In the latest CEO Daily, Diane Brady interviews Booz Allen Hamilton CEO Horacio Rozanski, who discusses the impact of U.S. sanctions on his firm and the importance of early technology adoption by the government. Rozanski noted that the majority of Booz Allen's revenue comes from U.S. government contracts, leaving it vulnerable to funding fluctuations. He stressed the significance of maintaining technological superiority over adversaries like China, particularly in defense capabilities, and advocated for the government to collaborate more closely with the private sector to enhance security measures in technology adoption.
If China can have significant compute capacity in space with very low latency down to the ground, they can essentially embed AI into much cheaper, much simpler systems. You don't want China to be able to break all of our encryption, and us not being able to break theirs. The price for that is tremendous.
By the time the government got into the cloud, the private sector was already there. These clouds were not architected to meet the exacting security needs that the government has. It would have been a lot better if the government had moved together with the private sector and said, We want to adopt this technology.
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