Podcast Episode 40

Episode 040 48 min

Jose Arrieta, Imagineer, Former Chief Information Officer and Chief Data Officer at US Health and Human Services

with Jose Arrieta · fmr. CIO, US HHS

0:00 / 48:00

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Episode 40 of The Security Podcast of Silicon Valley, published April 1, 2024. Host Jon McLachlan talks with Jose Arrieta, chief information officer of the U.S. Department of Health and Human Services from May 2019 to September 2020 and founder of Imagineeer, about the forces behind government buying and small business policy, teaching, the March 2020 attack on HHS and his belief that a nation state was mapping it, vetting systems after 9/11, protecting an industrial base, an identity for every data asset and data set, the New York Times lawsuit against OpenAI and Microsoft, blockchain at HHS, a faster EHR, what logs can and can't show, integrating the NOC and the SOC, five shooters against one big center, delegating trust, NGOs and threat sharing in the gaps between companies and agencies, data at the center of every security program, records of provenance, Jon's startup Peacemakr, half a penny for each use of a patient's data, why the next wave may not be AI, what a language model does, Imagineeer, advising American Binary, going all in three times during the pandemic, the cutover of hospital data reporting, and his advice to go all in.

Episode notes

Jon McLachlan hosts the visionary Jose Arrieta, the former CIO and Chief Data Officer at the US Department of Health and Human Services, in this enthralling episode of The Security Podcast of Silicon Valley, a YSecurity production. In this revealing conversation, Jose shares insights from his dynamic career spanning government, academia, and the intersection of cybersecurity and healthcare innovation. Discover how his unique approach to challenges and opportunities is shaping the future of secure solutions in critical sectors. From tackling potential nation-state cyber threats during the pandemic to reimagining the EHR space and advocating for data ownership, Jose's journey is a testament to the power of imagination, innovation, and going all in on the things that matter. Join us for a session packed with invaluable lessons on leadership, resilience, and the transformative potential of technology in our lives and society.

Hosted by Jon McLachlan — co-founder of YSecurity.

The deep dive

Go all in

Jose Arrieta, chief information officer of HHS through the first months of the pandemic and founder of Imagineeer, with Jon on the forces behind government buying, the March 2020 attack on HHS, what logs can and can't tell you, an identity for every data set, scars from blockchain, the EHR pitch, one team for the NOC and the SOC, five shooters against one big center, the gaps between agencies and companies, data at the center, Jon's Peacemakr, half a penny for each use of your data, why the next wave may not be AI, the cutover of hospital data, and going all in.

Episode 40 of The Security Podcast of Silicon Valley aired on April 1, 2024, with Jon McLachlan hosting. The guest was Jose Arrieta. His LinkedIn lists him as chief information officer of the U.S. Department of Health and Human Services from May 2019 to September 2020, and as its interim chief data officer for the same months. In August 2020 he founded Imagineeer, a company whose mission, by his LinkedIn, is “to operationalize the ability to test intuition” (Podbean, LinkedIn). The episode is called “Jose Arrieta, Imagineer, Former Chief Information Officer and Chief Data Officer at US Health and Human Services.” It has no video version.

At the end of the episode, Jon asked for final words of wisdom.

“the one word of wisdom I would have is just go all in.”

Jose Arrieta, at 46:54

Listen · Jose Arrieta and Jon McLachlan on episode 40, from 46:54
About 25 seconds: Jose's last words on the show, and what going all in opened up for him. The clip stops on its own. Read the full transcript.

This page follows the conversation in order: a section for each part of it, fifteen figures, twenty-two clips from the tape, the full transcript, and five tools: a quiz, a scorecard for whether your logs could tell the story of an attack, a calculator for what half a penny for each use of your data adds up to, a timeline, and a to-do list. Where the decodes of the tape disagree on a word, the transcript puts its best guess in brackets, and the page doesn’t quote those words. Jon and Jose say “imagineer” on the tape. The company writes its name Imagineeer, with three e’s, and so does the transcript.

Balancing forces

Jon opened with the jobs on Jose’s LinkedIn: procurement, a program manager role at the TSA, industry liaison at the U.S. Department of Homeland Security, and director of small and disadvantaged business utilization at the U.S. Department of the Treasury. Jose took it from there.

“It’s fundamentally balancing these forces that never quite fit together, right?”

Jose Arrieta, at 1:07

Listen · Jose Arrieta on episode 40, from 1:06
About 25 seconds: Procurement rules, industry partners and socioeconomic goals. The clip stops on its own. Read the full transcript.

Procurement rules and procurement law come first. Contracts are made with industry partners, and certain things drive their costs. The federal system adds socioeconomic goals, like a competitive small business base, which Jose calls important from a national security perspective. He has built requirements to get the most participation from the industrial base, and entered into contracts with large dollar values. He also tried to shape small business policy, so that

“we reward companies who are reinvesting”

Jose Arrieta, at 2:03

That means companies that reinvest in themselves to deliver capabilities for the government. He felt the procurement process left that part out. His example of a mission where government has to step in with policy and investment was Homeland Security.

“if Homeland Security was easy, a private company would go and secure the border”

Jose Arrieta, at 2:26

Listen · Jose Arrieta on episode 40, from 2:26
About 20 seconds: Why government steps in. The clip stops on its own. Read the full transcript.

As for all the titles on his LinkedIn, his joke was that they kept kicking him out of jobs. The profile gives the order. Program manager at the TSA from September 2010 to July 2012. Industry liaison and ombudsman at DHS from July 2012 to October 2014. Director of the Office of Small and Disadvantaged Business Utilization at Treasury from October 2014 to January 2017, where the profile says he was the “First member of the Senior Executive Service to lead” that office. Director of the IT Schedule 70 contract at the General Services Administration in 2017, which the profile calls “the largest IT contract in the world.” Then HHS, from January 2018, first in acquisition (LinkedIn). Later in the episode, Jose said he used to be a developer. He built the interface the poorest county in Pennsylvania used to enroll people in what the state called adultBasic insurance, paid for with money Pennsylvania received from the tobacco lawsuits.

A timeline. September 2010: TSA, program manager. July 2012: DHS, industry liaison and ombudsman. October 2014: Treasury, director of the Office of Small and Disadvantaged Business Utilization. January 2017: GSA, director of the IT Schedule 70 contract. January 2018, filled: HHS, acquisition first, then chief information officer and interim chief data officer from May 2019. August 2020, filled: Imagineeer, founder. September 2020: leaves HHS, his roles as CIO and interim chief data officer end. April 1, 2024, filled: episode 40, Jose on this show. Below, under teaching alongside: Prince George's Community College, January 2013 to December 2017. University of Virginia, December 2016 to April 2019, public procurement and acquisition. Johns Hopkins Carey Business School, July 2018 to May 2023, blockchain and crypto currency, and entrepreneurial finance.
Jose's path, from his LinkedIn experience and the tape.

Three classrooms

Jon brought up teaching. Jose’s LinkedIn lists three adjunct roles: Prince George’s Community College from January 2013 to December 2017, the University of Virginia from December 2016 to April 2019, teaching public procurement and acquisition, and the Johns Hopkins Carey Business School from July 2018 to May 2023, teaching blockchain and crypto currency, and entrepreneurial finance (LinkedIn).

If you can teach something, he said, you learn more than you provide.

Listen · Jose Arrieta on episode 40, from 3:33
About 30 seconds: Teaching, and the thing he missed most. The clip stops on its own. Read the full transcript.

On the tape, teaching is the thing he missed most after he stopped, right after the pandemic. The ideas, he said, come from people in college who have the free time to create. Jon added that students haven’t yet been stained by the conventional ways of solving problems.

“They’re not afraid to challenge the status quo.”

Jose Arrieta, at 4:16

Without a return on investment to measure, or presidential policy fights in an election year, a student can take on a project for its own sake, and some of those projects snowball. Jose called it a unique storm.

A nation-state attack on HHS

Jon turned to Jose’s time as chief information officer at HHS. Jose said a Bloomberg documentary that had just come out put him in the middle of the security conversation.

“We experienced what I believe was a nation-state cyber attack on Health and Human Services during the pandemic.”

Jose Arrieta, at 5:33

He believes it was a mapping activity.

“it appeared to be an amplified DDoS attack, but it was actually to map our interconnectivity within the broader health system, right?”

Jose Arrieta, at 5:49

Listen · Jose Arrieta on episode 40, from 5:33
About 25 seconds: The attack on HHS, in Jose's words. The clip stops on its own. Read the full transcript.

A map of HHS at the start of the pandemic shows where its money was going to flow, through payments, contracts or grants. Wikipedia puts the HHS budget for fiscal year 2020 at $1.293 trillion (Wikipedia). It describes a denial-of-service attack as one that “seeks to make a machine or network resource unavailable to its intended users,” and lists DNS amplification among the common forms of the distributed kind (Wikipedia).

Two news reports describe the attack. On September 23, 2022, FedScoop reported Jose’s account that HHS was hit with more than eight billion scanning attempts over 18 hours in a DDoS-style attack on March 15, 2020. He referred to “an enemy combatant” without naming a country (FedScoop). On December 6, 2023, Bloomberg News reported that the HHS network “briefly vanished from the internet” that day, that Secretary Alex Azar attributed a 10-minute outage to a cyberattack, and that former officials attribute it to a state-level actor. Bloomberg names Jose as one of two officials involved in the response (Bloomberg).

Three cards. Jose, on the tape, filled: a nation-state mapping of how HHS connects to the health system, a million computers in 164 countries, aimed at one point for 36 hours. FedScoop, 2022: Jose's account of more than eight billion scanning attempts over 18 hours, in a DDoS-style attack. Bloomberg, 2023: the network briefly vanished from the internet, a 10-minute outage attributed to a cyberattack, and former officials point to a state-level actor. Below: "I believe it was one of two nation states that attacked us." Jose, at 17:40
What Jose says on the tape, next to FedScoop's 2022 report and Bloomberg's 2023 story.

Vetting after 9/11

Jose’s security background goes back further, to his early career.

“I built out enrollment, vetting, adjudication and redress systems to actually identify terror threats around the world”

Jose Arrieta, at 6:28

Listen · Jose Arrieta on episode 40, from 6:27
About 35 seconds: Vetting systems after 9/11. The clip stops on its own. Read the full transcript.

After 9/11, those systems looked for people entering, flying over, or trying to gain access to work in the United States in certain domains. He timed it with a comparison: they were building vetting tools before Facebook knew you had a dog and marketed dog food to you. His background from a security perspective, he said,

“is very much data focused, extremely operational and kinetic, right?”

Jose Arrieta, at 7:05

Kinetic, in his words, means security mixed with an operational force that physically removes somebody from an environment. Jon’s summary was that Jose connects the cyberspace with the kinetic space.

Four boxes joined by arrows: enrollment, vetting, adjudication, redress. An arrow down to a filled box: an operational force acts and removes somebody from an environment. Below: "is very much data focused, extremely operational and kinetic, right?" Jose, at 7:05
The four steps Jose names, with the outcome he describes, from the tape.

An industrial base needs security too

At Treasury, Jose ran a research project of his own on where one country’s foreign direct investment went. Around 2014, he said, 90% of it went into seven or eight countries.

“if you drew it on a map, it encircled Japan.”

Jose Arrieta, at 8:08

His question from that: how do you protect a strong industrial base, one that creates ideas and unique capabilities,

“without overburdening it with taxes, without overburdening it with costs, so that you can compete?”

Jose Arrieta, at 8:25

Listen · Jose Arrieta on episode 40, from 7:56
About 35 seconds: A map of foreign direct investment, and the industrial base behind it. The clip stops on its own. Read the full transcript.

Talk of U.S. strength tends to start with the military, he said.

“the economic base is what actually supports that military”

Jose Arrieta, at 8:37

We talk about securing software and securing an airport, he added, and less about creating security around an industrial base. Jon called these high-level questions, a bird’s eye view, where many founders on the show work on one small piece of the security puzzle.

An identity for every data set

Jose asked Jon to disagree with him if he’s wrong. What goes bonkers in his brain when he looks at AI is how anyone is securing identity, and creating one

“for each data asset, for each data set?”

Jose Arrieta, at 9:50

Jon’s answer was that AI companies aren’t doing it, and he brought up a lawsuit.

“the Times is now suing OpenAI and Microsoft because copyright violation, I guess, is what they’re claiming”

Jon McLachlan, at 9:57

Listen · Jose Arrieta and Jon McLachlan on episode 40, from 9:46
About 25 seconds: Jose's question about identity for data, and Jon on the lawsuit. The clip stops on its own. Read the full transcript.

That case will be hard, Jon said, without data properly identified from its source. Wikipedia’s OpenAI article says The New York Times sued OpenAI and Microsoft for copyright infringement in December 2023, over the use of its content to train AI models (Wikipedia).

Jose agreed, and peeled it back: modern micropayment solutions, and completely disrupting electronic health records. That’s not AI, he said.

“That’s creating that foundation so some of these capabilities can truly scale.”

Jose Arrieta, at 10:37

Four cards. Identity, filled: which data asset or data set this is. Ownership: the ability to show who owns it. History: the ability to show where it came from. Record of provenance: how it was accessed and used. Below: "for each data asset, for each data set?" Jose, at 9:50
What an identity for a data set would carry, from Jose's words on the tape.

Scars from blockchain

The data question isn’t the topic everybody wants to talk about, Jose said, and he has a reason to know. At HHS he worked on it

“in particular with blockchain technology, which I have scars I can show you from”

Jose Arrieta, at 10:50

The project he describes ran in one of the department’s business units, on Hyperledger Fabric.

“the data question is the most important question”

Jose Arrieta, at 11:03

That means the ability to show who owns data, and the ability to show its history. Wikipedia calls Hyperledger “an umbrella project of open source blockchains and related tools” that the Linux Foundation started in December 2015 (Wikipedia). In December 2018, Nextgov reported that HHS expected an authority to operate for HHS Accelerate, which “uses blockchain, machine learning and artificial intelligence to streamline acquisition.” Nextgov called it the “first blockchain-based program in the federal government” to get that certification (Nextgov). When HHS named Jose CIO in May 2019, Nextgov described Accelerate as “the first distributed-ledger-powered system to receive an authority to operate” (Nextgov). Neither story names the platform. Before HHS, at GSA, his LinkedIn says he “Created and tested the first successful proof of concept in the world” for using blockchain to automate procurement (LinkedIn).

Jon’s take on the topic:

“It’s sexy what you can do with it, maybe, but it’s not maybe sexy how to get there.”

Jon McLachlan, at 11:18

The EHR pitch

Jose made the case with a pitch. You’re implementing an EHR. It takes three years to build a new care flow, or a year to build a new way to care for somebody, and three months to integrate a new data asset.

“I can do it in a day, and I can build the new care flow in a month.”

Jose Arrieta, at 11:44

Listen · Jose Arrieta on episode 40, from 11:26
About 35 seconds: The EHR pitch. The clip stops on its own. Read the full transcript.

That cuts costs, he said, makes you agile at the edge, and creates real interoperability. To a technologist it may be an easy sell.

“for a hospital administrator, for the CEO of a health system, that’s a tough pitch.”

Jose Arrieta, at 12:08

Wikipedia defines an electronic health record as “electronically stored patient and population health information in a digital format” (Wikipedia). Jon said computers always do what we tell them to do, and the hard part of change is people.

“the tricky part in instigating change, or having a real impact, I always think is, like, the human side of things, adoption.”

Jon McLachlan, at 12:21

Two cards. Your EHR today: a new care flow takes three years, a new way to care for somebody a year, and a new data asset three months. Jose's pitch, filled: a new data asset in a day and a new care flow in a month. Below: "I can do it in a day, and I can build the new care flow in a month." Jose, at 11:44
The pitch as Jose tells it on the tape. The numbers are his.

Only what you logged

Jose picked up on that with a thought experiment for Jon, the cyber guy.

“let’s imagine that you experience a massive cyber event.”

Jose Arrieta, at 12:42

From a data perspective, the logs tell one story.

“when you look at what you log, it appears to be an amplified DDoS attack.”

Jose Arrieta, at 12:48

Listen · Jose Arrieta on episode 40, from 12:47
About 40 seconds: What the logs show, and what they miss. The clip stops on its own. Read the full transcript.

That’s only part of it. Your network has a stateless layer and a stateful layer.

“at a stateless level, you’re not collecting certain information.”

Jose Arrieta, at 13:00

So when you go back and investigate,

“you only have what you collected from a data perspective to evaluate.”

Jose Arrieta, at 13:11

What you collected may not line up with the broader activity in that environment, which makes a real discussion of the threat hard. Add political complexity, Jose said, and the people on the front lines see a different reality from the people looking at it from a mile away.

“you have to have amazingly thick skin to deal with that.”

Jose Arrieta, at 13:53

Jon took it from the operator’s side. People fill in gaps almost unconsciously, with their experiences and motives, and a diverse group fills them in with different shades of color.

“you have to be very careful about what we don’t know.”

Jon McLachlan, at 14:06

Listen · Jon McLachlan on episode 40, from 14:06
About 20 seconds: Jon on the gaps in what we know. The clip stops on its own. Read the full transcript.

An operator has to stay self-aware about that.

“no information really does mean no information.”

Jon McLachlan, at 15:19

Jose agreed that missing data limits what you can say happened. You might see things in real time that you aren’t recording, because an investment wasn’t made.

Three boxes joined by arrows. The event, dashed: everything that happened. Your logs: what the stateful layer recorded. The investigation, filled: only what you collected. Below the first box, dashed: the stateless layer, not collecting certain information. Below: "you only have what you collected from a data perspective to evaluate." Jose, at 13:11
Jose's thought experiment, as he tells it on the tape.

One team for the NOC and the SOC

Jon asked for the one lesson Jose took from the breach into every job since. Jose had come into the event with one focus.

“I had been obsessively focused on creating identity for data assets and data sets”

Jose Arrieta, at 16:01

The event taught him a couple of more basic things. The first was that the NOC and the SOC

“have to be fully integrated.”

Jose Arrieta, at 16:22

“investing in them and not integrating them is just really a giant weakness that you’re creating.”

Jose Arrieta, at 16:24

Listen · Jose Arrieta on episode 40, from 16:14
About 15 seconds: Jose's first lesson from the attack. The clip stops on its own. Read the full transcript.

In Wikipedia’s words, a network operations center (“NOC, pronounced like the word knock”) is where “network monitoring and control, or network management, is exercised,” and a security operations center “is responsible for protecting an organization against threats” (Wikipedia, Wikipedia). In an attack like the one Jose describes, the first team watches the traffic and the second watches the threat.

Two cards. NOC: network operations center, where network monitoring and control, or network management, is exercised. SOC: security operations center, responsible for protecting an organization against threats. An arrow down to a filled box: fully integrated, one picture of the network and the threats. Below: "have to be fully integrated." Jose, at 16:22
Two teams and one event, from Jose's lesson on the tape and Wikipedia's definitions.

Five shooters

The second lesson came with an analogy Jose says he always uses. When the Orlando Magic and then the Lakers had Shaq,

“everybody tried to find a big guy that was big and quick”

Jose Arrieta, at 16:44

Every team wanted a center who could match up with him. Then teams found another way.

“if we hire five shooters that can really shoot the lights out and make him run all over the place, we have a better chance of beating him, because he’s a unicorn.”

Jose Arrieta, at 16:50

Listen · Jose Arrieta on episode 40, from 16:40
About 15 seconds: The five shooters analogy. The clip stops on its own. Read the full transcript.

Wikipedia has the order of his teams: the Magic took Shaquille O’Neal first overall in the 1992 NBA draft, and after four years he signed with the Los Angeles Lakers, where he won titles in 2000, 2001 and 2002 (Wikipedia).

The big center, in Jose’s analogy, is a large, centralized attacker that uses a lot of computing to overwhelm a network, embed itself and learn how the network behaves. His answer is

“distribution of control, distribution of identity to the lowest level”

Jose Arrieta, at 17:00

“if you change the way that you interact with them, then they have to change the way they interact with you.”

Jose Arrieta, at 17:21

Listen · Jose Arrieta on episode 40, from 17:00
About 25 seconds: Distributing identity to the lowest level. The clip stops on its own. Read the full transcript.
Two drawings. Left: a filled circle for the big center facing one large outlined circle, labeled find a big guy who can match up. Right: the same filled circle with five small outlined circles spread around it, labeled five shooters who make him run. Below: "distribution of control, distribution of identity to the lowest level" Jose, at 17:00
Jose's analogy from the tape: match the big center, or spread out.

One of two nation states

The third thing, Jose said, he still doesn’t fully understand: how hard it is to talk openly about who did it.

“I believe it was one of two nation states that attacked us.”

Jose Arrieta, at 17:40

On the tape, he describes a million computers in 164 countries aimed at one point, one of the largest internet surface areas on the planet, for 36 hours, following the network’s behavior in real time as HHS changed it. FedScoop’s 2022 report of his account has more than eight billion scanning attempts over 18 hours. His conclusion:

“That’s not some researcher in a basement.”

Jose Arrieta, at 18:11

Listen · Jose Arrieta on episode 40, from 17:40
About 30 seconds: Why Jose believes a nation state was behind it. The clip stops on its own. Read the full transcript.

HHS had no legal offensive capabilities to answer a nation state with, he said. What he wants for defenders like that is flexibility.

“let’s create tools that give you the flexibility to defend yourself in the event of a large action like that.”

Jose Arrieta, at 18:39

How do you delegate trust?

Jon liked the idea of decentralizing things. Jose was clear that he isn’t arguing for putting the whole U.S. healthcare sector on a blockchain platform. His question is a different one:

“how do you delegate trust?”

Jose Arrieta, at 19:19

That means delegated authority inside organizations, and something else besides. A private company will secure itself, he said, because it has the incentives. Apple was his example. A federal agency will secure itself too, with its resources.

“But there are gaps, like in an industrial base, right, where there’s really no incentive to secure in those gaps, right?”

Jose Arrieta, at 19:50

Three boxes side by side. A private company secures itself. The gap, dashed: no incentive to secure it. A federal agency secures itself. Below, Jose's example, joined by arrows: food company A secures itself, threat information, dashed, shared or not, and food company B secures itself. Below: "But how are they sharing that threat information?" Jose, at 20:51
The gap Jose describes, with his food industry example, from the tape.

Investing in the gap

Jose had talked about the gap with Ron Gula, a venture investor in cybersecurity startups.

“he’s investing in NGOs that fill those gaps between government agencies and private companies.”

Jose Arrieta, at 20:11

Wikipedia lists Gula as a co-founder of Tenable in September 2002, and says he worked for the National Security Agency in the 1990s (Wikipedia). In December 2020, Gula Tech Adventures, founded by Ron and Cyndi Gula, set up a foundation that “will award $1,000,000 in competitive grants to cybersecurity nonprofits” several times a year (PR Newswire).

Jose’s example was food, with a nod to Maslow’s hierarchy of needs. He sees creating distrust in the food industrial base as an attack vector that some adversarial nation states are focused on. Food company A and food company B will each secure themselves.

“But how are they sharing that threat information?”

Jose Arrieta, at 20:51

Listen · Jose Arrieta on episode 40, from 20:20
About 35 seconds: Two food companies and the gap between them. The clip stops on its own. Read the full transcript.

They have no strong incentive to, and that gap is the opportunity. Sectors already have a structure for sharing. Wikipedia describes an information sharing and analysis center as a central resource for information on cyber threats to critical infrastructure, with two-way sharing between the private and public sectors. Sector ISACs began forming in 1999, after Presidential Decision Directive 63 was signed on May 22, 1998 (Wikipedia). Food got one of its own in May 2023, when the food and agriculture group inside IT-ISAC became the Food and Ag-ISAC, a forum for food and agriculture companies (Security Magazine).

Data at the center

Jon tied it back to identity and data.

“identity is just the answer to the question, who are you?”

Jon McLachlan, at 22:00

People answer it by looking at each other. A computer system has to answer it for data: where did it come from, and who owns it? That’s what the New York Times is upset about with OpenAI, Jon said. Every time he sets up a security program or a SOC 2, at a two-person startup or an old, giant company, the same question comes up: what data do we have?

“every layer of security, if you think about it, in the center is that data.”

Jon McLachlan, at 22:55

Listen · Jon McLachlan on episode 40, from 22:30
About 30 seconds: Jon on the question every security program starts with. The clip stops on its own. Read the full transcript.

There’s some value in CPUs too, especially with Bitcoin, he added, but the real gold mine in cybersecurity is the data.

Three nested rectangles, labeled every layer of security, around a filled box labeled the data. Below: "every layer of security, if you think about it, in the center is that data." Jon, at 22:55
Jon's picture of security on the tape: layers around the data.

A record of provenance

Jose described how Bitcoin and the Ethereum network validate something.

“you’re authenticating something by getting two endpoints to agree on it in some semblance”

Jose Arrieta, at 23:36

He called that a costly set of checks and balances. He’s working with a startup in Toronto. The decodes of the tape don’t agree on its name, so the page leaves it out.

“they’re creating a record of provenance of the data asset”

Jose Arrieta, at 24:03

They also make the data asset portable across platforms. Jose also made an investment at a university to create a software-based digital twin of a working piece of hardware, with a secure root of trust, and a representation of carbon emissions reduction data that could move across platforms at low cost.

The data asset could be authenticated, he said,

“without the kind of infrastructure that you would have to put in place for blockchain.”

Jose Arrieta, at 24:42

Two cards. Endpoints agree: Bitcoin and the Ethereum network authenticate by getting two endpoints to agree, which Jose calls a costly set of checks and balances. A record of provenance, filled: the data asset carries a record of where it came from, can move across platforms, and can be authenticated at low cost. Below: "without the kind of infrastructure that you would have to put in place for blockchain." Jose, at 24:42
Two ways to trust a data asset, as Jose contrasts them on the tape.

Peacemakr

Jose asked whether Jon had seen anybody doing this. Jon had: Peacemakr, the startup he led. It brought end-to-end encryption as a service to market, and as the team sold it, they saw it was data lifecycle management, a way to verify what happened to data as it flowed from one system to another.

You could see who was trying to access your data,

“because you could only access your data underneath our API.”

Jon McLachlan, at 25:34

Listen · Jon McLachlan on episode 40, from 25:14
About 35 seconds: Jon on what Peacemakr turned out to be. The clip stops on its own. Read the full transcript.

All of it was open source, he said. To read data, you requested the keys to decrypt it. The data owner saw who you were, and decided whether to share those keys with you.

Three boxes joined by arrows. Someone asks for the keys to decrypt. The owner sees who is asking. The owner decides, filled, to share the keys or not. Below: "because you could only access your data underneath our API." Jon, at 25:34
How Jon describes Peacemakr on the tape.

Half a penny

Jose put Jon’s design into a nursing home or a hospital. Between the device collecting a patient’s blood pressure and the EHR that holds the record of care,

“you had this ability to transact for that data.”

Jose Arrieta, at 26:11

Say each use costs half a penny. Now

“you’ve enabled the patient to share information about themselves with multiple providers”

Jose Arrieta, at 26:20

Listen · Jose Arrieta on episode 40, from 25:59
About 30 seconds: Half a penny for each use of a patient's data. The clip stops on its own. Read the full transcript.

It may not be a great business case, he said, but it would disrupt the market. The same goes for people writing a song or creating content, the New York Times among them:

“now you have the ability to maintain ownership of something forever, and you can engage in a microtransaction”

Jose Arrieta, at 26:41

There’s also a record that you created the content. That, he said, fundamentally distributes authority and value throughout an ecosystem.

Wikipedia defines a micropayment as “a financial transaction involving a very small sum of money,” usually online, and says several systems proposed in the mid-to-late 1990s were unsuccessful (Wikipedia). The calculator shows what Jose’s half a penny adds up to.

Three boxes joined by arrows. The device collects blood pressure. Half a penny for each use, filled. The EHR and more providers. Below: "you've enabled the patient to share information about themselves with multiple providers" Jose, at 26:20
Jose's half a penny, from the tape.

The next wave may not be AI

Jose calls that spread of authority and value a democratic principle, and the next wave of transformation in industry.

“I don’t think it’s AI. I don’t think it’s large-scale, centralized artificial intelligence capabilities.”

Jose Arrieta, at 27:08

He thinks it’s an investment in identity around data assets and data ownership, which powers all modern AI platforms. He doesn’t know the economics, he said, and could be way off.

“I truly believe that’s the way that you compete with a system of government that is more centralized, that is more top-down driven, that is more authoritarian.”

Jose Arrieta, at 27:28

Listen · Jose Arrieta on episode 40, from 27:08
About 30 seconds: Why Jose thinks the next wave isn't AI. The clip stops on its own. Read the full transcript.

It fits with the constitutional values the founders of the United States set out, he said, without wanting to sound like he’s running for office. Jon agreed that the hard problems sit under the hood.

“AI is cool on the surface, and it’s whiz-banging.”

Jon McLachlan, at 28:16

Underneath is grit that doesn’t match our ideas of ownership, content creation or credit.

“If you’re Madonna and you make a really awesome hit song, like, you would like to get paid, right?”

Jon McLachlan, at 28:42

Jose went back to the basics of a democratic society: can you own property?

“Do you have a right to intellectual property, to things that you create? That’s how you spread wealth.”

Jose Arrieta, at 29:04

The next word

Jon described what a language model does. AI is an amalgamation of what all of us have said and written in public, and the people who built it found the math to represent all of us at once. That’s why it speaks so many languages, and why it sounds like us.

“It’s not like some one person is responsible for all of the creative energy.”

Jon McLachlan, at 29:41

Given a set of words, it learned the probability of the next word. Human language comes down to a set of probabilities. Jose’s reply was that it lets you test different things.

Three boxes joined by arrows. What we've all said and written in public. A set of probabilities for human language. The next word, filled, given the words so far. Below: "It's not like some one person is responsible for all of the creative energy." Jon, at 29:41
Jon's explanation on the tape.

Imagineeer

Jose doesn’t have a normal job, he said, and thinks that’s a good thing. Jon asked about the name.

“you call yourself an imagineer now.”

Jon McLachlan, at 30:33

“It just sounded like a cool name.”

Jose Arrieta, at 30:42

His LinkedIn has his HHS roles ending in September 2020 and Imagineeer starting in August 2020 (LinkedIn). On the tape, he started it to work on interesting problems and connect dots, without knowing how he would make money doing it. His first example was the carbon project: a cryptographic wrap for carbon emissions data that makes the data portable. With that, you could reward carbon emissions reductions, and maybe fuel the carbon offset market. Jose also walks through health projects he was working on, which are in the transcript.

Advise and integrate

Jon asked whether Jose advises startups or gets his hands dirty. Both, Jose said. He jumps into startups and advises them. One is a quantum optimization company. Another is American Binary, the post-quantum company whose co-founder and CEO, Kevin Kane, came on episode 32 and episode 96. On the other side,

“I actually go and integrate technologies and serve more as the kind of integrator, putting the pieces together”

Jose Arrieta, at 35:21

He has never raised money for himself, he said. For American Binary, though, he made a phone call and

“helped them raise money right when I left government.”

Jose Arrieta, at 39:26

“And I just believed in Kevin. I thought he was fantastic.”

Jose Arrieta, at 39:31

In a government job like the one he had, he said, you have no life.

“things that you have to do because the bureaucracy demands it.”

Jose Arrieta, at 36:00

All in, three times

Jon asked what success looks like for Jose, then offered a guess.

“it sounds like it’s more about the journey.”

Jon McLachlan, at 37:23

Jose answered with HHS.

“There were three times during the pandemic where my team at Health and Human Services, whom I adore”

Jose Arrieta, at 37:27

Each time, the team asked whether they were going all in. The last time, the stakes were his job.

“you could get fired for making that call.”

Jose Arrieta, at 37:42

“I think it’s the right call for the nation.”

Jose Arrieta, at 37:46

What he learned is that going all in opens a door, whatever the outcome.

“the journey itself opens another door to you, right?”

Jose Arrieta, at 37:52

Listen · Jose Arrieta on episode 40, from 37:26
About 30 seconds: Going all in, three times. The clip stops on its own. Read the full transcript.

The outcome isn’t what he glorifies, he said, and the full story is one for a beer.

What’s next

Jose doesn’t know what’s next. He has two concepts.

“I have a concept around significantly disrupting the EHR space”

Jose Arrieta, at 38:11

“I have another concept around building a large service provider in the federal space.”

Jose Arrieta, at 38:22

He would build to a certain scale, buy companies and integrate them, and compete with the large integrators at that scale,

“leveraging AI to automate a lot of the back-end services.”

Jose Arrieta, at 38:40

He works with a number of partners and learns as he goes, among them

“people from around the world that I’ve never met other than video”

Jose Arrieta, at 40:09

Rip the Band-Aid off

Late in the episode, Jose told the story of one hard call. HHS had to cut over the reporting of all the hospitals in the United States into one mechanism. On the tape, he puts the count at 8,000 hospitals, with 3,000 reporting into one system before the cutover. The team was told on a Wednesday to have it done by Friday or Monday. Before going live, people asked whether they were going to do this, and Jose said yes, and that all the data would be shared openly.

“sometimes you just got to rip the Band-Aid off.”

Jose Arrieta, at 44:30

He assumed the cutover would have issues. With all the data open, everyone could look for the inaccuracies.

“now you have the largest open source project in the history of the world focused on health.”

Jose Arrieta, at 44:41

Listen · Jose Arrieta on episode 40, from 44:19
About 25 seconds: The cutover of hospital data. The clip stops on its own. Read the full transcript.

“I didn’t realize how political that would become”

Jose Arrieta, at 44:51

Becker’s Hospital Review covered the change on July 16, 2020. HHS updated its guidance on July 10, 2020. Hospitals that had reported daily to the CDC’s National Healthcare Safety Network would report through TeleTracking to HHS, or through their state. Jose told reporters that the network received data from about 3,000 of roughly 6,200 hospitals, HHS Protect from another 2,000, and TeleTracking from 1,100 more. “We do that through HHS Protect,” he said (Becker’s).

Four bars. Hospitals in Jose's count to reporters, dashed: about 6,200. Reporting to the CDC's NHSN, filled: about 3,000. Reporting through HHS Protect: 2,000. Reporting through TeleTracking: 1,100. Below: "now you have the largest open source project in the history of the world focused on health." Jose, at 44:41
The cutover, from the tape and Becker's Hospital Review.

Go all in

Jon asked for final words of wisdom, and Jose gave them.

“If you have that instinct that you feel like you should be all in on something, then go all in.”

Jose Arrieta, at 46:59

“it most certainly will open up a door that you could never imagine.”

Jose Arrieta, at 47:07

“What I thought was a risk really created an amazing opportunity for me.”

Jose Arrieta, at 47:16

What happened after the tape

Imagineeer grew past one person. In a LinkedIn post, Jose says he founded Imagineeer six years ago, and that “For five of those six years, Imagineeer was a one-person advisory firm.” (LinkedIn).

A Department of Education contract. Another recent post announces an Enterprise Acquisition Transformation support contract at the U.S. Department of Education (LinkedIn).

On two 2027 lists. His posts say Imagineeer is a 2027 Elev8 GovCon Honoree, and that Jose was named to the 2027 Engage Fed Health 150 (LinkedIn).

Still advising American Binary. A post from this year says he has advised the company “since the friends and family round” (LinkedIn). Kevin Kane came back for a second visit on episode 96, published June 2, 2026.

Teaching ended in 2023. His LinkedIn has the Johns Hopkins role running to May 2023 (LinkedIn).

AI agents in government. He talked about agents in government with David Blackburn on OrangeSlices’ GovCon Executive Slice podcast, which he shared on LinkedIn (LinkedIn).

More on this show. Jon compares Peacemakr with Intel’s hardware-based protection for data, on episode 39 with Steve Orrin. Georgianna Shea of the Foundation for Defense of Democracies tells how Presidential Decision Directive 63 led to her first job as a network analyst, on episode 48.

Did you catch it? A seven-question quiz

Seven questions from the episode. Each answer links the moment in the transcript.

Quiz · seven questions

Did you catch it?

Pick an answer to see whether you caught it.

  1. What does Jose believe the March 2020 attack on HHS was for?

    b. "it appeared to be an amplified DDoS attack, but it was actually to map our interconnectivity within the broader health system, right?" Transcript, 5:49.

  2. What does Jose say about the NOC and the SOC?

    a. "have to be fully integrated." Jose means the NOC and the SOC. Transcript, 16:22.

  3. What analogy does Jose use for spreading identity out?

    c. "if we hire five shooters that can really shoot the lights out and make him run all over the place, we have a better chance of beating him, because he's a unicorn." Transcript, 16:50.

  4. Which question does Jon say comes up every time he sets up a security program?

    b. "what data do we have?" Transcript, 22:46.

  5. What price does Jose suggest for each use of a patient's data?

    a. "you had this ability to transact for that data." Then he says, let's say half a penny. Transcript, 26:11.

  6. How many times during the pandemic did Jose's team ask whether they were going all in?

    c. "There were three times during the pandemic where my team at Health and Human Services, whom I adore" asked whether they were going all in. Transcript, 37:27.

  7. What does Jose call the hospital data cutover, once the data was open?

    b. "now you have the largest open source project in the history of the world focused on health." Transcript, 44:41.

Could you reconstruct your worst day?

Eight questions on whether your logs, teams and data records could tell the story of a large attack, from the episode. Each tip quotes the tape or paraphrases it, and links its section.

Scorecard · eight questions

Could you reconstruct your worst day?

Answer for your production network and the data it holds. If two answers fit, pick the lower one.

  1. What do you log at the edge of your network?

    • Little or nothing, only inside our apps
    • Some edge traffic, kept for a few days
    • The edge and the apps, kept long enough to investigate

    "at a stateless level, you're not collecting certain information." See Only what you logged.

  2. Do your NOC and SOC work as one team?

    • Separate teams and separate tools
    • Separate, with a shared channel in an incident
    • One team with one picture of the network and the threats

    The NOC and the SOC, Jose says, "have to be fully integrated." See One team for the NOC and the SOC.

  3. Can you answer the question of what data you have?

    • No, we have no inventory
    • For our main systems
    • Yes, every data set, each with an owner

    Jon says the question comes up at every company he works with, from a two-person startup up. See Data at the center.

  4. Can you say where a data set came from and who has used it?

    • No
    • For some data sets
    • Yes, with a record of its source and every access

    Jose asks how you create an identity "for each data asset, for each data set?" See An identity for every data set.

  5. Do you share threat information with other companies in your sector?

    • No
    • Informally, with a few peers
    • Yes, through an ISAC or a similar group

    Jose's two food companies each secure themselves, and neither has an incentive to share. See Investing in the gap.

  6. How far down does identity go?

    • One login at the perimeter
    • Each user
    • Each user, each service and each data set

    "distribution of control, distribution of identity to the lowest level" See Five shooters.

  7. If a large attack hit tomorrow, could you change how your network behaves?

    • No plan
    • A plan on paper
    • A tested plan, with the providers who would help

    "let's create tools that give you the flexibility to defend yourself in the event of a large action like that." See One of two nation states.

  8. Do your incident reports say what you didn't record?

    • No, the gaps get filled in
    • Sometimes
    • Every report lists what the logs can't show

    "no information really does mean no information." See Only what you logged.

Only what you logged

A large attack would leave you with part of the story. Start at the edge: decide what to log there and how long to keep it, and put the NOC and SOC on one channel.

Part of the story

You'd see most of an attack. Next, list every data set with an owner and a source, join your sector's ISAC, and write down how you would change the network under load.

The whole story

Your logs, teams and data records could tell the story of a bad day. Test it with an exercise, and keep each report honest about what the logs can't show.

What half a penny adds up to

Jose’s example is half a penny each time a provider uses a reading from a patient’s device. This calculator shows what that adds up to for the people the data describes.

Calculator

What half a penny adds up to

Three numbers: how many readings your devices collect a day, how many providers use each one, and the price of each use in cents.

$36,500paid to people for their data, a year
$100a day
20,000uses a day, each one a record of who used the data

With 10,000 readings a day, each used by 2 providers at 0.5 cents a use, the people the data describes would get $100 a day, or $36,500 a year, from 20,000 uses a day.

The half a penny comes from the tape. The 10,000 readings and the 2 providers are placeholders: put in your own numbers.

From Treasury to Imagineeer

Jose’s path, HHS in the pandemic, data and trust, threat sharing, and the episodes on this site that pick up the thread. Filter by topic.

Timeline

From Treasury to Imagineeer

  1. PDD-63

    Presidential Decision Directive 63 is signed. Sector ISACs begin forming in 1999 (Wikipedia, on this page).

  2. Tenable

    Ron Gula, Jack Huffard and Renaud Deraison found the company (Wikipedia).

  3. TSA

    Jose becomes a program manager (LinkedIn, on this page).

  4. DHS

    Industry liaison and ombudsman (LinkedIn).

  5. First classroom

    Adjunct at Prince George's Community College (LinkedIn, on this page).

  6. Treasury

    Director of the Office of Small and Disadvantaged Business Utilization (LinkedIn, on this page).

  7. Hyperledger

    The Linux Foundation starts its umbrella project for open source blockchains (Wikipedia, on this page).

  8. GSA

    Director of the IT Schedule 70 contract (LinkedIn).

  9. HHS acquisition

    Jose joins HHS on the acquisition side (Nextgov).

  10. Johns Hopkins

    Adjunct at the Carey Business School (LinkedIn).

  11. HHS Accelerate

    HHS expects an authority to operate for its blockchain acquisition system (Nextgov).

  12. CIO

    HHS names Jose its permanent chief information officer (Nextgov).

  13. The attack

    A DDoS-style attack hits HHS. The network briefly vanishes from the internet (Bloomberg, on this page).

  14. Hospital reporting moves

    New guidance sends hospital data through TeleTracking to HHS, or through the states (Becker's, on this page).

  15. Imagineeer

    Jose founds the company (LinkedIn, on this page).

  16. Leaves HHS

    His roles as CIO and interim chief data officer end (LinkedIn).

  17. Gula Tech Foundation

    A foundation for grants to cybersecurity nonprofits (PR Newswire, on this page).

  18. Eight billion scans

    FedScoop reports Jose's account of the attack (FedScoop).

  19. Last class

    His Johns Hopkins role ends (LinkedIn).

  20. Food and Ag-ISAC

    IT-ISAC's food and agriculture group becomes its own center (Security Magazine).

  21. Episode 32

    Kevin Kane of American Binary on post-quantum cryptography (episode page).

  22. The untold story

    Bloomberg News reports on the attack (Bloomberg).

  23. The Times sues

    The New York Times sues OpenAI and Microsoft for copyright infringement (Wikipedia, on this page).

  24. Episode 39

    Steve Orrin of Intel, with Jon on Peacemakr (episode page).

  25. Episode 40

    Jose on the show (Podbean, transcript).

  26. Episode 48

    Georgianna Shea on PDD-63 and the start of her career (episode page).

  27. Episode 96

    Kevin Kane comes back for a second visit (episode page).

What to do this week

Five things, in the order of the episode.

  1. Check what your edge keeps. Find out what your stateless layers log and for how long, then take the scorecard with your team.
  2. Put the NOC and SOC together. Give them one channel and one picture of the network for the next incident, as in One team for the NOC and the SOC.
  3. Answer what data you have. List each data set with an owner and a source. Our post on the AI data bill of materials has a starting format.
  4. Join your sector’s ISAC. Health, food and most other critical sectors have one, as in Investing in the gap.
  5. Get help for the bad day. 24/7 Monitoring & Response watches cloud, network, endpoints and mobile in one picture, with people who respond, and our Counter Nation-State Espionage & National Security Program is built for state-grade adversaries. If you want to talk it through, book 15 minutes with us.

Key takeaways

  1. Ask what your logs can't show

    In Jose's thought experiment, the logs from a massive event show an amplified DDoS attack, while the stateless layer collected nothing. An investigation has only what you collected, and it may not line up with what happened.

  2. Make the NOC and the SOC one team

    Jose's first lesson from the March 2020 attack on HHS: investing in a NOC and a SOC without integrating them is a giant weakness.

  3. Spread identity to the lowest level

    Against a large, centralized attacker, Jose would rather have five shooters than one big center. Distribute control and identity, and the attacker has to change how it deals with you.

  4. Give every data set an identity

    Jose asks how anyone creates an identity for each data asset and data set, with its ownership and history. Jon says every security program he sets up starts from the same question: what data do we have?

  5. Fund the gaps between

    Private companies and federal agencies secure themselves. Gaps like two food companies that never share threat information need groups built for sharing, and Jose says Ron Gula invests in NGOs that fill them.

  6. Say what you don't know

    Jon says operators fill gaps in the evidence with their own experience, almost without noticing. No information means no information, and a report should say so.

  7. Put a price on each use of data

    Jose's idea: half a penny each time a provider uses a patient's data, with a record of every use. He says that spreads authority and value throughout a system.

  8. Open the data and let people check it

    When HHS cut over hospital reporting, Jose chose to share all the data, so the whole health system could look for the inaccuracies.

  9. Go all in

    Jose's advice: if your instinct says to go all in on something, go all in. Even without the outcome you wanted, it opens a door you couldn't have imagined.

Chapters

Tap a chapter to play from there.

Pull quotes

“It's fundamentally balancing these forces that never quite fit together, right?”

Jose Arrieta ·

“if Homeland Security was easy, a private company would go and secure the border”

Jose Arrieta ·

“We experienced what I believe was a nation-state cyber attack on Health and Human Services during the pandemic.”

Jose Arrieta ·

“it appeared to be an amplified DDoS attack, but it was actually to map our interconnectivity within the broader health system, right?”

Jose Arrieta ·

“the economic base is what actually supports that military”

Jose Arrieta ·

“That's creating that foundation so some of these capabilities can truly scale.”

Jose Arrieta ·

“I can do it in a day, and I can build the new care flow in a month.”

Jose Arrieta ·

“when you look at what you log, it appears to be an amplified DDoS attack.”

Jose Arrieta ·

“you only have what you collected from a data perspective to evaluate.”

Jose Arrieta ·

“no information really does mean no information.”

Jon McLachlan ·

“investing in them and not integrating them is just really a giant weakness that you're creating.”

Jose Arrieta ·

“if we hire five shooters that can really shoot the lights out and make him run all over the place, we have a better chance of beating him, because he's a unicorn.”

Jose Arrieta ·

“distribution of control, distribution of identity to the lowest level”

Jose Arrieta ·

“I believe it was one of two nation states that attacked us.”

Jose Arrieta ·

“That's not some researcher in a basement.”

Jose Arrieta ·

“how do you delegate trust?”

Jose Arrieta ·

“he's investing in NGOs that fill those gaps between government agencies and private companies.”

Jose Arrieta ·

“identity is just the answer to the question, who are you?”

Jon McLachlan ·

“every layer of security, if you think about it, in the center is that data.”

Jon McLachlan ·

“they're creating a record of provenance of the data asset”

Jose Arrieta ·

“I don't think it's AI. I don't think it's large-scale, centralized artificial intelligence capabilities.”

Jose Arrieta ·

“If you're Madonna and you make a really awesome hit song, like, you would like to get paid, right?”

Jon McLachlan ·

“There were three times during the pandemic where my team at Health and Human Services, whom I adore”

Jose Arrieta ·

“now you have the largest open source project in the history of the world focused on health.”

Jose Arrieta ·

“If you have that instinct that you feel like you should be all in on something, then go all in.”

Jose Arrieta ·

“What I thought was a risk really created an amazing opportunity for me.”

Jose Arrieta ·

About the guest

Jose Arrieta, Founder, Imagineeer

Jose Arrieta was chief information officer of the U.S. Department of Health and Human Services from May 2019 to September 2020, and its interim chief data officer for the same months, after joining HHS on the acquisition side in January 2018. Before that he was a program manager at the TSA, an industry liaison and ombudsman at the Department of Homeland Security, director of the Office of Small and Disadvantaged Business Utilization at Treasury, and director of the IT Schedule 70 contract at GSA. He taught at Prince George's Community College, the University of Virginia and the Johns Hopkins Carey Business School. He founded Imagineeer in August 2020. He joined Jon McLachlan on episode 40, published April 1, 2024.

About the host

Jon McLachlan is co-founder of YSecurity, the on-demand cybersecurity team for startups, and of Cyberbase.ai. The Security Podcast of Silicon Valley is hosted by Jon McLachlan and Sasha Sinkevich. Jon McLachlan on LinkedIn ↗

Context and sources

  • Episode 40 on Podbean, April 1, 2024, with show notes on Jose's career across government, academia, cybersecurity and healthcare, a possible nation-state attack during the pandemic, the EHR space, data ownership and going all in. Source ↗
  • Jose Arrieta's LinkedIn profile: his experience from the TSA in September 2010 to Imagineeer in August 2020, his teaching, and recent posts on Imagineeer, the Department of Education, the 2027 Elev8 GovCon honorees, the 2027 Engage Fed Health 150 and American Binary. Source ↗
  • FedScoop, by Dave Nyczepir, September 23, 2022: Jose's account of more than eight billion scanning attempts over 18 hours in a DDoS-style attack on HHS on March 15, 2020, and "an enemy combatant" with no country named. Source ↗
  • Bloomberg News, by Jordan Robertson and Riley Griffin, December 6, 2023: the HHS network briefly vanished from the internet on March 15, 2020, Secretary Alex Azar attributed a 10-minute outage to a cyberattack, and former officials attribute it to a state-level actor. Source ↗
  • Becker's Hospital Review, by Laura Dyrda, July 16, 2020: HHS updated hospital reporting guidance on July 10, 2020, and Jose said NHSN received data from about 3,000 of roughly 6,200 hospitals, HHS Protect from another 2,000, and TeleTracking from 1,100 more. Source ↗
  • Nextgov, by Troy K. Schneider, HHS picks Arrieta as new CIO, May 23, 2019: HHS Accelerate described as the first distributed-ledger-powered system to receive an authority to operate. Source ↗
  • Nextgov, by Sara Friedman, HHS expects ATO for blockchain acquisition solution this month, December 5, 2018: HHS Accelerate uses blockchain, machine learning and artificial intelligence to streamline acquisition. Source ↗
  • PR Newswire, December 8, 2020: Gula Tech Adventures, founded by Ron and Cyndi Gula, sets up a foundation to award competitive grants to cybersecurity nonprofits. Source ↗
  • Security Magazine, May 25, 2023: IT-ISAC's food and agriculture group becomes its own analysis center, the Food and Ag-ISAC. Source ↗
  • Wikipedia, United States Department of Health and Human Services: a budget of $1.293 trillion for fiscal year 2020. Source ↗
  • Wikipedia, Denial-of-service attack: the definition, and DNS amplification among the common forms of the distributed kind. Source ↗
  • Wikipedia, OpenAI: The New York Times sued OpenAI and Microsoft for copyright infringement in December 2023. Source ↗
  • Wikipedia, Hyperledger: an umbrella project of open source blockchains that the Linux Foundation started in December 2015. Source ↗
  • Wikipedia, Electronic health record: the definition. Source ↗
  • Wikipedia, Network operations center: the definition, and that NOC is pronounced like the word knock. Source ↗
  • Wikipedia, Security operations center: the definition. Source ↗
  • Wikipedia, Shaquille O'Neal: drafted first overall by the Orlando Magic in 1992, then four years later signed with the Los Angeles Lakers, where he won titles in 2000, 2001 and 2002. Source ↗
  • Wikipedia, Tenable, Inc.: founded in September 2002 by Ron Gula, Jack Huffard and Renaud Deraison. Source ↗
  • Wikipedia, Information Sharing and Analysis Center: sector ISACs began forming in 1999, after Presidential Decision Directive 63 was signed on May 22, 1998. Source ↗
  • Wikipedia, Micropayment: the definition, and the micropayment systems of the mid-to-late 1990s. Source ↗

Transcript

Automatic transcription. Jon McLachlan hosts this episode with Jose Arrieta, the former chief information officer and chief data officer of the U.S. Department of Health and Human Services and the founder of Imagineeer. There is no diarization on the tape, so speaker labels were assigned from the content and checked against reference recordings of each voice from this episode and by pitch, and a few short lines may sit with the wrong speaker. Names and terms were normalized where the recognizer misheard them (Jon McLachlan, Jose Arrieta, Imagineeer, Peacemakr, OpenAI, Hyperledger Fabric, Ron Gula, Tenable, NOC, SOC, Shaq, HHS, EHR, SOC 2, GMAT, adultBasic, Avellino, wrap rates). Words in [brackets] are best guesses where the audio is unclear, and [unclear] marks words we couldn't make out. Answers are transcribed as spoken, with repeated words and false starts trimmed. Short backchannels such as "yeah" and "right" are left out where they overlap the other speaker.

Read the full transcript 8,810 words

Jon McLachlan

Hello, everyone, and welcome to another episode of the Security Podcast in Silicon Valley. I'm here today with a very respectful guest, Jose Arrieta. Welcome to the show.

Jose Arrieta

Oh, hey, Jon. Thank you. Thanks for having me. Always good to chat with like-minded individuals.

Jon McLachlan

Yeah, there's just something about, like, us crazy security people. So I'm really excited to have you on the show. Thank you so much again for joining. Thank you to all of our listeners for tuning in as well. And I'm just looking at your LinkedIn. You have a really interesting background.

Jose Arrieta

Well, look, man, I appreciate it. My hair wouldn't be gray if I didn't have all the fun I had doing those jobs that you see on LinkedIn. So I guess I do have that blessing to count on.

Jon McLachlan

You spent a good chunk of time in government. So you helped with procurement back in the day, and you helped with the TSA as a program manager, and you worked for the U.S. Department of Homeland Security, industry liaison. Awesome. You are a director of small and disadvantaged business utilization at the U.S. Department of Treasury. And, oh, go ahead.

Jose Arrieta

Yeah. If you think about the operations of government, right? It's fundamentally balancing these forces that never quite fit together, right? So you have all these procurement rules, and you have to follow them, procurement law. But you don't just do contracts independent of anybody, right? You do them with industry partners, and they have certain things that drive their costs. And then in the federal system, you have socioeconomic goals. We want to drive dollars to small business, want to create a competitive small business base. From a national security perspective, that's really important. So you got to take into account small business. So if you look at my background, right? I've built requirements, which is how do you shape requirements so you can maximize participation from the industrial base. I've entered into contracts, very large dollar-value contracts. I think the largest one I did was a billion and a half, with industry partners who actually deliver on that mission. And then I tried to shape small business policy, because one of the things I thought was really important when I was doing that job is that we reward companies who are reinvesting in themselves to deliver capabilities for us. And that was a part of the policy that I felt was left out in the procurement process. And so I tried to serve in all of those roles, because I felt like that's the way you could fundamentally change the system, right? And there's some really cool missions. When you think about Homeland Security, just as an example, if Homeland Security was easy, a private company would go and secure the border, if there was an easy return on investment to calculate. But there's not. It's a tough challenge to deal with, and that's a space where government has to step in and, through policy and investment, actually drive an outcome. And so you get into these really thorny challenges that government should try to solve. And I found that very fascinating. So that's the arc of my career. And they just kept kicking me out of jobs, and that's why there's so many different roles on the LinkedIn page.

Jon McLachlan

You're also, you dipped your toes into the academic space a little bit too. You're an adjunct at Prince George's and at the University of Virginia, too.

Jose Arrieta

Yeah. So when I was 29 years old, I always wanted to [give] back. I had a lot of people help me in my life. I never met my father until I was maybe 25 years old, and my mom really struggled when my mom and dad separated when I was very young. And we had a lot of people help us. And so I thought that academics would be a way to [give] back. I'm not an academic, but I taught at Prince George's Community College and created some of the first courses around [blockchain] at Johns Hopkins University. And if you can teach something, you learn more than you actually provide when you teach, right? And it became just a really energizing activity, teaching at UVA and Prince George's Community College and Johns Hopkins University. So I really enjoyed that. Actually, that's the thing I missed most. I stopped doing that right after the pandemic. And I missed those interactions and engagement, because all the ideas come from folks that are in college and have all that free time to create.

Jon McLachlan

Yeah, they're not, like, they're not stained with the conventional ways to think about how to solve problems already. That's where I think a lot of creativity actually comes from.

Jose Arrieta

Yeah. And they're not afraid, especially if you create the right environment. They're not afraid to challenge the status quo. And in an academic environment, when you're not measuring return on investment, where you don't have, like, broad presidential policy issues that are smashing together in the middle of an election year, you can really explore some of those solutions. They also don't need huge return. So you can get folks who will try something that's really interested, and they're not focused on what the return on investment will be in two years. They're focused on a project. And some of those things snowball. And in many instances, I don't think they would ever be invested in if it wasn't a college student, a college entrepreneur that was just interested in a topic. So it's a unique storm, so to speak.

Jon McLachlan

Absolutely. And you do brand yourself as a security professional, at least just glancing at your LinkedIn, it feels like that. Not just branding yourself, but you actually are. And you were the chief information officer at the U.S. Department of Health and Human Services.

Jose Arrieta

Yeah. So I was the CIO and chief data officer of HHS during the pandemic. And there's a really interesting Bloomberg documentary out there that just came out like a week ago, that really, I would say, thrust me into the middle of the security conversation. We experienced what I believe was a nation-state cyber attack on Health and Human Services during the pandemic. And if you watch the documentary, I believe it was a mapping activity, right? I believe it was a DDoS event. It was, it appeared to be an amplified DDoS attack, but it was actually to map our interconnectivity within the broader health system, right? Because HHS is about $2 trillion a year in the health system. The health system's 30% of US GDP. Mapping that at the beginning of the pandemic, so that you could see where capital was going to flow, whether it was payments, contracts or grants. And if you look at HHS, $2 trillion in payments, [$2 trillion] in grants, $26 billion in contracts, and completely disconnected from the rest of the world, right? The health sector is there to service the domestic market. And so, yeah, I really got a lot of exposure to security through that. Also, early in my career, I built out enrollment, vetting, adjudication and redress systems to actually identify terror threats around the world, leveraging kind of integration with [derogatory] databases. And so we were, post-9/11, we were trying to identify terrorists that were entering into, flying over or trying to gain access to work in the United States in certain domains. And before Facebook knew you had a dog, or that there were a million people on the platform that had dogs and they were marketing dog food to them, we were building vetting tools to actually identify terror threats before they entered into those domains, so that we could remove them. So my background, from a security perspective, is very much data focused, extremely operational and kinetic, right? We're talking about taking, like, security and mixing it with an operational force that's going to physically remove somebody from an environment. And so I'm not a security professional like yourself. I do have a kind of unique experience from a security perspective.

Jon McLachlan

Yeah, definitely. You connect the cyberspace with the kinetic space. That's powerful.

Jose Arrieta

The other thing that I was really passionate about at the Treasury, and I want to bring this up, Jon, because I think this is really important, and we talked about it a little bit at the beginning, the industrial-based piece. When you, I did a research project on my own volition when I was at the Treasury, just something interesting. I said, where's foreign direct, from a country in [Near East] Asia, where does the predominance of their foreign direct investment go? And it was very fascinating when you put it on a map at that time, and this was probably 2014. At that time, 90% of their foreign direct investment went into seven or eight countries, and if you drew it on a map, it encircled Japan. And it was the first time I looked at it and I said, well, that looks like a private equity roll-up, right? And so if you have this robust industrial base that creates ideas, that creates, like, these unique capabilities, how do you protect that industrial base without overburdening it with taxes, without overburdening it with costs, so that you can compete? Because, you know, when you look at U.S. strength, we always talk about our military, but the economic base is what actually supports that military and gives that military the ability to invest in new technical capabilities. And that's really what you have to protect. And so that's another area that I think of security that's less talked about. We talk about securing software, we talk about securing an airport, but how do you, like, create security around an industrial base, to protect the fundamental beliefs and values of a country, of a democratic society? And those are some areas that I'm really passionate about. I think are really important, and we need to focus in on more.

Jon McLachlan

Really high-level questions, too. It's a very, like, bird's eye view. Oftentimes I'll bring on a founder, and they're focused on one very specific small piece of the security puzzle, which is very important pieces, but, like, it's a very zoomed-in view. And this is refreshing, because this is like taking a step back and looking at the bigger picture.

Jose Arrieta

And it's important, and please disagree with me, and I encourage it if I'm wrong, but when I look at AI, right, and everybody wants to talk about artificial intelligence, the thing that kind of goes bonkers in my brain is, how are you securing the identity? How are you creating an identity for each data asset, for each data set?

Jon McLachlan

It's pretty clear they're not doing that, right? And look, the Times is now suing OpenAI and Microsoft because copyright violation, I guess, is what they're claiming, but it's going to be difficult without data that has been properly identified from its source, right?

Jose Arrieta

That's right, right? And if you just peel that back, right? And I'm just going to touch it, because this is such a deep topic. But if you peel it back, we're talking about modern micropayment solutions, but we're talking about completely disrupting electronic health records. There's so many, and that's not OpenAI. That's not, like, artificial intelligence. That's creating that foundation so some of these capabilities can truly scale. And I know it's not sexy, but when I think back to my time at Health and Human Services and some of the things we tried to achieve there, in particular with blockchain technology, which I have scars I can show you from trying to [unclear] one of our business units, about a $27 billion a year business unit, leveraging Hyperledger Fabric. The data, the data question is the most important question, and the ability to provide ownership and the ability to provide a history, [unclear] history, right? It's not the sexy topic that everybody wants to talk about.

Jon McLachlan

Well, maybe not. It's sexy what you can do with it, maybe, but it's not maybe sexy how to get there.

Jose Arrieta

Yeah, and it's hard to explain, right? If I said to you something like, hey, man, you're implementing an EHR, I'm not going to name anybody, but you're implementing an EHR, and it's going to take you three years to build out a new care flow, or a year to build out a new kind of way that you're going to care for somebody, and it's going to take you three months to integrate a new data asset. I can do it in a day, and I can build the new care flow in a month. That's a fundamental change that significantly drives down costs, that improves your ability to be agile at the edge. And now it opens up the ability to leverage data and creates real interoperability. But that's a tough thing. It's a tough kind of sales pitch, right? And for a technologist it may not be, but for a hospital administrator, for the CEO of a health system, that's a tough pitch.

Jon McLachlan

Well, I imagine it's funny. And in terms of computers and machines, they always do what we tell them to do. And the tricky part in instigating change, or having a real impact, I always think is, like, the human side of things, adoption. Like, how do you get something adopted? Like, why are people going to use that new thing? You really, like, 10x better?

Jose Arrieta

So I want to hit this for a second. So you're a cyber guy, but let's imagine that you experience a massive cyber event.

Jon McLachlan

Okay, sure.

Jose Arrieta

And from a data perspective, when you look at what you log, it appears to be an amplified DDoS attack. But that's just what you [logged], because when you look at your stateless layer and your stateful layer, at a stateless level, you're not collecting certain information. So if you go back and you investigate what actually occurred, you only have what you collected from a data perspective to evaluate. But it doesn't align with the broader activity that maybe occurred in that environment, right? And it makes it really challenging to have a real discussion about a cybersecurity threat.

Jon McLachlan

Yes, it does.

Jose Arrieta

And then you add into the fact that there's political complexity. And now you're in a situation where, what is reality? And a guy like you that's on the front lines, or me that's on the front lines of that engagement, there's a reality that's different from kind of other folks that are actually zeroing in on that from maybe a mile away. And that is a very difficult challenge, right? And you have to have amazingly thick skin to deal with that.

Jon McLachlan

Absolutely, you do. And then the question of what is reality. I think, as an operator, a practitioner, cybersecurity, like someone who's close to where the rubber is hitting the road, you have to be very careful about what we don't know. [It's] almost like as important about what we do know. So what we do know, we can say, we can articulate inferences, or we can suggest what has happened. With the gaps, like, we're human, and our brains are very good at just filling in the gaps. And we do this almost unconsciously. It's very difficult to notice that we do this, but we do this as humans. We all do this, where we're filling in the gaps in order to make sense of things. I don't want to say we make stuff up in our head, but our experiences help us understand the facts that we're looking at, and they also help fill in the gaps that are missing. So depending on where you're coming from, and like your motives and your personal experiences and different feelings that we have about different things happening, yeah, I could see how that gets real muddy. And then you bring the diverse group of people together, you have all sorts of interpretations of the facts, and the things that are missing are going to get filled in with different shades of color, depending on what those experiences like. And so just being an operator, you have to be, like, very self-aware. You have to be aware that no information really does mean no information. And does it limit, like, what we can say has happened?

Jose Arrieta

Yeah, it does. It does.

Jon McLachlan

It just means we don't have the perfect story, but if the evidence is there, we can articulate what that might

Jose Arrieta

Suggest, right? And you can see things in real time that maybe you aren't recording because an investment wasn't made. And it's just, security is a tough field. It really is.

Jon McLachlan

And in terms of that breach, was there any single lesson learned that you took away, that you're going to bring with you for the rest of your life, forward into all of your other gigs and perspectives?

Jose Arrieta

It's a really good question. Up to that point, I had been obsessively focused on creating identity for data assets and data sets, and being able to have a record of provenance of how those data assets and data sets were accessed and utilized. And I think one of the things that I realized during that event, well, there was a couple of things. Some of them were pretty basic. Like, one, your NOC and SOC have to be fully integrated. And investing in them and not integrating them is just really a giant weakness that you're creating. You can't have a conversation on two or three [phones] all at one time. But I think the second thing is that, you know, and I always use this analogy when I describe this, is that when the Lakers had Shaq, when the Orlando Magic had Shaq, everybody tried to find a big guy that was big and quick and could match up with him. And then teams realized, if we hire five shooters that can really shoot the lights out and make him run all over the place, we have a better chance of beating him, because he's a unicorn. And so I think that what that event made me realize is that distribution of control, distribution of identity to the lowest level, is the best way to deal with a large kind of centralized entity that's using a bunch of computer capability to overwhelm a network, embed themselves in an environment and understand how it behaves. So if you change the way that you interact with them, then they have to change the way they interact with you. And it's better to be the aggressor on that side of the tape. I think that was the two biggest takeaways. I think the third thing is that, and I still don't know that I fully understand this, but it's very hard to have an open dialogue and just say, yeah, I think that there were two nation states. I'm pretty sure, I believe it was one of two nation states that attacked us. And to marshal the computing power for a million computers in 164 countries to basically focus all of their activities on a very specific point, one of the largest internet surface areas on the planet, for a period of 36 hours, and follow the changing of that network's behavior in real time, literally follow it as we change behavior to deal with this event, that's a nation state. That's not some researcher in a basement. And it may be an easy thing for my mom and dad to read in a newspaper and say, oh, some researcher in a basement in an Eastern European country. But in reality, those types of behaviors are very complex and had to be done by a nation state. And so let's create tools that, if you don't have legal offensive capabilities to deal with a nation state, which we didn't, obviously, only the National Security Agency does, then let's create tools that give you the flexibility to defend yourself in the event of a large action like that. Or let's build an [architecture] in a way that makes it very difficult for a nation state to focus in on [unclear] that way.

Jon McLachlan

Yeah. I like that, those lessons learned. I especially like that sentiment of designing a system using almost the same principle as [delegated] trust, right? Like, yeah, to decentralize things. And yeah.

Jose Arrieta

Yeah. And I'm not advocating for putting the entire healthcare sector in the United States on an interoperable, on some type of blockchain platform, but how do you delegate trust? And let's realize something when we talk about it. Decentralized trust, right? Yeah. How to decentralize trust. How do you make sure that there's delegated authority within the organizational structures? But realize something else, and you may have had direct exposure to this. A private company is going to secure itself. It has all these incentives to do that, Apple as an example. A federal agency is going to secure itself. It has tons of resources. It should have a lot of resources to do that. And they're big organizations. But there are gaps, like in an industrial base, right, where there's really no incentive to secure in those gaps, right? And so I was talking to a venture investor who invests in cybersecurity startups. His name is Ron Gula. He sold Tenable for about a billion dollars. And I was talking to him one day, and I said to him, I said, he's investing in NGOs that fill those gaps between government agencies and private companies.

Jon McLachlan

In NGOs, really? That's interesting.

Jose Arrieta

Yeah, because if you create a standard framework where threat information is shared, right? So if you have two agricultural companies, and they're both dealing with cyber attack, which we, I anticipate, Maslow's hierarchy of needs, let's focus on the food industrial base, create distrust for domestic population and the food industrial base. That's a really interesting attack vector that I think, if you do some research on, you'd see some adversarial nation states are focused on that. Well, one, food company A and food company B are going to secure themselves. But how are they sharing that threat information? How are they interacting with one another? Do they have an incentive to do that? Not really. Well, that's a gap, right? That creates a real opportunity. And so I was talking to this venture investor, and he says, I invest in cybersecurity companies, but I also invest in that gap, via [NGOs]. And I said to him, I said, Ron, you can invest in 50 companies, but in investing in that gap, you could create a foundation to create 22,000 companies in the future. And he goes, yeah. And that's the foundational kind of infrastructure that needs to be put in place to secure an industrial base of a nation.

Jon McLachlan

Yes.

Jose Arrieta

And I think it's just a very fascinating thing, because it's not what you'd originally think of when you think about cybersecurity.

Jon McLachlan

Right. No, I totally agree. There are certain problems that you join forces, you actually have a shot at solving, like, once and for all. And you don't have a single point of failure. You don't have some ginormous, like, entity that's responsible for everything under the sun. Like identity, and you connected identity to data. I think those are, like, the two biggest hot button topics, because identity is just the answer to the question, who are you? Right? It's so simple. We think of it as such a simple thing. We don't even think about it in our daily life, because we can look at each other and, oh yeah, this is Jose, this is Jon, whoever. But in a computer system, all of this data, right? There's the data. All of this data, where did it come from? Who owns it? That's what the New York Times is upset about with OpenAI.

Jose Arrieta

That's right.

Jon McLachlan

Just to connect the dots there, right? And that's also that this may be extremely valuable. And every time that I set up a cybersecurity program or a SOC 2, you know, it doesn't matter the size of the company, be a small two-person startup or, like, a ginormous industry that's been around forever, it's always the same question, always comes up: what data do we have? And how are we answering that tough question of these users and these systems, right, to each other? And then how do you preserve, like, accountability? And every layer of security, if you think about it, in the center is that data. And that's [great].

Jose Arrieta

That was incredible. That's [the] center. It's data. And every layer out around that data is just designed to protect the data.

Jon McLachlan

The data is everything. I don't think, like, the CPU system, there's some value there too, especially with Bitcoin, you can mine some stuff if you get access to some CPU. But, like, the real gold mine in cybersecurity, it's the data.

Jose Arrieta

It's the data. You know, it's fascinating, because you're in an area, obviously, that I find fascinating. If you think about Bitcoin, or you think about the Ethereum network, you're validating something, you're authenticating something by getting two endpoints to agree on it in some semblance, right?

Jon McLachlan

That's right.

Jose Arrieta

And that's a very kind of costly set of check and balances. One of the things, and I'm working with a fascinating startup, I will connect you with these guys. I think you'll find it really interesting.

Jon McLachlan

Oh, name-drop them. What's their name?

Jose Arrieta

It's based out of Toronto, and it's called [Todic]. And I was exposed to them a number of years ago. And what they're doing is they're creating a record of provenance of the data asset, and they're using [bridging] to make the data asset portable across platforms.

Jon McLachlan

Oh, nice.

Jose Arrieta

And so I made an investment at a university to create a data asset, create a digital twin, a software-based digital twin of a functioning piece of hardware with a secure root of trust, whatever. And then I wanted to create a representation of carbon emissions reduction data that could be portable across multiple platforms, and could happen at a very low cost, and you could authenticate the data asset without the kind of infrastructure that you would have to put in place for blockchain. I think there's some really fascinating disruptions, whether it's this company or someone else. I think there's some really fascinating disruptions that will happen in that space in particular. I don't know if you've had any cool exposure to anybody that's doing anything like that, but.

Jon McLachlan

You know what? Actually, the startup that I had the great honor and privilege to lead, Peacemakr, we were a startup, that product that we brought to market was end-to-end encryption as a service. But as we built it and we started to sell it, we realized, like, actually what it was, data lifecycle management, almost like a form of control and verification, [non-repudiation] of all of your data. And as data flowed from one system to another, you could keep track of it, and you could see who was trying to access your data, because you could only access your data underneath our API. It was all open source. And so you could call or request the keys to decrypt this data, but then the data owner had the ability to see, A, who you were, and B, whether or not they wanted to share those keys with you. So it's quite interesting.

Jose Arrieta

Yeah. And so imagine, let's just deploy that, since you have some background there, right? Imagine if you go into a nursing home, a hospital, and between the hardware endpoint that's collecting the blood pressure and the EHR, whatever, that's managing the overall record of patient care, you had this ability to transact for that data. And even, let's say it was half of a penny, right? Well, now what you've done is you've enabled the patient to share information about themselves with multiple providers that maybe have a different [spin] on how to take care of them, how to get them healthy. May not be a great business use case, but think about the disruption that drives in the marketplace, right? Or creators, people that are writing a song or creating content. You talked about the New York Times earlier. Well, now you have the ability to maintain ownership of something forever, and you can engage in a microtransaction, and there's a record of the fact that you created that content. Like, that fundamentally distributes authority and value throughout an ecosystem. And I think that is a democratic principle. And I think that's the next wave of transformation in industry. I don't, and I'll probably get shot in the head for saying this, I don't think it's AI. I don't think it's large-scale, centralized artificial intelligence capabilities. I think it's an investment, and kind of identity around data assets and data ownership that powers all modern AI platforms. So it'll be interesting. I could be way off and wrong. I don't know what the economics of doing what I just described is, but I truly believe that's the way that you compete with a system of government that is more centralized, that is more top-down driven, that is more authoritarian. And I think it aligns with kind of some of the fundamental constitutional values that the forefathers of the United States established as well, right? And so that [fits] in, kind of, that, not to sound like, you could see the way I'm dressed, right? I'm not a political, but not to sound like I'm running for public office, but I think it fits in with the fundamentals of the country at the same time.

Jon McLachlan

It does. I could totally see that. And I appreciate that you have spotted and identified and are thinking about and [mulling] over and investing in, like, the solutions to the underlying problems that no one sees, because AI is cool on the surface, and it's whiz-banging. Look at that, look at, it's talking, like, here's a computer that knows how to talk, and it's, well, what is actually happening there?

Jose Arrieta

It's [exactly] right.

Jon McLachlan

And there's a lot of, like, grit that's underneath the hood that doesn't align with how society works, with our idea of ownership, our idea of, like, content creation, or attribution of, like, credit. If you're Madonna and you make a really awesome hit song, like, you would like to get paid, right? You like one of, you like to have your name attached to that.

Jose Arrieta

If you look at, like, the fundamentals of a democratic society, one of the fascinating things, and you can read this, [Clausewitz], it doesn't matter, is, can you own property? Do you have a right to intellectual property, to things that you create? That's how you spread wealth.

Jon McLachlan

Yes.

Jose Arrieta

And these are, like, some core fundamentals that have to be deployed in and architected in these new technical solutions that are being delivered for mass consumption across the U.S. And I think they're really important.

Jon McLachlan

Yeah, I couldn't agree more. What is AI except an amalgamation of everything that you have ever said publicly, and everything that I have ever said publicly, or written, thought about, or that all of us collectively have come together and we have birthed AI together. It's not like some one person is responsible for all of the creative energy. Yes, there are a group of people that have put it together and have figured out, like, the mathematical equation of how to represent all of us together at the same time. And that's why this thing can speak all of these different languages, because we all speak these different languages. And that's why this thing sounds like us, because it learned, given these sets of words, what's the probability that the next word is going to be this? And that's all it's doing. It's given all of this context here. All right, we could reduce human language down to a set of probabilities, and here they are. Like, given all of the stuff that has happened, what's the probability that next word is going to be X?

Jose Arrieta

So it allows you to test some different things. So I'll tell you, I don't really have a normal life, right? Like a normal job. I think that's a good thing.

Jon McLachlan

In fact, I wanted to ask you, because you call yourself an imagineer now. Well, you are an imagineer.

Jose Arrieta

Yeah, thanks. When I resigned from government, which was, [what is] an imagineer? It just sounded like a cool name. And that's awesome. Yes. And when I resigned from government, I needed a, I don't think I was in a mental state to actually work for an organization. And so I'm like, I should probably register a company. And I just needed a name, and I called it Imagineeer. And I really just wanted to work on some really interesting, cool problems. And I thought to myself, I don't know if this is possible. This is in 2020. I'm like 38 or 39 years old, and no job, and I didn't have a plan, and it's the middle of the pandemic, and I resigned. I'll just say that I resigned, and I founded this company. And I said, I'd really like to connect dots. And I don't really know how to make money doing that, or even if I will, but I think that would be really cool. And so I'll give you an example of some of the stuff. So I mentioned, like, the [secure root] of trust, creating a cryptographic wrap of carbon emissions data, making it portable, leveraging kind of the concept of [bridging] multi-platform, so that you could say, hey, we can incentivize carbon emissions reductions, not create carbon credit, because as you remove carbon, the carbon credit becomes worth less, but maybe fuel the carbon offset market, leveraging that type of technology in deployment. But then some other really fascinating things came up. One of them, for example, right now, I took a company called Avellino, which is based up in the Bay Area. It's a testing company. And I went into a [nursing home]. I just called a friend, and I'm like, look, I want to test the wastewater in the nursing home. I want to identify COVID. I want to identify C. difficile. And then, don't ask me how I found these things, but then I'm going to test the wastewater for a month or two, and then I'm going to feed the patients very high IgY eggs. IgY is an antibody that creates resistance against pathogens. That's why you eat eggs, right? Well, imagine if you had an egg that was 25% higher IgY than anything you could buy in a grocery store right now. Somebody stumbled across this concept during COVID. And now you can create human resilience to pathogens on the basis of the food you eat. Wow, that would be a fundamental shift, right? And so there's a project that I'm working on doing that. I'll give you one other one that I just find really interesting from a healthcare perspective. The way that kind of drugs are determined safe or not is they test large groups of populations, and as long as, like, activity occurs within the norm, they're protected from a legal perspective. What if I could test based on your genetic makeup? What if I could be that personalized? Did I just fundamentally shift the legal structure of the health space? Because I have a personalized, identified genetic structure of your body, and I understand how you react to specific pathogens, and I understand how certain antibiotics, certain foods, actually create a counterbalance to whatever that pathogen is that's very specific to you. And I could manufacture that real time, and I could provide you with a medicine that meets your needs. Now, that fundamentally shifts the legal structure of that entire industry. And so those are the types of things that I've been working on since leaving government. I'm working on this right now. Imagine if I could take and develop an understanding of your skeletal makeup using computer vision, so that I could deal with pain management. I could alleviate pain on the front end. Now, if you went in and you went through all these tests to determine, like, your musculoskeletal structure, it would take a couple of days. And I probably, you wouldn't even come in and see me unless you experienced pain, which at a certain point, the pain would be extreme. What if they could do that on the front end, as a part of your checkup? And I could tell you, like, certain issues that you had in advance, and behaviors that you could engage in to eliminate them long term. How much value would that drive?

Jon McLachlan

Right. Height, weight, blood pressure and skeletal structure imaging. I love it.

Jose Arrieta

So those are the types of things.

Jon McLachlan

[Imagineer], that's very creative. So, so is your involvement, do you jump into startups and advise, or do you get your hands dirty, and a little bit of both?

Jose Arrieta

And, like, it's both. So I jump into startups and I advise. I work with a couple, like a quantum optimization company now that does, they did 14.9 quadrillion combinatorial computations in 27 seconds. And you know what that means from a, right? Kevin and I worked with Kevin and [unclear] coming, right? Well, I work with American Binary too. So, so on one side, I do this advisory work with, I mentioned, like, a couple of the companies. And then on the other side, I actually go and integrate technologies and serve more as the kind of integrator, putting the pieces together, and try to solve specific problems, right? And so I've somehow, the kids still eat food every day and go to school, I've survived this way for the last three years.

Jon McLachlan

Good for you, man. Like, I think that sounds like the dream.

Jose Arrieta

It's been amazing. When you have a government job like I had, I think I was overseeing a trillion in grants and $7 billion in technology investment. And at some point, I just started focusing on the technology aspect, but I had both jobs for a period of time. You really have no life. And there's a lot of kind of things that you have to do because the bureaucracy demands it. In this kind of lifestyle, I've got to spend a lot of time mentally on myself, and, like, really thinking about what I want to do, what excites me. And I've also got to spend an amazing amount of time with my kids, which has been a blast for me, me in particular, having never met my father. I love pulling my kid out of school. The last period of the day is study hall, and I pull them out of school. And I played college basketball, and I coached a traveling basketball team for a while, early in my life, before married and kids. They practiced, like, 11 months out of the year, traveled 11 months out of the year, three weekends a month. Almost all of them played college basketball. And now I'm, like, working on my son with some of those fundamentals. And that's amazing, right? So to be able to do those things has been incredible.

Jon McLachlan

No, that is awesome, that all of that has come together. And so if you fast forward into the future, just, like, for yourself, in this new role where you're engaged in all of these different dots, and you see them starting to come together and connect, and you're there at the epicenter to help steer all of this change that you believe is needed in the world, that you can see is coming and is inevitable, what does success look like in that world for you?

Jose Arrieta

Yeah, it's a good question.

Jon McLachlan

Continue. Like, it sounds like it's more about the journey.

Jose Arrieta

There were three times during the pandemic where my team at Health and Human Services, whom I adore, said, are we going all in on this? And I'm like, we are all. And the last time I said it, it's another story, but the last time I said we were all in there, you could get fired for making that call. And I'm like, I'm comfortable with that. I think it's the right call for the nation. We're all in. And what I realized, and you go all in on stuff, the journey itself opens another door to you, right? And the outcome of some of those decisions isn't the thing that I glorify. And if we ever had a beer, I would love to tell you about it.

Jon McLachlan

I would love to hear it too.

Jose Arrieta

Yeah. It's the journey itself, right? And so for me, I don't know what's next. I have a concept around significantly disrupting the EHR space, where I'm piecing together some technical capabilities, and I'm going to try it. I have another concept around building a large service provider in the federal space. And I think I have a lot of knowledge on how to build to a certain amount of scale and then buy companies and integrate them, and see if you can really cut out the wrap rates associated with the large integrators, and you could really compete with them on that scale, leveraging AI to automate a lot of the back-end services. And how I got to this point was different concepts and ideas that kind of branched off into different things. So I'm just going to enjoy the journey as long as I can, and try to just continue to work on things that fascinate.

Jon McLachlan

Right. Do you have a partner that you do this with?

Jose Arrieta

I have a number of partners. I've met a lot of wonderful people since I left government who have just become amazing mentors. And I'll partner with them on different things, and I learn as I go. I've never raised money before.

Jon McLachlan

Yeah, I was going to ask if any of that was ever involved, if you had a raise or anything in the game.

Jose Arrieta

I've never personally raised for anything. I don't even know how to do it. But you mentioned American Binary, and I made a phone call and helped them raise money right when I left government. Had no idea that it even occurred. And I just believed in Kevin. I thought he was fantastic. And for securing, like, an advanced pharmaceutical manufacturing base and creating, like, a distributed capability to look into inventory management, I'm in the process of helping somebody raise some capital to deploy that now. They're sitting on a pretty large contract, which makes it easier. So I've just learned from different partners. But I don't have a partner that I work with. Like, I've just more been learning from,

Jon McLachlan

It's decentralized, very collaborative and very friendly, but very decentralized too. Just like you're...

Jose Arrieta

Yeah, there's people from around the world that I've never met other than video that I've been in contact with for two years, mostly in this hemisphere. So I like that, right? I think that's the way that you learn and grow. And we'll see where it ends up, man. I'm not too worried about it at the moment, but you never know. In a couple of months, I might be freaking out.

Jon McLachlan

I think everything ebbs and flows a little bit, and it's good to find that balanced spot too. If you could go back in time, and I'll let you decide how far back in time you want to go for this one, if you could go back in time and meet your younger self, any age, and share a piece of advice with your younger self, what would that be? Would you take that opportunity? And what would that be?

Jose Arrieta

When you grow up and you don't know where you come from, you spend a lot of time trying to understand it. And I spent many years trying to, like, I never met my father, maybe talked to him on the phone twice. And I spent a lot of years trying to figure that out. And it's interesting. I moved to Washington after 9/11. I was like, all right, I'm going to be a grad assistant basketball coach. I'm going to move to Washington to do something to help the country. I have a weird health issue. I couldn't join the Marine Corps. And so I figured I'd [serve] in other ways. Serve in other ways. Yeah. And I decided to get my master's degree. The government offered to pay for it. And I met my father right before I took the GMAT. And it was amazing how my brain just was able to unlock and fully engage and immerse myself in other activities once I met him and understood that. And if I could go back in time, I would tell my younger self, don't worry about that. That's not a problem that you have to solve. Focus on the things that really help you be you. Because I spent a lot of time trying to understand that. It's weird when you look in the mirror and you're like, you [know] one side of your family, but you have no idea the other side of your family. I think that would be the one piece of advice that I would give myself. The other thing, and this is funny. So I actually used to be a developer when I built, like, this interface, the insurance, the states received a ton of money, the state of Pennsylvania, from the tobacco lawsuits. And the state of Pennsylvania decided to deploy it for healthcare for underprivileged populations. And I built, like, the interface for the poorest county in the state, so that they could enroll people in what they called adultBasic insurance. And interestingly enough, I would have had a double major, but I dropped out of the computer science class, the last one that I needed, because it was at 8 a.m. on Friday, my senior year, and there was no way I was waking up to take that course. So I probably should have just toughed it out, slept after the class. Those are the two. One a little lighter, and the other one a little heavier.

Jon McLachlan

No, I'm sure that your younger self would understand that all the advice comes from a place of love, and just wanted to see your success, yourself be successful. There's also another point, where I asked that question to a lot of folks, and I've never heard anyone tell me, like, no, I wouldn't change anything, I wouldn't go back in time to give myself advice, which I find really curious too, because I also feel like the things that happen to us, or the things that we do that have led us to this point, are really special. Even, like, the mistakes that we make along the way, they're part of our learning, and they're really part of what makes us who we are today. And I think that you're a pretty, pretty interesting guy, and the world is a better place with you in it. And so I have nothing but all of the gratitude in the world for all of the experiences that you've gone through, and that now you're in a place in your career where you're giving back to the community and involved, and you're clearly leader and a visionary and imagineer and all of this other cool stuff. That's the flip side of [the coin], too.

Jose Arrieta

Yeah, it's interesting. It's just meeting your father, right, the first time. That was tough.

Jon McLachlan

Yeah.

Jose Arrieta

Right. And that is a [difficult] thing to do. And, but there are, and it makes other things so much easier. So one of the fascinating things that we had to do is we had to cut over the reporting of all the hospitals in the United States. We had to cut over from, there's 8,000 of them, we had to move, 3,000 of them were reporting into kind of one mechanism. We had to move it all into one. And we were told on a Wednesday we had to have it done by, like, Friday, or Monday. And I'll never forget, before we went live, they're like, are we really going to do this? And I was like, yeah, we're going to go live tomorrow, and you're going to transparently share all the data. And everybody's, like, freaking out. And sometimes you just got to rip the Band-Aid off. And now, in my mind, lesson learned, right? In my mind, once we go live, I'm assuming the cutover is going to have some issues, but we're going to go live, we're going to make all the data transparent, and then now you have the largest open source project in the history of the world focused on health. Where are the data inaccuracies? You just employed the entire health system of the United States. I didn't realize how political that would become, but I think it is the right thing to do, right? And so, to your point, if I hadn't gone through some of those tough things in my life, would I have made that call? I don't know.

Jon McLachlan

But we need challenges that we face, they shape us.

Jose Arrieta

They shape you, they make you more comfortable with risk, they make you more comfortable with pain.

Jon McLachlan

Navigating complex issues. It's not, like, right and wrong, it's just challenging. And when you're being challenged, you're learning, you're growing, and when you're learning, you're growing, you're becoming a better person.

Jose Arrieta

And yeah, and how do you challenge a system? Like, okay, I'm going to meet somebody that I'm supposedly, like, they're my dad, and I have no idea how this is going to go, but you have to do that. That's scary, right?

Jon McLachlan

That is scary.

Jose Arrieta

So then you have other challenges in your life related to some technical implementation, or investing in a project. It makes it so easy, right? It makes you, [you've already] done the hardest thing that you've ever done in your life.

Jon McLachlan

Yeah, it's in the rearview mirror, right?

Jose Arrieta

And you become comfortable with that intensity. So I think you're right. Do I regret anything? No. Would I tell myself that? Yes. Do I think I would listen to myself, if myself from the future went back in time and told me that? Probably not, right? Because it's a program that you can't shut off.

Jon McLachlan

Right. But in the end, it all works. You may want to, but then, you know, until you hit the experience, it may not.

Jose Arrieta

It may not.

Jon McLachlan

Process. Yeah. It may not. Yeah. Hey, thank you so much. That was really, that's a really vulnerable share. I have all of the gratitude in the world. I'm sure I speak for all of our listeners too, deep gratitude and appreciation.

Jose Arrieta

Well, I appreciate that, Jon. It's really cool to chat with you. I went and listened to a couple of the podcasts. You really are able to call out some interesting insights from folks. And I appreciate you taking the time with me.

Jon McLachlan

No, I really appreciate all of the shares and the vulnerability that you've shared with all of us, and nothing but gratitude. Keep it up. Let's do this again for sure. Would you like to leave our listeners with any final words of wisdom?

Jose Arrieta

Yeah, the one word of wisdom I would have is just go all in.

Jon McLachlan

Go all in. I love it.

Jose Arrieta

If you have that instinct that you feel like you should be all in on something, then go all in. And even if you don't get the outcome that you wanted, it most certainly will open up a door that you could never imagine. And I think that's very exciting. When that door opens, you'll be like, wow, that was really worth. What I thought was a risk really created an amazing opportunity for me.

Jon McLachlan

I love it.

Jose Arrieta

Chat again, Jon. And I really appreciate your time.

Jon McLachlan

All right. Well, I'm so happy that we got a chance to meet. And thank you so much, everyone, for joining for another episode of the Security Podcast in Silicon Valley.

FAQ

Questions this episode answers

Who is Jose Arrieta?
Jose Arrieta was chief information officer of the U.S. Department of Health and Human Services from May 2019 to September 2020, and its interim chief data officer for the same months. He founded Imagineeer in August 2020. Before HHS he held roles at the TSA, DHS, Treasury and GSA, and he taught at Prince George's Community College, the University of Virginia and Johns Hopkins.
What happened to HHS in March 2020?
On March 15, 2020, HHS was hit by a DDoS-style attack. Jose told FedScoop in 2022 that it involved more than eight billion scanning attempts over 18 hours, and Bloomberg News reported in 2023 that the network briefly vanished from the internet. On the tape, Jose says he believes a nation state was mapping how HHS connects to the broader health system.
Why does Jose say the NOC and the SOC must be integrated?
It was his first lesson from the attack. Investing in a network operations center and a security operations center without integrating them, he says, is a giant weakness.
What is the five shooters analogy?
When Shaquille O'Neal played for the Orlando Magic and the Lakers, teams looked for a big man to match him, then found that five shooters who made him run did better. Jose applies it to defense: distribute control and identity to the lowest level against a large, centralized attacker.
What does Jose mean by an identity for each data set?
A way to know which data asset you have, who owns it, and its history, with a record of how it was accessed and used. He says AI needs that foundation to scale, and Jon ties it to the New York Times lawsuit against OpenAI and Microsoft.
What was Peacemakr?
The startup Jon led. It brought end-to-end encryption as a service to market and turned out to be data lifecycle management: data could only be read through its API, and the data owner saw who asked for the keys and decided whether to share them. It was all open source.
What are ISACs, and how do they relate to Jose's gaps?
Information sharing and analysis centers gather threat information for a sector and share it between companies and government. Sector ISACs began forming in 1999, and a Food and Ag-ISAC formed in May 2023. Jose's example of a gap is two food companies that each secure themselves and share nothing.
Does Jose think AI is the next wave?
No. He thinks the next wave is an investment in identity around data assets and data ownership, which powers all modern AI platforms, and he says he could be way off.
What was the hospital data cutover?
In July 2020, HHS moved hospital reporting from the CDC's National Healthcare Safety Network to reporting through TeleTracking to HHS, or through the states. Jose told Becker's Hospital Review that the network had received data from about 3,000 of roughly 6,200 hospitals. On the tape, he says the team shared all the data openly.
What is Imagineeer?
The company Jose founded in August 2020. His LinkedIn gives its mission as operationalizing the ability to test intuition, and a post of his says it was a one-person advisory firm for five of its first six years.
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