Tag Archives: cern

Cisco Targets Cybersecurity For Productivity, Not Just Defense

Cisco Systems ( CSCO ) wants organizational leaders to understand that improving their competitive advantage, not just responding to fear, should inspire their cybersecurity strategy. Fearful tales, however, are hard to ignore. One recent example: Virtually all IT systems of the largest civilian hospital chain in the nation’s capital, including the MedConnect electronic health records system installed by Cerner ( CERN ), were shut down to prevent the spread of a computer virus in late March. Baltimore-based MedStar Health on March 30 called it a “despicable attack.” The disruption affected thousands of employees and many more patients, and restoration of the systems took days. “Within 48 hours of the malware penetration,” the three main clinical systems were “moving to full restoration,” said MedStar. A Cerner spokeswoman told IBD: “We continue to work closely with our client (MedStar) as the broader IT framework is brought back online.” But a week later, MedStar was still working on it: “Our partner Symantec ( SYMC ) … has been on the ground from the start of the situation and has been conducting a thorough forensic analysis,” MedStar said in an update last week, acknowledging it “has worked closely with the FBI throughout this situation.” The company again assured “that we have no evidence of any compromise of patient or associate data.” The Baltimore Sun reported the hospital’s hackers demanded ransom be paid in Bitcoin to unlock the hospital’s maliciously encrypted data. What a pain. What a danger. What a motivation for every organization to get its cybersecurity in order, as if another example were needed. “We’re very familiar with it,” James Mobley, a Cisco security services vice president, told IBD in an interview last week, acknowledging MedStar is a Cisco client. Cisco: Security-Led Firms More Prepared For Cloud, IoT Cisco, the No. 1 maker of computer networking gear and with a growing business in security, plans early next month to release a security survey of business executives. The company says productivity, growth and competitive advantage ought to be motivating cybersecurity decisions, not just fear. Its report, originally set for release early Tuesday, is titled “Nearly One-Third of Businesses View Cybersecurity Primarily as a Growth Enabler.” Silicon Valley-based Cisco, which briefed IBD and other media on the report, found that only a bit more than 30% of 1,014 corporate directors, vice presidents and C-level executives surveyed online “view cybersecurity primarily as an enabler of growth tied to digitization. “Security-led digitizers feel more prepared than others to address cybersecurity challenges in three key digital technology areas: analytics, Internet of Things and cloud computing,” Cisco said. “As a result, these organizations are far more confident about incorporating digital technologies into their business processes and offerings. “In fact, 44% of executives surveyed consider cybersecurity to be a competitive advantage for their organizations.” Cisco said cybersecurity will drive about $7.6 trillion of digital value over the next decade, with $5.8 trillion resulting from “cybersecurity’s enablement of digital use cases that instigate innovation and growth.” Is this marketing pablum or a legitimate call to action? Cisco has been under pressure to grow as fast as some of the smaller networking and software security firms with which it competes or partners. In its fiscal 2015 ended July 25, Cisco’s overall revenue rose only 4% to $49.16 billion, but its security services sales alone grew 12% to $1.75 billion. Medical IT leader Cerner grew 2015 revenue 30% to $4.42 billion, in part by selling P2Sentinnel and P2Sentinel Security as a Service (P2SaaS) products as a “security, auditing and compliance solution for tracking end-user access to confidential patient data in Mellennium, as well as other non-Cerner clinical solutions and infrastructure systems.” Palo Alto Networks ( PANW ), which specializes in security software, grew sales 55% last year. Rival Check Point Software ( CHKP ) saw revenue rise 9%. Symantec, MedStar’s prime cybersecurity contractor, reported pro forma revenue fell 6.3% year over year for its fiscal Q3 ended Jan. 1, adjusting for the sale of its Veritas business. Cisco’s survey data could serve as grist for its hungry marketing-sales machine, but it also provides a heads-up to companies that there’s more to cybersecurity than preventing hacker disruption. When a company is confident it can prevent disruption, this enables minds to focus on everything else. “It’s critically important that we stop thinking about security as a defense-centric approach that is sold by fear, uncertainty and doubt,” Mike Dahn, head of data security for payments firm Square ( SQ ), said in Cisco’s survey results press release. “We need to start thinking about security as an enablement of innovation that actually helps the business go forward.” Cisco stock touched a nearly one-year low of 22.46 in early February, but it has been on an upswing recently. Cisco closed Monday at 27.62, down a fraction. In the meantime, cybersecurity continues to be top of mind. By executive order, the U.S. Commerce Department will host its first Commission on Enhancing National Cybersecurity meeting on Thursday in Washington, D.C.

Cerner Replaces Siemens Software With Its Millennium At Universal

One way to win a big contract is to persuade existing customers to buy your companion products. Another way to win is to buy your rival and sell your products to your ex-rival’s customers. Cerner ( CERN ), one of the largest makers of software for the health care industry, did it both ways when it persuaded the second-largest publicly traded hospital chain in the U.S., Universal Health Services ( UHS ), to upgrade from its Siemens ( SIEGY ) Invision revenue-cycle software to Cerner’s new Millennium Revenue Cycle suite. First, Cerner took out the competitor, Siemens Health Services, for $1.3 billion in February 2015. Then it went to work on Siemens’ revenue-cycle client Universal Health, which was already a Cerner customer in that it used Cerner’s  electronic health records (EHR) and health information management (HIM) software on the clinical side of the medical profession. But for the business side — to handle patient eligibility, co-pays, coding claims, tracking, collections and following up on claim denials — Universal Health was using Siemens’ Invision. Cerner’s new Millennium Revenue Cycle product handles both the medical and business sides, while integrating with the federal government’s push toward electronic health records (EHR) and PopHealth analytics to inform medical and administrative decision makers, as well as regulators and policymakers. “The size of the deal is unknown, and considering UHS is switching from one CERN-owned platform (Siemens’ Invision) to the core CERN Millennium platform, the contribution will not be as large as if it were a completely new customer,” said Canaccord Genuity analyst Richard Close in a research note Thursday. Hey, money isn’t everything. “Just as important as the size of the deal, however, is the signature nature of the Siemens conversion to Millennium Revenue Cycle for Cerner,” said RBC Capital Markets analyst David Francis in a Thursday research note. “While the clinical side of Cerner’s Millennium offering has been highly regarded for some time, there have been pockets of questions recently about Cerner’s revenue-cycle capabilities for large enterprises. “The UHS decision to replace Invision … is a major conversion and should help Cerner in convincing other Siemens financial users to strongly consider not only moving their clinical platform to Millennium, but their financial solution as well.” Cerner announced the Universal Health deal after Wednesday’s market close. In the stock market today , Cerner shares rose 1.4% to a two-month high of 55.98, 26% off an all-time high of 75.72 set nearly a year earlier, April 13, and down 12% for the year. Universal Health stock fell 1% to 123.04, 17% off  its record high of 148.57, set Aug. 5.

Allscripts Lands A Deal; Cerner Faces A Challenge At MedStar

Allscripts Healthcare Solutions ( MDRX ) stock jumped again Wednesday, with Wall Street “extremely encouraged” by a deal to extend Allscripts’ information tech to University Hospitals in northeast Ohio through 2024. Meanwhile, Allscripts’ No. 1 rival  Cerner ( CERN ) was helping its Baltimore-based customer MedStar, after an apparent virus infected MedStar’s computers. The hospital chain — said to be the the largest civilian health care organization in the Washington, D.C., area — shut down its entire network “to prevent virus spread,” MedStar tweeted Tuesday. “We have no evidence of compromised information. All facilities remain open.” Wednesday morning, MedStar posted to Facebook: “Thanks to our IT and Cyber teams, our analysis continues to show no patient or associate data have been compromised. All major clinical systems are working toward full restoration.” Cerner spokeswoman Marlene Bentley advised IBD in an email that “while all systems were taken offline as a precaution, Cerner solutions — including the MedConnect EHR system — were not penetrated. The MedConnect system is now online at limited facilities, and we continue to work closely with our client as the broader IT framework is brought back online.” Departing MedStar nurses, meanwhile, told CBS News that staff was delivering care using paper records. Cerner and MedStar entered into a seven-year IT deal in October 2014. Allscripts stock rose as much as 4.6% in the stock market today  after rising 5.4% on Tuesday, and closed Wednesday at 13.10, up 2.3%. Cerner stock rose a fraction Wednesday but is 30% off a record high touched nearly a year ago. Allscripts Platforms Headed To Five More Hospitals Allscripts didn’t specify the value of the agreement announced Tuesday after the close, but it has already deployed its Sunrise Clinical Manager platform in nine University Hospitals in and around Cleveland. The deal calls for five more Sunrise platforms to be installed in five hospitals recently acquired by UH. The hospital chain will also increase use of Allscripts’ database software, called dbMotion, Allscripts said in its announcement. “Because dbMotion harmonizes information from disparate clinical systems and brings actionable data to the point of care, UH will be positioned to more effectively coordinate care across settings,” Allscripts said. Canaccord Genuity analyst Richard Close reiterated a buy rating on Allscripts stock, with an 18 price target. In a research note, he said he was “extremely encouraged by today’s announcement, which echos our view that MDRX continues to improve its competitive position. “MDRX’s investor meeting held during the (Las Vegas Healthcare Information and Management Systems Society) conference (ended March 4) provided confidence that existing customers were satisfied with MDRX and looking to continue and expand their relationship,” Close wrote. University Hospitals’ 18 hospitals include Cleveland’s Case Medical Center, the academic hospital of Case Western Reserve University. “This large extension of (Allscripts’) footprint at University Hospitals is an additional proof statement of Allscripts’ return to competitiveness in the enterprise systems market, as this contract extension was a competitive bid against established competitors in the market,” wrote RBC Capital Markets analyst David Francis in a Wednesday research note. RBC maintains an outperform rating on Allscripts stock, with a 17 price target. MedStar Virus Raises Worries Regarding the MedStar computer virus in Baltimore and Washington, Rachel Ehrenfeld, CEO of the American Center for Democracy and the Economic Warfare Institute, told IBD via email that “while physical security is important, the damage caused by hacking into a hospital IT could cause short- and long-term horrendous damages. “If the system is secure and functioning, it could possibly prevent or limit the scope of a physical attack.” In its October 2014 MedStar announcement, Cerner said it would “develop technologies that align with MedStar’s vision to be the trusted leader in caring for people and advancing health. The new alignment will allow access to all Cerner solutions and services throughout MedStar’s 10 hospitals and 3,000-plus beds, as well as the ambulatory and post-acute network. Cerner will provide MedStar an expanded enterprise Electronic Health Record (EHR) that will provide clinicians seamless access to patient information across the continuum of care.” Image provided by Shutterstock .