Howard Schmidt, the Bush administration's cybersecurity chief and a former executive at eBay and Microsoft, will serve as the White House's first cybersecurity coordinator, President Barack Obama announced today.

Schmidt's appointment ends a nearly eight-month search for a "cybersecurity czar." Obama announced the new position in May, during a White House speech on cybersecurity, but he struggled to find someone willing to take the job; several possible candidates reportedly backed out because of concerns the new position won't have enough authority.

Schmidt has worked as Microsoft's chief security officer and eBay's chief information officer; he also sits on McAfee's advisory council. Schmidt is currently the CEO of the Information Security Forum. He was long considered one of the two front-runners for the job, the other being Frank Kramer, a former assistant defense secretary.

"Howard is one of the world's leading authorities on computer security, with some 40 years of experience in government, business and law enforcement," said John Brennan, the counterterrorism chief on the National Security Council. "Howard will have regular access to the president and serve as a key member of his national security staff."

Schmidt's appointment was well-received in the cybersecurity community; several current and former chief information officers hailed him as a good choice.

"Howard is an experienced, knowledgeable expert in the cybersecurity area," said John Gilligan, a former CIO at the Air Force and the Energy Department. "I'm optimistic."

Industry groups reacted positively to the announcement as well. "Howard has the perfect resume for the job," said Phil Bond, the president of TechAmerica, an industry group.

Schmidt will serve on the NSC and report to Brennan. Lawrence Summers, the head of the National Economic Council, also wanted direct authority over the "cybersecurity czar," calling cybersecurity a matter of economic security. But many experts warned that the NEC would undermine the coordinator's efforts because the council would focus on the cost of implementing new cybersecurity measures.

"[Schmidt] already knows how much damage the NEC can do, because they emasculated the first national cybersecurity strategy," said Alan Paller, the research director at the SANS Institute, referring to the strategy unveiled by the Bush administration in 2003, when Schmidt served as cybersecurity chief. "My guess is that Schmidt worked out those issues ahead of time [before taking the job]."

Brennan said today that Schmidt will "work closely" with the National Economic Council. A spokesman for the White House, Nick Shapiro, confirmed that Schmidt will not report directly to the NEC — and said there wouldn't be tension between the two councils.

"Cybersecurity and economic innovation are mutually reinforcing. Strong cybersecurity, baked in from the beginning, enables innovation to succeed and ensures that the platforms for innovation are resilient," Shapiro said. "The fact that the coordinator participates in both national security and economic discussions strengthens the position."

Schmidt will be tasked with coordinating cybersecurity policy across the federal government. He will also run a new White House cybersecurity office, and push to implement the recommendations of a 60-day cybersecurity review unveiled in May. The review was led by Melissa Hathaway, an adviser to the director of national intelligence.

"The biggest challenge will be to write a meaningful new national [cybersecurity] strategy that does more than recycle ideas from 2003," said James Lewis, a senior fellow at the Center for Strategic and International Studies.

Experts say Schmidt needs to develop a good working relationship with industry. Private sector firms control 80 percent of the country's critical infrastructure. But industry groups have long resisted any kind of "top-down" cybersecurity policy that imposes government regulations on the private sector.

"The biggest challenge may very well be applying a coordinated approach to cybersecurity," said Dave DeWalt, the CEO of McAfee, "that brings together government [and] industry… to ensure a secure, reliable infrastructure."

The White House said Schmidt's long experience working with the private sector was a key factor in the president's decision.

Reaction from Capitol Hill was mixed. Legislators generally praised Schmidt's qualifications: Rep. Bennie Thompson, D-Miss., the chairman of the House Homeland Security committee, lauded his "impressive background."

But lawmakers warned that Schmidt will be ineffective if the White House does not give him the proper authority. Sens. Jay Rockefeller, D-W.Va., and Olympia Snowe, R-Maine, introduced legislation earlier this year that would require the cybersecurity coordinator to report directly to the president instead of the NSC.

"He must have direct and regular access to the president, and everyone in government and the private sector must know that he is the president's voice on cybersecurity matters," the senators said in a statement.

Sen. Joseph Lieberman, I-Conn., said he plans to introduce legislation in 2010 that would make Schmidt's position Senate-confirmed.

Tell us what you think. E-mail Gregg Carlstrom.