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Pittsburgh Technology Council Jared Roberts Managing Director, IT Industry & IS Peer Networks

Pittsburgh Technology Council Jared Roberts Managing Director, IT Industry & IS Peer Networks. Welcome to the Information Technology (IT) Industry Briefing. Agenda. Regional IT Industry Profile Why Pittsburgh? Company Profiles Success Stories Growth Trends Resources for IT Professionals.

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Pittsburgh Technology Council Jared Roberts Managing Director, IT Industry & IS Peer Networks

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  1. Pittsburgh Technology Council Jared Roberts Managing Director, IT Industry & IS Peer Networks

  2. Welcome to the Information Technology (IT) Industry Briefing

  3. Agenda • Regional IT Industry Profile • Why Pittsburgh? • Company Profiles • Success Stories • Growth Trends • Resources for IT Professionals

  4. Regional IT Profile • The people, products, and services that store, manage, and transfer information. • Cluster includes hardware, software, internet services, telecommunications, and professional services. • 1,367 organizations • Employs 37,083 • Average wage of $55,336 • Total annual payroll more than $2 Billion

  5. Regional IT Profile • Software Sector • Prepackaged • Customized • Embedded • Enterprise • Internet

  6. Regional IT Profile • Software Sector • 772 establishments • Employs 9,630 • Average wage of $71,376 • Total annual payroll of $681 Million

  7. Regional IT Profile • Hardware Sector • Storage Devices, Communications Equipment, Peripherals, A/V Equipment, & Semicondutors • 100 establishments • Employs 8,564 • Average wage up 11% last year • Total annual payroll of $392 Million

  8. Regional IT Profile • Telecommunications Sector • Wired, Wireless, ISPs, Satellite, Cable, & Hosting • 495 establishments • Employs 18,889 • Average wage of $51,775 • Total annual payroll of $978 Million

  9. Why Pittsburgh? • Talent Pool • Leading educational facilities offer 4 Year & Accelerated Degrees, Certifications, and Specialized Training • Financial Support & Venture Capital • Top 20 Nationwide • Infrastructure • Quality of Life • Industry Momentum

  10. Why Pittsburgh? Entrepreneurial Environment • 40% of new jobs come from new businesses • 4,000+ new for-profit companies incorporated last year • Strong regional support for entrepreneurs • Enterprise Business Plan Competition • Entrepreneurs Peer Network • 3 Rivers Venture Fair

  11. Why Pittsburgh? Regional Learning Network • Improves Coordination Between Education & Industry • Establishes Community of Practice to Address Emerging Needs • Participants • Community Colleges • Workforce Investment Boards • Universities/Colleges • Economic Development Agencies • Area Vocational Tech Schools • Faith Based Orgs • SWPA Industry Clusters

  12. Why Pittsburgh? Large Base of Established IT Users • Healthcare • Finance • Consulting • Retail • Life Sciences • Manufacturing • Government • Legal

  13. Company Profiles INDUSTRY LEADERS • Sony • Freemarkets • Marconi RISING STARS • VoCollect • Pair Networks • Body Media • CoManage • Ansys • Seagate R&D • VigilantMinds • LogicLibrary • Laurel Networks

  14. Company Profiles Ansys • Engineering Simulation Software for Design & Prototyping • Speeds Product Development Cycle • Founded 1970 • 600 Employees • Serve 85 of Fortune’s top 100 companies • GM, NASA, Boeing, DuPont, & Siemens

  15. Company Profiles Marconi • Communications & Network Solutions • HQ for Broadband Routing & Switching • Founded as Fore Systems in 1990 • Acquired by Marconi in 1999 • Employed 1,500 • Significant Entrepreneurial Impact

  16. Company Profiles CoManage • Global Provider of Data Integrity Solutions for Telecommunications Carriers • Founded in 1998 • 50+ Employees • Sprint, Verizon, BT, AT&T • Recognized in Converge, X-Change, Telephony, etc.

  17. Company Profiles VoCollect • Hardware and Software-based voice solutions for a variety of industrial applications • Uses wearable device and RF to translates data to/from Information Systems • Founded 1987 • 100+ Employees • 85% Annual Growth Rate since 1996 • Giant Eagle, Corporate Express, WalMart

  18. Company Profiles Vigilant Minds • Information Systems Security Solutions • Audits & Policy Design • Managed Security Services for Networks, Applications and Wireless Access Points • Founded 2000 • 7 Customers with $500 Million+ Revenues

  19. Company Profiles Vivisimo • Document Clustering Software • Categorizes textual information into crisp, meaningful, hierarchically sorted category folders • >10 Employees • Founded 2000 • CNN Feature…Better Than Google? • Science Magazine, PC Magazine, KMWorld, WSJ, Wired

  20. Company Profiles Demiurge Studios • Video Game Design & Development • Epic Games Purchased Debugger for Unreal Engine • Microsoft X Box Developer • Shopping Game to Tier 1 Publishers Like EA Sports

  21. Success Stories Seagate R&D • Leading Provider of Internal & External Disk Drives • Goal of 1 Terabyte per Square Inch • 200,000 Sq. Foot Facility with 30,000 Sq. Foot Clean Room • 140 Employees Representing More Than 50 Universities & 22 Countries • Mark Kryder is the Leading Expert on Magnetics

  22. Success Stories Information Week 500 • Annual Ranking of Business-Technology Innovators • FedEx #17 Ground Division HQ • PNC Financial Services #19 • UPMC Health System #37 • Mellon Financial Corp #38 • U.S. Steel, Giant Eagle, Highmark, Bayer, Allegheny Technologies, Consul Energy

  23. Success Stories Pittsburgh Digital Greenhouse • Founded in 1999 as Strategic Economic Development Initiative • System-on-a-Chip (SOC) & Related Technologies • Networking & Multimedia Applications • Pre-Competitive Environment

  24. Success Stories Pittsburgh Digital Greenhouse • 33 Companies Attracted or Created • 228 New Jobs • National Leaders • IBM • Sony • Cisco • Regional Leaders • Laurel Networks • Spinnaker Networks • NeoLinear

  25. Success Stories Centers of Excellence • Software Engineering Institute (SEI) • Federally Funded R&D Center (DoD) Established in 1984 • CMM Standard for Quality & Productivity • Computer Emergency Response Team (CERT) • Security Incident Response • Real Time Alerts & Survivable Network Technologies • 200+ Incident Response Teams Have Adopted CERT Techniques

  26. Success Stories Centers of Excellence • Pittsburgh Supercomputing Center • DoE Funded Project Established in 1986 to Provide High Performance Computing for Processing-Intensive Applications • AIDS Research, Astrophysics, Fluid Dynamics, Protein Structure, etc. • Lemieux SC: 750 Compaq Alphaserver ES45 Nodes each with 4-1GHz Processors • Plans to Store & Manage a Petabyte of Data (100xLibrary of Congress) • SC2004-7000 people, etc

  27. Success Stories National Cyber Forensics & Training Alliance (NCFTA) • Established by the FBI • Partnership with Industry, Academia & Government • Forensics Unit to Investigate Computers & Systems • Provides Vulnerability Testing • Knowledge Base Available to Public & Business Community • Offer Training Courses “Pittsburgh became a choice location for the NCFTA due to its emerging technology industry, proximity to various cyber-crime centers and close ties to the universities.”

  28. Success Stories Acquisitions • Freemarkets • Purchased by Ariba • FullTilt Solutions • Purchased by CIBER • Stargate • Purchased by Expedient, A.C. Coy & Earthlink “Refills the pipeline of Entrepreneurial companies in the region and increases the awareness of Pittsburgh in the global IT economy.”

  29. Trends Offshore Outsourcing • Focuse Shifted to Business Processes • Media Coverage • Corporate Culture or Technology Decision? • Profit Driven • Realities vs. Expectations • First & Only Regional Conference on the Topic

  30. Trends Outsourcing • Key Drivers • Cost Savings • Quality of Work • Skilled Labor • Competitive Advantage

  31. Trends Outsourcing • IT Services • Software Development • Product Development • Call Center • R&D • Legal & HRO High Growth

  32. Trends Cybersecurity • Viruses, Worms, Intrusions, Web Defacement, Denial of Service, Identity Theft & Privacy Breaches • 75,000 Complaints Classifiable as Cyber Crimes • 114,000 Virus Attacks & Breaches per CERT • 2001 Cost at $13 Billion in Damage & Clean-Up • 10% of IT Budgets Spent on Security for 2002 • 84% Survey Predict Significant Increase for 2003

  33. Trends Gaming Development & Design • Confluence of SW Development, Virtual Reality, Multimedia Design, Animation, & Entertainment • CMU’s Center for Entertainment Technologies • Disney Imagineering Ties to CA • DigiPen Institute of Technology-Leader in Video Game Development Education • Demiurge Studios

  34. Trends Data Storage • Integration of Physics, Tribology, Aerodynamics, Fluid Mechanics, Information Theory & Magnetics • “Maximizing Areal Density” • Goal of 1 Terabyte per Square Inch • Cluster Growth Aided by High End SAN Sales ($1.2 Billion) • Tenfold Growth in Network Attached Storage (NAS)

  35. Trends Help Desk & System Administrators • Largest number of positions available • Confirmed by Employer Advisory Board • More willing to look at without advanced degrees

  36. Trends Software Development • 40% Surveyed Predicted Increase in SW “Made” Internally • Technical Hiring for Regional IT Service Companies is Up • .NET Largest Growth with 22% in Next 6 Months & 16% More Within 12 Months • Large Growth in SW Packages for Document Management & Data Mining/Warehousing • 78.8% Within Budget & 79.4% On Time

  37. Resources for IT Professionals Get Involved! • CRITA • State of the Industry Report • User Groups • Networking Opportunities • Learn Best Practices • Share Experiences with Your Peers

  38. Contact Information: Jared Roberts 412-918-4243 JROBERTS@PGHTECH.ORG

  39. Thank You

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