We had an email recently from an observer "curious as to why the webcam that was inside the shop/bar is no longer there, or at least, functional". The email was from the Defense Threat Reduction Agency in the United States.

When we replied that it was simply a short term technical problem, we asked why on earth they could be interested in the comings and goings of a small Distillery off the West Coast of Scotland. Were there secret manoeuvres taking place in Loch Indaal, or even a threat of terrorists infiltrating the mainland via Islay?

The answer we received was even more surreal. Evidently the mission of the DTRA is to safeguard the US and its allies from weapons of mass destruction -chemical, biological, radiological, nuclear and high explosives. The department which contacted the Distillery deals with the implementation of the Chemical Weapons Convention, going to sites to verify treaty compliance. Funnily enough chemical weapon processes look very similar to the distilling process and as part of training there is a visit to a brewery for familiarization with reactors, batch processors and evaporators. As they said, it just goes to show how "tweaks" to the process flow or equipment, can create something very pleasant (whisky) or deadly (chemical weapons).

As they say: "In the post-Cold War environment, a unified, consistent approach to deterring, reducing and countering weapons of mass destruction is essential to maintaining our national security. Under DTRA, Department of Defense resources, expertise and capabilities are combined to ensure the United States remains ready and able to address the present and future WMD threat. We perform four essential functions to accomplish our mission: combat support, technology development, threat control and threat reduction. These functions form the basis for how we are organized and our daily activities. Together, they enable us to reduce the physical and psychological terror of weapons of mass destruction, thereby enhancing the security of the world's citizens. At the dawn of the 21st century, no other task is as challenging or demanding".

The announcement is of course Good News — because once the PCeU is up and running next Spring, it should plug (to the limited extent that £2 million a year can plug) the “level 2″ eCrime gap that I’ve written about before. viz: that SOCA tackles “serious and organised crime” (level 3), your local police force tackles local villains (level 1), but if criminals operate outside their force’s area — and on the Internet this is more likely than not — yet they don’t meet SOCA’s threshold, then who is there to deal with them?

In particular, the PCeU is envisaged to be the unit that deals with the intelligence packages coming from the City of London Fraud Squad’s new online Fraud Reporting website (once intended to launch in November 2008, now scheduled for Summer 2009).

Of course everyone expects the website to generate more reports of eCrime than could ever be dealt with (even with much more money), so the effectiveness of the PCeU in dealing with eCriminality will depend upon their prioritisation criteria, and how carefully they select the cases they tackle.

Nevertheless, although the news this week shows that the Home Office have finally understood the need to fund more ePolicing, I don’t think that they are thinking about the problem in a sufficiently global context.

A little history lesson might be in order to explain why.

Back in 1930’s, Bonnie and Clyde and other US bank robbers were using the new-fangled automobile to flee across state lines — creating jurisdictional problems as a result. The US solution was to make bank robbery (along with auto-theft and other related offences) into federal offences rather keeping them as state-specific infractions. In particular this meant that the FBI could provide federal level policing (tracking down and killing John Dillinger for example).

We have the same jurisdictional issues dealing with cyberspace, with criminals in one country fleecing consumers in another while using systems hosted in a third. The Convention on Cybercrime addresses part of the problem by trying to ensure international consistency where eLaws are specifically needed (which of course is only the case for small parts of eCriminality, fraud is fraud whether eEnabled or not). However, there is limited inter-jurisdictional co-ordination for eCrime investigations — for example Interpol (often incorrectly perceived to be international police force) merely keeps a large database and passes faxes from one place to another.

In practice, most cross-border investigations are done as “joint operations” and the jointness is usually very limited — one force does all the legwork and a liaison officer in the other country deals with local paperwork. There’s usually a quid pro quo element to these joint operations, for budgeting reasons if no other.

What isn’t happening, or at least only in a handful of very specialised areas, is any international co-operation in setting priorities or selecting cases to pursue. Every country is doing its own thing about eCrime, and there’s a widespread impression that any criminal who can operate from “across the state line” is essentially immune from serious investigation.

We identified this problem last year when we (Ross Anderson, Rainer Böhme, Tyler Moore and myself) wrote a report on Security Economics and the Internal Market for ENISA. It’s not an easy one to fix whilst politicians (and populaces) are unwilling to see “foreign” police officers operating in their country, and the establishment of a truly international “cyber police force” seems equally unlikely.

Our policy proposal to tackle the issue harks back to WWII’s SHAEF, which has morphed into similar arrangements within NATO. In essence liaison officers from multiple forces would sit around a single table, working with a central coordinator, to set policy and decide which investigations to pursue. They would then communicate back to their own countries, who have specifically budgeted to provide appropriate assistance. So it’s very like “joint operations”, but the scheme is multi-laterial, and has a true command and control function in the centre — who will quickly learn to shy away from politically sensitive topics and make a real impact on eCriminality.

To summarise then, a welcome to the Home Office for finally finding a small amount of funding for some country-wide ePolicing; but it’s well past time to be working on world-wide initiatives.

But I am reminded that it’s not just the titillating stuff that’s of interest. CA is still one of the Big 4 and up until a couple of years ago making headlines with some major and strategic purchases in our space – such as buying Concord for its e-Health software in 2005 and Wily Technology in 2006.

I recently ran across a 451 Group report, “CA: ghosts of deals past” by Brenon Daly (if you haven’t read one of his takes on the M&A market, you don’t know what you’re missing) that showed quantitatively just how much the acquisitions had slowed down.

2003 – 4

2004 – 3

2005 – 6

2006 – 6

2007 – 0

2008 – 0 (so far)

Two or three years ago (I still have the slide in our presentations), it seemed like you couldn’t go a month or two without hearing about the latest acquisition by the Big 4 – to either fill gaps in their monolithic portfolios or take out a growing threat, which had built some good technology. This should sound very familiar to anyone (like me) who rubbed up against WorldCom. Growth (in revenue and technology) by acquisition. Buy your own revenue and don’t worry about the niggling details like integration.

But we’ve certainly seen the acquisition trend slow across the board. HP, after its mega-purchase of Mercury Interactive in 2005 for $4.5 billion, for example, went relatively silent on the acquisition front in our space. Perhaps, as it turns out, because they were too busy preparing for the even bigger purchase of EDS for $13.9 billion (and the layoffs, 24,600 and counting, which in this worsening economy are probably just starting).

When I walked up on stage and accepted the Inc 500 award, it hit me square in the face that this is a rare accomplishment, and even more difficult for a product company that started without the benefit of VC funding.

Dave with wife, Anne, at the awards ceremony
Over the 2 day period, I heard from some great speakers with entrepreneurial passion, many who never had accomplished making the list. It is so highly competitive and just plain hard to do.

I loved hearing some of the speeches during the conference and getting to know other entrepreneurs that attended the conference talk about how they created their niche and ultimately built a successful company from a good idea.

Because I enjoyed hearing some of what I like to call “golden nuggets of wisdom” so much, I thought in my conference wrap-up I would pass on a few to our blog readers:

Tom Peters – Author In Search of Excellence and The New World of WOW

“Only 7% of our great nation works for Fortune 500 companies. Small businesses and the entrepreneurs are the jet fuel that makes our country fly.”

“Brand is shorthand for a collection of experiences, memories of what it will be like the next time a customer deals with you. With the advent of blogs and consumer activism, Brand is impossible to fake; it is like the temperature in the room… it is there… it exists.”

Chester Elton – SVP Carrot Culture Group

“At the casino – they train the heck out of the Valet! Why do they spend 3 months on Valet training? Because he is the first and the last person to greet and interact with a visitor during their trip! Who is your company Valet?”

Paul Bennett – Chief Creative officer IDEO – speaking on — Creating a culture of optimism:

“You need to ditch B-B and B-C Need to become P-P Person to Person.”

“You don’t buy loyalty… you earn it… this is an interesting challenge, but small allows us to behave like human beings… Going off script and doing something human is a great place to start.”

“Stop obsessing about ROI and start obsessing about ROC! Return on Customer/Consumer is much more powerful than ROI!!!!”

“Happy people, unabashedly doing, happy things, makes for happy companies, which create happy businesses which enable happy cultures… IN WHICH THRIVE”

Marilyn Carlson Nelson – Chairman and CEO Carlson Companies – A family owned $40 Billion empire including TGI Fridays, Radisson Hotels…

“My leadership was tested terribly - after 9/11 the travel industry was particularly harmed. It was an extraordinary time for Carlson. “

“Put tactics around these strategic initiatives”

• Whomever you serve, serve with caring
• Whenever you dream – dream with your all
• Wherever you go, go as a leader
• And never, never give up
• Whatever you do – do it with integrity

“That builds trust, trust builds relationships and relationships build results.”

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Actually, I took about 40 pages of notes throughout the two days… So I can’t say that this will be my last summary post on the Inc 500/5000 conference, but I can say that the conference did leave a strong impression about how I can help shape the future of ScienceLogic in an even more positive way.

Baltimore is one of what I believe are still three test markets that will go into commercial availability, albeit as much as a year after initial plans, and then months delayed after revised plans were announced. Still 2 to 4 Mbps is far above the level that current cell technology can achieve as a consistent range.