Cyber Security Industry On The Rise In San Diego
MAUREEN CAVANAUGH: This is KPBS Midday Edition, I am Maureen Cavanaugh. A hacker attack against target and other retailers during the holidays compromised credit cards and bank accounts of tens of thousands of shoppers in the use of increasingly sophisticated software is a continuing problem but is also an opportunity for companies specializing in cyber security and today San Diego politicians and business leaders gathered to launch a new initiative to expand the already thriving cyber security industry and the reason region, is it at cyber is the next frontier in job creation in San Diego, I would like to welcome my guest chat Nelly, Chad Nelly, welcome to the program. At a press conference today industry leaders released a 2014 cyber security report for San Diego, tell us what is the economic impact of cyber security in our region? CHAD NELLEY: Is pretty dramatic when you look at growth in other industries in our region were looking at at about a 72% growth rate in the cyber security space here in San Diego, four 2014 alone, we're looking at a 13% increase in the actual cyber security industry here in San Diego for cyber security firms. MAUREEN CAVANAUGH: What does that translate into dollars? CHAD NELLEY: $1.5 billion In economic impact to the region. MAUREEN CAVANAUGH: What kinds of company's were talking about? What kinds of security to handle? CHAD NELLEY: We are talking about OF companies where we develop anti-malware and antis of antivirus server solutions where we're talking about defense contractors and people who are working specifically you and government defense industry and private sector security firms like Web sense or he set or the boss, there are a number of cyber security friends here in San Diego, over 100 that study the outline and cover and really generate business for the region here in San Diego. MAUREEN CAVANAUGH: Why do you think that San Diego is becoming a hub for cyber security? CHAD NELLEY: I think you really have a nice play here with regard to military and Navy, you have the huge Navy footprint here in town, you have the Marines here in town, with huge contributors to set security economy here in San Diego and I think what that does it begins to foster a number of outgrowth innovators in the cyberspace that of all kind of carbonated here in San Diego and have a established a beachhead so to speak of business opportunities in the region. MAUREEN CAVANAUGH: And part of the initiative lost today launched today is the announcement of a new public partnership it will be Cyber Center of excellence, what is that? CHAD NELLEY: The Cyber Center covers a site's wide spectrum of the cyber landscape in San Diego. Is a private industry driven effort and we really try to bring every aspect of the cyber economy to the table to really kind of more formalized the beachhead here in San Diego as well, we know about it here in San Diego but we think we have the nucleus of what could be very huge thing for San Diego on an economic impact scale for the next 10 to 15 years. MAUREEN CAVANAUGH: Education must play a large part in this? CHAD NELLEY: Education is a huge part of this and we've also reached out to local university so you have national University you have San Diego state and UCSD, you have super Junior Peter's center and Jacobs Center of engineering we're really trying to connect all the dots and bring everybody to the table and let everybody have a voice and stand up and say we are real, we are here and this is the future, cyber impacts everybody and from an economic standpoint we really want to bring everything to the table so we have also reached out to military and we're really reaching out to create bridging opportunities for veterans that are transitioning from military life to civilian life trying to create opportunities within the cyber realm because there's a number of folks especially in the military that have very specific cyber backgrounds but the challenges transitioning from that military landscape into the civilian landscape and working within the community and we really want to highlight that for those veterans that are in transition and create additional opportunities, there is no reason for that great talent to leave San Diego when the tour of duty is up. MAUREEN CAVANAUGH: There are some high-tech firms in San Diego, they have for one thing been pushing for immigration reform largely because they want to be able to hire more talent from overseas, is that something that cyber security industry is interested in or is this a focus on the San Diego community to hire a talent pool? CHAD NELLEY: We are focusing on the San Diego Trinity for sure and we are also wanting again to be inclusive and we think there is a huge talent pool here in California and specific way we do think there are opportunities south of the border and we have a strong relationship with Tijuana and we think there are some opportunities there as well and we look at the region it's about securing the whole region and setting up for something is going to benefit every aspect of the region and connecting all of the dots on anything related to promoting a strong and vital economic sector here in San Diego. MAUREEN CAVANAUGH: What are your projections on job growth here in San Diego? CHAD NELLEY: Based on the report released this morning on the EDC were looking at a 27.2% to growth here in San Diego specifically around cyber. MAUREEN CAVANAUGH: Over what time span? CHAD NELLEY: Just for 2014. MAUREEN CAVANAUGH: Just this year it is not that high. I do think that we can stop companies from moving and keep copies in San Diego? CHAD NELLEY: That is one thing that is great about setting up the Cyber Center for excellence here in San Diego we really want to promote time in the region and I don't know the details of the Web sense deal but I have heard that they are moving and that is unfortunate but that is exactly that site type of situation we would like to prevent and the future and we do have the nucleus we do have the genesis for something that could be amazing and as we looked ten years out when we look at the biotech model or we look at the genomics and where that has gone the last ten years you look at cleantech and they're all of these innovative clubs that have stood up and really position San Diego and telephone you as an innovative place to do business and that I think is one of the things that we are attempting to do here which is really to promote San Diego and the region as the place to come for cyber expertise. MAUREEN CAVANAUGH: I want to ask an overview question, it the new report today says that the California is a top target in the US for cyber crime, what you see, had you see cyber crime becoming a major threats in the number of different aspects in people's lives as we go down the rope? Cyber security to think will become increasingly important as the years go by? CHAD NELLEY: I think that there security is becoming absolutely increasingly important I think people need to become more aware of the implications of cyber security and I think we have a situation when we talk about the internet and eventually your vehicles are going to be on the network, some of them already are, and when you think about potentially your refrigerator, and near refrigerators doing your suck shopping now and near refrigerators getting calls on the internet now and using financial data or credit card information, that is another threat vector, and you think essentially the internet of things we've transitioned the internet of everything that's were going to news from now and I think even 3 to 5 years from now through technology exhilarating, every step of the way it cyber becomes more and more pervasive and something that needs to be at the forefront. We teach our kids for instance to look left and right when the cross the street, and then we had our kids going online and they may not know who they're interacting with or what they're interacting with and what details they are giving people may have social engineering situations of time that are happening to the new channels of communication that are being opened by the internet, cyber is here, it's big and it's here to stay, I think that we are poised to in San Diego. MAUREEN CAVANAUGH: I've been speaking with Chad Nelly, thank you for coming in and explaining this to us. CHAD NELLEY: Thank you for having me.
The cyber security business in the San Diego region employs about 3,500 workers in 100 companies and could grow significantly in the near future, according to a report released Thursday.
Firms such as the anti-virus software maker ESET and the government contractor Sentek Global, which supplies the military with information technology services, have teamed up with the San Diego Regional Economic Development Corporation to lay the groundwork for making San Diego a cyber security hub.
Already, the regional cyber security business -- including the Navy's Space and Naval Warfare System Command Center, which has about 3,000 personnel -- has an economic impact estimated at $1.5 billion per year, according to a report released by the EDC Thursday.
The report found that the private sector cyber security business had a total economic impact of $809.5 million, and that military spending contributed an additional $705.8 million. The figures include direct impact, like payroll and contracts, and indirect as the money filters into the economy.
With the Department of Defense proposing to spend $23 billion on fighting cyber crime over the next five years, much of that money could come here, according to the report.
In response, the launch of a public-private partnership called the Cyber Center of Excellence was announced. The center will connect cyber-related companies with military leaders and academic partners to pursue a common strategy to promote the region's cyber strengths.
"Cyber can be San Diego's next big jobs generator," said Mark Cafferty, president and CEO of the EDC. "Like biotech was 30 years ago, cyber has the potential to be a driving force for growth in both our innovation and military economies."
While total employment in the San Diego region is expected to grow by 2.2 percent this year, cyber security jobs could jump 13 percent, according to the report.
In a recent, high-profile data breach, Target reported that 40 million credit and debit card accounts were compromised between Nov. 27 and Dec. 15, and that hackers stole names, phone numbers, and email and mailing addresses from as many as 70 million customers.
The loss not only impacted the individual customers but tarnished the chain's image. The company reported U.S. sales declined 6.6 percent in the fourth quarter of last year.