Technology & Business:
Where is Technology Having the
Biggest Impact on Business Today?
Lecture 2
Spring 2014
Prof. Dell
Let’s Start With UT Law Student Market
What technologies have most changed your life?
What NEW technologies do you think will change your life?
What do you wish you could do?
Now, the Broader Market…a Few Areas
Energy
- Thin Film Solar
- Electric cars (Tesla)
- Fracking
Cyber Security
- Organized Crime
- Threat detection
- Active Defense
Cloud Computing
- Servers on Demand (Amazon Web Services)
- Virtualization (VM Ware)
- Software as a Service (Gmail, Salesforce.com)
Big Data
- Analytics
- Measuring everything
Smart Devices
- iOS / Android
- The Internet of Things
Cyber Security
How many of you have been hacked in some way?
Do you feel comfortable about where your digital
footprint lives? And how it’s kept secure?
Cyber Security: Organized Crime
What is the largest type of organized crime today?
What is Phishing?
Phishing is the act of attempting to acquire information such as
usernames, passwords, and credit card details (and sometimes,
indirectly, money) by masquerading as a trustworthy entity in an
electronic communication
Cyber Security: Organized Crime
Cyber Security: Organized Crime
Cyber Security: Hacking
James Dolan, CEO of Cablevision:
“All we have are movies and TV shows pumping through our
pipes. We are hacked 600 times per day, on average. What do
they hope to get?”
Obama’s July 2013 claim that hacking costs of $1 trillion
dollars, may be a bit high, but it’s directionally correct.
Cyber Security
Here is the crazy part:
Vast majority of Fortune 500 companies have no understanding
of the degree of their vulnerability:
- Human error
- Malicious employees
- Spies
- Concerted attacks
- Fraud
Cyber Security
There are three categories of companies:
Those that don’t know they are screwed.
Those that know they are screwed.
Those that think they are secure, but are screwed.
What is the one thing they ALL have in common?
Cyber Security: Current Approaches
Sophisticated companies employ a variety of techniques:
Intrusion Detection
Incident Response
Vulnerability Assessment
Malware and Spam
Endpoint Threat Detection
Active monitoring
White Lists / Black Lists
Honeypots
Disappearing browsers
Sandboxing
Cyber Security: Results
For those organizations (mostly financial institutions and
highly specialized technology companies) that have the staff
and resources
To monitor and fight the cat and mouse game in real time, they
have a fighting chance at mitigating loss.
They will never stop it.
Everyone else is screwed.
Cyber Security: Huawei (China’s Cisco)
Huawei’s business model:
Steal, sell, repeat.
Cisco spends roughly $6 billion a year in R&D.
The Chinese government sponsors hackers who steal Cisco’s IP.
The Chinese government dictates that vast portions of China’s
telecommunications infrastructure utilize Huawei technology.
Cyber Security: Mandiant
Active Defense?
If someone you know, who has robbed you before, is running
toward you pointing a gun at you, with the intent of robbing
you again, what are you legally permitted to do?
If someone you know, who has robbed you before, is pointing
their servers at your IP and is beginning to spin up their efforts
to rob you again, what are you legally permitted to do?
Cyber Security: Class Exercise
How would you architect a public policy to deal with cyber security?
What would you allow?
What control is left in a world where the Web is architected to enable
Wikileaks? What should we do differently? Is the genie out of the bottle?
Shouldn't the government be protecting companies / our economic interests
like they protect our economics interests in oil rich regions?
Should we individually or as a nation be more aggressive?
Cyber Security: Class Exercise
Government’s Efforts:
The Comprehensive National Cybersecurity
Initiative
•To establish a front line of defense against today’s immediate threats by
creating or enhancing shared situational awareness of network
vulnerabilities, threats, and events within the Federal Government—and
ultimately with state, local, and tribal governments and private sector
partners—and the ability to act quickly to reduce our current vulnerabilities
and prevent intrusions.
•To defend against the full spectrum of threats by enhancing U.S.
counterintelligence capabilities and increasing the security of the supply
chain for key information technologies.
•To strengthen the future cybersecurity environment by expanding cyber
education; coordinating and redirecting research and development efforts
across the Federal Government; and working to define and develop
strategies to deter hostile or malicious activity in cyberspace.
Cyber Security .Gov = Really Active Offense
NSA / DOD
Proactive, Pre-emptive Operations Group: Mission to conduct
Aggressive, Proactive, Pre-emptive Operations to interdict and disrupt
threats.
They use Psychological Operations, Managed Information Dissemination,
Precision Targeting, Information Warfare Operations, Signal Intelligence.
The proactive defense strategy is meant to improves information collection
by stimulating reactions of the threat agents, provide strike options and to
enhance operational preparation of the real or virtual battle space.
NSA spends hundreds of millions tracking and attacking known bad actors,
using everything in their arsenal: drones, cyber attacks, hired killers.
What do you we think about:
A government’s ability to protect it’s secrets?
The effectiveness of security solutions to protect large companies?
What this impact of stolen IP has on businesses?
A random doctor in Nebraska being a victim of phishing from Croatia?
Wikileaks? (large amounts of data can be share anonymously?)
What can you buy with BitCoins? Do we think it ‘works’?
And it’s not likely to improve…
- Companies used to have secure corporate networks accessible only
by a VPN and a PC.
- Today corporate data is accessible from phones, tablets, the web,
PCs.
- More points of access and more opportunities for human error
- Bad guys are increasing in number.
- The existing efforts to stop hacking fail 95-98% of the time.
Big Opportunities: Focus on Security
FireEye is a global network security company that provides automated
threat forensics and dynamic malware protection against advanced
cyber threats, such as advanced persistent threats and phishing.
Market Cap:
Revenue:
EBITDA:
Net Income:
4.42B
135.97M
-107.67M
-130.70M
Smart Devices – Internet of Things
If you walk into a Macy’s they know:
- Whether you are a spender
- How many times you’ve been to the store
- What kind of cell phone you have
- What kinds of items you are interested in
They can get all of this without speaking to you.
How?
Smart Devices – Internet of Things
Now imagine a world of connected devices.
Where your cell phone, car, watch, credit card, etc.
Are all connected, all being “read” in some way.
What will be possible?
What kind of business can you imagine with this
kind of information?
Smart Devices – Twilio
There are companies like Twilio
That make $ stitching together the fabric of
communications online.
Can you imagine a business that does this in a world
of connected devices?
What would that look like?
Big Data
Virtually everything is digital in some fashion.
Let’s take a look at your law school experience..
Big Data
How many times do you login to FB each day?
How many times do you login to UT Direct each day?
How much time do you spend looking a course material?
How many times do you email fellow students? Teachers?
How quickly do teachers respond to your emails?
Big Data: They know
A new set of low cost technologies, namely Hadoop MapReduce (don’t worry
about what exactly this is),
Enable vast amounts (multi-terrabytes) of data to be instantaneously analyzed
Allowing insights to be drawn about behavior and outcomes.
In healthcare, education, engineering, social media, advertising
Viirtually everything….
Big Data: Education
Please welcome
David Kil
Chief Data Scientist
Civitas Learning