IBM Research
Preemptive Cybersecurity for the Next Era
March 13, 2015
Zachary J. Lemnios
Vice President Strategy and Worldwide Operations
IBM Research
Three foundational shifts in the Industry:
Cloud
transforming
IT
Cloud
Research
Data
transforming
industries
Engaging
in new
ways
Cognitive
Research
Industries &
Solutions
Research
Science & Technology
© 2014 International Business Machines Corporation
2
The Emerging Information Technology Landscape
Mobile
Cloud
Social
Internet of Things
© 2014 International Business Machines Corporation
3
Explosion of Data across all Industries
35
30
Multimedia
Exabytes
25
Consumer
oriented IoT
20
Manufacturing &
Enterprise IoT
15
Genomic
10
Text data
Structured
5
Other
0
2009
2010
2011
© 2014 International Business Machines Corporation
2012
2013
2014
2015
2016
2017
Source: IDC’s sixth annual study of the digital universe (2012)
4
High Value Opportunities Emerge in Data
 Watson
 In the data flow
 High value Cloud
© 2014 International Business Machines Corporation
5
Transforming industries with Systems of Insight
Financial service
Industrial
Financial fraud
detection

Renewable energy
reserve management

Financial transactions

Supply/demand history

Social network
Retail
Physical data
Life sciences
360o customer insight

Purchase history

© 2014 International Business Machines Corporation
Social media
New medicine discovery

Drug/genome database

Clinical experience
6
Data growth and gravity distorts and impacts
every component of IT – and business
A new IT paradigm is emerging
High profile breaches continue to make headlines
Millions of Anthem Customers
Targeted in Cyberattack
– The New York Times, Feb 2015
Saudi Arabia Says Aramco Cyberattack
Came From Foreign States – Bloomberg,
Target's Data Breach: The
Largest Retail Hack in U.S.
History– Bloomberg, 2014
– The Wall Street Journal, Feb 2011
– The Guardian, Feb 2013
Fed Acknowledges Cybersecurity Breach
– The Wall Street Journal, Feb 2013
Dec 2012
NASDAQ Confirms Breach in
Network
Facebook hacked in
'sophisticated attack'
Apple Hacked: Company
Admits Development Website
Was Breached
– Huffington Post, July 2013
South Carolina taxpayer
server hacked, 3.6 million
Social Security numbers
compromised
– CNN, Oct 2012
Chinese hacking of US media is 'widespread phenomenon‘
– Wired, Feb 2013
© 2014 International Business Machines Corporation
9
A new security reality is here
%
61
of organizations say
data theft and cybercrime
are their greatest threats
2012 IBM Global Reputational Risk & IT Study
$3.5M
%
70
of security
executives have cloud and
mobile security concerns
%
83
of enterprises
have difficulty finding the
security skills they need
2013 IBM CISO Survey
%
614
Average cost of a
data breach
Mobile malware growth
in just one year
2014 Cost of Data Breach, Ponemon Institute
2012 - 2013 Juniper Mobile Threat Report
2012 ESG Research
85
45
security tools from
vendors
IBM client example
© 2014 International Business Machines Corporation
10
We are in an Era of Continuous Attack
Operational
Sophistication
Near Daily Leaks
of Sensitive Data
Relentless Use
of Multiple Methods
IBM X-Force declared
40% increase
500,000,000+ records
Year of the
Security Breach
in reported data
breaches and incidents
were leaked, while the future
shows no sign of change
2011
2012
2013
Attack types
SQL injection
Spear
phishing
DDoS
Third-party
software
Physical
access
Malware
XSS
Watering hole
Undisclosed
Note: Size of circle estimates relative impact of incident in terms of cost to business.
© 2014 International Business Machines Corporation
Source: IBM X-Force Threat Intelligence Quarterly – 1Q 2014
11
Hackers + Warriors have emerged!!
Hackers: Traditional Malware
© 2014 International Business Machines Corporation
Cyber Warriors: Advanced
Persistent Threat
12
The cybersecurity Landscape has changed
Damage/Impact to
Life & Property
Motive
National Security
Espionage,
Political Activism
Monetary Gain
Revenge
Curiosity
Nation-state Actors;
Targeted Attacks
Competitors, Hacktivists
Organized Crime, Hackers & Crackers
Insiders, using inside information
Script-kiddies or hackers using tools, web-based “how-to’s”
Adversary
© 2014 International Business Machines Corporation
13
Security 360: Contextual, Cognitive and Adaptive
Cognitive Planning
Contextual Insights
Correlate
and Predict
Monitor
and Distill
Active
In-device
Correlate events
Security
3.0
Near Field
Predict risk
Business impact
Passive
Defense strategies
Adapt and
Pre-empt
Adaptive Response
Controls
© 2014 International Business Machines Corporation
Management
Agents
Active
14
Where we need your help
1) Deeper pipeline of outstanding talent
2) New ideas for the toughest problems
a) Advanced Persistent Threats
b) Preempting the Insider Threat
c) Security governance in the era of mobile and BYOD
3) New Ideas for a New World
a) crypto schemes that ensure confidentiality as well as privacy
b) security and compliance in the era of the cloud
c) Security for cyber physical systems
© 2014 International Business Machines Corporation
15
© 2014 International Business Machines Corporation
16
IBM has launched the Next Era of Computing
Cognitive Systems
Era
Programmable
Systems Era
Tabulating
Systems Era
© 2014 International Business Machines Corporation
17
Journey to Watson: a deep foundation in computer science
Natural
Language
Processing
Question
Answering
Technology
© 2014 International Business Machines Corporation
High
Performance
Computing
Knowledge
Representation
and
Reasoning
Machine
Learning
Unstructured
Information
Management
18
Data is the new basis of competitive value
Oil & Gas
Healthcare
Banking
© 2014 International Business Machines Corporation
Retail
19
Data at the edge is changing how we look at data
90%
2X
Of data created over the last
10 years was never captured
or analyzed
Rate of data creation compared to
the expansion of bandwidth over
the past decade
60%
By 2017
Of valuable sensory data loses
value in milliseconds
The collective computing and
storage capacity of smartphones
will surpass all worldwide servers
Application of Cognitive Computing to Cyber Security
• Understanding of natural
language, images and other
sensory information.
• Complex reasoning and deep
interaction with experts
• Hypothesis and question
generation across arbitrary
domains; meta-heuristic to
automate algorithm choices
© 2014 International Business Machines Corporation
21
IBM Research: Unmatched Talent
3,000 Researchers
$6.2B R&D in 2013
T.J Watson
Austin
Almaden
Ireland
Brazil
Zurich
Haifa
India
China
Tokyo
Africa
Australia
2014 International
International Business
Machines
Corporation
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Business
Machines
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