June 23, 2009|By Gus G. Sentementes | Gus G. Sentementes,gus.sentementes@baltsun.com
Maryland technology companies that specialize in cyber security are expecting to reap the benefit of billions in federal spending after President Barack Obama called May 29 for a far-reaching overhaul in the way the country secures its communication and data networks.
An already-established cyber security industry in the state, fueled by an infusion of an expected $30 billion in federal spending, could create thousands of jobs and new opportunities for research and development at Maryland universities. The demand for top talent will also add pressure on Maryland universities to nurture students in the hard sciences to satisfy demand for talent, according to state, corporate and industry observers.
"This is pure bonus because the Baltimore area and Maryland have emerged as centers for information security excellence," said Anirban Basu, chairman and chief executive officer of Sage Policy Group Inc., an economic and policy consulting firm in Baltimore. Basu said the emphasis on cyber security "fits in neatly" with the federal government's military base realignment and closure process, or BRAC, which is expected to transfer and create more than 40,000 military and private-sector jobs in Maryland over the next few years, according to state planners.
Maryland has more than 50 federal facilities, ranging from military to agricultural research installations, and more than 70 of the top 100 federal contractors operate in the state, according to the Department of Business and Economic Development. The professional, scientific and technical sector is the third-largest employment category - behind retail and health care - in Maryland, in terms of the state's private work force, according to a state report released in March.
Obama spoke in May about the threat of cyber security and released a 76-page review of the nation's communications infrastructure, which called for a menu of updates in the way the government secures its networks. This "cyberspace policy review" set forth several goals for the administration, including the crafting of updated cyber security policies, public awareness and education campaigns, a national cyber security "incident response plan," and increased emphasis on research and development. A "cyber czar" is expected to be appointed who will coordinate cyber security efforts between government and private industry. There is no official timeline for the appointment.
The president's speech fired up John Burris, chief executive of Sourcefire Inc., an 8-year-old Columbia company that specializes in computer network security systems. He believes Obama's call for greater Internet security will mean more growth for his 300-person company and potentially wider adoption of its intrusion-protection systems for government and private industry.
"Obama is our best sales guy," said Burris, who incorporated some of Obama's best quotes on cyber security in a recent presentation to analysts at a conference in New York City. "He's a great spokesperson with huge credibility, and people are listening to what he says. The guy knows that it's a real issue."Not everyone shares Burris' enthusiasm for the plans. Critics were skeptical of the plans released last month, arguing that the federal government doesn't have a good track record for coordinating efforts between agencies because they often treat each other as rivals. As much as $30 billion is expected to be spent on the effort, which calls for securing a broad range of American life online, including energy distribution networks, the financial industry and telecommunications companies.
Obama said the nation's digital infrastructure faces increasing attacks from hackers, organized crime and spies, and better protection of computer networks has become vital for the economy.
State prepares for cyber work
Expecting the cyber push under Obama, Gov. Martin O'Malley in April created the Maryland Security Technology Initiative - a public/private partnership that will help develop and promote the state as a hub for cyber security work. The group consists of representatives from the state's business and technology development agencies, Johns Hopkins University and the University of Maryland, and several private companies.
Allen C. Shay, the chairman of the group and head of a company that helps businesses sell to government agencies that do classified work, said Maryland is already home to a major government agency that will remain at the center of protecting the United States in cyber space: the National Security Agency at Fort Meade.
The military installation in Anne Arundel County will also be the home of the future Department of Defense Cyber Center, which also was announced this year.
"Fort Meade is going to be the new Silicon Valley of cyber security," Shay said. "There will be more expertise there than anywhere in the world."
