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September 16, 2015

Editor John Miley image

John Miley

Greetings:

In this issue: Growing demand for tech workers. New federal telecom spending and defense research projects. FBI warnings pertaining to the Internet of Things. Intel's latest chips. Best business practices for securing customer data.

Help Wanted: Tech Workers

The private and public sectors can't find and hire good tech workers fast enough. Among those most in demand: app developers, network engineers, cybersecurity professionals, data analytics specialists and computer coders. Competition for new hires is fierce, with some positions offering compensation in six figures along with good fringe benefits and perks.

The biggest concern expressed by many hiring managers: finding enough computer security experts. Skills needed to ferret out and thwart attacks on sensitive data are in very high demand as data thefts spread in both the public and private sectors.

California leads the U.S. in tech jobs; more than 20% of its workforce is engaged in tech work. But tech jobs are spreading throughout the country. Besides California, states that rank highest in their concentration of technology workers are Massachusetts, Virginia, Colorado, Maryland and Washington, according to a report by the Computing Technology Industry Association (CompTIA). All have more than 8% of their private sector workers in the technology industry, outpacing the national average of 5.7%.

Demand for top talent is especially keen among software companies. Private small and midsize companies that make software for businesses are planning to increase their head count by one-third, according to a new report commissioned by the Software & Information Industry Association. The stepped-up hiring comes as average sales growth is at its highest since 2008. Rising sales make it easier to offer higher salaries and attractive benefits. "It's not like the Internet bubble, where perks were being added without looking at financial implications," says Lauren Kelley, CEO and founder of OPEXEngine, a software market research firm.

State and local governments are also scrambling to hire top tech workers. Since governments can't match private sector salaries and benefits, they offer other perks such as flexible scheduling, faster promotions and more paid training gigs. They're also recruiting millennials to replace retiring baby boomers by pitching public IT jobs as a fulfilling career path. But with demand for workers outstripping supply, state and local agencies will still have to lean on outsourcing and cloud services to meet their technology needs.

Given the strong demand for tech workers, note that more and more firms are retraining current members of their workforce for data analytics and other tech jobs in lieu of going outside for help.

Federal Telecom Projects

  • The Federal Communications Commission will roll out a six-year, $9-billion program to expand Internet access to rural clients of 10 telecommunications firms, including AT&T and CenturyLink. The program will funnel $1.5 billion a year to 45 states. Enhanced service in underserved areas will be a boon to many locales, even ones in very remote and rugged terrain once thought to be out of the Web's reach.

New hookups will give folks access to downloads of at least 10 megabits per second, fast enough to watch movies on Netflix, video chat with doctors or download big files.

The buildout will provide scores of jobs for technicians, contractors and others. Also poised to benefit: Makers of telecom gear such as fiber-optic cables, routers and switches. Suppliers include Corning, Juniper Networks and Cisco.

  • FirstNet, a multibillion dollar program established by Congress to upgrade 9-1-1 networks, has a start-up budget of $7 billion, but is expected to cost tens of billions to build and maintain over the long run. The scope of FirstNet is unprecedented; it aims to bring the country's entire emergency communications systems into the digital age, giving first responders the ability to harness a national network that meshes together disparate state and local emergency communications system. Work on the program is slated to begin in the next few years.

Breakthrough Research From the Department of Defense

Note these exciting developments in the works at DOD's Defense Advanced Research Projects Agency:

A project aimed at developing new materials for adhesives, coatings and more. Companies will quicken the pace of discovery with computer automation and synthetic biology to uncover materials that mimic natural substances. The goal is to make materials akin to Kevlar (a breakthrough material developed in 1965). California-based Zymergen, for instance, is betting on microbial engineering to help the project reach its goal.

New research and development aimed at improving wireless communications by limiting interference. The program seeks to clear up traffic jams in the airwaves with use of smarter radios that can automatically detect and prevent potential interference, a critical need as more and more devices rely on radio frequencies.

Beefing up online privacy so more people are willing to share personal information online. The project aims to enhance consumer security using new encryption techniques that actually spur digital sharing…even in the age of the data breach.

For more on the latest research, check out video replays from the Defense Advanced Research Projects Agency's first-of-its-kind conference.

Tech Tidbits

The FBI is warning consumers about cybercrime seeping into the Internet of Things. As more and more gadgets are connected, hackers have more opportunities to exploit weak spots, yet many Internet-enabled devices have weak or nonexistent security measures. Such devices include thermostats, security cameras and smart refrigerators.

Coming soon: Intel's latest computer chips. The chip giant says the new processors offer up to two-and-a-half times the performance and triple the battery life of many of today's computers. The chips are designed with Windows 10 in mind.

The Federal Trade Commission will step up crackdowns on businesses with poor data security in light of a recent court win. "Businesses should be very clear of what security program is in place and not overpromise in customer agreements," says G.S. Hans, policy counsel and director at the Center for Democracy & Technology. Check out NIST.gov and FTC.gov for best practices.

Sincerely,
John Miley signature
John Miley
jmiley@kiplinger.com
@johntmiley

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