Welcome
to
SINET Showcase 2010
Wednesday, October 27th, 2010
National Press Club
Washington, DC
PANEL: Call to Action: Entrepreneurs and
Cyber Security, The Way – Ahead
Moderator
Bob Ackerman
Allegis Capital
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Founder and Managing Director
Seed and Early-Stage Venture
Investors
CEO of UniSoft Systems and
Founder/Chairman of InfoGear
Investment Focus – IT Security,
Enterprise Solutions; Commerce
Asheem Chandna
Greylock Partners
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Partner
Areas of interest span
enterprise IT infrastructure,
software and services
Invested in companies in cloud
computing, data center,
electronic payments,
networking, management,
security and virtualization.
Alberto Yepez
Trident Capital
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Managing Director
Focusing on Software, IT
Security, and mobile
investments
Served as Chairman, President
and CEO of Thor Technologies,
leading provider of identity
management solutions
George Hoyem
In-Q-Tel
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Partner
More than 25 years of
entrepreneurial, operations and
venture experience in high
technology companies
Has backed, supported, and
served on the boards of over
sixteen emerging technology
companies
The Rising Tide of Cyber Espionage
Jan 15, 2010
Operation Aurora: Juniper Confirms it was hit by attack
Jan 14, 2010
Operation Aurora: Adobe Identified As Victim of Attack
Jan 12, 2010
Operation Aurora targets Google – IP, Gmail accessed
May 13, 2009
US Homeland Security information network hacked
Apr 21, 2009
Attackers breach $300B Joint Strike Fighter project
Mar 28, 2009
GhostNet - Vast Spy System Loots PCs in 103 Countries
Dec. 02, 2008
Malware targets U.S. military computers – Agent.btz
Nov. 20, 2008
Network Security Breaches Plague NASA
Cyber Crime Crisis Is Here
Oct. 1, 2009
Targeted e-mails distributed malware in PayChoice breach
Sep. 25, 2009
UNC Chapel Hill server hacked; 236,000 records breached
Jul. 24, 2009
Network Solutions server hacked; 573,000 records lost
May 28, 2009
Aetna server breached; 65,000 records stolen
May 28, 2009
Aviva data breach due to malware infected computer
Jan. 20, 2009
Heartland finds malware in bank card payment system
Diminishing Economies of Scale:
US Industrial R&D by Size of Enterprise
Company Size
1981
1989
1999
2005
< 1000 employees
4.4%
9.2%
22.5%
24.1%
1,000 – 4,999
6.1 %
7.6 %
13.6%
15.5%
5,000 – 9,999
5.8 %
5.5%
9.0%
8.0%
10,000 – 24,999
13.1%
10.0%
13.6%
14.8%
25,000 +
70.7%
67.7%
41.3%
37.6%
Sources: National Science Foundation, Science Resource Studies,
Survey of Industrial Research Development, 1991, 1999, 2001, 2006.
© 2008 Henry Chesbrough
IT Security Acquisitions Are
Skyrocketing
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On July 1, IBM acquired BigFix
On July 7, Boeing acquired Narus
On July 12, Quest Software acquired Volcker Informatix AG
On July 13, GFI Software acquired Sun Belt Software
On July 22, Mobile Media Unlimited Holdings acquired Enable Software
On July 23, Digital Barriers acquired Overtis Solutions
On July 27, Juniper Networks acquired Smobile
On July 27, Commtouch acquired the antivirus division of Authentium
Only July 29, McAfee acquired tenCube
On August 9, Tektronix Communications acquired Arbor Networks
On August 4, St. Bernard Software acquired Red Condor
On August 19, Intel acquired McAfee
On August 30, CA Technologies acquired Arcot Systems
On September 1, VMWare acquired TriCipher
On September 13, Hewlett-Packard acquired ArcSight
On October 4, Raytheon acquired Reston
The Cyber Security Innovation
Dilemma
 The Fabric of Society is Increasingly Digital
 Vulnerabilities are Exploding
 The Problem is Big --- and Getting Bigger
 Today:
 Future:
1.5 to 2B Devices connected to the NET
50B Devices connected by 2025
 Good Guys at a Huge Disadvantage
 Nature of the Threat is Asymmetric
 Bad Guys are “Proactive”
 Good Guys are often “Reactive”
 Costs are Rapidly Escalating
 Gartner Group:
$16.5B for IT SEC Software in 2010 (up 11%)
 Can’t get the Genie Back in the Bottle
 Legacy Investments Represent “Sunk Costs”
 Need to Evolve – Rapidly & Continually
 Into the Breach: The INNOVATORS
 Small and Agile
 Resourced Constrained
 Limited Access to Markets