01 Overview
02 Talent Pipeline
03 Industry Ecosystem
04 Labor Analysis
05 Operating Cost Analysis
06 Statutory Incentives

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Greater Phoenix

A top tech city for cybersecurity

 

Cybersecurity and advanced computer technologies have been recognized, by state and local governments, as an industrial cornerstone for the Arizona economy. Leadership is committed to supporting this vital industry. Greater Phoenix is one of the top markets in the nation to locate and expand cybersecurity.

 

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Contents

1
Overview
2
Talent
Pipeline
3
Industry
Ecosystem
4
Labor
Analysis
5
Operating
Cost Analysis
6
Statutory
Incentives
1

Overview

Greater Phoenix is well-positioned to support both new-to-market cybersecurity companies and the expansion of our existing cluster.

Value Proposition

Quality of Life

With significantly lower cost of living across all major expenditures, Greater Phoenix also offers shorter commute times for more free time and more than 300 days of sunshine annually.

Infrastructure

Greater Phoenix offers faster fiber connectivity, and consistent and reliable power coverage. The region’s robust network of data centers is complemented by access to a leading domestic and international airport and a low risk of natural disasters.

Cyber Value Chain

Greater Phoenix has a robust ecosystem of independent cybersecurity firms and units from Fortune 500 companies which offer access to secure testing facilities.

Workforce Ecosystem

Specialized programs at universities across the state train talent. University alignment and partnerships assist in the undertaking of cybersecurity research and development.

Competitive Operating Costs

Real estate is more affordable with better benefit costs compared to peer markets. There are a number of quality incentives to further decrease operating costs for your cybersecurity business that you’re looking to create or relocate.

2

Talent Pipeline

Greater Phoenix boasts competitive non-distance program completions at colleges and universities in the concentrations of computer engineering, information technology, computer & software engineering, and computer science programs.

Greater Phoenix Talent Pipeline

The region produced over 2,200 graduates in these fields during the 2017 to 2018 school year and those figures are continuing to climb. The region’s universities are committed to supplying the workforce needed to enable companies to scale in the region making Greater Phoenix one of the top tech cities for cybersecurity for those looking to start or relocate your cybersecurity business.

Notable Programs in Cybersecurity - Related Fields

Competitive Programs

In a competitor markets’ talent pipeline analysis, Greater Phoenix has closed the gap between New York and San Francisco in producing cyber-related degrees per 100,000 in population.

  • Arizona State University is committed to partnering with corporate, education, and government organizations to produce skilled cybersecurity workforce.
  • The University of Arizona offers an AZSecure Cybersecurity Fellowship Program.
  • At Grand Canyon University, you can earn an IT degree with a cybersecurity emphasis.
  • The University of Advancing Technology has one of the longest-running cybersecurity degrees in the Southwest.
3

Industry Ecosystem

Community groups and leading research and development centers are supporting legacy companies, emerging disruptor startups, and local, state and federal government.

Cybersecurity Canyon

Cybersecurity Canyon is a group of industry leaders led by Ori Eisen, Joe Loomis, Sean Moshir, and Kyle Starkey that has decided to take up the challenge of finding and attracting talent to staff cybersecurity openings. They are committed to developing long-term solutions that nurture a vibrant local community of cybersecurity talent and entrepreneurs making it a top tech city for cybersecurity businesses to relocate to and even start operations. They believe that these efforts will turn the Phoenix Metro area into a hotbed of cyber talent. Additionally, the group hopes to foster new educational partnerships that help universities train job-ready students.

 

 

Pipeline AZ

Pipeline AZ is a strategic workforce platform that is revolutionizing the way students and job seekers connect their passions and experiences with rewarding opportunities. Through this platform, individual skills, interests, and experiences are matched with local companies’ skills and experience needs. These high-quality matches produce a stronger fit between employee and employer resulting in better retention rates and workforce satisfaction. Pipeline AZ gives the job seeker control of their own career pathway through tailored resources, personally curated information and customized opportunities. Pipeline AZ provides employers with a more efficient way to access regional talent on demand; educators with an avenue to improve their curriculum to match market needs; and talent with the resources needed to develop a more fulfilling career.

Major Employers

Greater Phoenix has a rich ecosystem of cybersecurity companies. A large number of successful companies were founded in the region, and some were scaled into the region efficiently.

Major Operation Center Employers

The Greater Phoenix region is home to a rich cybersecurity ecosystem. Part of this ecosystem is non-cybersecurity firms that have cybersecurity operations in the region.

Banne Health
Godaddy
Honeywell Aerospace
4

Labor Analysis

Greater Phoenix has a robust supply of human capital at an affordable cost to start or relocate your cybersecurity business. Median wages in Metro Phoenix are significantly lower than peer markets. As one of the Nation’s top cities for the cybersecurity industry, Phoenix continues to pave the way for innovation at a more affordable cost.

Labor Costs

The labor cost data below depicts the 75th percentile wages across peer markets for cybersecurity occupations. Scroll to the side to see how Greater Phoenix stacks up against other cities.

Occupation Phoenix Los Angeles Boston New York
Sales Managers $105,477 $109,200 $135,554  $179,296
Computer & Information Systems Managers $135,554  $157,040 $151,216  $181,605
Computer & Information Research Scientists $125,174 $120,328 $114,733 $133,141
Computer Systems Analysts $89,066 $93,933  $94,411 $108,202 
Information Security Analysts $97,198 $100,381 $106,787 $125,986 
Software Developers, Applications $100,755 $113,610 $108,514 $114,046 
Software Developers, Systems Software $98,904 $124,488  $119,246 $123,656
Database Administrators $92,560 $94,390 $101,130 $105,789
Network and Computer Systems Administrators $82,202  $90,750 $89,606 $97,594 
Computer Network Architects $102,752 $115,544  $125,694 $124,051
Computer Occupations, All Other $82,222 $83,138  $92,477 $100,485
5

Operating Cost Analysis

Companies in Greater Phoenix enjoy the benefits of low business costs, minimal regulation and an advantageous operating environment. From aggressive tax credits and incentive programs designed to increase access to capital, the Greater Phoenix region offers businesses a robust, pro-business climate.

The Annual Business Operating Cost Pro-forma below has been prepared using the following parameters as an estimate for cybersecurity operations in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request.

 

Assumptions

  • $2,500,000 personal property investment
  • 9,000 square foot Central Business District
  • Utilities (per month): Included in lease
  • 86 jobs (Bureau of Labor Statistics equivalent occupations)
Occupations Employment
Computer & information systems managers 2
General & operations managers (Human Resources) 1
Secretary 1
Computer network architects 9
Computer network support specialists 8
Information security analysts 21
Computer programmers 44
Total 86

Total Annual Operating Costs

6

Statutory Incentives

Even with the highly competitive tax environment in Greater Phoenix and Arizona, there exists a number of tax incentives that can be utilized to mitigate operating costs making it one of the best cities to start your cybersecurity business. It should be noted that this is only a guide for potential incentives.

 

Arizona Competes Funds

  • Discretionary funds that can be used to attract, expand and retain Arizona enterprises

 

Quality Jobs Tax Credit

  • $9,000 of corporate income tax credits per job, spread over 3 years
  • Capped at 10,000 jobs per year
  • Four tiers of qualification that all require at least 65% of benefits packaged covered by employer

 

R&D Tax Credit

  • Refundable and nonrefundable corporate income tax credits for qualified research and development done in Arizona, including company funded research at a state university
  • Credit amount is 24% of first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million
  • Qualifying small companies (less than 150 FTE) can apply to make their credit refundable (75% of nonrefundable credit value). A company can receive up to $2.0M in refundable credits per year

Companies in Greater Phoenix

  • 41st Parameter
  • ADT Cybersecurity
  • Axon
  • Bishop Fox
  • CellTrust
  • Clear Data
  • Early Warning
  • Emailage
  • Experian
  • Kudelski Security
  • LifeLock
  • Netswitch
  • Securosis
  • SiteLock
  • Symantec
  • Trusona

Want to see a full list of companies in Greater Phoenix? Download the complete report.

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