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The U.S. Shouldn’t Be Swayed by Mr. Khamenei’s Nuclear Threats: Washington Post, June 24, 2015 — Both U.S. and Iranian officials are hinting that a final nuclear deal may not be reached by a Tuesday deadline.
Israeli Army Builds a Desert Outpost—Tech Firms Follow: Orr Hirschauge, Wall Street Journal, June 5, 2015— A global tech hub is sprouting in the Israeli desert.
Meet the Israeli Companies Leading the Fight Against Cyber Attacks: Omri Zerachovitz, Ha’aretz, June 22, 2015 — In May 2014, Target CEO Gregg Steinhafel lost his job. This came a few months after the U.S. retail chain’s customer database was hacked.
Israeli Drought Aid Swings Into Action in California: Yitzhak Benhorin, Ynet, May 31, 2015 — As California continues into another summer of drought, Israeli aide to the world's seventh largest economy is finally becoming reality after years of negotiations and agreements with local water authorities, according to David Segel, the Israeli Consul in southern California.
The Iran Deal’s Fatal Flaw: Alan J. Kuperman, New York Times, June 23, 2015
Israeli Cybersecurity Chief Focused on Future Threats: Damian Paletta., Wall Street Journal, June 2, 2015
Israel Miraculously Becomes World Leader in Water! (Video): Israel Video Network, 2015
Expert: ‘Revolutionary’ Israeli Tech Featured in Apple’s New HQ: David Shamah, Times of Israel, May 28, 2015
THE U.S. SHOULDN’T BE SWAYED BY
MR. KHAMENEI’S NUCLEAR THREATS
Washington Post, June 24, 2015
Both U.S. and Iranian officials are hinting that a final nuclear deal may not be reached by a Tuesday deadline. And no wonder, judging from the speech delivered Tuesday by Supreme Leader Ayatollah Ali Khamenei. Iran’s ruler spelled out conditions that would make an accord impossible, short of a complete capitulation by the United States and its five partners. He rejected a long-term limitation of Iran’s uranium enrichment, curbs on its research and development and international inspections of military facilities, and he said all U.S. and United Nations sanctions must be lifted “immediately after the signing of the agreement.”
According to the Obama administration’s description of the preliminary settlement reached in April, Iran’s negotiators have already crossed a couple of those red lines; a 10-year limit on enrichment is at the heart of the prospective deal. Other Khamenei strictures, such as the ban on inspections of military bases, would make it impossible to verify Iran’s compliance.
It’s possible that the ayatollah’s speech was a bluff intended to improve Iran’s bargaining position. A more disturbing possibility is that Iran’s ruler is setting the precedent for disregarding a deal sometime after it is concluded and after the regime pockets the tens of billions of dollars in immediate financial relief it could receive.
Whatever the case, the Obama administration must resist the temptation to respond with eleventh-hour concessions. On the contrary, the compromises already struck in the preliminary accord make it essential that the United States insist on terms for inspections and timed sanctions relief that cross the Khamenei lines.
In its essence, the agreement would place an enormous bet that Iran will moderate its ambitions and lose its taste for nuclear weapons over the next decade. In exchange for restraining its enrichment and other nuclear work for 10 to 15 years, Iran would gain the lifting of almost all international sanctions, providing it with a revenue stream it could use to escalate the wars it is fighting or sponsoring around the Middle East. When the accord lapsed, Iran would immediately become a nuclear threshold state, with a breakout time “almost down to zero,” as President Obama put it.
For that risky bargain to be worthwhile, the United States and its partners must at the least ensure that Iran will respect the decade-long moratorium and will not secretly pursue a bomb, as it has in the past. That means that international inspectors must have the right to visit any suspicious sites quickly, including on military bases. It was at the Parchin military base that Iran was believed to have carried out work on military warheads, and U.N. investigators seeking to visit the site have been stonewalled for nine years. It’s essential that some sanctions relief be linked to the completion of their investigation of Iran’s past weaponization work so that there will be a baseline for judging future Iranian compliance.
Throughout the Iran negotiations, Mr. Obama has insisted that he is ready to walk away rather than accept a bad deal. In light of the Khamenei speech, the White House must be ready to act on that threat.
ISRAELI ARMY BUILDS A DESERT OUTPOST—TECH FIRMS FOLLOW
Orr Hirschauge
Wall Street Journal, June 5, 2015
A global tech hub is sprouting in the Israeli desert. Over the next decade, Israel’s army is moving a large portion of its offices—including those of many of its key technology commands—out of the greater Tel Aviv area and relocating them some 60 miles south, to this city in Israel’s rock-strewn Negev desert. Many of the world’s biggest tech companies are following, eager to stay close to the Israel Defense Forces’ tech-savvy workforce.
EMC Corp. , the U.S.-based data storage and cloud computing giant, set up shop in a new industrial park on the outskirts of town last year. It was one of the first big firms to open offices in Be’er Sheva, anticipating the long-planned army move. “The main reason EMC wants to be in Be’er Sheva is for access to talent,” said Maya Hofman Levy, the company’s site manager here. “It’s a place the company looked at and thought it would be good to be at [for] the long run, seeing what is being formed here.” Neighbors now include Deutsche Telekom AG , Lockheed Martin Corp. , Oracle Corp. , and International Business Machines Corp. In March, eBay Inc. ’s PayPal unit bought cybersecurity startup CyActive Ltd., which is based in Be’er Sheva.
An unfinished pedestrian bridge links the new corporate office park with a nearby train station. Morning shuttles are already operating between the train station and the office park to save workers the 15-minute walk in temperatures that can reach as high as 115 degrees Fahrenheit during the summer. On the opposite of the tracks sits the campus of Ben-Gurion University of the Negev. The university has teamed up with Deutsche Telekom for more than a decade building up an expertise in cybersecurity. The Israeli government will launch by year’s end a new National Cyber Event Readiness Team, which also will be based at the office park. Its aim is to research possible cyberattacks on Israeli organizations and companies and coordinate response.
The corporate campus, currently made up of just two dark-glass buildings, is near hilly, desert terrain that once served as an Israeli army orienteering training ground. Gav-Yam Negev Ltd., the office park’s closely held developer, sees the number of office buildings increasing to between 15 and 20 within a decade. Currently, around 1,100 people work at the site. Gav-Yam expects that number to grow to 10,000 employees by 2025.
About half of the $5.9 billion budget allotted by the Israeli government for the army’s move will go to building technology and communications infrastructure, including plans for some of the army’s biggest data centers. Many of the international firms opening new offices in Be’er Sheva are hoping to get a piece of that build-out. “It was natural for us to pick Be’er Sheva because of the ecosystem being formed there by the army, the industry and the university,” said Shelly Gotman, managing director of Lockheed Martin’s newly registered Israeli unit.
Others are setting up offices in the city to stay close to the army’s rank and file. The military plans to move some 20,000 soldiers into several bases, one of which will be a campus of low-slung office buildings and new barracks by 2021. Most of those first arrivals will be serving in Israel’s elite technology, intelligence and communications units, including Unit 8200, the Israeli equivalent of the U.S. National Security Agency.
Israel’s mandatory, two- to three-year conscription means that many of its brightest young minds end up doing stints in those units. Those young men and women are highly sought-after by Israeli and international technology firms. Following army postings, many of them have started their own businesses. For example, Check Point Software Technologies Ltd. , Palo Alto Networks Inc., and NICE Systems Ltd. were founded by veterans of such units. That pool of experienced talent has been a huge factor in Israel’s startup ecosystem. “Startups are missions, mission after mission,” said Saul Singer, co-author of 2009 book “Start-up Nation,” about Israeli innovation.
Keeping that workforce comfortable is a priority, especially when many of the soldiers will be uprooting from Tel Aviv’s lively tech scene. “We need to be able to supply them with a quality of life worthwhile for them to relocate,” said Col. Miri Maoz, who commands the administrative unit managing the transition for the Israeli intelligence corps. “In terms of size it would be like relocating a town.”
Amid the army’s move, the city’s name is getting something of an upgrade. Employees in the new office park have started replacing the city’s biblical name, which goes back to stories about Abraham and Isaac, with the sleeker “B7.” The Hebrew word sheva means seven. “It’s better for branding,” said Doron Davidson, chief executive of SecBI Ltd., a cybersecurity startup working in a startup incubator based in the office park.
MEET THE ISRAELI COMPANIES LEADING THE FIGHT
Omri Zerachovitz
Ha’aretz, June 22, 2015
In May 2014, Target CEO Gregg Steinhafel lost his job. This came a few months after the U.S. retail chain’s customer database was hacked. The details of some 40 million credit-card holders were stolen, along with personal information on tens of millions of other customers. Steinhafel may have received a golden parachute worth some $27 million, but he’ll be remembered as the first CEO of a major firm forced to resign because of a cyber attack.
Quite a few other cyber incidents have hit the headlines in recent years. Another well-known case involved the hacking of Sony and the theft of its movie “The Interview” before the film was even released to the theaters. Other famous cases included the hacking of Apple’s cloud services and the theft of naked pictures of famous actresses. But these incidents are just the tip of the iceberg. Cyber experts believe the past 12 months marked a change in direction concerning the seriousness of cyber attacks – as well as the importance of the global information security industry, which is trying to defend against such attacks. As a result, these firms have been called on to develop ever more sophisticated technology.
In the past, attackers would generally focus on breaking through the outer security perimeter. Today, many of them have much more sophisticated methods of attack, reminiscent of well-planned military operations. The hackers identify weak points, penetrate the network with a low level of intensity, collect more and more information, make their plans – and then strike.
In the case of Target, it was credit-card data. In other cases, the attacks can be for purposes such as industrial or government espionage, stealing money or shutting down operations of both private and government organizations – whether for business or ideological reasons. This rise in awareness and demand for cyber security has helped lift the share prices of many companies that operate in the industry – a few of which are relatively old-timers.
The best-known is Check Point Software Technologies, an Israeli firm founded by Gil Shwed, Marius Nacht and Shlomo Kramer. Check Point has a market capitalization of $15 billion. Another large Israeli firm in the sector is CyberArk Software, whose CEO is Udi Mokady. CyberArk has a market cap of $2.2 billion, after its IPO last September.
Israel is considered to be an international cyber superpower, and is trying to brand itself accordingly. Check Point was founded by three newly released Israel Defense Forces veterans who specialized in information security. It was among the very first companies in the world to develop software to protect computer networking – including some of the earliest firewalls – and was a great success from almost the get-go. Many other Israeli companies were established in its wake, some by people who had previously worked for Check Point itself.
The information security market is estimated to be worth some $60 billion a year. Israel’s National Cyber Bureau in the Prime Minister’s Office estimates that Israeli companies hold a 10% share of the global information security market. Many firms whose operations were never historically in the security field are now expanding their presence into the industry. For example, Verint – whose main business was in intelligence systems for military and government institutions – decided to expand its operations in the cyber industry into civilian markets. Elbit Systems, which develops military systems, also established a subsidiary named Cyberbit, which has bought the cyber division of NICE Systems.
The growth of the cyber industry has attracted a huge number of investors. This demand led to the creation, last November, of the first Cyber Security exchange-traded fund (ETF), which tracks an index of 31 stocks. “The fund seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the ISE Cyber Security Index,” states PureFunds, the company behind the ETF. The ETF is traded in New York under the symbol “HACK.” Since its launch seven months ago, it has risen some 30% in value. The ETF includes a number of Israeli cyber firms, or some that are identified with Israeli entrepreneurs: Check Point Software Technologies, Imperva, CyberArk and Palo Alto Networks. These firms make up about 22% of the value of the ETF, even though they represent only some 10% of the total market cap of the companies included in it.
A few of the firms in the ETF are not pure cyber companies, and only some of their products and operations are in the sector (for example, Juniper Networks, Cisco and Radware). The Israeli companies included in HACK are traded on the New York Stock Exchange or the Nasdaq – but none of them trade on the Tel Aviv Stock Exchange.
Check Point was founded in 1992, and its first development was the firewall to protect organizations from outside attacks. It became a standard for large companies and organizations, and 98% of all Fortune 500 companies use it today.
Over the years, the company has moved into other security products, especially modular ones that allow it to sell more to existing customers – such as its Software Blades. It recently bought Hyperwise, an Israeli startup, and has also moved into mobile security over the past year, which should be another growth engine. It also bought another Israeli startup, Lacoon Mobile Security, which had developed technology for identifying infections on smartphones and the leak of sensitive information from organizational networks.
The firewall is still Check Point’s core business. Over the past five years, its shares have shown an average annual return of 22%, with a present market cap of $15.2 billion. Revenues grew 9% in the first quarter of the year to $373 million, and net profits hit $171 million. The company has $1.3 billion in cash-on-hand, after buying back some $4 billion of its own shares…
[To Read the Full Article Click the Following Link—Ed.]
ISRAELI DROUGHT AID SWINGS INTO ACTION IN CALIFORNIA
Yitzhak Benhorin
Ynet, May 31, 2015
As California continues into another summer of drought, Israeli aide to the world's seventh largest economy is finally becoming reality after years of negotiations and agreements with local water authorities, according to David Segel, the Israeli Consul in southern California.
"We signed an agreement with Los Angeles, a city of seven million residents, on the subject of green technologies, we're bringing water specialists from Israel for discussions with legislatures and we're conducting conference calls with experts in Israel," said Segel. "In the next few days we expect to sign an agreement with the municipality of Beverly Hills."
While Israel's water is mostly managed by one administrative company called Mekorot, thousands of small water districts form a complex web of administration in California, meaning that Israel has had to work out the details of separate agreements from across the State before work could begin. According to Segel, several Israeli technology companies are already on the ground competing for tenders. "We're accelerating the entry of Israeli companies and Israeli products," said the consul. "We're going from district to district. There's a race to find water technology and our presence increases the chance of Israeli companies (having a part in) the fields of recycling, desalinization, and saving water."
The Israeli desalination company IDE has been awarded the tender for the operation of the largest desalination facility in the Western hemisphere, to begin operation starting this fall in southern California, and supply 10% of San Diego's water consumption. Santa Barbara is also planned to sign a cooperation agreement with the Israeli company.
The presence of Israeli companies in local environments brings additional benefits in the realm of politics and international relations as well. This is a rare opportunity to strengthen ties with members of congress not only in Washington, but in their homes," said Segel. "American citizens aren't interested in the Middle East, but they are interested in safety, cyber, energy, water, farming, and health. State governors come to Israel and find economic opportunity. The path is to connect to America in 50 states with 50 governors in areas that Israel can help them so that Americans will understand Israel's importance in everyday life."
Besides desalinization, one of the main technologies that Israel has been trying to introduce in California is known as "gray water" – water from showers, sinks, and washing machines – that is diverted in Israel to water gardens and parks. While there has been resistance in the US to this initiative in the past, new legislation has opened doors for Israeli companies with this technology to take hold and develop. After years during which the Sea of Galilee remained threateningly empty, Israel became a world leader in recycling water. Some 90% of farming water in Israel is recycled water while California's farms use mainly clean water suitable for drinking.
Some 40 million Americans call California home, and the state is currently struggling through its worst drought in recorded history. Officials are in hysterics over the sudden water crisis and California's Governor Jerry Brown ordered that residents and small business owners cut back on water usage by 25%. Those who are judged to be wasting water unnecessarily now face fines that can reach up to $10,000. While residents are quickly tearing out the green grass from their front lawns for synthetics and drought resistant plants, the future of California's massive parks and golf courses that rely on heavy watering are less certain. All of America is worried, and not only for California's grass.
The state grows more than a third of America's vegetables and two thirds of the country's fruit and nuts. For most American's, and indeed for many around the world, the persistent drought means a severe rise in food prices.
The Iran Deal’s Fatal Flaw: Alan J. Kuperman, New York Times, June 23, 2015 —President Obama’s main pitch for the pending nuclear deal with Iran is that it would extend the “breakout time” necessary for Iran to produce enough enriched uranium for a nuclear weapon.
Israeli Cybersecurity Chief Focused on Future Threats: Damian Paletta., Wall Street Journal, June 2, 2015—Israel’s top cybersecurity official said the country has launched a comprehensive strategy to prevent increasingly sophisticated computer attacks, warning that Iran and terrorist networks could greatly expand their capabilities in the next three to five years.
Israel Miraculously Becomes World Leader in Water! (Video): Israel Video Network, 2015
Expert: ‘Revolutionary’ Israeli Tech Featured in Apple’s New HQ: David Shamah, Times of Israel, May 28, 2015 —Like with everything else it does, Apple is expected to rock the architectural world when its new California headquarters opens for business next year – raising the fortunes of the Israeli glass technology firm that is playing a central, if indirect, role in the construction of one of the world’s most innovative buildings ever.
