Why use an HSM? Operating with and without a Hardware Security Module

Short Answer

Signando CA works technically fine without an HSM. The crucial difference: With a Hardware Security Module like YubiHSM, the private CA key becomes non-extractable – even with complete server compromise, it remains protected. Without HSM, the key is only as secure as the server it resides on.

What do I lose without HSM?

Security

AspectWith HSMWithout HSM
Key StorageIn HSM, non-exportableIn filesystem or memory, extractable
Server CompromiseAttacker can use key but not copy itAttacker can copy key and misuse permanently
Physical TamperingTamper detection erases keyNo protection

Recommendation

Use CaseRecommendation
Development / TestSoftware keystore sufficient
Internal Production CAYubiHSM recommended
External Certificates / Customer UseYubiHSM required
Regulated EnvironmentYubiHSM or higher required