It’s not a cybersecurity incident, but a glaring issue with cybersecurity today — dependency.

CrowdStrike is currently facing multiple lawsuits following the July 2024 outage. Angry customers are seeking compensation for extensive disruptions and financial consequences incurred due to the incident. Its widespread impact has also resulted in a class action lawsuit being filed against the company for negligence.

Although the issue was reversed within 79 minutes, the recovery process was complex and time-consuming. A quick fix was not possible here.

The incident begs the question: how reliable and stable are software security solutions in keeping us protected at all times? When the reason for acquiring software security is to enhance your operations and protect your organisation, organisations can ill-afford disruptions coming from the security provider.

As the dust settles, cybersecurity experts must advocate for a change in how organisations approach risk management and security solutions. While this event was not a cyberattack, it has underlined the vulnerabilities in software-dependent security measures and the need for a more holistic approach to cybersecurity.

The possibility of disruptions resulting from software defects or update problems becomes a major issue as companies depend more and more on software solutions to guard their digital assets. The CrowdStrike outage, which led to widespread crashes of specific Windows systems, is a stark reminder of the delicate balance between security and operational stability.

Limitations of software-based security

Blue Screens of Death (BSOD) and system crashes following software updates are not unique to this incident. In a separate incident that same month, Microsoft users reported that their computers were crashing every 30 minutes following a security update.

These incidents raise important questions about the architecture of security solutions and the potential benefits of diversifying cybersecurity strategies. While software-based security remains important for detecting known threats, the need for integration and complex layering of software systems creates a labyrinth of potential challenges. The interdependency that is characteristic of the software ecosystem means that countless entry points and vulnerabilities become interlinked, allowing multiple points of disruption and long recovery times.

Also Read: Embracing AI evolution: The crucial role of data management and cybersecurity in AI success

The promise of intelligent hardware-based security solutions

Running counter to such issues, hardware-based security solutions have unique benefits. From the silicon level, they operate independently from the software layer and can provide an additional line of defence without interfering with core system processes. This independence is particularly useful in instances where software vulnerabilities or update issues might compromise the integrity of the security system itself.

Just as an external auditor reviews a business’s processes without disrupting or complicating its operations, ideal security solutions should integrate seamlessly to maintain the functionality and workflow of existing systems while providing robust protection.

Moreover, integrating Artificial Intelligence (AI) into hardware-based security solutions presents exciting possibilities for addressing one of the most significant challenges in cybersecurity: zero-day attacks. Unlike traditional software solutions that rely on known threat databases, AI-powered hardware security operating at the hardware layer does its work in an engineered enclave environment. This gives it the potential to identify and respond to new and unknown threats in real-time without the need for constant human updates.

Encouragingly, the concept of non-disruptive security measures is gaining traction in the cybersecurity community which has long relied on software solutions as its main line of defence — but it needs to move faster.

Digital transformation and cybersecurity challenges

The need for robust and adaptable cybersecurity measures is particularly dire in regions experiencing rapid digital transformation, such as the Asia-Pacific (APAC). According to IDC, Asia-Pacific is leading the charge in digital transformation spending growth, with an expected 18.9 per cent increase in 2024, outpacing North America (15.7 per cent), Europe (13.6 per cent), and Latin America (11.3 per cent).

This accelerated pace of digital adoption in Asia-Pacific presents both opportunities and challenges. As organisations in the region embrace new technologies at a faster rate than their global counterparts, ensuring the security and stability of these systems becomes increasingly critical and complex.

Also Read: How Flexxon aims to solve AI’s cybersecurity problem through hardware-focused approach

The rapid digital transformation in Asia-Pacific also correlates with higher cybersecurity risks. In 2023, the World Economic Forum reported that the average number of cyber attacks per organisation in the APAC region is approximately 47.04 per cent higher than the global average. This higher incident rate shows the urgent need for more advanced cybersecurity measures in the region as it continues to lead in digital transformation.

This reality highlights the need for a more holistic approach that combines the strengths of both hardware-based and software solutions. As we move forward, it’s clear that the future of cybersecurity lies in this balanced hardware-software approach.

A call for a holistic approach

The CrowdStrike outage should be a wake-up call for organisations worldwide. It shows the urgent need for diverse security strategies and innovative solutions that can operate independently of core system processes. Organisations can build more resilient systems capable of withstanding future cybersecurity challenges by adopting a holistic approach that combines the strengths of software and hardware-based security measures. Integrating AI-powered hardware security into existing cybersecurity is how we get the robust, adaptive, and non-disruptive security that we all need.

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Rei Murakami Frenzel, the second daughter of Yoshiaki Murakami, founder of Japan’s Murakami Family Foundation, has teamed up with Felix Frenzel (former Investment Manager at Antler) to launch Kadan Capital in Singapore.

Also Read: Healthtech, edutech dominated SEA’s funding scene in past 5 years: Tracxn

Kadan, which means ‘decisive, determined’ in Japanese, seeks to invest in early-stage companies in Asia with sufficient evidence of product-market fit and significant rapid growth potential.

The target verticals are fintech, SaaS, and Artificial Intelligence across Southeast Asia (mainly Singapore and Indonesia), Japan, and the Middle East (primarily the UAE and Saudi Arabia).

The ticket size is US$500,000 to US$1 million.

“We believe now is the right time to back a new wave of ventures in Asia and beyond,” Kadan Capital said in a statement. “As active investors, we are committed to supporting visionary entrepreneurs with the boldness and conviction to drive meaningful, positive change in the world.”

“We go beyond providing capital; we are long-term partners offering strategic insights, resources, and a powerful network to help transform high-potential ideas into industry-defining successes,” the company added.

Singapore’s early-stage VC space is vibrant and rapidly growing, driven by a strong startup ecosystem, government support, and strategic location in Southeast Asia. The city-state is home to numerous VC firms that focus on seed and Series A funding for startups in sectors like fintech, AI, e-commerce, and deep tech.

Also Read: Funding into SEA’s female-led startups falls 42% to US$480.8M in 2023: Tracxn

Government initiatives like Startup SG and tax incentives have bolstered investor interest, while incubators and accelerators provide additional support to entrepreneurs.

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Tokenize Xchange (Tokenize), a digital asset exchange headquartered in Singapore, has secured an undisclosed strategic investment for its mainnet, Titan Chain, from digital entertainment, blockchain, and gamification company Animoca Brands.

As part of the deal, Animoca will support Tokenize through market-making and node validation, assist in listing Tokenize’s TKX token, and explore partnership opportunities with Mocaverse and other projects.

Cryptocurrency market dynamics: Insights into supply, demand, and regulatory influences

This partnership will facilitate the development of new blockchain-integrated products, particularly in gaming and digital collectibles. At the same time, Animoca’s role as the lead validator for Titan Chain will bolster security and efficiency.

Hong Qi Yu, CEO and founder of Tokenize Xchange, commented: “This investment from Animoca Brands into Titan Chain marks a pivotal moment for the entire Tokenize ecosystem. This partnership will significantly enhance our ability to innovate across DeFi, GameFi, and NFTs, solidifying Tokenize’s position as a leader in the digital asset space.”

Tokenize Xchange offers a secure, user-friendly platform for trading various cryptocurrencies, serving individual and institutional investors. It operates under regulatory exemptions from the Monetary Authority of Singapore as well as a full Digital Asset Exchange license from the Securities Commission Malaysia (SC).

Titan Chain is built on the Cosmos SDK, offering full EVM compatibility and seamless Ethereum interoperability. It addresses high transaction fees, scalability issues, and limited interoperability in existing networks.

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The exchange recently raised a US$11.5 million Series A extension round.

The blockchain market is projected to reach US$1,431.54 billion by 2030, according to Grand View Research.

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It’s starting to feel like every product has an ‘AI-powered’ badge slapped on it. However, the SEC put its foot down earlier this year, charging US$400,000 for the false claims made by two companies.

“AI washing” is not only misleading, but it also undermines the perception of AI-first products and leads to disappointment among customers and investors.

Understanding the difference between AI-enabled and AI-native solutions helps clarify competitive edge, scalability, and market positioning. While AI-enabled solutions focus on enhancing existing products and may appeal to a broader customer base with a more familiar offering, it’s essential to understand the constraints to scale regarding incompatible data sources and legacy limitations. 

Let’s decode the jargon, find out how to spot AI that delivers, and ensure you get what it says on the label.

AI-enabled solutions

Beginning as conventional technologies, AI-enabled solutions are those that later integrate AI to boost performance. 

For example, HubSpot integrates AI to automate tasks like email scheduling and lead score predictions, enhancing its CRM functions. While Netflix uses AI to personalise show and movie recommendations, transitioning from a standard digital platform to one that leverages AI to analyse viewing habits for better suggestions.

What these companies have in common is, although not AI-native, they are digital-native. Both companies have accumulated vast amounts of user data over decades, fueling their AI engines. Netflix has viewing history, ratings, and metadata, while HubSpot has customer interactions, marketing data, and sales information. They have also invested heavily in AI talent.

When looking for AI-enabled companies to invest in, it’s crucial to ensure they have clear goals for their AI initiatives and are prepared to keep developing. Netflix invests 10 per cent of its revenue into its technology and development budget.

Also Read: Embracing AI in Southeast Asia: The strategy for avoiding cost overruns

What specific problem has your prospect investment identified that AI can solve? Are they continuously investing in their AI journey, or do they see it as a one-time project? AI initiatives must constantly evolve and adapt with their user base, so you must ensure your AI-enabled ventures have an agile culture to allow for rapid iterations.

AI-native solutions

Since AI-native solutions are built from the ground up using AI, they inherently offer more sophisticated capabilities. This means they have the elasticity to scale, deliver high performance with minimal resource consumption, and are designed for continuous AI advancement — they are positioned at the forefront to reap the benefits of rapidly evolving technology.

However, since these market disruptors often pioneer new fields, redefining industry standards, they come with a price tag and notable uncertainty.

Look at OpenAI’s GPT models. Its products are fundamentally AI, constantly advancing their ability to understand and generate text. Altogether, VCs have put in just over US$300 million at a valuation of US$27 billion – US$29 billion.

Similarly, Waymo is designed to utiliSe AI for navigating and making decisions, functioning as a fully integrated AI system rather than just a car with AI features. The autonomous ride-hailing service raised US$2.5 billion in its second round of funding.

Some of the smaller players looking to compete in the market often use third-party technology, like OpenAI, to address a specific lucrative use case. Labeled thin wrapper startups, these AI founders take existing technology and add their own unique value proposition — like Salesforce did with Oracle database.

The important part is to ensure your prospective startups keep listening to their audience, iterating their products, and confirming they solve a painful enough problem so that, over time, they can become thick wrappers with strong defensibility instead.

Wrapping up

In essence, most startups can’t compete with ChatGPT. Ninety percent of AI startups fail, most commonly due to a lack of market awareness, funding, or expertise. Jasper AI is an example of this, as its revenue and valuation crumpled after the source, OpenAI, released ChatGPT, a model that did precisely the same thing. 

Also Read: One-third of Singaporeans never used AI tools in their workplaces: Survey finds

You must check whether your prospective AI-native startups solve a big enough problem, but more importantly, ask yourself: Do you believe in them? If you do, enquire about their business model. Is a focused strategy in place to meet achievable objectives? Have they got the right expertise? And what evidence do they have to show they can pivot if needed?

The fundamental nature of the space right now is that everyone is excited by AI, but we’re just coming to the tail of last year’s AI explosion, where many AI-enabled projects or AI-native startups that don’t have a strong enough use case or market won’t survive.

Only those that grow and meet revenue targets will retain their spot in the field. Startup ‘down rounds’ are often some of the first triggers that reduce investor confidence, and the loss of competitiveness or ability to meet growth targets is likely to impact employee and founder morale.

Choosing what companies to invest in requires careful consideration. But the results can be highly lucrative. Do you play safe and invest in renowned companies? Or is their market maturing? And what is their track record with implementing emerging technologies? Sometimes, after all your analysis, it’s about taking a leap of faith and trusting your gut.

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In the dynamic world of construction, BuildHub stands out as a modern and innovative online marketplace. Our mission is to streamline connections between hardware stores and construction suppliers across the Philippines, making it easier for them to thrive and focus on their core strength — delivering high-quality materials and solutions for successful building projects. 

Transforming the construction industry

BuildHub PH aims to be the top choice for construction supplies in the Philippines. Through a wide variety of products within the online marketplace, we aim to empower professionals and revolutionise the industry with a broad selection of high-quality materials and innovative digital solutions. Our goal is to support our partners’ growth through access to financing and more delivery options. 

Decades of expertise and cutting-edge solutions

With over 67 years of combined experience in the construction industry, BuildHub offers unmatched expertise. Our platform is designed for a seamless shopping experience, providing contractors and hardware stores with essential materials at their fingertips. Specialising in wholesale and retail of construction goods—including cement, paint, steel, aggregates, and more—BuildHub PH equips professionals with the resources needed to build with confidence. 

Innovative solutions for growth

In June 2024, BuildHub PH introduced its enhanced platform, ‘BuildHub.ph,’ at the Philippine Construction (PhilCon) Visayas Expo in Cebu City. The launch featured ‘BuildCredit,’ a revolutionary financing service offering competitive interest rates of one per cent to three per cent for 30-60 day terms. 

Also Read: Adopting electric construction machinery for a sustainable future in Singapore

This new service aims to boost financial stability and foster growth for small and medium-sized businesses in the construction industry. Supported by our owned fleet of trucks and vessels under Buildmart Shipping, BuildHub provides more options for buyers to receive their products at the right time and price. 

Join us in shaping the future of construction

As BuildHub PH continues to grow, we seek partners who share our vision of transforming the construction industry. By collaborating with us, you’ll be part of a forward-thinking team committed to enhancing procurement processes and improving efficiency. Let’s work together to shape the future of construction. 

For more information about BuildHub PH and partnership opportunities, visit BuildHub.ph.

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