How Schmidt Can Reach Small, Innovative Game Changers

Posted by Joe Franscella – 12-28-09 –

The appointment of Howard Schmidt to the position of White House Cybersecurity Coordinator is further indication that President Obama’s administration acknowledges that effective cybersecurity can mean the difference between life and death. The administration should look at cybersecurity in this way, after all, cyberspace provides criminals and terrorists with a platform to launch attacks against the US that could have fatal results.

Appointment of an official to a new position is only a first step though, the question remains, “what will Schmidt do?”

It makes sense for Schmidt to engage with private business to address cybersecurity problems and to close security gaps — the White House may be responsible for defending the nation but private enterprise produces the technology that fuels and defends cyberspace.

Schmidt will undoubtedly seek counsel from established IT security vendors, vendors that will use these counsel opportunities to sell him on the importance of influencing congress to pass legislation calling for regulations that their solutions can provide compliance for. But, will these traditional vendors’ solutions be enough to close security gaps that could lead to fatal outcomes?

Any strategy that relies on technologies supplied by established, major enterprises as the sole means of ensuring security in cyberspace will fail. Evidence to this is clear, in the last year there have been dozens of reports and news headlines that have revealed cyberattacks that have resulted in compromises to top-secret defense initiatives, power grids and other critical systems. It’s safe to assume that most of those breaches took place on networks founded on established technologies.

To reduce risk, Schmidt is going to have to move beyond traditional Washington politics that drive public-private efforts. He is going to have to open Washington’s collective mind to listen to more than just the major enterprises that have lobby dollars available to shape thought on Capitol Hill, and he is going to have to reach out to innovative small companies and startups that have developed game-changing security technologies.

So, how should Schmidt engage startups and other small and innovative technology vendors that typically don’t have budgets for lobby efforts?

Some steps Washington could take to reach startups and small IT security vendors in the quest to reduce risk are:

1.    Establishment of federal grants for small vendors and startups to fund lobbying efforts
2.    Sponsoring a federal “Demo Day (or Week)” that provides small vendors and startups with funding to cover the costs associated with demoing their solutions on a DC stage
3.    Establishment of federal grants for small vendors and startups that could be used to fund marketing efforts focused on the federal government
4.    The formation of a federal VC banking system that provides taxpayers with equity stakes in IT security startups and small enterprises

When it comes to protecting the nation against cyberattack, foresight needs to be 20/20. It would benefit the nation to identify security technologies that reduce risk prior to a tragedy as opposed to after one. The only way to do this is to take steps that facilitate connections between the federal government and innovators that have the potential to change the game.