The Tech Herald

Lieberman CEO goes on the warpath - accuses RSA of greed and neglect

by Steve Ragan - Jun 8 2011, 13:56

Philip Lieberman, the President and CEO of Lieberman Software, issued a press statement on Wednesday that ripped RSA and their senior management to shreds. There is simply no other way to describe his opinions. So we here at The Tech Herald ask that you read them, and give us your thoughts, especially if you are a SecurID customer.

Like RSA, Lieberman Software is also in the privileged identity management space. They offer an alternative to SecurID called Random Password Manager. Their CEO’s comments come in reaction to the news that data taken during the security breach against RSA’s networks, led to an attempt on Lockheed Martin. As a result, RSA announced on Monday that they would be replacing 40 million SecurID tokens.

[Previous coverage here]

In his statement, Lieberman said the RSA breach shows that there is a strong business case for sustained and planned investment in security.

“By my estimates this breach is going to cost RSA a minimum of $400M to replace 40 million tokens. This is not just bad news for RSA Security – it paints the rest of the IT security industry in a bad light,” he said.

Placing the fault squarely on the senior management of EMC, the parent company of RSA, the lack of investment in SecurID is viewed as one of the root causes for the breach.

“A quick review of the SecurID products show that the SecurID product line has languished in innovation and development investment since the takeover. EMC is guilty of milking the RSA cow dry, neglecting it, getting it sick, and then selling the tainted beef. The tragedy is that had they provided just a little bit of food and care to the cow, they could still be receiving milk and have a healthy cow today.”

Lieberman also said that the SecurID incident “is a testament to the consequences of greed and outsourcing exhibited by EMC senior management, who, in their single minded wish to maximize profitability, neglected to provide sufficient resources and domestic talent to keep their company healthy and competitive.”

“The management of RSA and EMC did exactly what they were incentivized for: maximize shareholder equity with minimal concerns for the wellbeing of their customers, partners or society at large.”

In closing, Lieberman had a hint for RSA’s Chairman, Art Coviello.

“…maybe he should now consider spending some money on Research & Development (R&D) and product management in Bedford, MA instead of moving everything off-shore and outsourcing the rest.”

In his comments, Lieberman did note that he takes no joy from disasters like the SecurID incident, but added that they could be prevented with care and foresight. However, given that he is an RSA competitor, his remarks come off as kicking a company when it’s down.

Tell us your thoughts in the comment section below. Do you agree or disagree with Mr. Lieberman? On either point, why do you feel that way? If you are a vendor and wish to make a rebuttal, feel free to email [email protected]. All published rebuttals are subject to minor editing.

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