Tag Archives: csco

Apple-FBI Encryption Battle, Facebook Arrest Flash At RSA

SAN FRANCISCO — Apple’s ( AAPL ) encryption battle with the FBI flashed again Wednesday as Silicon Valley bigwigs largely sided with the iPhone-maker during the RSA Conference in San Francisco, Calif., saying the policies of their companies also wouldn’t allow for government backdoor access. The debate at the big annual security event also followed the arrest Tuesday of Diego Dzodan, a Facebook ( FB ) exec in Brazil, who refused to decrypt WhatsApp communications in compliance with a government order. Dzodan’s arrest was yet another flash point in the ongoing battle. Wednesday, a Brazilian judge ordered police to set Dzodan free. At an RSA panel discussion Wednesday Michelle Dennedy,  Cisco Systems’ ( CSCO ) chief privacy officer, said the network gear giant, per policy, wouldn’t provide the government backdoor access to encrypted communications. Silicon Valley companies such as  Alphabet ( GOOGL ), Facebook and Microsoft ( MSFT ) also have sided with Apple. Congress has yet to legislate backdoors, and outdated telecom laws don’t tackle the now-hot topic. The Paris terror attacks and a mass shooting in San Bernardino, Calif., have reignited the issue on Capitol Hill, where legislators are weighing privacy concerns against law enforcement needs. In the latter case, the FBI ordered Apple to decrypt the iPhone belonging to one of the two San Bernardino shooters. Apple is fighting the order. Cisco’s policy would put it in the same hot waters, Dennedy said. “We do not intentionally build in backdoors, and we do not do business with others who do,” she said. “That is our policy.” Dennedy’s position was echoed throughout the discussion, entitled “Can Government, Encryption, Backdoor and Privacy Co-Exist?” Backdoor access can act as a master key to all encrypted communications within a system. Apple’s engineers haven’t created that key, Apple CEO Tim Cook says. Juniper Networks Saw A Backdoor Exploited Intentional or not, backdoor access will backfire, Johns Hopkins University associate professor Matthew Green argued Wednesday. In December, Juniper Networks ( JNPR ) discovered unauthorized code running on an operating system backing their firewalls that let hackers decrypt VPN-protected communications, Green said. Experts have speculated a National Security Agency random-number generator, employed by Juniper, was to blame for the exploited backdoor. “This is the danger with backdoors,” Green said. “Juniper was protecting the Department of Defense and could not keep people from monitoring their code.” Richard Marshall, CEO of Secure Exchange Technology Innovations, says companies need to concentrate on existing vulnerabilities within their systems. “You don’t need a designed vulnerability (such as with a backdoor) when there are so many other vulnerabilities being exploited on a day-to-day basis,” he said. “It’s so much easier for those adversaries to break into our systems and violate our privacy.” But the panelists didn’t side entirely with Apple. Marshall argued that U.S., and other, consumers have accepted the idea of reduced privacy. Chenxi Wang, chief security officer for Twistlock and the panel’s moderator, noted Apple pushed a U2 album out to millions of phones but won’t hand over the keys for government access. “Is this a double standard?” she asked. “This is beyond a double standard,” Marshall said. “This goes to the actual user and their reduced expectation of privacy. It’s a dangerous, slippery slope.” Dennedy, on the other hand, argued that the young-adult millennial generation is “crying” for privacy. Everything from their individualized clothing to the use of Snapchat messaging says as much. And therein lies the opportunity, she said. “People are trusting their commerce, their culture, their families and their communities to us (as corporations),” she said. “We have an ethical obligation to build privacy into their systems.” Her advice for companies? “Educate your users about what they are getting into rather than assuming, because they’ve fallen for your monopolistic practices, that they like it.” Image provided by Shutterstock .

IBM To Acquire Resilient Systems, Undercut Cisco, Symantec, FireEye

Tech giant IBM ( IBM ) plans to undercut Cisco Systems ( CSCO ), Symantec ( SYMC ), FireEye ( FEYE ) and Rapid7 ( RPD ) by acquiring incident response firm Resilient Systems and partnering with endpoint security provider Carbon Black, the company announced Monday. The announcement comes a week after IBM unveiled a deeper tie to No. 1 cybersecurity pure-play  Check Point Software Technology ( CHKP ) to pool research and integrate systems. IBM stock was up 0.9% in morning trading on the stock market today . IBD’s 25-company Computer Software-Security industry group was down a fraction Monday as companies headed to the RSA Conference, a massive cybersecurity industry gathering that runs all week in San Francisco. Caleb Barlow, vice president of IBM Security, described the Resilient Systems acquisition as the cornerstone of a three-prong strategy to protect, defend and respond to cyberbreaches. Per IBM policy, he wouldn’t disclose the price tag for the privately held, 100-employee company. “This ultimately gives us the ability to expand from protecting and defending the enterprise to also being able to respond to a breach,” Barlow told IBD. “This combination of a new acquisition and the associated partnerships really make a move into the incident-response space.” Carbon Black Has Big Share Of Endpoint Security In conjunction with the acquisition, IBM will partner with endpoint security firm Carbon Black. Privately held Carbon Black owns 37% of the endpoint market, according to industry tracker IDC. Carbon Black’s platform will allow IBM analysts to conduct security forensics on compromised endpoint devices. Resilient Systems will be integrated into IBM’s incident-response platform, dubbed X-Force Incident Response Services. Via X-Force, IBM will counsel clients through all parts of a cyberbreach and on ways to avoid such breaches. Barlow likened the service to a fire drill. “Most companies don’t have good incident-response plans,” he said. “There’s a binder on the shelf for what to do in the case of a fire or what to do in the case of a flood, but not necessarily what to do in the case of a cyber incident.” That “binder” includes pertinent leadership, disclosure and public relations keys in case of a breach, he said. IBM’s move allows the company to “pivot” from protecting and defending to responding to a breach, he says. It’s all part of IBM’s push into the cybersecurity market. In 2015, IBM pulled in $2 billion in security revenue. That was up 12% but still accounted for only 2.4% of IBM’s total revenue of more than $81 billion, which fell 12%. But the dollar amount topped total sales for security pure-players Palo Alto Networks ( PANW ), Proofpoint ( PFPT ), Fortinet ( FTNT ) and FireEye. And IBM’s security business also outgrew Symantec and Check Point. The security unit was launched four years ago, Barlow says. Since then, it has added 7,300 employees — 1,000 last year alone — and operates in 133 countries globally. “Imagine if that were the conversation about a Silicon Valley startup,” he said.

Ruckus Bulls Expect Upside From Cable Wi-Fi, OpenG Initiative

Ruckus Wireless ( RKUS ) could get a boost from increased spending on public Wi-Fi networks by cable TV companies as well as its push into a new market — LTE wireless data services that use high-frequency 3.5 GHz spectrum, say analysts. Ruckus, a maker of Wi-Fi networking gear, competes with Cisco Systems ( CSCO ), Hewlett Packard Enterprise ( HPE ), Aerohive Networks ( HIVE ) and others. Ruckus stock was up a fraction in midday trading on the stock market today , near 9.75, but it’s down 9% this year after falling nearly 11% last year, amid a slowdown in education spending on wireless networks. Ruckus has a IBD Composite Rating of 70, where 99 is highest. Ruckus stock touched an all-time low of 7.25 on Feb. 10. On Friday, BTIG analyst Walt Piecyk initiated coverage on Ruckus with a buy rating. “We expect Ruckus to generate 16% revenue growth in 2016, an acceleration from last year’s 14% growth rate,” wrote Piecyk. “We expect 2017 revenue growth of 16% but note that if a cable operator were to initiate a new investment program, Ruckus would have the opportunity to accelerate the top line.” Ruckus sells Wi-Fi gear to the enterprise market — big corporate, government, education and health system customers. One concern among analysts is its exposure to China’s telecom market. In late 2017, Ruckus could get a lift from a new product cycle, says Jason Ader, an analyst at William Blair. Ruckus is targeting in-building wireless networks that use 3.5 GHz spectrum, using a technology called OpenG. Ruckus is working on OpenG with Qualcomm ( QCOM ), Nokia ( NOK ) and Alphabet ’s ( GOOGL ) Google. “Ruckus management is confident in driving adoption of OpenG over time and expects revenue impact in the second half of 2017,” wrote Ader in a research report. “We view the in-building cellular opportunity as an excellent strategic fit with Ruckus’ existing business and a material growth catalyst longer term, especially as the Wi-Fi market matures.”