There's this concept of Dane Geld, popularly known also as "not negotiating with terrorists". If you show that you're willing to bow down to a random DDoS attack and fire someone as ransom, it only validates this method of action against you.
That's what terrorists do - they are trying to make an impression that their possible actions are much for dredful that what they'r asking from you. But it doesn't make you particularly bad if you feel scared, does it? And act out of fear? Like giving up something yours - one of your employees or, say, one of your freedoms?
I think you might have that concept backwards. Danegeld was payment to "terrorists" presumably arrived at through the pragmatic notion that paying for protection was better than being dead.
When people say "dane geld", they often refer to the poem of R. Kipling, "Dane-geld", which explains why you should not pay it. That's what I was referring to.