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Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - Ammune (Mitigating botnet DDoS attacks with an artificial intelligence powered solution)

Teaser

Summary

\"L7 Defense Luxembourg SARL is a commercial company that is registered in Luxemburg with the number B. 216222, the company was founded on July 2017 to promote L7 Defense Ammune technology across all EU and become the European HQ.
L7 Defense Luxembourg SARL approached HO2020 SME phase1 at 2018 in order to evaluate the demand for a new web security technology that can face the emerging AI (Artificial intelligence) based attacks, during the project we were brainstorming on the strategy and planning the EU market penetration for the upcoming years. After meeting more than 35 enterprise companies we were able to conclude: the customers were lacking of automation tools that impacts their TCO (total cost of ownership) for existing products and demand many hours of human intervention to keep updating and configuring the systems this impacts dramatically the security expenses per organization. L7 Defense approach of Unsupervised ML capabilities that is based on the Immune system to protect fully autonomously on the online assets was welcomed in two hands both , therefore we partnered with 3 local channels in EU to execute the business plan. We are assure that it\'s the right time to grow L7 Defense market share in EU and make the companies secured again. L7 Defense received the award recognition from Frost & Sullivan the best practice anti DDoS 2018 and this supports the credibility by customer\'s decision makers. We are fully committed to the success in the EU market efforts.
The Rising Threat of Automated AI Attacks According to security industry specialists,1 an overwhelming number of cyber attacks are automated, while the human hacker going after an individual target is far rarer. The preferred approach by malicious actors is to automate as much of the attack as possible with everything from scripted Distributed Denial of Service (DDoS) attacks to ransomware, criminal chatbots, and so on. Artificial Intelligence and Machine Learning techniques are being used to produce complex and highly targeted scripts at a rate and level of sophistication far beyond any individual human hacker, adding additional layers of sophistication to the rapidly growing IoT- botnets2 being used to generate such attacks.
The AI Defense Requirements The adoption of AI and ML techniques to defend against these threats sets the stage for 2018 to be the first year where we will see \"\"AI versus AI\"\" in a cybersecurity contexts. For a defending AI/ML system to be truly valuable and effective, it should not require extensive upfront training or rules development and should eliminate the need for any human intervention in the mitigation process. At the same time, an effective system must hold the rate of False Positives near zero to allow the optimal flow of desired traffic.
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Work performed

Description of work:
Task 1.1: Market analysis (lead: Yisrael Gross)
â€¢ Demonstrate the solution to 25+ customers and partners, elicit feedback and additional requirements - We scheduled 30+ meetings with potential customers and partners and received great Feedback and demand for the DDoS and WAF solutions based on the Ammune technology
â€¢ Collect profiles and examples of DDoS attacks encountered for testing Ammune against them â€“ We completed the research of the type of DDoS attacks that L7 Defense can provide the best solution (Application attacks) and validate the need with the potential customers
â€¢ Prioritize customers within each segment (e.g. small vs large data centers or specific verticals)- From the research we did the focus should be on the 2nd tier of Finance and telco as they have the need, budget and the process can be several month rather than a sale cycle of 9-18 months.
â€¢ Recruit 5+ customers for phase 2 trials and identify 1 â€œstarâ€ case (similar to Brian Krebs) where the solution can be provided at a very small fee (or free) against publicity- Done

Task 1.2: Cost-benefit analysis (lead: Doron Chema)
â€¢ Collect detailed information about the costs of DDoS attacks across the 3 target segments â€“ estimate the average cost of a cyberattack at $1.1M. For those organizations that calculate (versus estimate) the cost of an attack, that number increases to $1.67M. The top impact of cyberattacks, as reported by respondents, is operational/productivity loss (54%), followed by negative customer experience (43%). What\'s more, almost half (45%) that the goal of the attacks they suffered was service disruption. Another third (35%) said the goal was data theft.
â€¢ Collect information about the economic impact of DDoS attacks and quantify the added value of Ammune Application-layer attacks cause considerable damage. Two-thirds of respondents experienced application-layer DoS attacks and 34% foresee application vulnerabilities being a major concern in the coming year. More than half (56%) reported making changes and updates to their public-facing applications monthly, while the rest made updates more frequently, driving the need for automated security.
â€¢ Produce business case / white paper to raise awareness around the solution benefits -DONE

Task 1.3: Willingness to pay analysis (lead: Yisrael Gross)
â€¢ Conduct in-depth interviews with 25+ prospects across the 3 target segments -DONE
â€¢ Collect detailed pricing information about the competition -DONE
â€¢ Validate the current pricing model against the 3 segments and fine-tune pricing packages We developed L7 Defense pricing model

Final results

L7 Defense solution is recognized as the best practice award for DDoS mitigation by the Frost & Sullivan report for the year 2018,
we aim to save the economy from DDoS attacks and help the digital transformation expand, Furthermore we are hiring local partners and employees in EU to work with us.