Cyber
US Government
Silicon Valley
Opportunities and Challenges
Greg Oslan, CEO, Narus
March 2011
SINET Workshop & Forum
Overview
 Market
 Ecosystem
 Public/private partnership
 Doing business in DC
Our World is a Cyber World
Cyber (Infrastructure): global network
of interdependent information
technology infrastructures,
telecommunications networks and
computer processing systems
Cyberspace (Applications): virtual
world in which individuals interact,
exchange ideas, share information,
provide social support, conduct
business, direct actions, and so on,
using this global network
The Global Internet Trend
 State of the Internet in 2010
‒ 5 countries account for > 48% users
‒ BRIC – fastest growth
 Mobile Internet access
pandemic
‒ Mobile Internet Users to surpass
Desktop Internet Users (IU) by 2015
‒ 2010 - 1/1.4 Billion M/D Internet
Users
‒ 2015 – 2/1.7 Billion M/D Internet
Users
Source: Morgan Stanley
M – Mobile Internet Users
D – Desktop Internet Users
Mobile Internet Computing
 Entered the Mobile Internet Computing Cycle
– Web2.0+Connectivity/Presence
– Value = Unified Communications + Multimedia +
Portability
 Unified Communications
– Users spend 70% of their online activity in social
networks
 Multimedia Creation
– Traditional Applications are disappearing and
new ones are gaining momentum
 Portability
– The virtual world: Desktop experience - ANYTIME,
ANYWHERE!
Source: Morgan Stanley
New Cyber User 2010
 A new user profile is emerging
‒ Mobile Computing is about DATA not
Voice
 Most popular/used application
‒ 07/09 Social Networking Users
Surpassed Email
‒ 12/09 200 Billion Minutes/Month
spent on Social Networking Sites
 User generated content – breakdown
‒ Music, Games and Social to drive
Shift in Traffic Composition [2010]
 Global Internet traffic (D+M) – growth
‒ Two-fold increase expected over 20112012
‒ 10.88 to 20.33 PB / Month
‒ Video surpassed P2P in 2010
 Global Internet traffic (M only) – growth
‒ 14x traffic growth from 2010E to 2014E
‒ 250 KTB to 3.5MTB / Month
‒ Video to grow 39x by 2014
Trends in Infrastructure/Services
 Backhauling driving infrastructure upgrades at
the edge
‒ Each tower today is oversubscribed by a factor of 50
‒ Expensive to operate with such bandwidth demands
 Cloud and virtual computing platforms
‒ The preferred content distribution vehicles
 Evolution of Traffic Intelligence
‒ From bits to content and users
Mobile Internet Computing
Shaping the Threat Vector Market
 Mobile devices (“Computing in your pocket”)
‒ Rogue applications, portability and powerful
 Application space (“Easy to hide”)
‒ Facebook: 500,000 Apps/500 M+ Downloads/Year
‒ iPhone: 360,000+ Apps/4B+ Downloads/Year
 Social media threats (“Virtual reality”)
‒ Soon became the ideal platform to distribute
threat (Twitter Spam, Facebook abusive apps)
 From desktop to cloud computing
‒ Cloud as a means of distribution and infection
(Google Groups, Amazon)
The Cyber Security Market
 Dynamic environment
 Evolving, more sophisticated threats
 Security investment a balance between cost
and risk
 Education still early in the lifecycle
 Traditional and new technologies
The Ecosystem: A challenge
Multiple Overlapping Components
Cyber Protection
Intercept
Traffic Mgmt
Development Kit
User Interface Layer
Visualization
Centrifuge
Exalede
Forensic Analysis
SEM/SIEM
User Application Layer
Portal
Policy / Logic Layer
Forensic Analysis
Dynamic Analysis
Security / Intercept / Traffic Management
Search
Splunk
Open API
Integration
Database
Data
Analytics
Intelligent Capture Layer
DPI
Infrastructure
NetFlow
Routers
NIC
Third Party
Applications
Cyber Security and Network
Management Convergence
Guarantee
Vulnerability
Signature-Based
Static
Risk Assessment
Behavioral-Based
Indemnity
Forensics
Data
Management;
Search;
Storage
Dynamic
Network Design for Security
- Network Vulnerability
- Optimization
Anomaly-Based
SEM / SIEM
Installation
Management
Processes
Policy
Operations
SLA
New Signatures
Tools
Remediation
Government/Commercial
Partnership Required
 We’re only secure when we’re all secure
‒
‒
What about .com; .net; etc?
Commercial multi-nationals vs. Government
 Government too slow: typical 5 year cycle minimum
‒
‒
Priority on .mil; .gov
Long way to go
 Security is end-to-end in both horizontal and vertical
planes
‒
‒
From end device to end device
From platform through application
Government Business:
Lessons Learned
Washington D.C. is a tough place to do business
 Patience required; NIH and
bureaucracy high
 Security clearances
 Capital
 Washington presence
 Partnering key as most contract vehicles
are held by large prime integrators
Government: Lessons Learned
But……………….
 Has serious money
 High barrier to entry means higher
barrier to exit
 Loyal once proven
 Provides exit option
 Buy early, innovative technology
Rewarding to help your country
US Government Efforts
CNCI
 ESF
 Public policy efforts
 OSD pilots
 Money being allocated ($500M
just announced)

Challenges Remain From Valley’s
Perspective
You Can Be Part of the Solution
Little VC motivation to support government
market—long sales cycles, club mentality, higher
risk, difficult to understand sales process/cycles;
US no forn bent
 Money often comes with strings: IP; export;
employee make-up
 Entry process difficult with poor access to contract
vehicles, inability to get new contracts

Is It Worth It?
 Depends on what you are selling
 Government typically first to truly invest in
new things that don’t have strong ROI
 If you’re in “security or cyber,” provides early
adopter opportunity
I Believe It Is; Will take effort from both sides!