12/19/16

MicroTokens Newest advance in Cybersecurity by Secure Cloud





MicroTokens offer Newest advance in Cybersecurity for Drones and Tanks

by Rob Longwell
December 22, 2016
Secure Cloud Systems, Inc. has developed unique, patent-pending software solutions that provide “ultra” cybersecurity for industrial controls and mission-critical national security applications.  The Company has been awarded $19.5 million in Army research appropriations to secure autonomous vehicles and systems and is strategically positioned for military orders exceeding $200 million by 2020.  SCS is similarly poised for significant commercial expansion in high-growth critical infrastructure sectors associated with the Internet of Things (IoT). 
Technology
SCS has developed a revolutionary approach to securing commands on distributed connected systems.  Instructions between controllers and paired digital devices are conveyed as MicroTokens, or command-level encrypted messages.  Each discrete command between a controller and a device is uniquely tokenized.  The tokens are strongly secured through various techniques and contain no actual data; proprietary information is never transmitted or exposed to potential interception. Even if a breach were to occur in a network where SCS protects command data, the tokenized data stream is unrecognizable and impervious to so-called man-in-the-middle or malware attacks.  Numerous additional security measures are employed:  tokens can only be used once and become instantly obsolete.  Valid tokens containing encrypted messages are hidden in flows of false “digital chaff.”  And randomized packet sizes, time stamps and advanced hashing procedures assure the integrity of command libraries and data transfer against manipulation and potential backdoors.  SCS’s lightweight footprint can be deployed on embedded systems such as microprocessors or as a software-only solution.  Critically, SCS’s data-level and command-oriented security solution is compatible with existing firewalls, identity management solutions, network protocols and encryption algorithms.  It can be installed on a wide variety of systems, platforms and devices.  SCS has three patents pending thus far.
Defense
The U.S. Army Tank Automotive Research and Engineering Center (TARDEC) has selected SCS to provide a comprehensive security solution to enable autonomous operation of heavy- and medium-weight battlefield transport vehicles.  The company has been awarded a Research, Development, Test and Engineering (RDT&E) appropriation of $5.54 million in fiscal year 2016, with anticipated extensions of $7 million in FY17 and FY18, for a program total of $19.54 million.  The RDT&E process is slated to achieve type approval known as Technology Readiness Level 9 (TRL-9) in approximately 18-24 months.  With final acceptance and testing, SCS and its partners project equipping over 20,000 vehicles by 2020 with a target price point of $12,500 per vehicle.  The five-year program is estimated to yield sales exceeding $200 million.  With TRL-9 approval, our solution can be incorporated on numerous additional platforms such as UAVs and remote weapons systems, including for other military and government departments.  SCS’s partner for TARDEC is PD Systems, one of four DoD prime contractors on the $3.7 billion Army Technical Services 3 (TS3) contract.  Further, SCS has a teaming agreement with MicroTech, a prime contractor for the $5.7 billion Air Force NETCENTS-2 contract, to pursue related opportunities.
Commercial
SCS’s commercialization strategy focuses on high-value critical infrastructure sectors in which national security and public safety are paramount.  Management believes that its military experience will create a “gold standard” for secure industrial applications, and that corporate revenue opportunities will approach or outweigh the sizable potential for defense. In addition to software licensing, in the commercial sector we will introduce a SaaS business model to provide secure updates to remotely connected devices.  The automotive sector is a leading priority where we expect to leverage our autonomous military vehicle expertise and significant industry relationships.  The electric utility power grid is highly vulnerable to cyberattack and accounts for up to 40 percent of all commercial IoT spending.  Strong near-term potential also exists in medical devices and smart city applications.  Secure Cloud has begun strategic conversations in each segment and will accelerate efforts post funding through the acquisition of a senior business development team and articulation of the channel partner strategy.
Revenue Potential
SCS recently received an RDT&E contract from the Army totaling $19.54 million from March 2016 through October 2018.  Potential revenues after successful completion could reach over $320 million by 2020. Successful commercial applications have to potential to move revenues into the billions.

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