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Accelerating Innovation Through Cyber Pilots Fifth Annual IT Security and Entrepreneur’s Forum

Accelerating Innovation Through Cyber Pilots Fifth Annual IT Security and Entrepreneur’s Forum. March 15, 2011. Public-Private Gaps in Cycle Time and Investment. $32B: Commercial Software/Internet R&D 1. $5.6B: Later-Stage Investment 3. IR&D as percent of Revenue.

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Accelerating Innovation Through Cyber Pilots Fifth Annual IT Security and Entrepreneur’s Forum

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  1. Accelerating InnovationThrough Cyber PilotsFifth Annual IT Security and Entrepreneur’s Forum March 15, 2011

  2. Public-Private Gaps in Cycle Time and Investment $32B: Commercial Software/Internet R&D1 $5.6B: Later-StageInvestment3 IR&D as percent ofRevenue $22B: Aerospace and Defense R&D1 $1.7B: 515 New Startups3 IT Product Cycle (months) • Investment and Cycle Time • Commercial IT R&D exceeds all aerospace and defense R&D • Commercial IT cycle averages 24 months2 • Defense IT cycle averages 81 months2 2Q08-1Q10Private Investment in Internet = $7.3B FY10-FY11 USGUnclassified CyberR&D = $721M4 Access to Innovation Private investment in new technologies, business models, and markets is 10x Unclass USG R&D Sources: 1Booz and Company, 2DepSecDef Lynn, 3PricewaterhouseCoopers, 4National Science and Technology Council

  3. At RSA, DepSecDef Lynn Highlighted Need for Public-Private Partnerships • “…the government cannot protect our nation alone.  Cyber defense is not a military mission, like defending our airspace, where the sole responsibility lies with the military.  The overwhelming percentage of our nation’s critical infrastructure—including the internet itself—is largely in private hands.  It is going to take a public-private partnership to secure our networks.” • “To help spur this effort, the Department of Defense will add half a billion dollars in new research funds for cyber technologies, with a focus on areas like cloud computing, virtualization, and encrypted processing.  Through our “Cyber Accelerator” pilot, we are also providing seed capital for companies to develop dual-use technologies that serve our cyber security needs.” 

  4. What is Cyber Accelerator Concept? • Investor • Source emerging commercial technologies; • Incubator • Accelerate product roadmaps through strategic investments; • Integrator • Combine technologies through channel partnerships to produce commercial capabilities that can satisfy DoD needs • Benefits • Leverage market-based incentives • Produce capabilities under commercial business models • Protect private intellectual property • First demonstration: end-to-end identity/trust in the cloud

  5. Current Status and Next Steps Current Status Next Steps Evaluate overall utility of pilots Share results across DOD and with Congress Determine how best to move forward DOD Cyber Strategy Governance Funding • First cyber pilots funded through FY10 supplemental • Six-month accelerator pilot ends in March • Provides project roadmap for cloud security, mobility, trusted identities, analytics, infrastructure • Ongoing “trust-in-the-cloud” demo runs through Aug • Other pilots ending this Spring/Summer

  6. For More Information… • Dr. Irv Lachow • Irving.Lachow.ctr@osd.mil

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