July Cyber Intelligence Review
The month of June saw several cybersecurity and Big Data headlines, as well as strong M&A and venture capital (“VC”) activity. A Pentagon cybersecurity spending outline released by Bloomberg on June 10th highlighted $23 billion in spending through 2018, focusing on network security and developing offensive capabilities. Leaked classified documents related to Presidential Directive 20 indicate that federal officials have been actively formulating rules of engagement for cyberspace, in order to determine appropriateness of offensive versus defensive cyber operations.
On the Big Data front, Accel Partners launched its $100 million Big Data Fund 2 to invest in data-driven software companies, while Bloomberg entered the VC world with a $75 million fund focused on companies that produce insights from data. Lastly, DISA released a request-forproposal for a $450 million cloud contract, garnering interest in light of IBM’s successful protest of Amazon Web Services’ reported CIA cloud contract award in March.
On the M&A front, Nippon Telegraph and Telephone Company acquired Solutionary, a pure-play provider of security analytics solutions, and Malwarebytes Corporation purchased ZeroVulnerabilityLabs, a provider of research and development services for cyber vulnerabilities and exploits. In addition, Cisco Systems bought Composite Software, a provider of data virtualization software and services, for ~$180 million. In VC funding news, Hortonworks, a provider of Hadoop-based Big Data solutions, raised a $50 million Series B round to scale global field operations and expand engineering and development. GoodData, a provider of business intelligence solutions, raised a $22 million Series D round to bring Big Data solutions to the Latin American market. Finally, Applied Predictive Technology, a provider of cloud-based predictive analytics software, received a $100 million minority investment from Goldman Sachs to promote expansion to new industry verticals and international markets.