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Next Cyber Solution – Automated Remediation

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In recent history, most investment philosophies and procurement priorities around network security have been devoted to building stronger and higher barriers.  However, this legacy approach is insufficient in the context of the ever-evolving cyber threat environment and the continuous digital enablement of practically all business artifacts.  The sophistication of the asymmetric threat and impracticality of absolute protection from intruders / malware have forced both public and private organizations to re-architect security solutions to better tackle today’s threat environment.  Recent trends place particular emphasis on enabling network-wide situational awareness to allow for actionable cyber threat intelligence.  Consequently, the prevailing M&A theme throughout 2009 and 2010 involved the rising demand for perimeter solutions that gathered network traffic intelligence and detected anomalies, confirmed by several of the market’s marquee deals such as EMC / NetWitness, HP / ArcSight, and SAIC / CloudShield.

However, despite the evident value of perimeter solutions that expose the myriad dangers critical infrastructures are posed with, the challenge of actually countering network threats is left widely unaddressed.  A significant gap persists in the market for threat remediation solutions.  Traditionally, the majority of remediation techniques have been delivered through professional services models.  However, this approach may prove inadequate given exponentially-increasing network speeds and the rapid adoption of new technologies each year.  Thus, emerging trends are likely to support M&A dollars targeting remediation solution providers, with special emphasis on automated and near real-time risk mitigation.  Moreover, the dearth of precedent deals coupled with the rising need for these solutions should set the stage for premium valuations along the same lines of those seen in 2009 / 2010.