legitimate users should have fair and timely access, the services should be usable and the capacity provided should meet needs. Ensuring that these three aspects are provided for is the primary challenge facing security professionals today. 1.2 Extended Generic Intrusion Detection Model Intrusion detection started with network-based and host-based systems. Later there were attempts to bring these together into one system. In order to handle large networks, these systems were installed on different parts of the network. But most of these intrusion detection systems (IDSs) have central analysis components. This presents a single point of failure for the whole system. They do not scale well to a distributed network. In addition each intrusion detection system has its own way of reporting, which is usually not compatible with other systems. The extended generic intrusion detection model (EGIDEM) attempts to get over these limitations by providing an infrastructure for handling intrusions on a distributed scale and for sharing information between different hosts, thus avoiding the need for central analysis. The focus throughout this thesis is on developing small and effective agents for intrusion detection and analysis. These agents can be incorporated on the fly into the system and are not critical for the system to function. Analysis is done on a distributed scale, by these agents and hence there is no single point of failure. The policy- based approach allows for most of the system intelligence to be present in the rule set, thus avoiding the need for complicated components. 1.3 Organization of the Thesis Chapter 2 gives an introduction into Intrusion Detection Systems and discusses some of the work currently being done on these systems. Chapter 3 describes the architecture of our Intrusion Detection System and how it scales to a large distributed