It's no secret that mobile devices are experiencing a period of exponential growth. We already know that there are over 3 billion mobile accounts in use around the world and such growth will continue for the foreseeable future. Driving this trend is the improvement in features and applications offered on mobile devices, and their diminishing physical size. The iPhone has become an instant hit and is expected to sell 10 million by the end of this year. It is currently open to 3rd party application installations and by year's end or early next year, Google's Android, a mobile OS also open to developers, will also be released for mobile devices. Third party applications may seem to offer the perfect opening for security breaches and to be a nightmare for any IT professional whose company has employees using smartphones or other mobile devices, but manufacturers and outside companies are working hard to assure that they are safe. While mobile device manufacturers primarily take care of the security protection themselves they are getting help from third party manufacturers, such as the not-so-small Israeli embedded security solutions company, Discretix.
I recently had the chance to interview Discretix's Director of Corporate Strategy, Jacob Greenblatt, to discuss what exactly the company does to help secure mobile devices, what the trends in mobile security are and where the company sees itself and the industry in 5 years time.
LD: Can you give a brief background about what your company does?
JG: Sure. Discretix was founded in 2000 and is the largest single company in the world dedicated to embedded security. It focuses on consumer electronics products that are portable, such as mobile phones and mp3 players. Most mobile devices have limited resources due to the cost and as a result, a lot of memory can't necessarily be deployed. We provide security that meets the price point of the device. We are an INC 500 company and are one of the fastest growing private companies in North America. We own 33% of the market and have 100 employees. Manufacturers that include our security solutions on their devices include, SonyEricsson, Motorola, Samsung, Panasonic, SanDisk and a variety of other chip makers.
What are your main products?
Our two main products are CryptoCell and CryptoFlash. CryptoCell targets the mobile device market, such as smartphones, by securing all components of the device and its applications. CryptoFlash is for flash memory products, such as USB flash drives, mp3 players and ipods, and secures those components.
How are you funded?
To date we have raised 30 million in VC funding from Sequoia Capital, Pitango and Genesis.
Who is your main competition?
Our main competition is internally developed solutions from in-house teams dedicated to security and commercial companies. We also face competition from SafeNet which is US-based and the Department of Defense.
The increasing popularity of third party add-ons for mobile devices such as the iPhone, has been accompanied by a new host of threats and concerns among information security professionals. What specific threats do third party add-on applications pose?
In a mobile phone, the operating environment can be exposed to threats from third-party downloads that the user accepted. If it infects the device, it can prevent the user from making calls and the phone operator loses money. On the other side, if a user can't make calls, then it can't serve as a phone, and is frustrating for the user who needs to communicate. Rogue applications that are downloaded can alter certain areas of the phone, however, Discretix's embedded security provides a secure execution environment, in which applications are executed in a restricted area and can't stray. In a sense, it is in a bulletproof operating environment.
What are some of the current trends in mobile security?
Security is being included on more and more devices. We started out securing mobile phones, but have expanded to new markets, such as gaming, GPS and flash memory, to help them meet their security requirements. We are also seeing more sub terrains. People are downloading applications in a more open environment and new solutions need to address that.
There is also a heightened awareness against
device cloning, where a competing manufacturer will clone software onto
their device. In gaming, there is a desire on behalf of the the manufacturer and developers to prevent reproduction. They are also
driving their customers online to build a relationship with them and to offer them
promos. While they want to validate the gamer's identity, security is
needed to do that successfully.
How will the current economic climate help or hurt Discretix sales?
Given the current state of the world's economy, mobile phone manufacturers feel the pressure to cut back. Making a phone usually costs $100 and companies are responding in different ways. Motorola, which has experienced massive losses, is finding outsourcing security solutions to be effective, while Nokia is outsourcing its chip development. Overall, the current economy is offering compelling reasons for mobile device manufacturers to come to us as an outsourced solution.
What can we expect Discretix to look like in 5 years from now?
In 5 years from now we expect to be a security vendor for the new age of mobile devices and have company offerings for multiple markets. We would like to have hardware, middleware and software offerings and more application reach, looking to the development of security applications themselves, which would utilize the underlying infrastructure.
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In recounting Yahoo! President, Susan Decker's remarks in my last post, a few things made me think about the role that Israel will have in the future of the Internet. As mentioned in that post, the topic of the panel that Decker, Sergey Brin, Rupert Murdoch, among others participated on, was, "What is the future of the new Internet media?" 
(Note: Picture is of the stage before the panelists arrived.)
During the week of May 4, 2008, Israel turned 60 and a few technology companies announced that they will be featured "Enterprises of Tomorrow" during the Israeli Presidential Conference Facing Tomorrow taking place on May 13 to May 15, 2008. The Conference has been organized by Israeli President Shimon Peres and, as the title implies, will focus on the future.