Holiday Greetings From GTA

December 24, 2009

As another year draws to a close, we continue our struggle with a fitting holiday message.

Things have changed a great deal during 2009 and we expect no less in 2010.  We are confident that these changes will bring with them opportunities for those who have had the foresight, and good luck, to place themselves in the right spot and look forward with great anticipation to what happens in the coming year.

So, to all our friends and colleagues, have a safe and happy holiday season and best wishes for a prosperous New Year from GTA.

Christmas Trees in the Moonlight by Nancy Mueller


Gaming the System: Not All Search Engines Are Created Equal

December 10, 2009

Makers of search engines like to market themselves as smart, using the most intelligent technology to find the best websites on the Internet for users’ queries.  In a recently reported study, a security researcher showed how one provider, Google, proved itself to be head and shoulders above its competitors, at least in one specific aspect of search.

Most of us are familiar with the problem of phishing, whereby certain parties attempt to learn personal and private information about computer users, often for the purpose of perpetrating identity theft-related fraud.  One of the methods to gain access to this data is to direct unsuspecting users to malicious websites that appear to be legitimate business addresses.  These sites attempt to fool users into giving up their personal information, or they contain viruses that are down-loaded onto the users’ computers when visited, allowing outsiders access to sensitive data on the infected machine.  In either case, the success of the ruse depends upon tricking users into clicking onto the malicious website.

Using his knowledge of search engine protocols and how they rank sites, Jim Stickley, CTO and co-founder of TraceSecurity, an information technology security company, created a bogus website that looked as if it belonged to the Credit Union of Southern California, a real business that agreed to be part of the experiment.  Interestingly, Stickley found that his site received a number two and top rankings (even ahead of the genuine Credit Union site, in the latter case) on Yahoo and Microsoft’s Bing search engines, respectively.  In contrast, corresponding Google searches placed the bogus site no higher than on Page 6.  During the eighteen months that the fake website was in operation, more than ten thousand users clicked over to it.  Fortunately for them, Stickley’s experiment was not malicious and these users were redirected to the genuine site.

Search engine providers are famously secretive about how they process users’ queries, both for competitive and security-related reasons.  Yahoo declined to comment for the article.  Microsoft addressed the problem and subsequently removed the bogus Credit Union site from Bing’s search results.

This experiment provides another illustration of the never-ending cat-and-mouse game played between security officers and engineers and hackers.  A search quality engineer at Google described the process as a type of Internet “Whac-A-Mole” with hackers creating new potential vulnerabilities that pop up each time engineers address an existing one.  This rivalry drives continuing technology innovation and promotes the development of new products and services in the security and life safety industry.  Our interactions with large and established companies in this industry have shown us that they are always on the lookout for new technologies that have demonstrated a significant level of market acceptance and are willing to aggressively pursue those targets that meet their strategic needs.


More progress towards supercapacitors using carbon nanotubes

December 9, 2009

Single walled carbon nanotubes are kissing cousins to graphene, which we discussed back in March as part of one potential route to efficient energy storage.  Supercapacitors have the ability to rapidly store an electrical charge that can be released as needed.  Working in parallel with batteries, supercapacitors may outperform batteries alone.  This is potentially a disruptive technology that remains in its infancy.  One startup in this area we highlighted earlier is Graphene Energy.

One novel approach to supercapacitors that percolated to the surface this week is from Stanford University where Professor Yi Cui’s group in the electrical engineering department demonstrated supercapacitors built from carbon nanotubes, ink and paper.  Essentially, they have made ultra-lightweight and bendable supercapacitors in the form of everyday paper.  This work is a great example of rapid advanced development work going on at universities that once primarily emanated from the research labs of large corporations, with the added benefit that rapid dissemination of the process and results will inspire further progress, including fast followers in industry.


ARPA Fills Niche Alternative Finance Industry Cannot

December 8, 2009

Yesterday, ARPA (Advanced Research Projects Agency) announced a $100 million round of high-risk, high reward funding for novel projects in:

Electrofuels – Specifically seeks projects that use microorganisms to harness chemical (or electrical) energy to convert carbon dioxide into liquid fuels.

Innovative Materials & Processes for Advanced Carbon Capture Technologies – This seeks to develop technologies to capture carbon dioxide from coal-fired power plants, thereby preventing release into the atmosphere.

Batteries for Electrical Energy Storage in Transportation – ARPA seeks to fund ultra-high energy density, low-cost battery technologies for electric vehicles.

A nice summary of this by Wired, including commentary about some private companies in these areas is found here).

Why we particularly like this program is it represents a wonderful funding opportunity for ideas and teams that, frankly, venture capitalists would not touch with a ten foot pole.   Success in funding will be based on uniqueness and cleverness of the ideas, and not the business model, scalability, leverage or established market size.  There will be plenty of opportunity for fast followers or derivative business models based on the success ARPA sows; this funding should improve the flow of ideas to commercial ventures.


Sensor society taking shape; cellphones as the ultimate sensor network?

November 30, 2009

Sensors are a theme we return to often for two reasons; 1) photonic components are an important part of novel sensor/spectroscopy solutions and 2) this is a large addressable market for optical component manufacturers.  

The grand theme is that in a modern networked society, sensors are needed to provide the data for solutions to any number of societal ills such as pollution, security, traffic congestion, energy consumption and public health.  Over the past year, this theme has increasingly gathered attention as practical sensor solutions for broad deployment have emerged.  Building upon the biochip solution we highlighted last week, this week Jeremy Hsu at LiveScience.com has a great article discussing just such a broadly deployable solution.  Jing Li of NASA’s Ames Research Center has created silicon-based sensing chip containing 64 nanosensors capable of sniffing out low amounts of ammonia, chlorine gas and methane.  Added to commercial cellphones, these microsensor’s data are then broadly available through the existing communications infrastructure.

Bright ideas such as this are taking us one step closer to solutions to the identification and location of public hazards.


Not Caught On Video: Tasers in the News

November 24, 2009

As reported last week, an Arkansas police officer was suspended, not because he used a Taser on a ten year old girl (reportedly with the permission of the child’s mother), but because he did not record the incident with an attachable video camera. The report stated that the girl in question was ”violently kicking and verbally combative” when the officer attempted to intervene in a domestic dispute between her and the mother and the adults decided that a short shock from the stun-gun would be preferable, because forcefully trying to restrain the girl was more likely to result in injury to someone.  Accordingly, the officer applied “less than a second” of shock to the girl, handcuffed her and took her away.

According to the local police chief, stun-guns can help safely subdue people who are endangering themselves and/or others.  ”We didn’t use the Taser to punish the child — just to bring the child under control so she wouldn’t hurt herself or somebody else,” the chief said.  The officer was suspended for seven days, with pay, for violating the department policy requiring use of a video camera when operating a Taser.  The girl is being cared for in a local youth shelter.

We mentioned in an earlier post that Taser International recently introduced the AXON (Autonomous eXtended On-Officer Network), a video recording system that could be worn on the body and discussed how a pilot program in the United Kingdom that used video recorders in conjunction with stun-guns resulted in reduced claims of abuse against law enforcement officers and increased numbers of guilty pleas.  Recorders not only serve as a deterrent to stun-gun abuse, but also provide evidence that proper procedures were followed throughout the incident.

Mobile video systems have made strong in-roads into the transportation market, with a large number already installed in police and first-responder’s vehicles.  This article demonstrates the growing trend to push these technologies into man-portable, wearable systems as they become smaller and less expensive.


GE Security Picks Out a New Home

November 20, 2009

It was announced last week that GE had selected a buyer for its security business.  United Technologies agreed to purchase GE Security for $1.82 billion, where it will be integrated with UTC’s Fire and Security business.  The sale, approved by both boards, represents a multiple of 1.5 times GE Security’s revenues, which are expected to reach approximately $1.2 billion in 2009, and nine times EBITDA.  According to President and CEO Louis Chenevert, the acquisition will be neutral to earnings in 2010 and accretive in 2011 and beyond, after restructuring and integration will enable UTC to take advantage of synergies.

With this acquisition, UTC continues its strong push in the security and life safety industry and greatly expands the company’s geographic footprint.  UTC has traditionally had a strong presence in Europe, having previously acquired Chubb, Marioff and the Firex Safety Division of Invensys.  The takeover of GE Security gives UTC a much stronger presence in the North American marketplace.  In addition, when combined with the previously mentioned acquisitions, and Lenel, Carrier and Otis, this transaction continues UTC’s push to become a “one-stop-shop” supplier of building automation equipment.

We think this transaction is positive for the M&A environment in security and life safety.  While GE had significantly backed off its rate of acquisitions after the Edwards Systems Technology transaction, UTC has continued to be an aggressive buyer.  Furthermore, the announcement of the agreement to purchase GE Security signals bullishness on the part of UTC executives, who expect to see growth and profitability in this segment positively impacting financial performance in the near future.  Although they will undoubtedly take some time to integrate the GE business, we believe UTC will nevertheless continue to make selective acquisitions to fill in strategic niches in the security and life safety industry.

As a final note, this story may may not end with the closing of the GE Security purchase.  There is some speculation that UTC may seek to divest certain portions of the acquisition such as the video surveillance piece.


Biochip milestones starting to add up

November 18, 2009

Among the more attractive non-telecom applications for photonic components on the come for the past few years has been spectroscopy and bio-sensing.  This morning on the Seeking Alpha web site, Larry Dignan highlighted advances in biochips at IBM.   In relation to this, we think it worth noting that the commercialization of biochips and microsensors will likely prove to be a boon to the leading edge of novel photonic devices. 

IBM Biochip: Reference Luc Gervais and Emmanuel Delamarche, Lab Chip, 2009, 9, 3330 (www.rsc.org)

The fundamental needs of portable and rapid analysis leads to the conclusion that photonic systems capable of chip-scale measurement will be part of the commercialization for chemical detection, blood diagnostics and other health oriented sensing applications.  Put another way, if you’re going to broadly adopt lab-on-a-chip capabilities for speed, sensitivity and portability, you’re not going to be using a large separate spectrometer to read the results.  That defeats the purpose. 

While some applications can succeed with electronic sensing, many applications will require chip-scale interfaces for portable spectrometers or perhaps even wafer-level optics for sensing.  In the example cited above, the lab-on-a-chip outputs to a fluorescence spectrometer.   In the future, that fluorescent spectrometer will need to be of a similar scale to the biochip itself. 

This dictates miniaturized photonic solutions.  One example of this is being developed by seed-stage company NanoLambda.  Their ”Spectrum Sensor” chip is a plasmonic device, selecting predefined wavelengths to construct usable spectra for sensing. 

Alternately, systems may utilized fiber optical sensing solutions targeted at specific wavelengths of interest.  Among the photonic companies capable of supplying compact optical channel monitors today are BaySpec and Aegis Lightwave.  BaySpec in particular has made significant progress as a provider of spectrometers.


SUPERCALM 2009

October 23, 2009

Even though the exhibitor list had thinned substantially from prior years, it was hard to give up on attending SUPERCOMM 2009 after more than a decade of making the rounds.  I guess it’s like any conference, if you come away with one or two decent opportunities to pursue then it was a worthwhile trip.  We achieved that, so mission accomplished.

Yet we did ask ourselves afterwards whether this conference has a raison d’etre.  The exhibitor list is something that seems to have been in flux for the past five years.  CEOs no longer view it to be worthwhile being there for more than a day; kind of like us.  If you pick the wrong one, you’ll miss that meeting.  I guess most of the people we met were there on the chance they would encounter someone that be helpful to triggering a business opportunity.  That’s why we should be there, but the show seems to be reaching a point where more of us are asking ourselves why we are there.  An industry as substantial as the global telecom business should command more of your time, and send you home with more than a couple of leads.


Hot Dog: Adding Informatics and Intelligence to Your Heads-Up Display

October 20, 2009

Wired Magazine’s Autopia column this week featured “Go to the Dark Side With BMW Night Vision”.  This article discusses BMW’s use of far-infrared thermography to help interpret what is being imaged; because it scans for heat, it can identify people or animals to warn you. 

Example of BMW Night Vision (Source: Wired Magazine)

Example of BMW Night Vision (Source: Wired Magazine)

This brings up themes we have touched on multiple times, such as the use of disparate imaging technologies and wavelengths simultaneously for greater information, and the need to incorporate multiple informatics capabilities (such as GPS or data gathering) for practical benefits.  While your BMW may be able to warn you of a deer in the road up ahead, we look forward to the day when your heads up display will apprise you of fast food in your path.

In the future, vision systems will provide you with USEFUL information

In the future, vision systems will provide you with USEFUL information