Hacker think tank merges with security start-up

By Matthew Schwartz
Computerworld, 01/07/00

L0pht Heavy Industries Inc., a Cambridge, Mass.-based hacker think tank, has thrown its "gray hat" into the start-up ring. The group announced it will merge with @Stake Inc., a Cambridge, Mass.-based security firm.

Former CEO and chief scientist of L0pht, who goes by the name of Mudge, worked to dispel any notions that the business venture was counter to L0pht's previously public-service ethos.

"One of the ways @Stake approaches this business is with complete vendor neutrality," he said. "@Stake doesn't take any commissions for pitching or selling or using a particular product. Look at it as the Consumer Reports of the industry, if you will. This is all we do. We're not one of the Big 6 firms," he said, referring to commissions large consulting firms sometimes get for suggesting the products or services of its partners.

@Stake will provide security offerings tailored to e-commerce, said Ted Julian, vice president of marketing and business development. "The Internet and e-commerce have fundamentally changed how firms need to approach security," he said. "For the past 15 years, companies have been reasonably successful by putting in firewalls and just battening down the hatches. But in today's 'inverted economy,' it's all about openness." Today, companies must figure out how to remain secure while opening some systems to partners.

Furthermore, @Stake said it will remain as doggedly neutral as L0pht. Though it may work with consulting firms to lay a security infrastructure before further systems integration work takes place, "any [such] partnerships with vendors will be referrals-no commissions," said Julian, a former analyst at Forrester Research Inc.

Besides finding talent from L0pht and Forrester Research, the company includes people from companies such as Cambridge Technology Partners Inc., Compaq Computer Corp. and Open Market Inc. To date, the firm has received $10 million in initial funding from Cambridge, Mass.-based Battery Ventures, which recently engineered the successful initial public offering of Cambridge, Mass.-based Akamai Technologies Inc.

Mudge said his new role as vice president of research and development at @Stake will allow him to eschew the sales and marketing angles of the business in favor of "high-end, bleeding-edge work." Has his organization's hacker roots biased any potential clients against @Stake? Not at all, he countered. "Senators Lieberman, Thompson and Glenn called us patriots," he noted, in regard to the work L0pht did. When going into organizations, he said, "it's turned out to be a wonderful springboard."