Jim Taylor - Learning to Fly – Taking Infrastructure Software to the Next Level

I feel like I should start with a joke, but probably won't do that today. Cuz Martin already made a joke at the expense of my title. I will just say I used the abbreviated title just so it would fit on the slide. If you want the full one, then come collect one of my six by six foot business cards from the stand. So before I get into it, Broadcom, strange name to be showing up here. So I thought I would just spend 30 seconds talking a little bit about that. So Broadcom recently acquired CA not sure everybody knew that or not Broadcom, large chip manufacturer. They, if, if you have a device with you, you drive a smart car, you have any form of technology in your life. You probably have one of our products inside of it. We're very big on the inside of the iPhone, Samsung, those kinds of things.
So Broadcom about a year ago, decided that they wanted to venture into the software market. And they did that by acquiring CA first of many, can't tell you who the next ones are, but watch this space. So that's who we are. We are Broadcom formally CA and the security and integration part of the business actually goes under the layer seven branding. So for those of you that know layer seven, we're going back to that. So what I want us to talk about is just some of the things that we are seeing and where we think things are going. So we all know that digital economy is here. We all know it's happening, but what does it actually mean? Okay. So today and all of these figures are quoted by independent sources. We can provide you the data. I won't go into that too much in this, but today the digital economy is worth roughly about 13 trillion.
Okay. And it's growing at an enormous rate it's anticipated to hit approximately 23 trillion. It's even hard saying it by 2025. So that's a 77% growth over the next six years. Okay. So just think about who would like that kind of growth in their business. If you could just grow up market growth rate, you would make all of your investors and shareholders and everybody else. Very, very happy. The other thing that we are seeing is an inordinate amount of growth in devices and as part of a large hardware company, that makes a lot of devices. We're kind of happy about that, but anticipated that by 2025, they'll be roughly 75 billion connected devices. That's roughly 10 to 11 devices per person. Okay. Just think about that. Think about what that actually means. So from a security perspective, that's kind of scary from an opportunity perspective. That's great.
Our world is changing. We know that the digital economy is exploding. We know that the growth of data is exponential. And in fact, here are some of the numbers in terms of what that means from a risk perspective, by 2025, we will be generating roughly 175 trillion gigabytes of data. Okay. Some people argue that's more data than we've generated up to this point in our history. I don't know that's an arguable stat. I do know that it's a lot and it represents roughly about 600% increase from all the data that's generated this year. Okay. Of that data, about 50% of it, about half of it will be generated by some kind of autonomous device, some kind of IOT device, your cell phone, your fridge, your car, you know, whatever that might be. And roughly a third of that will require some real time assessment or action.
So let me give you an example of that and see if I can tie that back to identity for you and see if I can tie that back to, you know, why we in this room should actually care about that. So as a consumer, I'm a consumer. I recently signed up with my power company. So I was super excited, you know, bit behind the curve. I wouldn't say I was an early adopter, but I installed some nest thermostats in my house. My power company has a scheme whereby if I connect my nest, them stats to the power company and give them an element of control over the temperature in my house, I become an eco-friendly power consumer and I get a big discount and it's a big discount. I get something like a 20% discount on my monthly power bills. And so what happens is my power company monitors my house.
They monitor all of the other houses signed up for this scheme. And when they're at a peak power distribution point, when it's the most expensive, cuz they've got all their machines turned on, they check with my thermostat and if they can lower the temperature of my house by a couple of degrees and lower my consumption, I get a discount because they're taking load out of the system, peak usage times. If they can monitor my house and when I'm away, they can turn the power to eco, turn it off, turn the heating off. I get a discount. Well, just think about that from a privacy and a data and identity perspective, my house is having a conversation with my power company and between the two of them. I'm not in that conversation. I checked between the two of them. They're determining what the temperature and the power settings and the power consumption should be used in my house.
Does that concern anybody other than me? I mean, I like the discount, but the thought of all of my data flowing around autonomously between devices. I have a very smart car. I just bought a car. My car communicates with my garage and decides when it needs a service. I'm pretty sure some of my data's in that communication as well. So just as you know, and I liked a lot what Kim was saying earlier, just as this concept of decentralized identity is really starting to take hold. It's becoming all about the data and decentralized identity. Doesn't just relate to you, the person, it relates to all of the things associated with you, your smart device, your home, your temperature sensor, your, your cell phone, your apple watch, your whatever. All of that data is your data or it's data about you might be data about your health might be data about your power consumption might be data about the speed you drive, you know, which is not a good thing in my case, but you know, all that data exists.
How is it being controlled? How is it being managed? Who's managing the privacy and security concerns around that data. And as these numbers show, what we have today is just a drop in the ocean of what that data's gonna be and what it looks like in five or six years time. So today the average person, the average consumer has roughly 750 digital interactions per day in this room. It's probably a number that's way bigger than that, talking to a group of techies, but that's the average person by 2025, that number will have grown to roughly 5,000 data interactions per person per day, 5,000. It's beyond human control. It's beyond human. You know, just the number is mind boggling, just thinking about all of those different interactions. Now, the other stat that is at the bottom of the slide as a vendor of security is one that I'm pretty pleased to see. And that's that cyber security damages are growing at an equal pace. They're keeping pace as well. So current estimates is in 2025 or sorry, 2021. There will be roughly 6 trillion worth of cybersecurity damages done in the world to the digital economy. So that's the world that we see. That's what we see is happening. And you know, and some of those stats are good for us. Some of those stats are bad for us, but it's inevitable it's going to happen.
So what we believe is fundamental truth is that digital transformation is not really the right way to describe it. It's more like digital evolution. Even those digital companies like Uber, Lyft, Airbnb, that were born digital have to continuously evolve. They have to continuously transform. If you stand still in the digital economy, you're dead, your competitors will out innovate you. They will out business. You, they will beat you. So we see this consistent continuous infinity loop around security, around objects, around identities and around data and how to manage it. It's a continuous cycle. You need to be agile. You need to be fast. You need to be constantly moving to keep pace with what's coming just around the corner. So that's the cornerstone of our philosophy. So what you'll see us doing is investing very heavily, very, very heavily in some core concepts. And we believe that this will ultimately end up being the new architecture of trust.
The graphic on the left is what we lovingly call a triangle of trust. We just implemented that with a large global bank that just wanted to refresh their digital experience through their app. And it wasn't an entirely security endeavor. They really were looking at the digital experience of their consumers and how they can connect in their new business model. This is a very large top 10 global bank around how they can actively secure all of those connections and all of those transactions between not only the device, but the applications on the device and the users themselves. We call that the triangle of trust. Now that bank rolled that application out, they built, it took them all out, took about eight months to, to get where they wanted to go. They rolled that application out over a two month period to 65 million users, two months to roll out to 65 million users.
That's the scale that we are now dealing with. If you are a large digital brand, if you are a large digital company, you need to think of security on a scale and at a level that we've never imagined before they were already working on version two, they were working on version two before they even released version one, the graphic on the right I already talked about, but how are we gonna do this? How are we gonna cope with this? Well, our fundamental belief is that we need to invest heavily in AI. And I don't mean analytics, intelligence, I mean, actual AI. So some of you may or may not know, but we have a very large business that we call our payment security business. It's the largest card, not present fraud, transaction business in the industry. So for the last sort of 10 to 15 years, we have processed roughly 40% of all credit card transactions over the internet.
Anything where there's been a transaction where the card is not present, where you're not in the store, physically handing that card to the person. And what that's allowed us to do is build up an inordinate amount of data. We have roughly 500 digital footprints of devices under management. We have close to 15 trillion transactions in our data lake, and we have some very, very complex and very, very advanced neural models around determining if that is fraud or not. So our vision is to bring those capabilities, to bring the capabilities of AI, to identity and security, not just to people, but to things as well. Everybody knows it's a, it's a digital economy. It's API driven. There's a whole bunch of objects that have our personal data that we'll be making decisions on our behalf, like my thermostat and my house, determining what the temperature is. So we are combining all of that knowledge and experience and applying it to our identity and security platforms.
We were introducing a whole set of new capabilities of looking at this as a complex business problem, rather than a set of products. And I think Martin was talking earlier in his talk about how we have to kind of step back and look at the bigger business problem rather than the individual products that we segment things by today. Cause that's not how people want to solve those problems. They want to solve the business problem of how do I truly create a meaningful digital relationship with my customers. That's flexible. That's friendly. That has a good user experience and is secure at the same time. How do I ensure that? So that's really our focus. This is the, the usual slide I put it in because people are layer seven who Broadcom worked. So just so you guys know who we are, we've, we've been around for a while.
This business is built on a set of trusted brand CEDIA integrity, layer seven. You know, we are a growing concern. You know, we're very interested in, in talking to as many people as you can, as we can. So if you have the opportunity, come and visit us at our booth. We're in, in the exclusive VIP section, not with all the other booths, you know, where it's overcrowded and the coffee's not that great. We're at the back in the spacious area where the good coffee is, and we have plenty of room it's VIP only. So you may have to ask to get in, but just talk to us, we'll get you in and come by and visit us. Thanks for your time.
So thank you, Tim. And let's talk tomorrow about how crowded the space will get when this,
I know we are enjoying it today, but that's
Once the expert stage is running
Just so long as we keep the good coffee, Martin, I don't mind.
Okay. Yeah. I had another good coffee at another boost, but we don't go deeper on that right now, but I'll, I'll look, I'll visit you tomorrow for a coffee. Awesome. Wonderful. I like that. And I like this, this, this sample you brought up about your heating and the utility company. And I think that the good thing is as for, for an attacker, it's only hacked the utility company because you know, which homes are empty at which time.
Exactly.
Which reminds me, I heard from someone and it was very dressed versus about this attacks on ships in Somalia. Yes. A couple of years ago. And, and what they told and they were, were, there was a lot of roof behind that, that they infected the pirates more or less to rent a hacker, to, to hack the companies, the shipping companies, knowing where the ships will run at which time, so that they could extend the space they have. And I think obviously if you, it's also a little bit what Kim says, if you accumulate too much data, you grow the risk. And that deal is one of the things we need to cover. It is because with the growing amount of data, there are totally new potentials for attacks. And that will be something that really will become a challenge over the next couple of years. So thank you very much for your presentation. Oh yes. Wonderful. Thank you.
Thank you. Thanks man. Appreciate it.