Cybersecurity 2020 Predictions

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Serial cybersecurity entrepreneur Shlomo Kramer said in a 2005 interview that cybersecurity is “a bit like Alice in Wonderland” where you run as fast as you can only to stay in place. In 2020, to paraphrase the second part of the Red Queen’s observation (actually from Through the Looking Glass), if you wish to stay ahead of cyber criminals, you must run twice—or ten times—as fast as that.

The 141 predictions listed here reveal the state-of-mind of key participants in the cybersecurity defense industry and highlight all that’s hot today. The future is murky, but we know for sure that on January 1, 2020, the California Consumer Privacy Act (CCPA) will go into effect; that the U.S. presidential election will take place on November 3, 2020; and that on October 1, 2020, if you “wish to fly on commercial aircrafts or access federal facilities” in the U.S., you must have a REAL ID compliant card.

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Global Distribution of AI Startups

Source: Asgard

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Translating Between Computer Science and Statistics

Terence Parr: “I am a computer scientist retooling as a machine learning droid and have found the nomenclature used by statisticians to be peculiar to say the least, so I thought I’d put this document together. It’s meant as good-natured teasing of my friends who are statisticians, but it might actually be useful to other computer scientists. I look forward to a corresponding document written by the statisticians about computer science terms!” (Statisticians say the darndest things)

I know of at least one corresponding document, published in 1994 with the rise of Neural Networks or what I have called Statistics on Steroids (SOS), which are responsible, to a large extent, to the success of today’s “AI” or Deep Learning, an advanced version of machine learning.

In Neural Networks and Statistical Models (1994), Warren Sarle explained to his worried and confused fellow statisticians that the ominous-sounding artificial neural networks

are nothing more than nonlinear regression and discriminant models that can be implemented with standard statistical software… like many statistical methods, [artificial neural networks] are capable of processing vast amounts of data and making predictions that are sometimes surprisingly accurate; this does not make them “intelligent” in the usual sense of the word. Artificial neural networks “learn” in much the same way that many statistical algorithms do estimation, but usually much more slowly than statistical algorithms. If artificial neural networks are intelligent, then many statistical methods must also be considered intelligent.

Sarle provided his colleagues with a handy dictionary translating the terms used by “neural engineers” to the language of statisticians (e.g., “features” are “variables”). In anticipation of today’s “data science” and predictions of algorithms replacing statisticians (and even scientists), Sarle reassured them that no “black box” can substitute for human intelligence:

Neural engineers want their networks to be black boxes requiring no human intervention—data in, predictions out. The marketing hype claims that neural networks can be used with no experience and automatically learn whatever is required; this, of course, is nonsense. Doing a simple linear regression requires a nontrivial amount of statistical expertise.

See here for a discussion of the larger historical context and A Very Short History of Data Science

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Apple Pay to Become the Most Popular Digital Wallet Worldwide in 2020 with 227 Million Users

Infographic: Digital Wallet Users Could Double by 2020 | Statista You will find more infographics at Statista

The global number of digital wallet users could double by 2020, according to Juniper Research

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The Internet of Things (IoT) by the Numbers

IDC estimates that there will be 41.6 billion connected IoT devices, or “things,” generating 79.4 zettabytes (ZB) of data in 2025. Gartner forecasts that the enterprise and automotive IoT market will grow to 5.8 billion endpoints in 2020, a 21% increase from 2019. IDC predicts that by 2023, over 50% of new enterprise IT infrastructure deployed will be at the edge rather than corporate data centers, up from less than 10% today; by 2024, the number of apps at the edge will increase 800%.

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The Digital Transformation of the Oil and Gas Industry

Lux Research:

The oil and gas industry today faces four key challenges: volatile commodities, workforce retirements, low carbon economy, and shifting geopolitics. Culminating in its new era of operational efficiency, digital transformation serves as the answer for cost reduction and revenue increment.

As the industry struggles to successfully scale up digital across global operations, we provide a framework for identifying applications that hold potential for enterprise-wide deployment to avoid scale-up failures. From our analysis, we conclude that while the majority of applications do offer ease of scale-up, not all of them produce high financial gains. A handful of applications instead contribute to other value drivers, such as sustainability.

Moving forward, as the digital transformation of the industry matures, we anticipate more operator-operator digital collaborations, creation of data marketplaces, inception of “tech” oil companies, and disruption of traditional service companies by major software giants.

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2020 Predictions for the Internet of Things (IoT)

IDC 2020 predictions for the Internet of Things (IoT):

In 2020, 90% of organizations will have determined key performance indicators to measure the success of their IoT projects.

By 2021, 75% of organizations embarking on an IoT project will work with a systems integrator to strategize, plan, deploy, and/or manage the initiative.

By 2022, 70% of new enterprise IoT applications built on IoT platforms will leverage container deployment.

By 2023, 70% of enterprises will run varying levels of data processing at the IoT edge. In tandem, organizations will spend over $16 billion on IoT edge infrastructure in that time.

By 2023, 20% of cybersecurity incidents will stem from Smart City IoT device deployments, forcing double-digit increases in cybersecurity software and staff training budgets.

To lessen critical equipment failures, by 2024, 40% of manufacturers will use field asset IoT data to intelligently diagnose issues and resolve autonomously, improving unplanned downtime by 25%.

By 2023, 70% of IoT deployment will include AI solutions for autonomous or edge decision making, supporting organizations’ operational and strategic agendas.

By 2025, there will be 79ZB of data created by billions of IoT devices, causing organizations to reevaluate their data governance, retention, and usage policies.

By 2025, 60% of manufacturers will use IoT platforms with digital innovation platforms to operate networks of asset, product, and process digital twins for a 25% reduction in cost of quality.

By 2023, enterprises will struggle to manage all the different access types used to connect their IoT endpoints, with 75% adopting more than one connectivity type.

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The Rise and Rise of Video Streaming

Axios: The economics don’t mode well for the theater chains, but they aren’t miserable either. U.S. cinema revenue continues to plateau as ticket prices increase, suggesting that theater-viewing isn’t dead yet. Digital movie-viewing, however, continues to skyrocket.

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China is Moving Towards a Cashless Society

eMarketer: We forecast that 577.4 million people in China made a purchase via proximity mobile payment within a six-month period this year. Those users account for 49.6% of the country’s population. In 2020, more than half of the population will utilize this payment method, with that figure rising to 60.5% in 2023.

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Big Tech Leads in AI Patent Filings

WSJ: AI-related applications to the US Patent Office grew to about 3,800 in 2018 from roughly 3,200 in 2017 and about 1,900 in 2014.

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