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Week / Gilder: Security at the Edge
- Friday Feature / Synaptics Begins Invasion
- Friday Blogger Bonus / Gilder's Ten Rules For Tech Investors
- Readings /
Gilder Technology Report’s tech portfolio is up 351% since the market
Security at the Edge
George Gilder (November 2006 Gilder Technology Report excerpt): I am with our Silicon Valley editor Nick Tredennick at a Linley Group tech seminar on “Programmable Devices for Network System Design” at the Santa Clara Marriott and the PowerPoints are filigreed with schematics as the complexities mount in a combinatorial explosion up and down the software stacks and hardware cores of routers and switches and combo boxes and multiservice crossconnects. Coffee consumption soars. Everyone wants a programmable synaptic accelerator to keep up with the double data rate acronyms on stage. All we hear about is intelligent processing, knowledge bases, real-time pattern hashes and regular-expression matches in the core of the network.
Motivating much of this imbroglio of network intelligence is something called “security.” Security functions proliferate at layers two, three, four and seven in the standard seven-layer network model (with physics at layer one and applications at layer seven). Cavium and Raza Microelectronics contest the security space with embedded multicore and multithreaded machines. Hifn (HIFN) crowds in. Encryption moves to Seagate (STX) hard drives under the Trusted Computing Group (TCG) with Wave Systems (WAVX)* software and to ConSentry using a 128-core processor to implement the TCG standard in the local area network (LAN). As fast as security is consolidated, it metastasizes across the wide area and the web into virtual cities of beckoning high-rise chips and boards and boxes.
are they going to figure out that with security everywhere at every interface,
no one is safe? Hackers are now using unbreakable encrypted paths to invade
your browser. The more security we get the more we worry about something called
“privacy.” Privacy is chiefly for crooks and terrorists and for people with an
exaggerated notion of others’ interest in them.
SSL, IPSec, MACsec, RSA, Triple DES, AES, FIT, PGP all add up to paralysis in the core. Better to ride the light and let the bad guys chase photons through Infinera chips, while we move security to the edge where it belongs.
We need dumb-as-a-stone all-optical networks, riding on the light. We need security at the edge not in the core router.
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(*George Gilder is a member of the Wave Systems board of directors.)
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Friday Feature / Synaptics Begins Invasion
From the www.Gildertech.com subscriber-only message board.
GTR Tech Analyst, Charlie Burger (11/27/06): Over two months ago we told you not to expect much upside in this stock before next summer. Since then the price has risen almost 20%, from $25 to a peak near $30 two weeks ago. Our story remains largely intact (GTR, September 2006)—Synaptics has begun an invasion of the huge markets for teleputer sensors and imagers with new, lower margin multimedia products. What has changed since our last report is that these products are ascending quicker than expected, and gross margin is falling further than forecast. But the top-line is winning the race, giving a small boost to earnings. Most recently, PCs propelled sales up 25% sequential during the September quarter as multimedia controls ramped rapidly in laptops and peripherals.
Also subduing earnings, in addition to declining gross margins, have been climbing development expenses as Synaptics fends off gathering competition in the fast-growing consumer electronics market. Though the company has a proven track record shipping multimillions of interfaces using capacitive technology, it must continue to diversify into new markets and find new ways of letting users interact with their appliances in order to preserve its leadership position. Recent innovations include buttons on LCD monitors for controlling onscreen display and audio, wireless keyboards with touchpads that incorporate cursor navigation and quick access to applications and controls, biometric interfaces for fingerprint recognition, and quick-launch buttons on ultra-thin cell phones enabling easy access to music, messaging, and more.
demand still rising across all target markets, especially in laptops and
portable music players, expect sales to increase 30% sequentially during the
Logon to the subscriber-only message board with your subscriber ID at www.Gildertech.com to read the complete Synaptics (SYNA) writeup and more posts by Charlie Burger and George Gilder.
Did you miss GILDER/FORBES Telecosm
Friday Blogger Bonus / Gilder's Ten Rules For Tech Investors
Forbes Publisher, Rich Karlgaard (11/29/06): Reporting live from the 10th Forbes Investor Cruise--we're floating somewhere in the British West Indies now--I'll summarize George Gilder's speech.
Key Rules for Early-Stage Technology Investors to Triumph in This Time:
No one knows less about the fast-growth tech business than the CFO. Early-stage
tech is about the future. CFOs deal with past numbers. In effect, CFOs are
trying to steer companies by looking in the rearview mirror. Moreover, CFOs
tend to focus on internal problems, and early-stage tech companies should not
try to solve problems. They instead should pursue opportunities. Solving
problems sounds good, but it is a loser. You end up feeding your failures,
starving your strengths and achieving costly mediocrity.
The elasticity of Moore's Law. In the tech world, Moore's Law ordains that
prices routinely drop 50% every 18 months for a given rate of performance. In
older businesses, price collapses would be bad. But in the tech world, users
multiply when prices drop. You get positive elasticity.
Metcalfe's Law. The value of a network rises by the square of the number of
compatibly connected users. Obviously not literally true, yet a rough and
Read Rules 4 – 10:
Check out Rich’s Digital Rules blog:
AMD Launches Quad-Core Processor
Comes After Web 2.0?
Out The Bandwidth
Squarks, Bosons and Zinos, Oh My!
Kurzweil Debate Machine Consciousness
Unfairness Of A “Fairer” Economy
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