Question

venture profile
youre hacked—now hire me
julie amwick, canadian business
in march 1999, curtis penner, steve skoronski, will hutchins, and corey auger began to check calgary - based international properties groups computer system—from the outside. realizing that the system was weak, they contacted company security and mocked the networks \hackability.\ unimpressed, international properties group ltd. (ipg) staff challenged them to hack into the network. in less than a week, the hackers produced ipg financials, databases, and scores of personal e - mails. ipg hired them on the spot.
it was the first contract for efinity inc. the companys founders had just dropped out of the university of calgary. they pooled their tuition funds to rent an office for a startup whose mission is ethical hacking—breaking into corporate information systems to find weaknesses. after a year and a half of taunting, being challenged, and hacking into other firms, efinity grew into a 10 - person firm with clients like cibc world markets, westcorp inc., and cdl systems ltd. \that approach has worked again and again for us because theres not a lot to lose,\ says penner, efinitys president. taunts lead to contracts for security audits (including hacks) for which efinity charges up to $25 000. profits last year totalled $125 000, and penner anticipates revenue of $750 000 this year.
to better simulate a real breach of network security, efinity doesnt tell its clients exactly when it will attack. \we want to come across as a skilled attacker rather than someone whos just doing it from their home,\ says skoronski. audits test a companys defences, its reaction to apparent virus infection, and its susceptibility to denial - of - service (dos) attacks, in which many infected computers automatically ask for web pages from a targeted site so fast that the system freezes. an audit includes a first check, risk assessment, and another check after fixes are made.
skoronski swears efinity has hacked ethically since day one—if not earlier. at university, skoronski hacked into a server, but didnt ferret out the juicy data; instead, he told the network administrator and helped fix the security hole. now, thats an ethical hacker.
exploring

1. what niche does efinity respond to?
2. how did the founders get their first client? why did their strategy work?
3. which characteristics of efinity make it an entrepreneurial venture?
4. do you think that the venture has a chance for a successful future? why or why not?
5. what impact has this venture had on the business community?

Explanation:

1. efinity responds to the niche of ethical hacking - performing security audits by simulating real - world attacks to find weaknesses in corporate information systems.
2. The founders got their first client when they mocked the security of International Properties Group Ltd. (IPG) by hacking its network after realizing its weakness. IPG then hired them on the spot.
3. Their strategy works because there is a demand for security audits in the business world. Their approach of simulating real - attacks and not revealing the attack time gives a realistic test of a company's defenses. Their ethical stance also builds trust.
4. It has a good chance for success. There is a growing need for security in the digital age, and their ethical approach and experience in hacking (in a controlled way) can attract clients. However, challenges could include competition and constantly evolving security threats.
5. It has had a positive impact on the business community by raising awareness of security threats and providing a service to test and improve security, which helps businesses protect their data and systems.

Answer:

1. Ethical hacking for security audits.
2. By hacking IPG and getting hired on the spot.
3. High demand for security, realistic testing, ethical stance.
4. Likely yes due to growing security needs and ethical approach, but faces competition and evolving threats.
5. Raised security awareness and provided security - testing service.