: http://taosecurity.blogspot.com/2007/11/analyzing-protocol-hopping-covert.html
UPDATE2:
Taosecurity again of course: What is NSM? NSM vs. IDS, with pointer to a slide show from 2002 :-) It still holds water! One of the good ones:
“IDS” is only a product; NSM is an operation
incorporating products, people, and processes
How would you go about performing #7 without some type of SEM? Ideally, you would combine SEM with NSM, which is what I plan on doing. Any suggestions? I've read through several of your posts regarding CS-MARS, etc. and I can understand how SEMs don't give you enough information to act upon alerts as they are alert-centric and usually don't provide you with session data or full content data, but at least they can point you in the right direction of further investigation. They provide you with what Daniel from the OSSEC project calls a LIDS (log-based intrusion detection system) and then do the job of correlating them from numerous devices. So how would you do the above (#7) without some sort of SEM?
SEM = Security Event Management. HTH