Gurley says bug bounties are the only offensive security solution versus defensive dam-building approaches.
“It is the only offensive solution. Most of the security solutions are defensive where you're just building a bigger and bigger dam and trying to hold people out.”
Gurley cites CrowdStrike as example of network effects in enterprise security through shared threat intelligence across customers.
“But they posted a memo four years ago titled the CrowdStrike Security Cloud Network Effect.”
Gurley explains CrowdStrike's network effect where threat-sharing makes the largest security network most valuable.
“the way that it worked for them and the way that the marginal customer ends up with more utility is if the threats are shared across a network, then if you belong to the biggest network, then you get the shared learning of everyone in that network, which lowers your threat exposure.”