Cyber US Government Silicon Valley Opportunities and Challenges

1. CyberUS GovernmentSilicon ValleyOpportunities and Challenges Greg Oslan, CEO, Narus March 2011 SINET Workshop & Forum

2. Overview • Market • Ecosystem • Public/private partnership • Doing business in DC

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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, Facebookabusive apps) • From desktop to cloud computing • Cloud as a means of distribution and infection (Google Groups, Amazon)

10. 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

11. The Ecosystem: A challengeMultiple Overlapping Components Visualization Centrifuge Exalede Forensic Analysis SEM/SIEM User Application Layer Portal User Interface Layer Policy / Logic Layer Dynamic Analysis Security / Intercept / Traffic Management Forensic Analysis Cyber Protection Intercept Traffic Mgmt Development Kit Search Splunk Security Distribution & control Data & Control Plane Security Traffic Management & Control L-7 Anomaly Detection L-4 Anomaly Detection Targeting Analytics Zero-DayAttacks Traffic Analysis Mitigation Intercept DDoS Open API Integration Database Intelligent Capture Layer Third Party Applications Data Analytics DPI NIC Infrastructure NetFlow Routers

12. Cyber Security and Network Management Convergence SLA Guarantee Indemnity Vulnerability Forensics Data Management; Search; Storage Processes Policy New Signatures Tools Remediation Signature-Based Static Risk Assessment Behavioral-Based Operations Dynamic Anomaly-Based SEM / SIEM • Network Design for Security • Network Vulnerability • Optimization Installation Management

13. 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

14. 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

15. 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

16. US Government Efforts • CNCI • ESF • Public policy efforts • OSD pilots • Money being allocated ($500M just announced)

17. 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

18. 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!