BAE Says Hack on Sony Helped Spur Interest in Cyber Security
BAE Systems Plc (BA/) said its division supplying security against computer hackers is attracting more potential clients after attacks on companies such as Sony Corp.
“We’ve seen a significant shift in the understanding of cyber threats within board rooms, particularly in the last six months,” Martin Sutherland, managing director at London-based BAE Systems’ Detica unit, said at a press briefing today.
An April attack on Sony’s data centers in San Diego, which was the second-largest online data breach in U.S. history, highlighted the vulnerability of commercial business. The attack compromised more than 100 million customer accounts and will cost Sony an estimated 14 billion yen ($176 million) this fiscal year.
Detica expects a surge in revenue over the next couple of years, judging by the number of enquiries, said Technical Director Henry Harrison. Companies are realizing it’s not an issue that can be addressed by a firewall contract, rather one that “needs to be picked up at board level,” he said.
U.K. businesses incur an estimated 21 billion pounds ($33 billion) in costs from cyber-crime annually, according to a government report released in February.
BAE bought Detica in July 2008. Its software supports counter-terrorism operations by the U.K. government and tax- fraud detection in the U.S. This year, BAE added Norkom Group Plc, an Irish maker of software that helps banks prevent money laundering and fraud to its portfolio.
State Security
Detica had revenue of 222 million pounds in 2010. Government contracts account for 60 percent of its business, and products originally designed for national security are being transferred to private companies.
“We see private firms as the big market for cyber security services,” Sutherland said, adding that governments have always been traditionally more alert to the issue. Critical parts of U.K. infrastructure, like utilities, are largely run privately.
Detica also operates in the U.S., Australia and emerging markets like the Middle East and India.
To contact the reporter on this story: Sabine Pirone in London at spirone@bloomberg.net
To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net
Rate this Page