Cloudflare CEO Matthew Prince pushes for network security

Hello and welcome to Protocol Enterprise! Today: how Cloudflare plans to compete for bigger and bigger shares of the cybersecurity market, the Chips Act finally passes the US Senate and you can’t spell cybersecurity without a bs

Matthew Prince’s Ten Year Plan

Even in the area of ​​cybersecurity, Cloudflare does a lot. But if you ask CEO Matthew Prince to break down the security strategy — as I did recently — the answer looks like this.

First, become a dominant player in providing network security for the era of zero trust. Second: make you forget that cybersecurity even exists.

  • Going forward, Prince believes the biggest winners in cybersecurity will be those who can provide security combined with an assortment of other cloud-based services that businesses need to operate in the modern world.
  • Ten years from now, “our customers will think of it less as cybersecurity and more as the network they need to do their job.”
  • Cloudflare is one of the few companies that can provide such a network, according to Prince and a number of analysts I’ve spoken with.

Granted, deep-rooted enterprise vendors can be harder to move by upstarts than it seems.

  • But over the past few years, Cloudflare has aggressively sought to expand beyond its roots in application security and zero-trust services, an increasingly critical goal for enterprises.
  • In this push, analysts say Cloudflare brings unique advantages — particularly its global network — that could prepare it for serious growth in the enterprise security market.
  • “There is no reason to think that [Cloudflare] won’t have success on the zero-trust side like they’ve had on the application security side,” said Adam Borg, director of equity research at Stifel.

Still, Cloudflare will have to go up against some of the more established vendors in the industry to realize his vision.

  • But if Prince is right, the way customers think about cybersecurity will look very different a decade from now – and Cloudflare will be one of the biggest players still standing.
  • Going forward, “I think companies that are able to take cybersecurity and do it well – and build a true cloud platform themselves – will eclipse anything we see in the cybersecurity space today. today.”

Read the full story here.

—Kyle Alspach (E-mail | Twitter)

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All that and a bag of crisps

The U.S. Senate on Wednesday voted 64 to 33 to approve a $280 billion bill that will distribute a package of chip-making grants and research funding designed to bring chip production back to the U.S. significant.

The vote likely marks the end of more than two years of debate, which has bogged down in recent weeks due to disagreements between the two houses of Congress and within parties. The Senate bill is now on its way to the House and is expected to pass there, according to several DC Protocol insiders Protocol spoke to last week. If or when the House passes the bill, it will head to President Biden, who has signaled that he supports this effort to boost U.S. chip manufacturing and plans to sign the bill into law.

The semiconductor manufacturing legislation passed by the Senate is a reworked version of the House bill that removes some of the components that blocked passage in favor of securing chip-related funding.

Basically, the Senate version includes about $52 billion in grants to bolster U.S. chip manufacturing, spread over five years, and a $24 billion tax credit to prop up the industry. Beyond manufacturing subsidies, the bill also adds $200 billion marked for research.

The legislative package is a significant sum of money, but for the chip industry, which measures the cost of its future plans in the tens or hundreds of billions of dollars, $52 billion over five years is “a rounding error given the scale of investment needed in this space,” according to Bernstein analyst Stacy Rasgon. The funding and tax breaks will directly benefit chipmakers such as Intel, GlobalFoundries, Samsung, and TSMC.

— Max A. Cherney (E-mail | Twitter)

‘I call bs for that’

As a former CISO, Jay Leek brings a different perspective to venture capital investing than many of his fellow VCs. I spoke with Leek, the former Blackstone Group CISO and now Managing Partner at SYN Ventures, about some of the key areas of security innovation he is focusing on.

Prevention of attacks. “A lot of analysts are talking about detecting and responding [technologies] – they raise their arms and say, “You can’t help it.” I call bs on it. In fact, you can stop a lot of things. We put a very strong emphasis on prevention and then failure to detect and respond.”

Security for Hybrid IT. Most security vendors excel at cloud security or on-premises security, not both, Leek told me. “Very few are built with the hybrid in mind – [which means being] specifically designed to be on-premises and in the cloud. A safety battery in both slots. Unless you were born in the cloud in the last decade, you’ll be on-premises in some form or way in perpetuity, as well as in the cloud. Amazon Outposts wouldn’t exist if Amazon didn’t believe you needed an on-premises solution.”

Truly ML-centric security. Leek says that 100% of security startups his team has met over the past five years said they have machine learning-based analytics. But probably a “mid-single-digit percentage” of those companies are actually using ML in a way that really matters.

“I’m not saying they don’t have it — it’s just not their secret sauce,” Leek told me. However, “we believe that over the last couple of years technology has started to catch up with marketing”, “We see it’s now maybe in the double digits and we see a path where it could be 20% ” in the years to come.

—Kyle Alspach (E-mail | Twitter)

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Thanks for reading – see you tomorrow!

Kevin M. Risinger