This story was corrected on Jan. 22, 2010. An explanation of the correction follows the story.
When most people conjure images of weapons capable of destroying lives and livelihoods, they often overlook one of the most potent and growing threats: the cyber attack.
"Cybersecurity is becoming more important every year," said William R. Anderson, CEO and founder of Oculis Labs in Hunt Valley. "We live off information. The true new value is information, but it can be stolen."
Oculis is among the thousands of computer companies in the state that stand to gain from Gov. Martin O'Malley's plans to transform Maryland into the Silicon Valley of cybersecurity.
O'Malley (D) laid out several initiatives last week for growing and strengthening the state's cybersecurity industry, including the creation of a National Center of Excellence for Cyber Security in Maryland, with business incubator and training center components linking state, federal and commercial priorities.
The governor's interest is driven by the increasing demand for cybersecurity in the public and private sectors, with information security products and services for the federal government expected to increase in demand from $7.9 billion in 2009 to $11.7 billion in 2014, according to a report by the Maryland Department of Business and Economic Development. This increase, coupled with the Army's Communication and Electronics Command relocation from New Jersey to Aberdeen Proving Ground and the Navy's plans to establish the Fleet Cyber Command at Fort Meade, make the industry ripe for growth, industry leaders say.
One of Maryland's greatest assets is its diversity of technology, said Renée M. Winsky, CEO of the Tech Council of Maryland.
"It's always best to expand on something you already have that's working, as opposed to trying to create something new," Winsky said.
Some believe cybersecurity growth could exceed that of the biotech industry.
"Not everyone gets a headache, but everyone can carry a device vulnerable to an attack," said Michael G. Mourelatos, vice president of national security programs for Proteus Technologies in Annapolis Junction.
The last 2 feet'
Maryland cybersecurity companies cover the life cycle of computer information, from protecting data as they travel the system to predicting safety concerns and guarding information even as it is read on display screens.
Privately held Oculis, which opened in 2007, is a recent player that has already tapped government and commercial opportunities with its intrusion detection technology. The company has a half-dozen employees.
"We protect information as it's transmitted the last 2 feet from the screen to your eyes," Anderson said.
Even after companies spend thousands of dollars on encryption protection for their information, anyone can still just walk by and see the screen, he said: "It's like you put good quality locks on your house but left the windows open."
Oculis' Chameleon, which is used by federal clients, monitors where the user is looking and then scrambles characters elsewhere on the page, making it difficult for people passing by to tell the difference. Its Private Eye, for private customers, blurs the screen for passers-by.
Anderson formed Oculis after a stint at vice president of encryption products at SafeNet in Belcamp. He also worked for a wireless security innovator and has a doctorate in cryptography, the process of studying hidden information. Oculis received funding from angel investors as well as state programs and Anderson's friends and family.
He said his company is already seeing the results of the increased interest in cybersecurity, which he hopes may draw more attention toward lesser-known companies. Oculis wants to tie in its technology with major laptop manufacturers and has already seen some interest and also sees opportunities in electronic patient records protection.
Explosive growth'
In Columbia, chief technology officer Martin Roesch is pushing Sourcefire toward $100 million in annual revenues. Roesch founded the company in 2001, using his open source code Snort, which uses 9,000 identifying traits to detect malware and blocks any of the malware's attempts to target application vulnerabilities. Although Snort is free and its code is accessible to anyone, Sourcefire takes the technology a step further, linking defense reporting and monitoring across networks through a central location.
"Our forte is the enterprise, those businesses making $400 million or more," said Steve Piper, senior director of products at Sourcefire, which is publicly held. "We've had explosive growth over the last few years from three employees working out of a house to 300 employees."
Saying Sourcefire has continued growing amid the recession, Piper emphasized the company is poised to grow even more with the market demand and has been hiring "hand over fist" in the Washington-Baltimore area. Sourcefire also plans to expand globally and has several locations overseas.
The company reported a third-quarter profit of $2.7 million on revenues of $27.4 million.
"The world of IT has must-have technology and nice-to-have technology. Cybersecurity is must-have technology," Piper said. "Every week, new federal network breaches are announced, and those breaches are costly."
He said the governor's focus on the industry should bring more talent into the area, giving it the same critical mass as Silicon Valley in California.
Maryland as a hub'
Triumfant in Rockville sells its Resolution Manager for about $50 per computer, with lower prices for larger quantities. The product detects malware that specifically targets sensitive data found within federal agencies and financial services companies. By tracking known problems, Triumfant's product can generate remediation before problems become severe, according to company information.
Growing out of engineering research in the Research Triangle Park in North Carolina, Triumfant's technology sprang from efforts to monitor recurring help desk problems. The company has grown to just under 20 employees since 2006.
"If we can establish an awareness of Maryland as a hub, it gives as more credibility in marketing our products," said Jim Ivers, chief marketing officer for Triumfant. "It allows us to work with companies also on the leading edge of security."
Ivers said more synergy is achieved through face-to-face interaction than remote communication.
For some companies, such as Proteus, cybersecurity is just part of their portfolios. Proteus takes a different approach, serving as forensic scientists who analyze the damage of attacks and also working to understand what the attackers wanted.
"There is a blend between the social sciences and the computer sciences," said Mourelatos. He said many cyber attackers make it difficult to track them by launching their assaults through other people's computers.
"They're becoming more sophisticated," Mourelatos said.
It's not just smaller companies that are focusing more on cybersecurity.
Military, aerospace and information technology giant Lockheed Martin of Bethesda is launching a Cyber University to help train and certify its employees.
Spokeswoman Mary Phillips said cybersecurity can be found across the Lockheed divisions, which employ 9,200 workers in Maryland.
"Cyber Security is embedded in everything Lockheed Martin delivers and our people are critical to ensuring mission resilience for our customers," said Rick Johnson of Lockheed's Information Systems & Global Services in a statement.
Correction: A previous version of this story referred to Martin Roesch as CEO of Sourcefire; he is chief technology officer.