Pakistani Brothers' PC Virus Helped Create $20 Billion Industry

The year was 1986. Most personal computers used floppy disks to boot and to move files from one computer to another. Floppy disk was also the medium used by Amjad and Basit Alvi, two Pakistani brothers living in Lahore, to create and spread history's first known PC virus called "The Brain".  Here's how Mikko Hypponen, a software security expert, described it last year at DEF CON, world's largest hackers convention held in Las Vegas:

Creators of First PC Virus: Amjad Farooq and Basit Farooq Alvi


"It's surprisingly advanced, and it has surprising features, including a capability of hiding itself. So when your PC is infected by Brain, and you go and look at your floppies, you will not see Brain on the floppies. It's watching you watching it, and if you try to look at the copy of Brain, it fools you and gives you a clean image of a floppy instead. And we would call this a stealth virus, at the time....
These guys weren't evil at all. They weren't evil even then, 25 years ago, when they wrote the first PC virus. Their intention was never to cause harm to anybody, and they didn't, of course, realize that they made history when they wrote the first PC virus. But Brain was the only virus they ever wrote and they never meant to destroy any data or cause any harm for anyone".  

The Brain, also known as The Pakistani Brain, is the virus that challenged John McAfee to develop anti-virus software. Later, John McAfee launched his company that was acquired in 2010 by Intel for $7.7 billion.  McAfee is just one of several security software companies inspired by the Pakistani Brain virus. Gartner estimates that the security software industry revenue was about $20 billion in 2013.

Cloud security is the latest incarnation of the security software industry. Companies like Fire-eye founded by Pakistani-American Ashar Aziz are leading  cloud security revolution in Silicon Valley.

Here are some of the reasons for the success of Fire-eye as described by Business Insider:

1. The company's flagship product solves a really hard computer security problem. It is able to stop hack attacks that were previously almost impossible to stop.

2. FireEye bought another security firm, Mandiant, for $1 billion. Mandiant was famous for uncovering links between Chinese hackers and attacks on U.S. companies.

3. With Mandiant, FireEye launched a cloud computing security service that competes with SourceFire. SourceFire is the company Cisco bought last summer for $2.7 billion.

4. The company beat expectations on its fourth quarter with revenue of $57.3 million, a beat by $1.26 million, and EPS of $-0.35, a beat by $0.03.

5. Some Wall Street analysts have been really gung ho on the company. Wells Fargo started tracking it a month ago, saying it was "a once in a decade opportunity to invest in a truly disruptive technology."

The world has dramatically changed since the 1990s when Wintel ruled the roost. PC is no longer the dominant device. Smartphones and tablets have brought the era of mobile cloud computing where neither Intel nor Microsoft enjoy leadership position. Even developing countries like Pakistan are deploying cloud computing applications. A Google sponsored survey in Pakistan found that mobile computing is expected to overtake desktop computing this year. Several new and more innovative and powerful players have emerged to in this market.

As more and more enterprises embrace cloud-based computing, cloud security is becoming a hot area for many entrepreneurs. This shift means over $2 billion annual market for cloud security vendors like Fireeye and Elastica. Researchers at Gartner forecast the highest growth to occur in cloud-based tokenisation and encryption, security information and event management (SIEM), vulnerability assessment and web application firewalls.

Recently, a Silicon Valley cloud security start-up Ealstica was launched by Rehan Jalil, a Pakistani-American alumnus of NED University of Engineering, Karachi, Pakistan. Elastica received $6.3 million funding from Mayfield Ventures, a premier Silicon Valley Venture Capital firm.

Several analysts have recently upgraded Fireeye to buy with the target price above $100.

Related Links:

Haq's Musings

Pakistani-American Ashar Aziz's Fireeye Goes Public

Are there Good Hackers? 

Pakistani-Americans Enabling 2nd Machine Revolution

Pakistani-American Shahid Khan Richest South Asian in America

Two Pakistani-American Silicon Valley Techs Among Top 5 VC Deals

Pakistani-American's Game-Changing Vision 

Minorities Are Majority in Silicon Valley 

US Promoting Venture Capital & Private Equity in Pakistan

Pakistani-American Population Growth Second Fastest Among Asian-Americans

Edible Arrangements: Pakistani-American's Success Story

Pakistani-American Elected Mayor



Comments

Riaz Haq said…
#Pakistan Security Firms Ransomware. Intelligence Start-Up i-Sight Goes Behind Enemy Lines to Get Ahead of Hackers http://nyti.ms/1KkAiOI

On a recent Wednesday morning, 100 intelligence analysts crammed into a nondescript conference room here and dialed into a group call with 100 counterparts in Argentina, Brazil, Cyprus, India, the Netherlands, Romania, Spain, Taiwan and Ukraine.

As they worked their way around the room, the analysts briefed one another on the latest developments in the “dark web.”

A security firm in Pakistan was doing a little moonlighting, selling its espionage tools for as little as $500. Several American utility companies were under attack. A group of criminals were up to old tricks, infecting victims with a new form of “ransomware,” which encrypts PCs until victims pay a ransom.

The analysts, employees of iSight Partners, a company that provides intelligence about threats to computer security in much the same way military scouts provide intelligence about enemy troops, were careful not to name names or clients, in case someone, somewhere, was listening on the open line.

Within 30 minutes, they were all back at their keyboards, monitoring underground chatter and markets, analyzing computer code meant to cause harm, watching the networks of potential attackers and poring over social media channels for signs of imminent attacks.

For the last eight years, iSight has been quietly assembling what may be the largest private team of experts in a nascent business called threat intelligence. Of the company’s 311 employees, 243 are so-called cyberintelligence professionals, a statistic that executives there say would rank iSight, if it were a government-run cyberintelligence agency, among the 10 largest in the world, though that statistic is impossible to verify given the secretive nature of these operations.

ISight analysts spend their days digging around the underground web, piecing together hackers’ intentions, targets and techniques to provide their clients with information like warnings of imminent attacks and the latest tools and techniques being used to break into computer networks.

The company’s focus is what John P. Watters, iSight’s chief executive, calls “left of boom,” which is military jargon for the moment before an explosive device detonates. Mr. Watters, a tall, 51-year-old Texan whose standard uniform consists of Hawaiian shirts and custom cowboy boots, frequently invokes war analogies when talking about online threats.

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