Welcome to

SINET Showcase 2010Wednesday, October 27th, 2010

National Press ClubWashington, DC

Bob AckermanAllegis Capital Founder and Managing Director Seed and Early-Stage Venture

Investors CEO of UniSoft Systems and

Founder/Chairman of InfoGear Investment Focus – IT Security,

Enterprise Solutions; Commerce

George HoyemIn-Q-Tel

Partner More than 25 years of

entrepreneurial, operations and venture experience in high technology companies

Has backed, supported, and served on the boards of over sixteen emerging technology companies

Alberto YepezTrident Capital

Managing Director Focusing on Software, IT

Security, and mobile investments

Served as Chairman, President and CEO of Thor Technologies, leading provider of identity management solutions

Asheem ChandnaGreylock Partners

Partner Areas of interest span

enterprise IT infrastructure, software and services

Invested in companies in cloud computing, data center, electronic payments, networking, management, security and virtualization.

Moderator

PANEL: Call to Action: Entrepreneurs and Cyber Security, The Way – Ahead

Operation Aurora: Juniper Confirms it was hit by attackJan 15, 2010

Operation Aurora: Adobe Identified As Victim of AttackJan 14, 2010

Operation Aurora targets Google – IP, Gmail accessedJan 12, 2010

US Homeland Security information network hackedMay 13, 2009

Attackers breach $300B Joint Strike Fighter projectApr 21, 2009

GhostNet - Vast Spy System Loots PCs in 103 CountriesMar 28, 2009

Malware targets U.S. military computers – Agent.btzDec. 02, 2008

Network Security Breaches Plague NASANov. 20, 2008

The Rising Tide of Cyber Espionage

Targeted e-mails distributed malware in PayChoice breachOct. 1, 2009

UNC Chapel Hill server hacked; 236,000 records breachedSep. 25, 2009

Network Solutions server hacked; 573,000 records lostJul. 24, 2009

Aetna server breached; 65,000 records stolenMay 28, 2009

Aviva data breach due to malware infected computerMay 28, 2009

Heartland finds malware in bank card payment systemJan. 20, 2009

Cyber Crime Crisis Is Here

Diminishing Economies of Scale:US Industrial R&D by Size of Enterprise

© 2008 Henry Chesbrough

Company Size 1981 1989 1999 2005

< 1000 employees 4.4% 9.2% 22.5% 24.1%

1,000 – 4,999 6.1 % 7.6 % 13.6% 15.5%

5,000 – 9,999 5.8 % 5.5% 9.0% 8.0%

10,000 – 24,999 13.1% 10.0% 13.6% 14.8%

25,000 + 70.7% 67.7% 41.3% 37.6%

Sources: National Science Foundation, Science Resource Studies, Survey of Industrial Research Development, 1991, 1999, 2001, 2006.

On July 1, IBM acquired BigFix On July 7, Boeing acquired Narus On July 12, Quest Software acquired Volcker Informatix AG On July 13, GFI Software acquired Sun Belt Software On July 22, Mobile Media Unlimited Holdings acquired Enable Software On July 23, Digital Barriers acquired Overtis Solutions On July 27, Juniper Networks acquired Smobile On July 27, Commtouch acquired the antivirus division of Authentium Only July 29, McAfee acquired tenCube On August 9, Tektronix Communications acquired Arbor Networks On August 4, St. Bernard Software acquired Red Condor On August 19, Intel acquired McAfee On August 30, CA Technologies acquired Arcot Systems On September 1, VMWare acquired TriCipher On September 13, Hewlett-Packard acquired ArcSight On October 4, Raytheon acquired Reston

IT Security Acquisitions Are Skyrocketing

The Cyber Security Innovation DilemmaThe Fabric of Society is Increasingly Digital

Vulnerabilities are Exploding The Problem is Big --- and Getting Bigger

Today: 1.5 to 2B Devices connected to the NET Future: 50B Devices connected by 2025

Good Guys at a Huge Disadvantage Nature of the Threat is Asymmetric Bad Guys are “Proactive” Good Guys are often “Reactive”

Costs are Rapidly Escalating Gartner Group: $16.5B for IT SEC Software in 2010 (up 11%)

Can’t get the Genie Back in the Bottle Legacy Investments Represent “Sunk Costs” Need to Evolve – Rapidly & Continually

Into the Breach: The INNOVATORS Small and Agile Resourced Constrained Limited Access to Markets