CyberUS Government

Silicon ValleyOpportunities and Challenges

Greg Oslan, CEO, NarusMarch 2011

SINET Workshop & Forum

Overview Market Ecosystem Public/private partnership Doing business in DC

Our World is a Cyber WorldCyber (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

Source: Morgan StanleyM – Mobile Internet UsersD – Desktop Internet Users

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

Mobile Internet Computing Entered the Mobile Internet Computing Cycle

– Web2.0+Connectivity/Presence– Value = Unified Communications + Multimedia +

Portability

Portability– The virtual world: Desktop experience - ANYTIME,

ANYWHERE!

Unified Communications– Users spend 70% of their online activity in social

networks

Multimedia Creation– Traditional Applications are disappearing and

new ones are gaining momentum

Source: Morgan Stanley

New Cyber User 2010

A new user profile is emerging‒ Mobile Computing is about DATA not

Voice

User generated content – breakdown‒ Music, Games and Social to drive

Most popular/used application‒ 07/09 Social Networking Users

Surpassed Email

‒ 12/09 200 Billion Minutes/Month spent on Social Networking Sites

Shift in Traffic Composition [2010] Global Internet traffic (D+M) – growth

‒ Two-fold increase expected over 2011-2012

‒ 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

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)

Application space (“Easy to hide”)‒ Facebook: 500,000 Apps/500 M+ Downloads/Year

‒ iPhone: 360,000+ Apps/4B+ Downloads/Year

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

User Interface Layer

Database

SEM/SIEM

The Ecosystem: A challengeMultiple Overlapping Components

Portal

Third PartyApplications

User Application Layer

Policy / Logic Layer

Integration

Forensic Analysis Dynamic AnalysisSecurity / Intercept / Traffic Management

DDoS Zero-Day Attacks

L-4 Anomaly Detection

L-7 Anomaly Detection

Traffic Management &

Control

Security Distr

ibution & control

Mitigation

InterceptTraffic Analysis

Targeting Analytics

Data & Control Plane Security

Cyber Protection Intercept Traffic Mgmt Development Kit

Open API

Forensic Analysis

Routers

Intelligent Capture Layer

Infrastructure DPI NIC

NetFlow

Visualization

Centrifuge Exalede

SearchSplunk

Data Analytics

Cyber Security and Network Management Convergence

SLA Guarantee Indemnity

Signature-Based

Behavioral-Based

Anomaly-Based

Static

Dynamic

Forensics Data Management; Search; Storage

SEM / SIEM

Op

era

tio

ns

Processes

Policy

New Signatures

Tools

Remediation

Vulnerability

Risk Assessment

Network Design for Security- Network Vulnerability- Optimization

Installation

Management

Government/CommercialPartnership 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 andbureaucracy 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!