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The Boom (Or Bubble) In Federal Cybersecurity

Hugh Pickens writes "The Washington Post reports that the increasing number and intensity of cyberattacks has attracted the attention of the Obama administration and Congress, which have begun steering dollars to the problem. Much of that new spending, estimated at $6 to $7 billion annually just in unclassified work, is focused on the Washington region, as the federal government consolidates many of its cybersecurity-focused agencies in the area. 'I think it is a real growth opportunity in coming years,' says David Z. Bodenheimer, a partner at law firm Crowell & Moring in Washington, who leads the firm's homeland security practice and specializes in government contracts. 'The market is still rather fragmented and in flux, but is developing with a speed that it is attracting both the major defense and homeland security contractors who are establishing independent business units to pursue these opportunities, and it is also a real opportunity for the smaller players who have niche products.' One reason the field is attracting so many companies is that the barriers to entry are low — at least, relative to other defense industries. But as start-ups and others rush to stake claims, some wonder if a bubble of sorts is beginning to inflate and recall that many venture firms in the early 2000s chased similar prospects. 'A lot of the early people made significant money,' says Roger Novak, founder of Novak Biddle Venture Partners. 'But there were [also] a lot of "me too" companies.'"

1 of 72 comments (clear)

  1. What is e-government? does it include e-cops? by elucido · · Score: 0, Troll

    "This is where the big need for security comes from. How do you provide more access to more services and information while restricting that information to the appropriate parties. "

    What type of services exactly? What services do you expect the government to provide? Do you mean a setup so we can instant message the FBI to report a crime in progress? Do you mean giving twitter accounts out? What services does the government provide that is so important that we will need e-government to provide it?

    With the slow increase in population coupled with the dramatic increases in regulation and bureaucracy, the US government will simply grind to a halt if it does not provide more access to government services via the internet.

    This is where the big need for security comes from. How do you provide more access to more services and information while restricting that information to the appropriate parties. Also, once these services become integrated and relied upon, they will become targets for hostile foreign elements. This is a "good" problem to have, but it is one that needs to be addressed now, before massive electronic outreach programs become part of our daily lives (even more than they are now).

    WTF? What services? What exactly do you imagine we will be relying on the government for and since when did the government provide anything for free? The government expects you to serve it in exchange for whatever you get, nothing is ever free. If wifi is offered it will come with censorship. If healthcare is offered it will come with a draft and government control over human behavior down to the microscopic level.

    How exactly is giving the government more control over us worth the services?