U.S. Counts on the Cloud to Boost Cyber-Security

It was essential to change from static defense, one in other words reactive to threats, to an "active defense," Alexander said, likening traditional network defenses of firewalls and intrusion prevention systems to a modern-day "Maginot Line."

The advantage is on the offense

The advantage "is on the offense," as the attacker needs to find just one error to get into a network and, once in, will remain there for months, he said. Cyber-defenders have to go "hunting" and find adversaries as fast as possible.

As part of that effort, the NSA is marking and tagging all its data in the cloud to make it easier to share intelligence information in nearly real time. For instance, commanders used cloud computing in Iraq, which allowed the military and intelligence community to quickly share and disseminate information to the troops on the front lines, according to the general.

Pentagon and intelligence agencies "must do more to protect their computer systems and coordinate with private companies to safeguard public networks" that control electrical power, banking, transportation and other critical infrastructure, Alexander said. During industry and government are making progress in protecting computer networks, "tremendous vulnerabilities" remain. To boot to recently disclosed attacks, he said, another unnamed U.S.-based company lost $1 billion worth of intellectual property to cyber-thieves in just two days.