IBM Research Preemptive Cybersecurity for the Next Era March 13, 2015 Zachary J. Lemnios Vice President Strategy and Worldwide Operations IBM Research

IBM Research Preemptive Cybersecurity for the Next Era

March 13, 2015

Zachary J. LemniosVice President Strategy and Worldwide Operations

IBM Research

© 2014 International Business Machines Corporation 2

Science & Technology

Engagingin newways

Industries &SolutionsResearch

Cloudtransforming

IT

CloudResearch

Data transforming

industries

CognitiveResearch

Three foundational shifts in the Industry:


The Emerging Information Technology Landscape

Mobile SocialCloud

Internet of Things


Explosion of Data across all Industries

Source: IDC’s sixth annual study of the digital universe (2012)

2009 2010 2011 2012 2013 2014 2015 2016 20170

5

10

15

20

25

30

35

Exa

byt

es

Multimedia

Manufacturing & Enterprise IoT

Consumer oriented IoT

Text data

Genomic

Structured

Other


Watson In the data flow

High value Cloud

High Value Opportunities Emerge in Data


Purchase history Social media

Transforming industries with Systems of Insight

Life sciences

Industrial

Retail

360o customer insight

Financial service

Financial transactions Social network

Financial fraud detection

Supply/demand history Physical data

Renewable energy reserve management

Drug/genome database Clinical experience

New medicine discovery

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

Target's Data Breach: The Largest Retail Hack in U.S. History– Bloomberg, 2014

Fed Acknowledges Cybersecurity Breach– The Wall Street Journal, Feb 2013

South Carolina taxpayer server hacked, 3.6 million Social Security numbers

compromised– CNN, Oct 2012

Facebook hacked in 'sophisticated attack'

– The Guardian, Feb 2013

NASDAQ Confirms Breach in Network

– The Wall Street Journal, Feb 2011

Apple Hacked: Company Admits Development Website

Was Breached– Huffington Post, July 2013

Chinese hacking of US media is 'widespread phenomenon‘– Wired, Feb 2013

Saudi Arabia Says Aramco Cyberattack Came From Foreign States – Bloomberg,

Dec 2012


A new security reality is here

61%

data theft and cybercrimeare their greatest threats

2012 IBM Global Reputational Risk & IT Study

of organizations say

Average cost of adata breach

2014 Cost of Data Breach, Ponemon Institute

$3.5M

70%of security

executives have cloud and mobile security concerns

2013 IBM CISO Survey

Mobile malware growthin just one year

2012 - 2013 Juniper Mobile Threat Report

614% security tools from

vendors

85

45IBM client example

83%of enterprises

have difficulty finding the security skills they need

2012 ESG Research


We are in an Era of Continuous Attack

Operational Sophistication

IBM X-Force declared Year of the

Security Breach

Near Daily Leaks of Sensitive Data

40% increase in reported data

breaches and incidents

Relentless Use of Multiple Methods

500,000,000+ records were leaked, while the future

shows no sign of change

2011 2012 2013

Note: Size of circle estimates relative impact of incident in terms of cost to business.

SQL injection Spear phishing

DDoS Third-party software

Physical access

Malware XSS Watering hole Undisclosed

Attack types

Source: IBM X-Force Threat Intelligence Quarterly – 1Q 2014

https://www14.software.ibm.com/webapp/iwm/web/signup.do?source=swg-WW_Security_Organic&S_PKG=ov21294&S_TACT=102PW99W




Hackers + Warriors have emerged!!

Cyber Warriors: Advanced Persistent Threat

Hackers: Traditional Malware


Adversary

Motive

The cybersecurity Landscape has changed

Damage/Impact to Life & Property

National Security

Monetary Gain

Espionage,Political Activism

Revenge

Curiosity Script-kiddies or hackers using tools, web-based “how-to’s”

Insiders, using inside information

Organized Crime, Hackers & Crackers

Competitors, Hacktivists

Nation-state Actors; Targeted Attacks


Security 360: Contextual, Cognitive and Adaptive

Monitorand Distill

Correlate and Predict

Adapt and Pre-empt

Correlate events

Predict risk

Business impact

Defense strategies

Cognitive Planning

Active

In-device

Near Field

Passive

Contextual Insights

Adaptive Response

Controls Management Agents Active

Security 3.0


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



IBM has launched the Next Era of Computing

Tabulating Systems Era

Cognitive Systems Era

Programmable Systems Era


Journey to Watson: a deep foundation in computer science

MachineLearning

NaturalLanguage

Processing

HighPerformanceComputing

KnowledgeRepresentation

andReasoning

QuestionAnsweringTechnology

UnstructuredInformation

Management


Data is the new basis of competitive value

RetailBanking

Oil & Gas

Healthcare

Data at the edge is changing how we look at data

90%

By 2017

Of data created over the last 10 years was never captured or analyzed

The collective computing and storage capacity of smartphones will surpass all worldwide servers

60%

2X

Of valuable sensory data loses value in milliseconds

Rate of data creation compared to the expansion of bandwidth over the past decade


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


IBM Research: Unmatched Talent

© 2014 International Business Machines Corporation

Brazil

T.J Watson

Almaden

Austin Ireland

Zurich Africa

IndiaHaifa China

Australia

3,000 Researchers$6.2B R&D in 2013

Tokyo

Documents

IBM Research Preemptive Cybersecurity for the Next Era March 13, 2015 Zachary J. Lemnios Vice President Strategy and Worldwide Operations IBM Research