Cyber Security in Greater Baltimore

Transcription

1 Cyber Security in Greater Baltimore a State of the Market Report prepared by: Patrick Dougherty Market & Research Analyst Nadir Mechairia Market & Research Intern

2 Introduction Greater Baltimore is a hub for Cyber Security, one of the fastest growing and increasingly important industries in the world. The Baltimore-Washington corridor is one of the most concentrated in the US in terms of Cyber Security talent and is in company with regions such as San Francisco, Seattle, and Boston. The region is home to notable information assurance research and education universities alongside nearly all of the nation s most important federal agencies and institutions. How does Cyber Security affect the Public Sector? Globally, the Cyber Security industry is worth an estimated $68.35 billion, 1 and is expected to grow at a compound annual growth rate of 11.3% through The industry will be worth an estimated $120.1 billion before the end of the decade. 3 The United States is unique in that government expenditure on Cyber Security is almost equal to private sector expenditure. 4 As warfare has become increasingly cyber-based and reliant on advanced technology,protecting information has grown to be a matter of national security. James Clapper, the director of national intelligence, calls Cyber the top transnational threat. 5 The US government continues to recognize the industry s importance and has increased its level of spending on Cyber Security: $406 million is allocated in 2013 for the Network Security Department, which operates the EINSTEIN federal intrustion detection and prevention program. 6 Cyber Security contracts totaled $10 billion in and are expected to grow at 7.6% annually to over $14 billion by How does Cyber Security affect the Private Sector? Financial institutions are the most popular targets for cyberattacks and cyberespionage due to the nature of their business. The ubiquity of online wealth management has created a need for the banking industry to become leaders in the use of Cyber Security and proactive in its continued expansion. Often, breaches of security go undetected. Financial institutions will need to not only protect themselves from cyber threats, but detect and remediate breaches before their clients funds are further compromised. In 2012, Global Payments, credit card processor for Visa and MasterCard, was hacked. The breach compromised 1.5 million US accounts. 9 The Healthcare industry holds some of the world s most sensistive information and is becoming the target of cyber attacks. Health care providers can deliver more efficient and more affordable patient care through the use of electronic health information, but few in the Healthcare industry are able to appropriately secure their information. As Electronic Medical Records (EMR) become more widely used in order to cut costs and improve efficiencies, there will be an increasing need to protect healthcare networks and the information contained within. Even technology industry giants such as Google, 10 Yahoo!, 11 and PlayStation 12 have been the victims of cyberattacks, leaving personal identification and financial information available. As innovation grows increasingly valuable, cyberespionage that targets intellectual property will become more rewarding and therefore more common. Protecting personal ideas, idenfitication, and financial information is required in a networked world. 2

3 Introduction Key Facts and Findings Commuting patterns indicate a fluid movement of labor between the Baltimore and Washington, DC metropolitan areas, creating a larger ecosystem of talent and industry. There are over 75,000 employed in Cyber Security-related jobs in the Greater Baltimore/Central Maryland region. There are nearly 20,000 open Cyber Security job positions in Maryland, and over 13,000 of available jobs are located in Greater Baltimore. Greater Baltimore/Central Maryland is home to one of the largest and most concentrated Cyber Security workforces in the country. The Baltimore-Washington corridor s Cyber Security workforce is evenly distributed throughout Maryland, DC, and Virginia. Universities in Greater Baltimore are nationally recognized for their record in producing high-quality graduates with in-demand information assurance skills. Maryland colleges and universities are among the leaders in capturing federal Computer Science research and development funds. The Baltimore-Washington region captures enough Cyber Security-related venture funds to maintain a respectable ranking, but falls short of competing regions in terms of total dollars acquired and number of deals reached. Nearby federal agencies and institutions offer a significant strategic advantage to Cyber Security firms located in the Greater Baltimore region. Many of the largest Information Technology and Defense contractors have locations in Greater Baltimore/Central Maryland. Greater Baltimore is home to both industry leaders and an active and engaged Cyber Security startup community. The region offers a number of support organizations and facilities to strengthen the burgeoning Cyber Security industry. Commercialization and private sector applications are necessary for continued growth of the regional Cyber Security industry. Increased use of Education Technology can help fill the numerous open Cyber Security positions and reduce the rate of unemployment in the region. With the U.S. Cyber Command and other federal agencies engaged in cyber-related activities, world-class universities and research institutions, and some of the most innovative cyber companies in the nation, Maryland is already the epicenter of cybersecurity. The Greater Baltimore region is an integral part of our burgeoning cybersecurity sector and a prime location for companies seeking to protect the nation and create jobs in Maryland. Governor Martin O Malley 3

4 Defining the Market Geographic Definitions While Greater Baltimore is a clearly defined geographical area, the region is part of a larger economic area that extends across traditionally defined statistical areas. Firms in Greater Baltimore employ talent from all around the Washington-Baltimore region, and the transportation network allows a fluid relationship with the two intertwined markets. Baltimore MSA 13 With a 2012 population of 2,753,149, the Baltimore MSA ranks 20th in size among all US MSAs. It is comprised of Baltimore City and the surrounding counties of Anne Arundel, Baltimore, Carroll, Harford, Howard and Queen Anne. Cecil County is a partner of the Economic Alliance, but is not included in the official metro data for Greater Baltimore. For this report, data on Cecil County employment is included in Baltimore MSA, Central Maryland, and Washington-Baltimore CSA employment figures where noted. MSAs that are comparable in size include San Diego, St. Louis, Tampa, Pittsburgh, and Denver. Baltimore MSA Washington DC Maryland DC Suburbs Northern Virginia Washington-Baltimore CSA 14 With a 2012 population of 9,331,587, the Washington-Baltimore-Northern Virginia CSA ranks 4th in size among all US CSAs. The CSA region is comprised of the Baltimore MSA, the Washington, DC MSA, the Winchester, VA-WV MSA, the California-Lexington Park, MD MSA, the Chambersburg-Waynesboro, PA MSA, the Hagerstown-Martinsburg, MD-WV MSA and the Culpepper, VA, Lexington, MD, Cambridge, MD, and Easton, MD Micropolitan Statistical Areas. Central Maryland When discussing talent and labor, this report will use Central Maryland as the statistical region when possible. Commuting patterns (on the next page) reveal a strong network of commuters to and from the Maryland DC Suburbs. This region is comprised of the Baltimore MSA and the counties of Frederick, Montgomery, and Prince George s. 4

5 Defining the Market Commuting Patterns More than 137,000 DC metro area residents commute to Greater Baltimore for work daily. Additionally, more than 200,000 Greater Baltimore residents commute to the DC metro area for work daily. Commuters from the Maryland suburbs that are traditionally defined as the DC Metro constitute more than one-tenth of the Greater Baltimore labor pool. Combined, these two regions create Central Maryland, which is used as the statistical base for the Greater Baltimore region when appropriate. The Baltimore-Washington region is well connected internally and to the East Coast through comprehensive interstate, rail, and air networks and hubs. Amtrak trains go from New York to three stations in Baltimore and Central Maryland in less than 2.5 hours. The MARC Train offers low cost travel between Greater Baltimore and the DC Metro. BWI is one of the fastest growing airports in the US and offers frequent flights to cities nationally and internationally. These regional connections allow for the fluid movement of residents from one market to the next, which expands the talent pool and market of Greater Baltimore far into the DC Metro area. From Baltimore MSA to: Regional Commuters From MD Suburbs of DC to: From DC to: From Northern VA to: Baltimore MSA 926, ,150 6,863 22,826 MD/DC Suburbs 149, ,226 38,851 84,084 DC 29, , , ,038 Northern VA 22,181 93,212 35, ,624 Source: US Census Bureau, Longitudinal Employer-Household Dynamics, OnTheMap,

6 Defining the Market Transportation Options The Greater Baltimore economy relies on companies and employees getting around the region and the world efficiently. The following are some of the options available to workers and businesses. Amtrak is efficiently connected to major markets across the northeast corridor from Washington to Boston. The MARC Train is a state-subsidized commuter train that efficiently connects Baltimore to Washington, DC at a low cost. The east coast s major thoroughfare, I-95, passes directly through Baltimore and Central Maryland. The I-695 loop and I-70 connect the central and western parts of Maryland to other states. The Baltimore Metro Subway connects Owings Mills through downtown Baltimore to Johns Hopkins Hospital. The Baltimore Light Rail connects Hunt Valley through Baltimore to BWI Airport. ADAMS YORK LANCASTER CHESTER The three major Baltimore-Washington area airports (BWI, DCA and IAD) provide direct service to all major US cities and most international destinations. PENNSYLVANIA Fort Detrick Frederick LOUDOUN DULLES AIRPORT PRINCE WILLIAM FREDERICK MONTGOMERY National Institutes of Standards and Technology National Cancer Institute FAIRFAX VIRGINIA NSF CARROLL 70 Bethesda DISTRICT OF COLUMBIA ARLINGTON Westminster Rockville NIH Pentagon REAGAN NATIONAL AIRPORT FDA Washington CHARLES BALTIMORE COUNTY AMTRAK / MARC RAIL LINE BWI AIRPORT Amtrak / MARC Rail Station ANNE ARUNDEL CALVERT Patapsco River Chesapeake Bay HARFORD Social Security Administration BALTIMORE CITY Johns Hopkins Middle River Centers for Medicare Woodlawn University and Medicaid Services University of NIH Maryland, Baltimore University of Maryland Baltimore Baltimore County Dundalk HOWARD Johns Hopkins Applied Physics Lab University of Maryland College Park NASA Goddard Columbia Census Bureau PRINCE GEORGE S Owings Mills Fort Meade Bowie NSA Hunt Valley White Marsh Towson Annapolis Havre de Grace Aberdeen APG Edgewood Port Deposit Aberdeen Proving Ground CECIL QUEEN ANNE'S TALBOT Elkton CAROLINE DORCHESTER STAFFORD 6

7 Overview of the Cyber Security Market The Cyber Security industry is constantly seeking qualified professionals to fill the number of jobs available. Nearly 20,000 Cyber Security jobs are available in Maryland, while Baltimore ranks third among cities with the most available Cyber Security jobs. 15 The country s largest defense contractors value Greater Baltimore s proximity to Washington, DC and are some of the region s largest employers. Many of the region s largest IT and defense contractors are among employers with the most Cyber Security job openings. 16 With defense and civilian agency spending on Cyber Security projected to reach $14 billion in 2016, 17 Greater Baltimore firms are well-positioned to capture the additional dollars entering the market and continue growth in Cyber Security employment. Top 10 IT and Defense Contractors Greater Baltimore 2012 Rank Company Employees 1 Northrop Grumman 7,910 2 JHU APL 4,700 3 Verizon 4,004 4 Lockheed Martin 2,725 5 Booz Allen Hamilton 2,530 6 SAIC 2,264 7 CSC 1,639 8 BD Diagnostics 1,600 9 Allegis Group 1, AAI 1,400 Maryland Palo Alto San Francisco Baltimore Boston Denver Austin Rank Top 10 Cyber Security Job Titles 2012 Title 1 Information Security Analyst 2 Security Management Specialist 3 Computer Systems Analyst 4 Software Developer, Applications 5 Cyber Security Jobs by Region 3,663 6,924 San Antonio, 3,165 Salt Lake City, 2,095 11,683 Network and Computer Systems Administrator 6 Software Developer, Systems Software 7 Computer Systems Engineer/Architect 8 Auditor 13,710 13,393 9 Security Manager 10 Intelligence Analyst 17,570 19,143 Source: Cyber Technology and Innovation Center Cyber Security Jobs Report, 2013 Source: Maryland Department of Business and Economic Development Source: Burning Glass International 7

8 Cyber Security Workforce Employment Given the limitations of data, it is difficult to precisely quantify the Cyber Security workforce across markets and industries. This report uses several data categories and techniques to best capture the Cyber Security workforce in Baltimore and other major US markets. The numbers presented give a picture of the capacity of the region and Cyber Security-related industries, but do not necessarily reflect the number of employees working for Cyber Security-focused companies. To quantify Cyber Security, EAGB combined a number of relevant occupational designations (see Appendix). The data includes all employees working in Information Technology fields that focus on information security, cyber breach prevention, and data loss remediation. EAGB has isolated occupations that would most relate to the Cyber Security industry specifically. The most complete data comes from the Bureau of Labor Statistics Occupational Employment Statistics (OES), and data from this source lags from May OES data indicates that Greater Baltimore is one of the most concentrated markets in the US, with 42% more of its employment concentrated in Cyber Security occupations than the US average. In absolute terms, the Baltimore region ranks lower on the list (17th, not shown) with 39,325 employees working in Cyber Security occupations. However, when including the rest of the Central Maryland region, the area would rank 9th in terms of total employment with 75,925 employees in Cyber Security occupations. Total Cyber Security Concentration 25 Largest US Metros 2012 Rank Metro Area US Index 1 Washington, DC Seattle Boston San Francisco Denver 1.66 Baltimore/CMD Baltimore Atlanta Minneapolis Dallas San Diego 1.28 Total Cyber Security Employees 25 Largest US Metros 2012 Rank Metro Area Employees 1 New York 220,570 2 Washington, DC 166,770 3 Los Angeles 127,640 4 Boston 111,920 5 Chicago 102,055 6 Dallas 87,845 7 San Francisco 84,065 8 Seattle 77,595 Baltimore/CMD 75,924 9 Atlanta 67, Philadelphia 67,075 Source: Bureau of Labor Statistics Occupational Employment Statistics 8

9 Cyber Security Workforce Employment More than 35% of the Baltimore-Washington Cyber Security workforce is located in Central Maryland. Most of Cyber Security employees work in Software Development of Applications and Systems Software, followed by Auditors. Central Maryland is more than twice as concentrated in Information Security than the US average. PENNSYLVANIA Greater Baltimore / Central MD 75,924 (36%) Patapsco River Washington, DC 25,520 (12%%) VIRGINIA Chesapeake Bay Northern VA / Southern MD 106,636 (52%) Occupational Employment Comparison Breakdown of Cyber Security in the Baltimore-Washington Region Baltimore- Greater Baltimore / Pocomoke Sound Occupation Atlantic Washington CSA Central MD Baltimore MSA Ocean Computer and Information Systems Managers 24,550 9,538 4,810 Auditors 26,480 11,876 6,625 Computer and Information Research Scientists 4,260 3,273 1,520 Information Security Analyst 12,030 3,103 1,670 Computer Programmers 14,940 7,040 3,660 Software Developers, Applications 38,040 11,155 5,520 Software Developers, Systems Software 39,590 12,670 6,500 Database Administrators 8,010 3,195 1,690 Network and Computer Systems Administrators 25,710 9,313 5,170 Computer Network Architects 14,040 4,613 2,100 Mathematician Total 208,080 75,924 39,325 Source: Bureau of Labor Statistics Occupational Employment Statistics 2012 data 9

10 Cyber Security Workforce Educational Attainment Greater Baltimore consistently ranks as one of the most highly educated markets in the US. According to the 2011 US Census American Community Survey, the Baltimore region ranked 4th in highest percentage of its population having graduate or professional degrees, while neighboring DC ranked 1st. When including the Maryland DC suburbs, Greater Baltimore/Central Maryland is ranked with the DC, Boston, and San Francisco markets. The region is ranked one of the top college destinations and is home to some of the nation s top ranked universities with strong technology programs. In October 2012, the American Institute for Economic Research (AIER) ranked Greater Baltimore the 5th best major metro college destination in the US. 18 US News and World Report s 2013 rankings featured Johns Hopkins University as the #13 national university, the US Naval Academy as the #1 public liberal arts college, Loyola University Maryland as the #2 regional university in the north, and the University of Maryland, Baltimore County as the #1 upand-coming school for the fourth year in a row. 19 Percent with Bachelor s Degree or Higher 25 Largest US Metros 2011 Rank Metro Area % 1 Washington D.C. 47.5% 2 San Francisco 43.7% 3 Boston 42.6% Greater Baltimore/Central MD 38.7% 4 Denver 38.2% 5 Minneapolis 37.9% 6 Seattle 37.2% 7 New York 35.9% 8 Baltimore 35.0% 9 Atlanta 34.7% 10 San Diego 34.2% US 28.2% Percent with Graduate or Professional Degree 25 Largest US Metros 2011 Rank Metro Area % 1 Washington D.C. 22.5% 2 Boston 18.7% Greater Baltimore/Central MD 17.6% 3 San Francisco 17.1% 4 Baltimore 15.0% 5 New York 14.7% 6 Denver 13.3% 7 Seattle 13.2% 8 Philadelphia 12.9% 9 Chicago 12.8% 10 San Diego 12.8% US 10.5% Source: US Census Bureau, American Community Survey 2011, 5-year estimates 10

11 Cyber Security Workforce Enrollment and Degree Programs The colleges and universities in the Baltimore-Washington corridor are widely recognized for their ability to consistently train graduates with the tools for success needed in the Cyber Security industry. Five four-year colleges and universities in Greater Baltimore have been recognized by the NSA as excellent institutions for education and research in information assurance. Maryland leads the country with 15 colleges and universities qualifying as NSA Centers of Academic Excellence. 20 Cyber Security leaders have expressed the difficulty in filling specialized and technical roles in the industry with qualified professionals. The Baltimore-Washington corridor has produced a strong pipeline of graduates with Cyber Security knowledge and experience prepared to succeed in the job opportunities presented by the expanding industry. Maryland colleges and universities have conferred 6,764 Cyber Security-related Bachelor s degrees in the last five years. 21 5,830 Master s and Doctoral degrees in Cyber Security fields have been conferred in that time. 22 In 2011, nearly 25,000 students are enrolled in Associate s, Bachelor s, Master s, and Doctoral Cyber Security-related degree programs at Maryland universities. 23 UMBC Colleges and Universities Ranked as Information Assurance Centers of Excellence Greater Baltimore Research & Education The concentration of agencies and companies with cybersecurity expertise, high-quality research universities, and the nation s number-one ranked public school system is a powerful crucible for a workforce that is second to none. Ellen Hemmerly President & Executive Director, bwtech@umbc Johns Hopkins University Towson University US Naval Academy University of Maryland University College Anne Arundel Community College Harford Community College The Community College of Baltimore County Research & Education Education Education Education Two-Year Education Two-Year Education Two-Year Education STEM Enrollment and Degrees at Maryland Colleges and Universities Bachelor s and Higher 2011 STEM Degrees Conferred STEM Enrollment Bachelor s 19,880 20,456 Master s 16,469 18,936 Doctorate 11,459 13,734 Certificate 9,976 3,416 Unknown/Non-Degree* 25,202 39,670 Total 57,784 56,542 Source: National Security Agency Source: Maryland Higher Education Commission, selected and compiled by EAGB *Unknown/Non-Degree students are not reflected in the Total. 11

12 Innovation and Research Research and Development In fiscal year 2011 alone, the federal government financed over $1.2 billion research and development expenditures in computer sciences performed at US colleges and universities. 24 The Secure and Trustworthy Cyberspace program lists 10 active awards in Maryland totaling nearly $4 million of investment. 25 Math and Computer Science R&D Expenditures at Universities Universities, FY 2011 Rank University $000 1 Johns Hopkins University 128,153 2 University of Southern CA 103,747 3 Carnegie Mellon University 98,968 4 Georgia Institute of Technology 86,076 5 University of TX, Austin 82,180 Math and Computer Science R&D Expenditures at Universities States, FY 2011 Rank State $000 1 California 317,051 2 Pennsylvania 202,821 3 Texas 196,546 4 Maryland 186,482 5 Illinois 152,422 Source: National Center for Science and Engineering Statistics, National Science Foundation Venture Capital Baltimore-Washington is a premier market for Cyber Security innovation and has been widely recognized as a leader in the Cyber Security industry. However, the region lags behind others in terms of venture funds captured. Among the five most concentrated Cyber Security markets, the DC/Metroplex ranks third in obtaining venture funds. The region has seen only a small fraction of the venture capital and number of deals that similar regions have captured from Over the last 5 years, Maryland has captured nearly 45% of Cyber Security-related venture capital investment in the DC/Metroplex region. The most recent available data for 2013 indicates a continuation of the overall trend shown below. Venture Capital Investment - Cyber Security Select Markets Rank Metro Area PWC Region Funds 1 San Francisco Silicon Valley $19,772,962,500 2 Boston New England $4,246,634,600 3 Baltimore-Washington DC/Metroplex $2,096,999,000 4 Denver Colorado $865,480,400 5 Seattle Northwest $478,994,800 Venture Capital Deals - Cyber Security Select Markets Rank Metro Area Deals 1 San Francisco 2,642 2 Boston Baltimore-Washington Seattle Denver 217 Source: PricewaterhouseCoopers MoneyTree Survey Report; data through Q Markets selected based on most concentrated Cyber Security Markets Cyber Security industries include: Information Technology Services, Networking & Equipment, and Software 12

13 Key Assets Agencies and Institutions Greater Baltimore s proximity to Washington, DC makes it an ideal place for many military and non-military federal agencies and institutions. The Greater Baltimore/Central Maryland region is also within a short drive of federal agencies located in Washington, DC. The following Cyber Security-related agencies and institutions are located throughout Greater Baltimore: National Institute of Standards and Technology (NIST) 26 NIST promotes US innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST s Computer Security Division (CSD) provides standards and technology to protect information systems against threats to the confidentiality, integrity, and availability of information and services. 27 CSD at NIST develops standards, metrics, tests, and validation programs to measure and validate the security in information systems and services. 28 The National Initiative for Cybersecurity Education (NICE) 29 NIST leads the NICE initiative to establish an operational, sustainable, and continually improving Cyber Security education program. Components of NICE are led by the Department of Homeland Security, the Department of Education, the National Science Foundation, the Department of Defense, and the Office of the Director of National Intelligence. Nice aims to maintain and predict the Cyber Security workforce structure and to offer training and professional development for the relevant workforce. US Cyber Command (CYBERCOM) 30 CYBERCOM directs the operations and defense of specified Department of Defense information networks. CYBERCOM prepares to, and when directed, conducts full-spectrum military cyberspace operations in order to enable actions in all domains. Located at Fort Meade, CYBERCOM ensures US and Allied freedom of action in cyberspace and works to deny the same to US adversaries. National Security Agency (NSA)/Central Security Service (CSS) The NSA aims to improve and modernize the security of sensitive information systems and produce timely and actionable intelligence. 31 The NSA s Information Assurance Mission focuses on protecting National Security Information and Information Systems. 32 The NSA and CSS collaborate in developing education programs at the elementary, secondary, and college levels. 33 The CSS was established to promote full partnership between the NSA and the cryptologic elements of the armed forces. 34 It partners with military and civilian leaders to address critical military-related issues in support of tactical intelligence objectives. 35 NSA High Performance Computing Center-2 36 Scheduled for completion by 2016, the High Performance Computing Center-2 will be located at Fort Meade. The center will aid in fulfilling the mission of the Comprehensive National Cybersecurity Initiative by protecting national security networks and providing authorities with intelligence and warnings regarding cyber threats. 13

14 Key Assets Firms, Agencies, and Institutions The Baltimore-Washington ADAMS corridor is dense with IT YORK operations and Defense LANCASTERcontractors. CHESTER The map below shows the largest IT operations in Greater Baltimore/Central Maryland alongside the Philadelphia federal agencies and institutions located in the region. PENNSYLVANIA 7 Fort Detrick Frederick LOUDOUN DULLES AIRPORT PRINCE WILLIAM STAFFORD FREDERICK VIRGINIA 95 MONTGOMERY ARLINGTON Pentagon REAGAN NATIONAL AIRPORT CARROLL Rockville National Institutes 28 of Standards and Technology 2 NIH National Cancer Institute 18 Bethesda DISTRICT FAIRFAX OF COLUMBIA NSF 8 Westminster 70 Washington CHARLES PRINCE GEORGE S BALTIMORE COUNTY Social Security Administration BALTIMORE CITY Centers for Medicare 2 Woodlawn and Medicaid Services NIH 4 19 Baltimore AMTRAK / MARC RAIL LINE Bowie Owings Mills 5 Hunt Valley HOWARD 23 Columbia BWI AIRPORT Johns Hopkins Amtrak / MARC Applied Physics Lab 13 Rail Station 7 NSA FDA Fort Meade NASA 19 Goddard Census Bureau 8 White Marsh Towson ANNE ARUNDEL CALVERT 2 Dundalk Patapsco River Annapolis Chesapeake Bay HARFORD Middle River Port Deposit Havre de Grace Aberdeen 13 Aberdeen 8 Proving Ground APG Edgewood KENT 301 QUEEN ANNE'S 50 TALBOT CECIL Amtrak / MARC Rail Line Light Rail Line Baltimore Metro Subway Elkton 19 CAROLINE DORCHESTER Research Facilities and Federal Institutions CASTLE ST. MARY'S The distance between Baltimore and Washington, D.C. is approximately 35 miles. Greater Baltimore KING GEORGE / Central Maryland 1. Northrop Grumman 2. Lockheed Martin 3. Verizon Wireless 4. Constellation Energy 5. T. Rowe Price 6. IBM 7. Computer Sciences Corporation 8. General Dynamics Northrop Grumman (11,000) Lockheed Martin (9,777) Verizon Wireless (6,976) Constellation Energy (6,768) T. Rowe Price (4,169) CAROLINE IBM (3,400) Computer Sciences Corporation (3,029) General Dynamics (2,000) Hughes Network Systems (1,971) SAIC (1,900) BAE Systems (1,700) Legg Mason (1,650) 9. Hughes Network Systems 10. SAIC 11. BAE Systems 12. Legg Mason 13. Booz Allen Hamilton 14. ARINC 15. Raytheon Solipsys 16. Honeywell Technology Solutions 13 Booz Allen Hamilton (1,400) 14 ARINC (1,300) 15 Raytheon Solipsys (1,300) 16 Honeywell Technology Solutions (1,200) 17 AAI (A Textron company) (1,097) WESTMORELAND 18 Allegis Group-Teksystems (1,006) 19 ATK (900) 20 MICROS Systems (815) 21 Aspen Systems (800) 22 Ciena (676) 23 L-3 Communications Titan Group (600) 24 Battelle (400) companies with a high concentration of IT workers. RICHMOND : Largest 17. AAI IT Operations ANIMATION, GAMING & SIMULATION* WICOMICO 18. Allegis Group-Teksystems 19. ATK 20. MICROS Systems 25 BreakAway Ltd. (110) 26 Big Huge Games (100) SOMERSET 21. Aspen Systems 27 Firaxis (65) 28 Bethesda 22. Softworks Ciena (NA) * Greater Baltimore 23. is L-3 considered Communications one of the top 5 US markets for Animation, Gaming and Simulation. What started as gaming development for entertainment has evolved to include simulation for 24. Battelle as AAI, have made simulation part of their product lines. * Regional employment shown in parentheses; the same company number is used to indicate multiple locations. Also shown are regional 14

15 Key Assets Firms Greater Baltimore is home to some of the world s leading Cyber Security companies and a number of vibrant startups, as shown below: I can think of no better place for cyber security startups than Baltimore. We not only sit right in the backyard of the Federal Government s major centers of cyber excellence, but our ecosystem contains all the essential elements that fuel innovation and drive growth. We re surrounded by the nation s top universities, colleges, and training programs focused on cyber security; we ve got an exceptionally skilled and large technical talent pool; there s plenty of financial capital and organizations ready to invest in good ideas; and there are strong business and entrepreneurial organizations to support startups, open doors and sustain growth. Karl Gumtow Co-Founder and CEO, CyberPoint International 15

16 Key Assets Facilities and Support The Greater Baltimore region recognizes the importance of providing financial support and business assistance to Cyber Security entrepreneurs and innovators. The Maryland state legislature voted to approve the Cybersecurity Investment Incentive Tax Credit that provides a refundable tax credit for Maryland Cyber Security companies that secure funding from within and outside the region. 37 In 2013, the Maryland Technology Development Corporation (TEDCO) announced the Orange Knocks Cyber Fund, which invests in Cyber Security companies. 38 Some of Greater Baltimore s additional Cyber Security support organizations are shown below with a short description of each. bwtech@umbc Cyber Incubator 42 Offers business and technical support to early stage Cyber Security companies 17 Cyber Security companies currently reside in the incubator on UMBC s campus Home to the CyberMap, a directory of Cyber companies in Maryland, and the CyberHive, a coworking space dedicated to Cyber Security companies Chesapeake Innovation Center 47 Incubator that partners with corporate and government partners to identify technology solutions to mission critial problems Recently added a Health IT support to traditional security and defense focus CyberMaryland 40 Public/private partnership organized by the Maryland Department of Business and Economic Development (DBED) that offers resources and services to Cyber companies Curator of the CyberMaryland Map and publisher of the CyberMaryland Report CyberMaryland Conference facilitates interaction with industry leaders and emerging technologies 41 The CYNC Program at bwtech@umbc 39 Partnership with Northrop Grumman to commercialize Cyber Security technology Provides access to Northrop Grumman representatives and incubator resources The GroundFloor Co-working space opened in 2013 to facilitate commercialization with nearby Aberdeen Proving Ground 48 Collaboration with other regional incubators encourages partnerships across the corridor 49 InvestMaryland 46 State-rasied $84 million for investment in early-stage companies DBED awards funds to emerging companies, disadvantaged entrepreneurs, and as recommended by venture capital firms Invests in Cyber Security, IT, and software companies, among other industries Maryland Cyber Challenge & Competition (MDC3) 50 High school, college, and professionals demonstrate practical skills in Cyber Security All members of winning teams are awarded a scholarship from the NSA and an internship with SAIC MDC3 is held in conjunction with the CyberMaryland Conference to introduce students to the Cyber industry and showcase the skills of regional students 51 National Cyber Security Center of Excellence 45 Strives to increase the rate of adoption of secure technology Advances the Cyber Security industry and accelerates effective innovation Develops practical Cyber solutions based on commercially available technology National Cyber Security Hall of Fame Honors innovation and leadership in the Cyber Security Industry 43 Recognizes achievement in technology, policy, awareness, education, and business 44 16

17 Looking Ahead The Greater Baltimore region is clearly established as a national leader in the Cyber Security industry. As the Cyber Security industry continues to grow, the Baltimore-Washington corridor must remain at the forefront of commercialization, education, and policy. Private Sector Opportunities Cyber Security is widely recognized as a government need to maintain a level of national security in an increasingly networked and digital environment. Greater Baltimore offers an ideal location for serving federal Cyber Security contracts. At the same time, Cyber Security is becoming a concern and a priority for many private institutions. Firms engaging in e-commerce, financial activities, and professional services are entrusted with personal data including credit card information and Social Security numbers that they are expected to protect. Massive leaks of sensitive private data have been reported by some of the world s most advanced technology companies, including Google, Sony, and Global Payments. Greater Baltimore must encourage and facilitate the commercialization of local technological innovations to take advantage of the breadth of Cyber Security applications. Education There are thousands of Cyber Security jobs across the country and in the Greater Baltimore region alone that are difficult to fill due to education requirements. A small pipeline of educated and experienced professionals has developed, and regional colleges and universities have become national leaders in training future Cyber Security leaders. Many local institutions have partnered with Cyber Security leaders to introduce students to opportunities and training to fill specific needs within the industry. The continued and expanded use of Education Technology (EdTech) in classrooms and workforce development programs is of great importance to an industry that values practical ability and proven results as much as certification and degree attainment. 52 Area innovators must continue to push EdTech for technology education to fill regional employment needs with local students and young professionals. Business Support and Financing Maryland s cyber security cluster is incredibly important to our country s well-being, and has an enormous economic impact on the region. Fostering stronger collaboration among government, industry, and academia is how we will develop stronger cyber security nationally, while achieving greater economic impact locally. Brian Darmody Associate VP for Research and Economic Development University of Maryland Attracting innovation capital has proven challenging for the Baltimore-Washington region across a number of industries. While the public sector is maintaining or slowly increasing its expenditure on information security, the breadth and depth of Cyber Security needs in the private sector figure to create a large, fast-growing market. Greater Baltimore must do a better job of attracting innovation capital to ensure competitiveness in private industry and to divorce itself from a reliance on federal funds. By investing in grant and loan programs like those created and managed by TEDCO and DBED, commercialy relevant ideas generated in the region can reach the lucrative private market. 17

18 Appendix Occupational Definitions from the Bureau of Labor Statistics The Economic Alliance defines Cyber Security as the following occupations, listed below with the official US Bureau of Labor Statistics definition of each. 53 The most common Cyber Security job titles were included in this industry definition: 54 Computer and Information Systems Managers: Plan, direct, or coordinate activities in such fields as electronic data processing, information systems, systems analysis, and computer programming. Auditors: Examine, analyze, and interpret accounting records to prepare financial statements, give advice, or audit and evaluate statements prepared by others. Install or advise on systems of recording costs or other financial and budgetary data. Computer and Information Research Scientists: Conduct research into fundamental computer and information science as theorists, designers, or inventors. Develop solutions to problems in the field of computer hardware and software. Information Security Analyst: Plan, implement, upgrade, or monitor security measures for the protection of computer networks and information. May ensure appropriate security controls are in place that will safeguard digital files and vital electronic infrastructure. May respond to computer security breaches and viruses. Computer Programmers: Create, modify, and test the code, forms, and script that allow computer applications to run. Work from specifications drawn up by software developers or other individuals. May assist software developers by analyzing user needs and designing software solutions. May develop and write computer programs to store, locate, and retrieve specific documents, data, and information. Software Developers, Applications: Develop, create, and modify general computer applications software or specialized utility programs. Analyze user needs and develop software solutions. Design software or customize software for client use with the aim of optimizing operational efficiency. May analyze and design databases within an application area, working individually or coordinating database development as part of a team. May supervise computer programmers. Software Developers, Systems Software: Research, design, develop, and test operating systems-level software, compilers, and network distribution software for medical, industrial, military, communications, aerospace, business, scientific, and general computing applications. Set operational specifications and formulate and analyze software requirements. May design embedded systems software. Apply principles and techniques of computer science, engineering, and mathematical analysis. Database Administrators: Administer, test, and implement computer databases, applying knowledge of database management systems. Coordinate changes to computer databases. May plan, coordinate, and implement security measures to safeguard computer databases. Network and Computer Systems Administrators: Install, configure, and support an organization s local area network (LAN), wide area network (WAN), and Internet systems or a segment of a network system. Monitor network to ensure network availability to all system users and may perform necessary maintenance to support network availability. May monitor and test Web site performance to ensure Web sites operate correctly and without interruption. May assist in network modeling, analysis, planning, and coordination between network and data communications hardware and software. May supervise computer user support specialists and computer network support specialists. May administer network security measures. Computer Network Architects: Design and implement computer and information networks, such as local area networks (LAN), wide area networks (WAN), intranets, extranets, and other data communications networks. Perform network modeling, analysis, and planning. May also design network and computer security measures. May research and recommend network and data communications hardware and software. Mathematician: Conduct research in fundamental mathematics or in application of mathematical techniques to science, management, and other fields. Solve problems in various fields using mathematical methods. Note: The Mathematician occupation category includes Cryptologists and other information security-related occupations. 18

19 Appendix Works Cited 1. Visiongain. Global Cyber Security Market (2012): n. pag. Web. Feb.-Mar Markets and Markets. Cyber-Security Market (Identity & Access Management (IAM), Risk & Compliance Management, Data Encryption, Data Leakage Prevention (DLP) Solution, Data Recovery Solutions, Unified Threat Management (UTM), Anti-Virus, IPS/IDS, Web Filtering, Fire-Wall, Vulnerability Management): Advanced Technologies, Geographical Analysis and Worldwide Market Forecasts ( ). (2012): n. pag. Web. Mar.-Apr Ibid. 4. Pricewaterhouse Coopers. Cyber Security M&A: Decoding Deals in the Global Cyber Security Industry. Pwc.com. Pricewaterhouse Coopers, Web. 5. Garamone, Jim. Clapper Places Cyber at Top of Transnational Threat List. US Department of Defense. N.p., 12 Mar Web. Mar Written Testimony of US Department of Homeland Security Secretary Janet Napolitano for a House Committee on Appropriations, Subcommittee on Homeland Security Hearing on the Department s Fiscal Year 2014 Budget Request. US Department of Homeland Security. N.p., 11 Apr Web. 14 May Slye, John. Federal Cybersecurity Market to Grow Amid Challenges. The Washington Post. N.p., 09 Nov Web. Jan Ibid. 9. Information Security Media Group. Global Payments Breach Tab: $94 Million. BankInfoSecurity. N.p., 10 Jan Web. Feb Perlroth, Nicole. Google Warns of New State-Sponsored Cyberattack Targets. Bits. The New York TImes, 2 Oct Web. Feb Protalinski, Emil. Despite Its Efforts to Fix Vulnerabilities, Yahoo s Mail Users Continue Reporting Hacking Incidents. The Next Web. N.p., 6 Mar Web. Mar Snider, Mike. Sony: Credit Card Data at Risk in PlayStation Hack. USA Today. N.p., 27 Apr Web. Feb Office of Management and Budget. Revised Delineations of Metropolitan Statistical Areas, Micropolitan Statistical Areas, and Combined Statistical Areas, and Guidance on Uses Ofthe Delineations OfThese Areas. Whitehouse.gov. Office of Management and Budget, 28 Feb Web. 14. Ibid. 15. CyberPoint International, CyberMaryland, and Welz & Weisel Communications. Cyber Security Jobs Report. Ed. Baltimore Cyber Technology & Innovation Center (CTIC). The Abell Foundation, 8 Jan Ibid. 17. Slye, John, and Kyra Fussell. Federal Information Security Market, Rep. N.p.: GovWin, Govwin.com. Deltek, Nov Web. 18. American Institute for Economic Research. AIER College Destinations Index AIER.org. American Institute for Economic Research, Oct Web. 19. US News and World Report. Best Colleges. USNews.com. US News & World Report, n.d. Web. 26 June National Security Agency. Centers of Academic Excellence Institutions. NSA.gov. National Security Agency/Central Security Service, 21 Feb Web. 21. Maryland Higher Education Commission. Degree Trend Data. Data.mhec.state.us. Maryland Higher Education Commission, n.d. Web. 22. Ibid. 23. Maryland Higher Education Commission. Enrollment Trend Data. Data.mhec.state.us. Maryland Higher Education Commission, n.d. Web. 20

20 24. National Center for Science and Engineering Statistics. Expenditures in Computer Sciences: FY 2011 Total and Federally Financed. NSF.gov. National Science Foundation, July Web. < pdf/tab22.pdf>. 25. National Center for Science and Engineering Statistics. Secure and Trustworthy Cyberspace (SaTC) Active Awards. NSF.gov. National Science Foundation, n.d. Web. 20 June National Institute of Standards and Technology. Information Technology - Overview. Nist.gov. National Institute of Standards and Technology, n.d. Web. 24 June National Institute of Standards and Technology. Computer Security Division. NIST.gov. National Institute of Standards and Technology, 28 Mar Web. 28. Ibid. 29. National Initiative For Cybersecurity Education (NICE). National Initiative For Cybersecurity Education (NICE). Csrc.nist.gov/. National Institute of Standards and Technology, 3 Dec Web. 30. US Department of Defense Office of Public Affairs. U.S. Cyber Command Fact Sheet. US Department of Defense Office of Public Affairs, n.d. Web. 31. National Security Agency Office of Public Affairs. National Security Agency/Central Security Service: Clear Values, Clear Vision. NSA.gov. National Security Agency/Central Security Service, n.d. Web. < files/corevalues.pdf>. 32. National Security Agency. About IA at NSA. Information Assurance at NSA. National Security Agency/Central Security Service, 30 May Web. 33. National Security Agency Office of Public Affairs. National Security Agency/Central Security Service: Clear Values, Clear Vision. NSA.gov. National Security Agency/Central Security Service, n.d. Web. < files/corevalues.pdf>. 34. National Security Agency. About NSA. NSA.gov. National Security Agency/Central Security Service, n.d. Web. 29 Nov National Security Agency. Central Security Service (CSS). NSA.gov. National Security Agency/Central Security Service, 21 Nov Web. 36. National Security Agency. Groundbreaking Ceremony Held for Computing Center. NSA.gov. National Security Agency/Central Security Service, 6 May Web. 12 July Kimball, Emily. Maryland Legislators Support Cybersecurity, Worker Training in Session CyberMaryland - IT Security and Innovation. Maryland Department of Business and Economic Development, 11 Apr Web. 25 June Maryland Technology Development Corporation. Orange Knocks Cyber Fund. TEDCO.md. Maryland Technology Development Corporation, Web bwtech@umbc. Cyber Incubator. Bwtechumbc.com. Bwtech@UMBC, Web. 40. Chesapeake Innovation Center (CIC). About the Chesapeake Innovation Center. CIC-tech.org. Chesapeake Innovation Center (CIC), n.d. Web. 27 June CyberMaryland. About CyberMaryland. CyberMaryland-IT Security & Innovation. Maryland Department of Business and Economic Development, n.d. Web. 26 June CyberMaryland. The CyberMaryland Conference. Fbcinc.com. Maryland Department of Business and Economic Development, Web. 27 June bwtech@umbc. CYNC Program. Bwtechumbc.com. Bwtech@UMBC, n.d. Web. 21