Technology & Business:

Where is Technology Having the Biggest Impact on Business Today?

Lecture 2

Spring 2014Prof. Dell

Let’s Start With UT Law Student Market

What technologies have most changed your life?

What NEW technologies do you think will change your life?

What do you wish you could do?

Now, the Broader Market…a Few Areas

Energy- Thin Film Solar - Electric cars (Tesla)- Fracking

Cyber Security- Organized Crime- Threat detection- Active Defense

Cloud Computing- Servers on Demand (Amazon Web Services)- Virtualization (VM Ware)- Software as a Service (Gmail, Salesforce.com)

Big Data- Analytics- Measuring everything

Smart Devices- iOS / Android - The Internet of Things

Cyber Security

How many of you have been hacked in some way?

Do you feel comfortable about where your digital footprint lives? And how it’s kept secure?

Cyber Security: Organized Crime

What is the largest type of organized crime today?

What is Phishing?

Phishing is the act of attempting to acquire information such as usernames, passwords, and credit card details (and sometimes, indirectly, money) by masquerading as a trustworthy entity in an electronic communication

Cyber Security: Organized Crime

Cyber Security: Organized Crime

Cyber Security: Hacking

James Dolan, CEO of Cablevision:

“All we have are movies and TV shows pumping through our pipes. We are hacked 600 times per day, on average. What do they hope to get?”

Obama’s July 2013 claim that hacking costs of $1 trillion dollars, may be a bit high, but it’s directionally correct.

Cyber Security

Here is the crazy part:

Vast majority of Fortune 500 companies have no understanding of the degree of their vulnerability:

- Human error- Malicious employees- Spies- Concerted attacks- Fraud

Cyber Security

There are three categories of companies:

Those that don’t know they are screwed.

Those that know they are screwed.

Those that think they are secure, but are screwed.

What is the one thing they ALL have in common?

Cyber Security: Current Approaches

Sophisticated companies employ a variety of techniques:

Intrusion DetectionIncident ResponseVulnerability AssessmentMalware and Spam Endpoint Threat DetectionActive monitoringWhite Lists / Black ListsHoneypotsDisappearing browsersSandboxing

Cyber Security: Results

For those organizations (mostly financial institutions and highly specialized technology companies) that have the staff and resources

To monitor and fight the cat and mouse game in real time, they have a fighting chance at mitigating loss.

They will never stop it.

Everyone else is screwed.

Cyber Security: Huawei (China’s Cisco)

Huawei’s business model:

Steal, sell, repeat.

Cisco spends roughly $6 billion a year in R&D.

The Chinese government sponsors hackers who steal Cisco’s IP.

The Chinese government dictates that vast portions of China’s telecommunications infrastructure utilize Huawei technology.

Cyber Security: Mandiant

Active Defense?

If someone you know, who has robbed you before, is running toward you pointing a gun at you, with the intent of robbing you again, what are you legally permitted to do?

If someone you know, who has robbed you before, is pointing their servers at your IP and is beginning to spin up their efforts to rob you again, what are you legally permitted to do?

Cyber Security: Class Exercise

How would you architect a public policy to deal with cyber security?

What would you allow?

What control is left in a world where the Web is architected to enable Wikileaks? What should we do differently? Is the genie out of the bottle?

Shouldn't the government be protecting companies / our economic interests like they protect our economics interests in oil rich regions?

Should we individually or as a nation be more aggressive?

Cyber Security: Class Exercise

Government’s Efforts:

•To establish a front line of defense against today’s immediate threats by creating or enhancing shared situational awareness of network vulnerabilities, threats, and events within the Federal Government—and ultimately with state, local, and tribal governments and private sector partners—and the ability to act quickly to reduce our current vulnerabilities and prevent intrusions.

•To defend against the full spectrum of threats by enhancing U.S. counterintelligence capabilities and increasing the security of the supply chain for key information technologies.

•To strengthen the future cybersecurity environment by expanding cyber education; coordinating and redirecting research and development efforts across the Federal Government; and working to define and develop strategies to deter hostile or malicious activity in cyberspace.

The Comprehensive National Cybersecurity Initiative

Cyber Security .Gov = Really Active Offense

NSA / DOD

Proactive, Pre-emptive Operations Group: Mission to conduct Aggressive, Proactive, Pre-emptive Operations to interdict and disrupt threats.

They use Psychological Operations, Managed Information Dissemination, Precision Targeting, Information Warfare Operations, Signal Intelligence.

The proactive defense strategy is meant to improves information collection by stimulating reactions of the threat agents, provide strike options and to enhance operational preparation of the real or virtual battle space.

NSA spends hundreds of millions tracking and attacking known bad actors, using everything in their arsenal: drones, cyber attacks, hired killers.

What do you we think about:

A government’s ability to protect it’s secrets?

The effectiveness of security solutions to protect large companies?

What this impact of stolen IP has on businesses?

A random doctor in Nebraska being a victim of phishing from Croatia?

Wikileaks? (large amounts of data can be share anonymously?)

What can you buy with BitCoins? Do we think it ‘works’?

And it’s not likely to improve…

- Companies used to have secure corporate networks accessible only by a VPN and a PC.

- Today corporate data is accessible from phones, tablets, the web, PCs.

- More points of access and more opportunities for human error

- Bad guys are increasing in number.

- The existing efforts to stop hacking fail 95-98% of the time.

Big Opportunities: Focus on Security

FireEye is a global network security company that provides automated threat forensics and dynamic malware protection against advanced cyber threats, such as advanced persistent threats and phishing.

Market Cap: 4.42BRevenue: 135.97MEBITDA: -107.67MNet Income: -130.70M

Smart Devices – Internet of Things

If you walk into a Macy’s they know:

- Whether you are a spender- How many times you’ve been to the store- What kind of cell phone you have- What kinds of items you are interested in

They can get all of this without speaking to you.

How?

Smart Devices – Internet of Things

Now imagine a world of connected devices.

Where your cell phone, car, watch, credit card, etc.

Are all connected, all being “read” in some way.

What will be possible?

What kind of business can you imagine with this kind of information?

Smart Devices – Twilio

There are companies like Twilio

That make $ stitching together the fabric of communications online.

Can you imagine a business that does this in a world of connected devices?

What would that look like?

Big Data

Virtually everything is digital in some fashion.

Let’s take a look at your law school experience..

Big Data

How many times do you login to FB each day?

How many times do you login to UT Direct each day?

How much time do you spend looking a course material?

How many times do you email fellow students? Teachers?

How quickly do teachers respond to your emails?

Big Data: They know

A new set of low cost technologies, namely Hadoop MapReduce (don’t worry about what exactly this is),

Enable vast amounts (multi-terrabytes) of data to be instantaneously analyzed

Allowing insights to be drawn about behavior and outcomes.

In healthcare, education, engineering, social media, advertising

Viirtually everything….

Big Data: Education

Please welcome

David KilChief Data ScientistCivitas Learning