This thread started off as a discussion at the local Mamak (the Malaysian colloquial terminology for your cafe). A bunch of security and tech folks meet up to ponder upon the world and business woe.
The discussion started off with the question “How do you decide on your tech purchase? What are your consideration factors?”
Our conservative buddy came up and said “You can never go wrong with Brand X! Tried and tested”. That seems to indicate that the selection criteria is based on market presence, branding and prominence. As well as adoption.
The bleeding edge/challenge the status quo person came up and said “Why not Open Source?” Its mature enough for adoption and more organisations are cozying up to the idea that Open Source will work, provided that support is available.
Then comes in the CIO, whom made it clear that his/her choice will be cost based. Why bother paying premium and consider alternatives when you can get a good bargain at a reasonable choice? Pricing would be the ultimate deciding factor, provided that it meets bare minimum.
I had to open my mouth and ask, ”what about geopolitical consideration?” Everyone had a flustered look, some in amazement and some pretended that was not even the case. Geopolitical? Is that even necessary?
What is geopolitical consideration/risk?
This is a consideration when you view the origin/source country of technology and consciously make a decision to use technology from another country. Example, if the first tier of firewall originates from US, the second tier of firewall may be purchased from Russia (ignoring the underlying hardware may all originate from China, the consideration here is based on vendor origin, not part origin, although that may be a severe version of geopolitical based risk separation).
History Lesson – PGP
A little bit of history lesson on technology, starting from cryptography. PGP was created by Phil Zimmerman in 1981. PGP was created with the intention of securing communications between activists and to prevent snooping. The software was free to use, as long as its not for commercial use. Eventually PGP ended up on the Internet, being adopted for widespread use as an added encryption layer on top of emails.
In 1983, Zimmerman became target of prosecution. Cryptographic capabilities above 128 bits became subject to export restriction and Zimmerman’s PGP was using keys with defaults of 1024. Zimmerman became a target, due to violations on “munitions export without license”. Definition of munition includes “guns, bombs and even software”. For unknown reasons, the case never proceeded and was eventually dropped without any criminal charges filed.
Zimmerman was determined to make his software public. He identified a loophole, in which the First Ammendment, protects the export of books. Through MIT Press, Zimmerman published the source codes of PGP. One had to simply procure the book, scan the contents and make it digital using OCR (Optical Character Recognition); or simply type the code into a program.
More challenges on export
A similar situation happened to D.J. Bernstein. He wanted to publish the source code of his Snuggle encryption system. Together with EFF, DJ Bernstein challenged the export ruling. After 4 years and one regulatory change, Ninth Circuit Courts of Appeal ruled that software source code is protected by the First Amendment, and government preventing the publication is unconstitutional.
Why geopolitical risk?
The world is already borderless. Technology crosses boundaries easily without much hassle. However, G2G relationships are never that smooth (G2G – Government to Government). Technology sold by a company is governed by the laws in which that company is HQ’ed. Hence indirectly, law of the land plays an important role in ensuring that governments play an indirect crucial role in determining the availability of technology.
The most common technology denominator is the USA. USA produces majority of technology innovations which the world uses. An example used in the earlier part of this article is encryption/cryptography technology. As algorithms become prevalent, the use of these algorithms often become subject of export restrictions.
The rise of nation states
Borderless world creates borderless problems. The hacking scene (not the “Texas Chainsaw Massacre type”) used to be fueled by hormone-raged idealistic filled teens, or just curious cats trying to learn tech. But today, dominance in cyber space is seen as a sign of “Cyber-sovereignty” and arms race towards cyber dominance becomes imminent. (Man I really abuse the cyber word this time…)
As explained earlier, the battle ground has shifted into the cyber world. Corporates are becoming the unwilling victims in the fight towards dominance. Nation-states may infiltrate large corporate organizations in order to further their agenda, by implanting their tech folks which directly influence the product build. This means that product that gets shipped out may potentially be inhibited with malicious code, backdoors or even intentional vulnerabilities in order for nation state actors to freely abuse.
Export laws, sanctions and politics
Open any news site right now and you’d hear about trade wars between government. In the recent news, one government has stood firm and taken actions against another country for alleged espionage. This resulted in key companies in the country being denied business and imposed high levies and taxes. The situation created a “tit-for-tat” reaction, causing a downward spiral of impact towards other organizations which forms part of the ecosystem.
Standards and tech volition
If export restriction becomes apparent, in a new twist to the developing stories, standards organisation are now becoming subject of such ruling. One standards body which is referred to worldwide has stepped up and imposed bans towards researchers from a said country from being moderators or participating in standards building. This has far reaching impact to the global community.
Firstly, other countries who are not part of the trade war are now unwilling victims as the standards body align themselves towards the country stance. Secondly, the countries now have to re-evaluate and establish their own standards, or subscribe to a common standard which all vendors should be given a chance to participate. ISO (International Standards Organization) is a global standards body which prides on being independent from country level politics (while the standards being voted are based on country lines and affiliations).
In one hand, you need a standards body as reference point, and in another you’ll need to start excluding standards body which shows affiliation towards country level policies. Aligning standards into a country specific set will be another arduous task.
Long story short
Countries today can no longer exclude geopolitical factors of risk. This is prevalent today, looking at the recent developments in the international arena and current trade wars and Brexit. While moving towards Industry Revolution 4.0, it is important to no longer be in a nutshell, but understand that borderless is a reality and new sets of regulations are emerging to govern tech and it’s use.