News on the Bombay attacks is breaking fast on Twitter with hundreds of people using the site to update others with first-hand accounts of the carnage.

The website has a stream of comments on the attacks which is being updated by the second, often by eye-witnesses and people in the city. Although the chatter cannot be verified immediately and often reflects the chaos on the streets, it is becoming the fastest source of information for those seeking unfiltered news from the scene.

But we simply have to be smarter than this:

In the past hour, people using Twitter reported that bombings and attacks were continuing, but none of these could be confirmed. Others gave details on different locations in which hostages were being held.

And this morning, Twitter users said that Indian authorities was asking users to stop updating the site for security reasons.

One person wrote: "Police reckon tweeters giving away strategic info to terrorists via Twitter".

Another link:

I can't stress enough: people can and will use these devices and apps in a terrorist attack, so it is imperative that officials start telling us what kind of information would be relevant from Twitter, Flickr, etc. (and, BTW, what shouldn't be spread: one Twitter user in Mumbai tweeted me that people were sending the exact location of people still in the hotels, and could tip off the terrorists) and that they begin to monitor these networks in disasters, terrorist attacks, etc.

This fear is exactly backwards. During a terrorist attack -- during any crisis situation, actually -- the one thing people can do is exchange information. It helps people, calms people, and actually reduces the thing the terrorists are trying to achieve: terror. Yes, there are specific movie-plot scenarios where certain public pronouncements might help the terrorists, but those are rare. I would much rather err on the side of more information, more openness, and more communication.

• Low-tech is very effective. Movie-plot threats -- terrorists with crop dusters, terrorists with biological agents, terrorists targeting our water supplies -- might be what people worry about, but a bunch of trained (we don't really know yet what sort of training they had, but it's clear that they had some) men with guns and grenades is all they needed.

• At the same time, the attacks were surprisingly ineffective. I can't find exact numbers, but it seems there were about 18 terrorists. The latest toll is 195 dead, 235 wounded. That's 11 dead, 13 wounded, per terrorist. As horrible as the reality is, that's much less than you might have thought if you imagined the movie in your head. Reality is different from the movies.

• Even so, terrorism is rare. If a bunch of men with guns and grenades is all they really need, then why isn't this sort of terrorism more common? Why not in the U.S., where it's easy to get hold of weapons? It's because terrorism is very, very rare.

• Specific countermeasures don't help against these attacks. None of the high-priced countermeasures that defend against specific tactics and specific targets made, or would have made, any difference: photo ID checks, confiscating liquids at airports, fingerprinting foreigners at the border, bag screening on public transportation, anything. Evenmetal detectors and threat warnings didn't do any good:

  "If I look at what we had, which all of us complained about, it could not have stopped what took place," he told CNN. "It's ironic that we did have such a warning, and we did have some measures."

  He said people were told to park away from the entrance and had to go through a metal detector. But he said the attackers came through a back entrance.

  "They knew what they were doing, and they did not go through the front. All of our arrangements are in the front," he said.

If there's any lesson in these attacks, it's not to focus too much on the specifics of the attacks. Of course, that's not the way we're programmed to think. We respond to stories and not analysis. I don't mean to be sympathetic; this tendency is human and these deaths are really tragic. But eighteen armed people intent on killing lots of innocents will be able to do just that, and last-line-of-defense countermeasures won't be able to stop them. Intelligence, investigation, and emergency response. We have to find and stop the terrorists before they attack, and deal with the aftermath of the attacks we don't stop. There really is no other way, and I hope that we don't let the tragedy lead us into unwise decisions about how to deal with terrorism.

The panelists were:
William P. Crowell – former Deputy Director of the National Security Agency
Michael P. Jackson – Deputy Secretary, Department of Homeland Security
Jose A. Rodriguez, Jr. – former Director CIA, National Clandestine Service & CIA, DCI Counterterrorist Center

Overall, it was a very nicely arranged event on a brisk fall evening with about 100 CXO attendees; mostly large but some small government contractors and a few product companies like ScienceLogic that conduct business with military, intelligence and the public sector.

No surprise, given the financial crisis the economy is suffering from that the panelists said we also have a crisis coming on the Federal budget front. This will put enormous pressure on the way Administration thinks, and how and where to spend the $$.

Obama’s tone regarding the issues he will be confronting in the world during the election was encouraging. Make the world more non-partisan and take on the threats that we have in front of us head-on!

The panel was very upfront about current threats. William Crowell said,

“It is highly imprudent to believe that there will not be another 9-11. We have to fund and support the work to stop other attacks. We can only mitigate risk but we can’t eliminate risk. We have to try to absorb the sense of urgency and wake up every day looking at the intelligence screens as if 9-11 happened within the last couple of months.”

He added,

“They (the intelligence community) need the innovation, sense of commitment and urgency that comes from the private sector – a sense of mutual commitment to that mission.”

Predicted Priorities for investment for DHS:

1. Cyber attack as the top issue
2. Nuclear threats including dirty bomb
3. Chemical and biological attacks
4. Explosive attacks against critical infrastructure with maximum # of lives and or financial disruption / loss.
5. Large scale natural disasters – hurricane + earthquakes
6. Border penetration - identity management and border management issues

An Obama administration will spend dollars around these threat vectors. They will want to spend $$ to help state and local governments. Grants to state and local governments should significantly increase with the Obama administration, so think about how you will increase your focus on the state and local government spending initiatives.

Secure border investments – the panelists believe that the new administration will feel compelled to invest here. Michael P. Jackson bluntly said, “You have to make investments in border tools to get meaningful immigration reform.”

Panelists agreed that the 1^st year will be an intense period of scrutiny about fundamental directions. We can’t afford it all at DHS; it is dramatically under budgeted. At TSA/DOT and then at DHS, we spent about $4 Billion on technology investments since 9-11; those investments are now reaching the end of the original service life.

One gripe from the panel that I found humorous: “We don’t have a group of people who think like entrepreneurs.” It is insane how long things last when you buy things in the government. As an example, we are still replacing vacuum tubes in some of the very old FAA gear… this is well beyond what any reasonable person would think these initial investments should/would last.

Final Thoughts:
I actually think that the Obama Administration will be quite favorable to COTS software products, SaaS offerings, and creative financing initiatives from the private sector. The government just won’t have the capital budget to do everything it wants to accomplish. I would say if you look at how intelligently and aggressively Obama used technology to assist his campaign, the odds are good that this new breed of IT talent (which is already really comfortable with SaaS products, blogs, wiki’s, hosted/outsourced Cloud solutions… this team really understands the latest technology trends) will quickly work to bring these new IT paradigms to the Federal marketplace. Clearly the private sector can help the Government achieve more with lower capital budgets – beginning to provide services rather than transaction-based selling. Another clear idea is to think about leasing as a better way to work with the government which going forward will have increased budgets restrictions.

They will likely be in confrontation with members of Congress that won’t change fast enough, however the future of our nation’s ability to fight terror lies in becoming more efficient and effective. It requires the government be flexible enough to figure out what jobs and IT functions to outsource in a nimble and smart way. My prediction: this is great news for Service Providers. Overall the next 4 years should be great for our business as well as the Managed Service Provider/SaaS industry!