Frost & Sullivan s. Aerospace, Defence & Security Practice. Global Industrial Cyber Security Trends
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1 Frost & Sullivan s Aerospace, Defence & Security Practice Global Industrial Cyber Security Trends Presented by Philipp Reuter Director Frost & Sullivan, Turkey 1
2 Worth over $ 50 Billion globally in 2014 Cyber security ICT Security in the Private Corporate Domain $ 28 Billion Cyber Warfare $ 22 Billion ICT Investigation $ 1 Billion Some Key Players: Boeing, Lockeed Martin, Raytheon, Thales, Selex SE, Nothrop Grumman, BAE, Qinetiq, Mc Afee, Norton, Symantecs 2
3 What is our response to a cyber security incident? 3
4 UK: Cyber capability development Their main aims are to increase awareness of the risks of cyber attacks, to share any threat intelligence The Government must be more vigorous in its approach to cyber security, says the Defence Committee in its report published in Jan
5 Is Cyber Warfare perceived as a threat? Whatever the objective the cyber option is appealing, but Source: MMC 5
6 Critical Infrastructure Industries at Stake USA: Over 200 incidents across all critical infrastructure sectors in the first half of % increase over 2012! Energy Segment (H1) Cyber attacks in the energy sector may be on the rise but so far they have been characterized by espionage and intellectual theft purposes and not system disruptions. Source: ICS-CERT; Frost & Sullivan 6
7 The Evolving Strategies Emerging Industrial Models Market Trends Fragmented High level of cloud security is expected, as control system solution providers consider the possibilities of transcending SCADA systems and the Ethernet into the cloud. Consolidation and Partnerships Evolving Markets On-demand hosted services will present significant revenue potential. Security solutions for virtualized and cloud technologies will represent high growth potential. Increasing Role of Managed Services Source: Frost & Sullivan 7
8 Existing Solutions Transition from Static Solutions to Adaptive Solutions Types of Security Solutions, NA, 2012 Identify Threat Monitor Network Solution Themes Isolate Threat Threat Management Resolve Threat After Stuxnet and Night Dragon attacks we are now moving towards a proactive rather than reactive approach will require security intelligence solutions. Source: Frost & Sullivan 8
9 Level of Attractiveness Investing in the Right Technologies to Aid in Business Continuity Solutions designed specifically for the cloud and virtualization environments will be the next frontier. Technology Placement in the Industry, 2012 Mature Low Growth Emerging High Growth Application whitelisting BYOD-specific solutions Cloud-specific solutions Deep packet inspection SIEM Solutions for virtualization Unidirectional diodes Mature Low Growth Intrusion prevention/ detection systems Emerging Low Growth Next-generation firewalls Anti-virus Host intrusion prevention Growth Rate Source: Frost & Sullivan 9
10 Government Initiatives A Necessary Backbone for Growth Key targets from regulatory initiatives Total Automation Cybersecurity Market: Regulatory Targets, NA, : all COTS cyber ICS and standalone components are secure-by-design. 2016: A certification center with the capability to verify that cyber vulnerabilities for ICS and components are secure and available. 2017: Self-configuring, secure ICS network architectures. 2018: Secure ICS architectures are designed, installed, and maintained with built-in, end-to-end security. Information Sharing Monitoring Projects such as SHINE and ICS-CERT aim at providing visibility and information sharing in terms of providing information on automation system vulnerabilities. Project SHINE has revealed about 50,000 IP addresses that connect to about 7200 control systems in the United States. To improve monitoring capabilities, the Federal Information Security Management Act (FISMA) has initiated a compliance reporting tool through the new automated CyberScope. Implementation A good security solution is one that has been implemented effectively. The ISA100 incorporates basic security by design, a concept that incorporates security into all aspects of network design, construction, and operations. Source: Frost & Sullivan 10
11 Energy, Oil & Gas Segments 11
12 Oil and Gas A Target Rich Environment The oil and gas industry is moving to a more digital, integrated operating environment. Understanding the Oil and Gas Industry Third-party connections People Subsea systems 3D virtual technology & visualization Technology Digital Oilfield Digital oilfields enable a real-time, multidiscipline way of connecting with all the disparate assets. Reporting Process Digital map of an average oilfield Exploration Seismic/simulation projects Drilling Optimization Production (offshore fields) On an average, 1000 I/O points Average data streaming: 10 GB/day Refining On an average, 30,000 I/O points 1Terabyte/day raw data Transactional processing Real-time data and remote operations Connectivity and information are key enablers for the digital oilfield. Despite the numerous advantages, security solutions and implementation can be restrictive factors. 12
13 Security Opportunities Oil and Gas Industry Solution providers need to focus on security analytics and training. Security Opportunities in Oil and Gas Industry, NA, 2012 Training and certification Focus on security analytics to aid in data flow blueprints Change and compliance management solutions Industry collaboration Solutions that are interoperable in the cloud Solutions that focus on safety integrated systems Dependence on patching solutions Raise Create Reduce Source: Frost & Sullivan 13
14 Efficient but Complex Smart Grid The smart grids face implications in terms of access control, asset integrity, and data confidentiality. Power Industry Security Perspective, NA, 2012 Previously known attacks Current status of the security systems Several incidents that include malware and slammer worms in an electric utility as well as a weaponized virus and found in a turbine control system. A likely cause of the Florida blackout is attributed to a security breach. Modern SCADA systems There is a growing requirement for tools to manage, monitor, and maintain the widely dispersed assets. Challenges in the Smart Grid Space: Two-way communication systems Distributed connectivity: Distributed solar or wind farms have less control over physical access Access to customer utilization data Weak authentication and access control Interoperability Conflicting focus points: Power distribution and transmission in smart grids is becoming an increasing concern for solution providers due to the privacy issues involved While control systems focus on availability first, these grids look at confidentiality first. This further complicates security and operating priorities. Source: FERC; Frost & Sullivan 14
15 Security Opportunities Power Industry Security Opportunities in Power Industry, NA, 2012 Individual equipment solutions Change and compliance management solution Data access control and authorization Raise Simulation tools for training End-to-end solutions Product bundling strategies Partnerships with IT vendors Create Replace redundant regulations Reliance on compliance alone as it does not address zeroday threats Reduce Source: Frost & Sullivan 15
16 What next Rise of the Managed Service Provider Total Automation Cybersecurity Market: Understanding Managed Services, NA, 2012 Security Industrial automation and process control system Operational assurance Compliance Examples of companies providing managed services for control systems Company Industrial Defender IBM Dell/Secureworks McAfee Solution Compliance, protection, and change management SCADA security solutions NERC CIP compliance Application control, change control, integrity control Source: Frost & Sullivan 16
17 For Additional Information Philipp J. Reuter Managing Director, Frost & Sullivan Turkey & Region Tel:
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