Steve Shah's Blog
Complexity and Revenue

DDoS is an interesting problem. It fits the criteria that appeals to nerds: big, complex, and not intuitively solved. The black hat and "BFG" factor makes the topic even more appealing. Stories like this (http://www.securityfocus.com/brief/203) fuel the fire.

The irony of DDoS is that despite it being perceived as a significant problem by nerds, most enterprises don't see it quite the same way. Don't get me wrong -- they know it's a bad thing, but like a lot of folks that don't understand why the privacy "nuts" are so "nutty", most enterprises don't see why they would be a target. (I happen to disagree with their assessment, but I'll spare the sales pitch.)

The result is a market that has more than a handful of DDoS solutions which makes supply far exceed demand. The guys that don't get bought and integrated into something more functional end up going out of business or changing their approach to the market.

Despite this, interest from nerds in DDoS will continue and new products will be introduced. I find this behavior by itself interesting -- many nerds too tightly associate big dollars with big/complex problems. Unlike academia where harder equals higher grade/bigger degrees, business doesn't always connect dollars to complexity. My run in with baby products is proof of this -- a Diaper Genie is a simple device that keeps the odor of "used" diapers from polluting a room. Including all of Playtex's infant care products (bottles, etc.) you have a $170M business.

Mr. McGuire: I want to say one word to you. Just one word.
Benjamin: Yes, sir.
Mr. McGuire: Are you listening?
Benjamin: Yes, I am.
Mr. McGuire: Plastics.

-The Graduate

I can tell you with confidence, Playtex's baby products (the division, of one company), nets more revenue than all of the company's DDoS products combined.

Things that make you go hmmmm...


Posted: Tue May 9 10:52:13 2006
"Steve Shah Blog", because Google can't read alt tags.