Community Research and Development Information Service - CORDIS

H2020

DSTB Report Summary

Project ID: 666148

Periodic Reporting for period 1 - DSTB (Dyadic Secures The Breach)

Reporting period: 2015-04-01 to 2016-03-31

Summary of the context and overall objectives of the project

In DSTB, Dyadic’s Distributed Security Module is being developed and commercialized. It is a unique software-only offering that provides the highest level of security while being affordable and easy to deploy. In a nutshell, Dyadic prevents the theft of the cryptographic keys and authentication credentials that protect an organization’s assets and clients. This protection is achieved by splitting secret keys and credentials into multiple parts, and using them without ever bringing them to one place where they may be stolen.

The objectives of the DSTB include:
1) Product Research and Development: A key goal is to accelerate the product road map of Dyadic’s DSM technology.
2) Accelerate Growth: We aim to accelerate initial growth to a level where the company will achieve its specified objectives in 2016.
3) Enable Global Reach: We aim to enable penetration into new markets. This is being realized through recruitment of additional staff to enable successful market penetration, to attend the major trade shows in the US, Europe and Asia, and to build a social media based marketing campaign.

The outcome of DSTB will be a tool that provides high security to organizations and protects digital assets even in the event of a network breach.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The first year of DSTB was very productive and successful.

Dyadic DSM Security Architecture and Threat Analysis was prepared and completed on time. It describes the security aspects of the system architecture and the elements of its management necessary for security. Additional work has produced the first protocol design document update – the Dyadic Cryptographic Protocol Design Document Release. Basic public key protocol specifications and its subsequent update were reached on the specified milestones. Additional methodologies and protocols have advanced in their development, as planned.

The development of Dyadic’s core product, the Distributed Security Module, and a set of applications and APIs that allow usage of the core technology integrated with many applications and verticals has progressed as planned. The core DSM technology consists of implementations of the different secure-MPC protocols in all different required variants and parameters. DSTB been developing and extending the existing core to enable further applications and markets to be addressed. Within the first year, three versions of the DSM engines have been released on schedule, including the baseline release and two major releases, meeting the project milestones promptly.
Work on customer engagement has been one of the major focuses of Dyadic during the first year, and will continue in the coming years. For that, Dyadic hired sales and technical experts who are engage with partners and prospects by doing technical deep dive, demos and proposals.

Dyadic has invested much effort to engage with customers and sell its products through two major pillars. The first is distributors and value added resellers that bundle Dyadic's products within their services, and sell it to the customer corporates. Implementing this strategy, Dyadic has signed substantial worldwide prospect agreements with several value added resellers and Channels.
In addition, Dyadic has managed to acquire a handful of paying customers, and has established many active sales opportunities in DTSB’s first year. The major sales effort remains in the US, Germany and the UK, with initiatives also in other European countries, such as Italy.
The second major pillar of customer engagement is technological partnerships with companies that have complementary products. Dyadic has maintained efforts to collaborate in white label agreements with global leading software vendors. Dyadic is in process of discussions and evaluation with several major OEM candidates. As a result of numerous meetings with prospective customers, a substantial number of them are in advanced sales stages. We have now deployed several proof of concept, and it will take a few more months until more proof of concept demonstrations are set up.
All these customer engagement activities have met and surpassed the required milestone and the one which would only be due in six months.

Dissemination activities have also progressed as planned. A communication plan was prepared and delivered up to three months, and updated after the first year.
These dissemination activities include continuous presence in social networks, such as Twitter and LinkedIn, opening and continuous updating of the project’s website, participation in ten conferences, surpassing the initial commitment, several press releases, many interviews in the press and in professional meetings, and preparation of tradeshow materials. Indeed, Dyadic has created a substantial media and marketplace presence.

With the closing of this first very successful first year, we expect to proceed and accomplish the completion of the technological development of the DSM and its implementation in various proofs of concept and clients, as well as the expansion of the commercialization of the cyber security technology created in this exciting project and diverging into new markets in Europe and elsewhere.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

The game-changing product of DSTB is entirely beyond the state-of-the-art in concept and cryptographic design. Its impact will certainly be felt, because cyber-security attacks are growing, evolving and expanding and breaches of the safety mechanisms are continuously increasing. They are not confined to particular locations or industries, and wreak widespread havoc on all those who depend on the web. The danger of cyber-attacks has also become a reality for everyone.

Cyber-attacks can have diverse and far-reaching impacts on companies, most notably:
• Direct financial loss due to regulation in the cases of stolen identities and credit-card numbers.
• The exposure and loss of intellectual property and other sensitive and confidential business information.
• The use of stolen information for possible stock market manipulation.
• A general lack of trust for online activities.
• The opportunity costs, including service and employment disruptions, resulting from such attacks
• The additional cost related to securing networks post cyber-attack including insurance and recovery efforts
• Reputational damage to the hacked company

Dyadic's cutting edge product is thus relevant for a wide variety of industries and domains. Heavily regulated industries such as healthcare, financial, pharmaceuticals, and communications have a per capita data breach cost substantially above the overall mean. For this reason, Dyadic directs the majority of its marketing and sales resources to those specific segments, in addition to industries in education, defence, ecommerce and insurance.
In the first year of DSTB, the impact of the technology being developed has been demonstrated in four markets, Germany, UK, USA, and Israel, as seen from its acquiring of several paying customers and the recruitment of several global distributors. Other corporations have agreed on setting up proof of concepts because they have sensed that the activities of DSTB could impact their operations. All these customers and potential customers find DSM to answer their exact needs.

The impact of DSTB on Dyadic is apparent from the increase in manpower and customer engagement activities that were enabled. These activities impact the growth of the company in manpower and in income, a trend that has been noticed already in the first year of DSTB.

Related information

Record Number: 190038 / Last updated on: 2016-11-03