A system and method for authenticating a host on a network enables the host to update IP configuration and internal configuration of a storage controller connected to the network. The host has an algorithm to decrypt a security key supplied by the storage controller. The host broadcasts a discovery command which includes an IP address of the host and a service requested by the host. The discovery command conforms to a proprietary discovery command protocol. In response to the discovery command, the host receives a response from a storage controller which is able to provide the requested service. The response includes a WWN, IP configuration and a security key of the storage controller, and conforms to the discovery command protocol. Next, the host decrypts the security key received from the storage controller using the decryption algorithm, and sends an updated IP configuration to the storage controller along with the security key for authentication. Next, the host exchanges other keys with the storage controller using IKE and IPSec. Afterwards, the host sends an updated internal configuration to the storage controller.