Virtually everything operates digitally these days: from operating traffic lights and bridges to industrial installations and power supplies. That is logical, according to J. Wynne, Managing Director and co-founder of PX Systems. “Digitization brings a great deal of efficiency,” he says. “But the downside is that it also makes you vulnerable. That same desirable efficiency is actually also advantageous for malicious actors. Digital disruptions in important physical processes in society often have an enormous impact because they cause a chain reaction. If the internet goes down for an hour, that is annoying. But if Schiphol fails, a chain reaction is set in motion that affects the entire society. Or suppose the bridges in North Holland are no longer controllable because the digital system has been compromised by third parties. How would the Ministry of Defence then reach the base in Den Helder? Digitization has made organizations more efficient, but also more interdependent. A malfunction is rarely limited to a single organization. In the worst-case scenario, such a disruption could even have consequences for national security.”
Following the example of the intelligence and security services
Wynne knows the 'threat landscape' like no other. He has been active in the world of cybersecurity for 25 years and, during that time, has also gained experience within the world of international intelligence and security services. As a result, he is familiar with sabotage risks and knows how increasing digitalization, deteriorating geopolitical relations, and the rise of AI have drastically changed the threat landscape. This is how the idea for PX Systems originated, Wynne explains: ‘It is our mission to make security principles from the world of intelligence and security services available to the commercial sector. In that world, threats are taken into account that regular organizations are typically not prepared for. Due to the changing world and the increasing threat level, security principles that were previously applied primarily in exceptional environments have now become indispensable for every organization. This calls not simply for more security, but for a fundamentally different approach. It is with this in mind that we developed PX Systems. And given current developments, that seems like not a moment too soon.’
The solution from PX Systems
PX Systems“ technology focuses on Operational Technology (OT), or the systems that control physical processes. Their clients are organizations such as grid operators, ports, provinces, and other managers of critical infrastructure. Wynne: ”Our solution distinguishes itself on several fronts. We develop the hardware, software, and embedded systems entirely in-house. Our platform passively monitors industrial networks and also features its own communication layer. If regular digital communication fails, the system continues to function via an independent radio network. This allows us to have the entire technology chain under our own control. This enables us to operate independently and offers a form of autonomy that is exceptional in this market.”
Necessity of digital independence
According to Wynne, the world has fundamentally changed since the start of PX Systems in 2015. “At the time, Europe was dependent on technology from countries including Israel and the United States for many cybersecurity solutions. Since then, there has been a growing awareness that digital autonomy is becoming increasingly important. We are a 100% Dutch deep-tech cybersecurity company. That is an advantage, because for the protection of your critical infrastructure, you do not want to be dependent on technology from other countries. I notice that awareness regarding cyber threats is growing due to the incidents appearing in the news. These show just how digitally vulnerable society has become. But we are not there yet. There are still too many people who are not consciously engaging with this. Simply because they do not know how great the risks are.”
Recognition
Also the SecFund recognized the distinctive character of the solution offered by PX Systems. The SecFund, a collaboration between the Ministry of Defence, the Ministry of Economic Affairs & Climate Policy, and the regional development agencies (ROMs, such as ROM InWest), focuses specifically on dual-use companies. These are companies that develop products or services that can be applied in both the civilian and defence sectors. PX Systems recently received an investment from the SecFund, Damen Maritime Ventures, and Savin Capital Partners. PX Systems is the first company from North Holland in which the SecFund is investing. Wynne: “For us, the investment is an important recognition. With this amount, we can enter the European market faster, especially now that there is hardly any competition. We want to show that Dutch deep tech can make a difference worldwide.”
A long haul
The run-up to this success was long and intensive. The past ten years were primarily dedicated to development and testing. PX Systems obtained patents in Europe and the United States. Then began perhaps the most difficult phase: validating and proving that the technology actually works. Wynne: “Software can be tested relatively quickly. But if you want to validate our technology in a nuclear power plant or at a bridge, you are easily talking about a timeframe of years. The COVID-19 pandemic also caused significant delays. Developing and testing everything in-house takes time. A lot of time. That was quite nerve-wracking at times. Fortunately, all the work that went into it is now starting to pay off. For example, all bridges and locks in Flevoland are currently being protected with our technology.”
Advocate for a strong ecosystem
With PX Systems, Wynne is committed to protecting the critical systems our society depends on every day. But technology alone is not enough, he believes. “Due to increasing digital interdependence, a failure is rarely limited to a single organization. Consequently, collaboration is almost as important for security. That is why I want to continue the conversation about the security of our society. We excel in one area. To get a complete picture of the entire chain, you need to bring the right stakeholders together. That is why, as PX, we advocate for closer cooperation between governments, businesses, infrastructure managers, knowledge institutions, and parties such as ROM InWest. This is certainly important for a province like North Holland, where a great deal of critical infrastructure is located, such as Schiphol, the Port of Amsterdam, various data centers, and the naval base in Den Helder. As a shared ecosystem, you can strengthen each other and make the Netherlands more resilient.”
