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NEXTGEN GEN A special edition of The Central New York and Mohawk Valley Business Journals

INSIDE:  CYBERSECURITY  NANOTECHNOLOGY:

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 UNMANNEDAIRCRAFT PAGE 6 SYSTEMS:

Sponsored By: Endorsed By:

THIS PUBLICATION SERVES AS THE PRINT EDITIONS OF THE MAY 15, 2017 CENTRAL NEW YORK BUSINESS JOURNAL AND THE MAY 22, 2017 MOHAWK VALLEY BUSINESS JOURNAL

The Central New York Business Journal 269 W. Jefferson St. Syracuse, N.Y. 13202-1230

PRSRT STD US Postage Paid Permit No. 1239 Bellmawr, N.J.


THE PROJECT FIBONACCI® FOUNDATION, INC. The 2nd Annual Project Fibonacci® STEAM Conference A Nonprofit STEAM (Science, Technolgy, Engineering, Arts & Math) Initiative

July 30-August 5, 2017 • The Beeches Conference Center in Rome, NY

OUR MISSION The goal of the Project Fibonacci® initiative is to promote the next wave of young scholars, scientists, artists and productive citizens through a journey of self-discovery by positively motivating and enlightening them. Through this educational program, we will enable our youth to deal more effectively with the challenges of our ever-increasingly complex and diverse world. Let’s ignite a positive change TOGETHER!

projectfibonacci.org Phone: (315) 334-1163 Email: info@projectfibonacci.org

2017 KEYNOTE SPEAKERS

GET INVOLVED

Mechanical engineer, musician, author and guest host of Decoded on the History Channel

Tel: (315) 334-1163 • www.androcs.com ANDROMetaX is an ANDRO Company providing Spectrum Management as a Service (SMaaS) including wireless cyber-secure solutions for the federal and civilian Internet of Things (IOT) marketplace. • Unmanned Air Systems (UAS) RF Sense & Avoid • Autonomous systems & vehicles • “Big (Spectrum) Data” Processing • Medical Technologies & Wearable Biosensors • Brain-Computer-Interface (BCI) applications • Medical Image feature/anomaly detection, image analysis and classification

AUGUST 2

Syracuse Office: CNY Biotech Accelerator • 841 E. Fayette Street Syracuse, NY 13210

Physicist, TV host of Outrageous Acts of Science and a STEM advocate from Stanford University

Dr. Michio Kaku

American theoretical physicist, futurist and popularizer of science from City College of NY

Daymond John

AUGUST 3

Innovation…from Research to Systems! ANDRO Computational Solutions, LLC is a scientific research & development company supporting defense and commercial markets. ANDRO is a leader in developing emerging prototypes for cyber-secure RF communications, command and control (electromagnetic spectrum management, cognitive radios) including multisensor resource management for radar target tracking and related applications. ANDRO is also a strong proponent of STEAM education as a catalyst for workforce and economic development.

AUGUST 1

Dr. Debbie Berebichez

PRESENTED BY:

Main Office: One Beeches Place • 7980 Turin Road, Bldg. 1 Rome, NY 13440-1934

JULY 31

Nominate qualified students & interns to attend the 2017 conference Sponsor local/regional students all-inclusive registration costs Become a corporate or individual sponsor Follow us on social media for updates and more information

Fashion industry pioneer, Presidential Ambassador for Global Entrepreneurship and a Shark on ABC’s Shark Tank Presented by The Shoreline Group

Kevin Delaney

AUGUST 4

• • • •

Christine McKinley

Resident scientist on The Tonight Show and host of Street Science on the Science Network


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Mohawk Valley builds innovation economy mous growth potential: nanotechnology, cybersecurity, and unmanned-aircraft systems (UAS), also known as drones. These three drivers of the new economy are BY NORMAN POLTENSON not the result of serendipity; rather, they npoltenson@cnybj.com are forged from a single-mindedness of   ince Lombardi, one of professional the community to get back on its feet by   football’s greatest coaches, led the leveraging the area’s economic expertise  Green Bay Packers to five NFL and strengths. The vision for the championships, inMohawk Valley’s fucluding Super Bowls ture coalesced first I and II. He taught, around the work motivated, and in- The vision for the done by the Rome spired his players Air Force Research to understand that Mohawk Valley’s future Laboratory (AFRL), winning was a habit, coalesced first around an early pioneer and confidence was connational leader in tagious, and success the work done by the field of informademanded a single- the Rome Air Force tion security. In the ness of purpose. 1980s, Utica College Lombardi’s phi- Research Laboratory introduced its first losophy is alive and (AFRL), an early pioneer course offerings in well in the Mohawk cybersecurity and Valley. After decades and national leader in since has garnered of watching manu- the field of information an international facturing businesses reputation in this leave the area and security. field. The National being knocked down Security Agency and in 1995 by the closure of Griffiss Air Force Base, residents the Department of Homeland Security now see an economic renaissance led have recently designated the college a by three industrial clusters with enor- National Center of Academic Excellence It’s not whether you get knocked down; it’s whether you get up. — Vince Lombardi

V

DiMeo

Guglielmo

in Cyber Defense Education. The interest in nanotechnology originated in the 1990s, “… when New York State decided to become a global leader by making a large, capital investment in both nano infrastructure and research,” says Steve DiMeo, president of Mohawk Valley EDGE, an economic-development, growth-enterprises corporation that provides a coordinated economic program to assist business to locate and prosper in Oneida County. “In effect, the [state] government takes on the role of enabler to attract the private sector and to foster key relationships. New York is eager to leverage more than a decade of success at the Malta nano site [in Saratoga County] by duplicating its efforts here in the Mohawk Valley at the Marcy Nanocenter (a 450-acre manufacturing site) and at Quad C [a research and development center for packaging chip-wafers located a half-mile from the manufacturing site],” DiMeo adds. He began focusing his attention on the potential for nanotechnology back in the late 1990s. His doggedness, over the past 20 years, in bringing nano to the area was a page taken directly from Lombardi’s playbook. UAS is a more recent focus. “Our interest in drone flight really took off [in December 2013] after the FAA designated

Picente

Simpson

Griffiss as one of only six test-sites in the country,” quips DiMeo. “The activity has attracted a number of companies and academic institutions, and the state has committed $250 million to create an unmanned, traffic-management system and a laboratory for testing and certification, plus another $30 million to build out a 50-mile test corridor between Syracuse and Rome. The investment makes sense, because the whole concept of developing a detect-and-avoid system is based on sensors. Our region has long been a leader in sensor technology with companies [and organizations] such as Syracuse Research Corp. (SRC), Saab–Sensis, Lockheed [Martin], and AFRL in the forefront.” The three growth sectors are not isolated silos. The future of UAS is dependent on secure systems that guarantee safe traffic-management. In short, there is no UAS without the accompanying information security. The same is true in integrating nano-chips into the labyrinth of sensors that make our world function today. Yet, the huge growth potential of each sector is dwarfed by the Internet of Things (IoT). “The high-tech, innovation corridor we are building has significant capabilities in SEE ECONOMY, PAGE 18

••• SPONSOR MESSAGE •••

I

n 2015 ANDRO Computational Solutions, LLC, a scientific research and development company headquartered in Rome, NY, launched an initiative to address two major concerns, one at a state level and another at a national level. The first addressed measures for helping to reverse the youth talent erosion that New York State has been experiencing in recent years; the second, was to help better position our nation’s youth to be on an upswing track in science, math and reading scores. Project Fibonacci® was started as a non-profit initiative by ANDRO for this purpose as part of an independent endeavor to promote workforce education and support economic development for the Central/Upstate New York region. Our hope was to find effective ways of retaining our young graduates and cultivate future business leaders, while complementing the many other excellent entrepreneurial and start-up programs in the region. In 2016 ANDRO was joined by a number of local academic, industrial, and county and federal government partners leading to the formation of The Project Fibonacci® Foundation, Inc.

As a small business owner, I recognized that our region was not being as effective as it could be in reaching out to our youth regarding their career needs or life interests. Despite what we may think, we are not always creating the opportunities they are seeking. Hiring the right people and grooming them for challenging careers in this region is not an easy task. Workforce education is still not well defined. At the same time, we have been highly promoting STEM education in our schools and institutions, yet a significant number of graduates do not take STEM jobs and over 140,000 STEM jobs remain unfulfilled in NY State. Women in STEM is surely another important direction. However, as the European Renaissance taught us, a rebirth (or maybe a reset?) should encompass diversity in opportunities and careers across multiple interdisciplinary fields, interest and pursuits. This is just common sense. Not everyone wants to just be a STEM devotee.

Project Fibonacci® recognizes this fact. It fosters the idea of pursuing STEM with “the Arts” or STEAM, for the well-rounded, agile workforce of the future. Indeed, there is a paradigm shift from pure STEM to STEAM occurring nationwide, and institutions of learning are seeing the benefits of applying the arts to engage young people in the sciences. Project Fibonacci® does the same, focusing also on the importance of the mathematics that bridge the science and art domains as well as entrepreneurship (taking risks and being anything you want to be). Our program is designed to help vault the United States back to the top in science, math and reading internationally by implementing an effective immersive STEAM educational model. Over time, we can develop new opportunities that are built around STEM, but that also offer diversity to those who are not STEM-only oriented. Currently our programs include Women and STEAM symposia, an annual STEAM Conference (now in its second year), UAS Days, Robotics events, and a unique STEAM campus initiative that brings together the sciences and arts under a single ecosystem. The cumulative impact of these events and initiatives is designed to catalyze student interest in specialized, collaborative STEAM education where they will work and gain experience alongside business and academic professionals from a variety of industries and get exposed to real-world applications, entrepreneurial experts and fruitful career opportunities. I would like to invite the Central & Upstate New York community at large to be part of our rapidly growing initiative to empower the next generation workforce and lead the nation in a modern Renaissance movement! Andrew L. Drozd ANDRO President Project Fibonacci® Founder

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Keeping life simple

FOCUS: CYBERSECURITY

PHOTO CREDIT: GRIFFISS INSTITUTE WEBSITE

since 1947

The Griffiss Institute makes things happen in 10,000 square feet of space at the Griffiss Business and Technology Park with a staff of 16, of whom five are full-time employees. Its annual budget is about $5 million.

Cybersecurity thrives in the Mohawk Valley • Investment Advisory

• Financial Planning • Retirement Plans

BY NORMAN POLTENSON npoltenson@cnybj.com 555 French Road, Building 2 New Hartford, NY 13413 P 315-797-0130 www.mgriffithinc.com

An Employee Owned Company

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For more information visit GRADUATE.BAYPATH.EDU

“… there are only two … types of … [entities] in the world: those that have been breached and know it and those that have been breached and don’t know it.” — Ted Schlein, venture capitalist

FOR A CONSTANTLY CHANGING WORLD

I

t wasn’t that long ago when people being interviewed by the media used to quip: “Say anything you want about me as long as you spell my name right.” Not anymore, especially among corporate CEOs, government officials, university administrators, and military leaders who have been embarrassed to see their names and institutions splashed across the front page of The Wall Street Journal for a cybersecurity breach. The regularity and cost of data breaches has finally captured the attention of the C-suite.

Ubiquity of breaches

The military has borne its share of highprofile data breaches. In 2008, a flash drive with malicious code was plugged into a military laptop located in the Middle East. The code invaded the U.S. Central Command and extracted data. A year later, insurgents in Iraq and Afghanistan used a $26 commercial-software device to intercept live feeds transmitted by U.S. predator drones. In 20092010, a soldier stole sensitive data, including airstrike videos, war documents, and 250,000 diplomatic cables which he passed on to WikiLeaks. Hackers have also penetrated the computer systems of major defense contractors, stealing terabytes of data on our weapons systems. U.S. companies, including retailers Home Depot and Target and health-care giants Anthem and Premera, have confirmed that millions of customer and employee records were stolen. In 2014, the Sony Corp. experienced a high-tech extortion by hackers threatening to release proprietary information. The U.S. Office of Personnel Management, the Social Security Administration, and the U.S. Postal Service have all reported stolen records totaling in the tens of millions. Digital threats also include the rise of botnets and data sabotage designed to falsify records so an operator can’t confirm that the data is accurate. Compounding the difficulty of defending against these data breaches is the explosive growth of the Internet of Things (IoT), where billions of devices are connected through the Internet, thus generating

expanded access to hackers.

Cost of breaches

The average cost of a data breach in the U.S. rose 5.4 percent in 2015 over the preceding year, according to a Ponemon Institute research report (entitled 2016 Cost of Data Breach Study: Global Analysis) released in June 2016. The study, underwritten by IBM, indicates that the average, per-capita cost of a U.S. data breach over a three-year period — involving a minimum of 10,000 records and a maximum of 100,000 records — was $221. The Target breach of 70 million records is estimated to have cost the company up to $252 million. The sectors with the highest per-capita cost were health care ($355), education ($246), and financial services ($221). The average total organizational cost over the same period was $7.01 million. In calculating the total cost, the Ponemon report included both direct costs, including hiring forensic experts, outsourcing hotline support, and providing free credit-monitoring subscriptions and discounts for future products and services, and indirect costs, such as in-house investigations and communications and the value of customer loss resulting from turnover or diminished customer purchases. The mean time to identify a data breach was 201 days and another 70 days to contain it. For those companies which identified the problem in fewer than 100 days, the remediation cost on average was $3.23 million. For those requiring more than 100 days, the average cost jumped to $4.38 million.

Trends in countermeasures

Over the years the Ponemon Institute has conducted its data-breach research, several trends have become obvious. Noting that the cost of a data breach has not fluctuated significantly and the incidence of hacking is increasing, corporations are now treating their data security as a fixed expense and developing data-protection strategies over the long-term. The study also points out that the biggest financial consequence is lost business, requiring steps to retain or restore customers’ trust. The report is also clear that the longer it takes to detect and remedy a breach, the greater the cost. The corollary is that improvements in data-governance programs will reduce costs through establishing counter-measures such as incident-response plans, appointing a chief information-security officer (CISO), SEE CYBERSECURITY, PAGE 13


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FOCUS: CYBERSECURITY

Inside the World of Today’s Cyber Mafia R

ansomware malware is alive and well in 2017, celebrating its 28th year of existence, continuing to establish itself as the economic crime of our time. Ransomware now exceeds all forms of business economic crime except for asset misappropriation by employees, surpassing accounting fraud, bribery, insider trading, procurement fraud, and IP infringement. The FBI cited the 2016 cost of ransomware at nearly $1 billion for U.S. businesses, accounting for 38 percent of all attacks globally. Viewpoint Spam accounted for 76 percent of ransomware, providing it with the easiest and fastest to deploy vector available. This firestorm also led to 2.3 million individuals being victimized in 2016. But commercial enterprises receive most of the attention from ransomware syndicates. In 2016, we saw explosive growth exemplified by: • 4,000 attacks per day on average • 752 percent growth in new families of ransomware in 2016 (according to TrendMicro) • 40 percent of victims paying the ransomware (per Osterman Research) • 72 percent of organizations having information held encrypted and unavailable for two or more days • A startling average recovery cost of $333,000 per incident • 51 percent of business decision-makers calling ransomware “an extreme concern” We are now in the era we call Ransomware 2.0, far from the teenager in the hoodie in his parent’s dank basement seeking to establish his bona fides as a notorious social avenger. We are now in the generation of ransomware crime syndication — well-organized, underground, and yet professionally run. Ransomware is now a service bureau, just like “cloud computing”, now selling the tools of its trade as a “service.” What do ransomware syndicates, or “cyber mafia” as they are sometimes called, look like? Very much like the workplace environments you or I inhabit. While the “hacking employees” may solely work remotely, you may find their “handlers” provide them with: • Paid time off • Cash advances • Benefit packages (Legal representation should they be identified, for example) • Computers and software • Training and tech support • Human resources (tracking their performance and giving them a “rating”) • Potential victim “marketing lists”

JOE VIGORITO

Note, “ransomers” can be laid-off or fired, with hardly a concern about them going to authorities since their handlers are often hardcore criminals capable of exacting revenge for those who do not adhere to a vow of silence. Even the unsophisticated cyber-criminal can now partake, purchasing high quality malware in an active and lively online marketplace, that even includes your participation in a ransomware social network. This supply chain largely emanates from Eastern Europe, but is by no means, geographically bound. Surprisingly, many business leaders still consider ransomware to be the bastion of the Fortune 1000, not small-to-midsize businesses (or SMBs). This was hardly the case in 2016 and no research suggests that SMBs will not be a major target going forward. Our research indicates that: • SMBs saw a 433 percent increase in attacks in 2016 • 84 percent of those attacked did not meet the demands of the attacker because they could not restore data from their own backups • 47 percent of all organizations, regardless of size, were leveraged negatively with a broad category of attack called business email compromise (BEC) • Only 4 percent of all organizations surveyed feel confident their defenses are strong enough to protect against ransomware attacks, which means that 96 percent lack confidence Though average ransom dollar amounts are continuing to increase, they still came in at a modest $679 in 2016, well within the range that any SMB can be expected to pay. It is also worth noting that though Bitcoin, the Internet currency, is still preferred as payment in most attacks, it has declined in popularity as its exchange rate has increased, currently sitting at right around $1,100 per BTC. Ransomers are now more accepting of untraceable wire transfers from Western Union or MoneyGram and some are even accepting Amazon gift cards. This year and beyond offer a bleak view for those not well indoctrinated on how to protect themselves. Some themes in Ransomware 2.0 that are already manifesting themselves in the wild are: • “Pay to play ransomware” will become more common, moving from the Eastern Europe cyber mafia cafés to a global problem with those economically depressed seeing it as the financial panacea to a better life. • Considerable movement to the smart phone and tablet space. Android was the initial vector in this space but the move toward Apple devices continues. Ransomware is hardly isolated to the Microsoft Windows platform at this juncture. • Criminal RaaS (Ransomware as a Service) will grow in sophistication to inSEE RANSOMWARE, PAGE 16

FEARLESS IS BUSTING THROUGH THAT WALL


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PHOTO CREDIT: SUNY POLY TWITTER PAGE

FOCUS: NANOTECHNOLOGY

In this June 29, 2016, photo, workers add the SUNY Poly logo to the Quad-C building in Marcy.

The curtain is going up on Nano Utica There comes a point when a dream becomes reality …. — Frances Farmer BY NORMAN POLTENSON npoltenson@cnybj.com

GENIUS NY 2.0 The Largest Business Accelerator Competition for

Unmanned Systems in the World.

Backstage

6 Teams

$3,000,000 in Funding Unmanned Systems

Hardware

Software

MARCY — Opening night at the theater is preceded by a long process of preparation. Someone first has to capture a dream and then write the script. The next steps are to find a backer or group of backers who will finance the play and choose a location with the proper amenities to stage the production. A call goes out for actors, set and costume designers, stagehands, sound and lighting specialists, and managers. The cast of characters rehearses the play until it is ready for presentation. Finally, the play needs to be promoted to attract an audience. All these functions are usually overseen by an impresario to ensure the process goes smoothly. The only thing left to do is draw the curtain on opening night.

Analytics

APPLY AT

WWW.GENIUSNY.COM Applications Open May 1- October 1 Program Begins January 2018

The curtain is ready to go up on a play in Oneida County called “Nano Utica.” The dream began 20 years ago with the idea that the county could become a hub of nanotechnology research and manufacturing of semiconductors, which act as a conductor or insulator of electricity. Semiconductor manufacturers fabricate integrated circuits, commonly known as microchips. In 1997, New York State recognized the long-term potential of the industry and the beneficial impact on communities where fabrication facilities were sited. The state requested suggestions for potential locations. The following year, the county responded through Mohawk Valley EDGE (MV EDGE), designating the “Marcy Nanocenter” on the campus of SUNY Institute of Technology (subsequently renamed SUNY Polytechnic

Institute or SUNY Poly) as the local, preferred site. New York stepped in as the financial supporter of nanotechnology development, committing $1.5 billion for infrastructure improvements, building construction, tools, and training. In 2012, the state celebrated the opening of a “fab plant” in Saratoga County at Malta. The plant operator, Global Foundries, has poured $8 billion into the project, leveraging New York’s $1 billion investment, while producing more than 3,000 jobs with an average annual salary of $91,000. Malta’s success set the stage to ramp up the state’s commitment to semiconductor fabrication at the Marcy site, spurring increased backstage activity in Oneida County to accelerate efforts to bring nano to the Mohawk Valley. Steve DiMeo, president of MV EDGE, has adopted the role of impresario to speed up the infrastructure preparation to make the Marcy Center site move-in ready for manufacturing. In 2013, DiMeo Oneida County Executive Tony Picente, Jr. published a plan called Vision 2020 to bring all of the actors together — the public sector, private sector, academe, and the entire community. If the dream were to be not only realized but also sustainable, the script called for a focus on providing an educated workforce, appropriate housing, revitalization of the urban cores of Utica and Rome, transportation improvements, and inclusion to be sure the new jobs were open to everyone in the community.

Nanotechnology and semiconductors

Nanotechnology is the manipulation SEE NANO UTICA, PAGE 14


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FOCUS: NANOTECHNOLOGY

Local GM: GE was key in helping Danfoss pursue space at Quad C

Company Profile:

Expects to create 300 jobs

 Year Established: 1933  CNY Employees: Plans to hire 300  Employees Companywide: 25,300 (about 3,500 in U.S.)  Products Manufactured Locally: Danfoss Silicon Power packages power semiconductors, which are then used in other products that help manage power and power inversion  Markets Served: Automotive (particularly in Europe), renewable, industrial (pumps & energy management systems)  President & CEO: Niels Christiansen  VP COO: Kim Fausing  CFO: Jesper Christiansen

BY ERIC REINHARDT ereinhardt@cnybj.com MARCY — General Electric (NYSE: GE) was “instrumental” in helping Danfoss Silicon Power GmbH become aware of the availability of space for operations at the Nano Utica site in Marcy. “They had a significant amount of input into this thing as well as personal relationships with some of the people within Danfoss,” says Mike Hennessey, general manager of the Danfoss site in Marcy. He spoke with The Business Journal on April 26. The Fairfield, Connecticut–based GE, a customer of Danfoss, has upstate New York operations in Niskayuna, located northwest of Albany. Danfoss Silicon Power plans to establish packaging operations in the Computer Chip Commercialization Center (Quad C) in Marcy and is expected to create 300 new jobs. New York will spend $100 million to

complete portions of Quad C in order for Danfoss to establish its facility the office of Gov. Andrew Cuomo and Empire State Development announced on March 24. The German firm is a supplier of power electronics; heating, air conditioning, and ventilation; and mobile-hydraulic products, Cuomo’s office said in a news release. The company packages power semiconductors, which are then used in other products, which help manage power and power inversion, says Hennessey. “The silicon power group was looking to expand into the United States and this … just helped move that project along,” he adds. When asked if Danfoss has any other local or regional customers besides GE, Hennessey replied, “There are other customers … but I’m not really at liberty to say [who they are] right now.” Danfoss Silicon Power is located in Flensburg, Germany, but the parent company, Danfoss, is headquartered in Nordborg, Denmark, according to its website. Hennessey says Danfoss has four business segments. They include AC (alternat-

ing current) drives that deals with power and electronics, refrigeration and air conditioning, heating and district heating, and power solutions. Danfoss Silicon Power is part of the AC drives segment, according to Hennessey. The power-solutions segment provides systems and components for equipment manufactured by companies such as Moline, Illinois–based Deere & Company (better known as John Deere) and Peoria, Illinois–based Caterpillar, Inc. (NYSE: CAT).

DANFOSS SILICON POWER GmbH 330 Technology Drive Marcy, NY 13403 www.danfoss.com

Source: www.danfoss.com

The March 24 announcement about Danfoss coming to Quad C comes just over three months after Austrian–based company ams AG decided not to pursue a project that would’ve invested more than $2 billion in a wafer-fabrication facility at the nearby Marcy Nanocenter site and resulted in 1,000 new jobs. SEE DANFOSS, PAGE 19

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INTERNSHIP Unique, Rewarding, Hands-On Experience www.indium.com/internship-program

Utica’s Technology Company ®

©2017 Indium Corporation


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FOCUS: UAS

ERIC REINHARDT/BUSINESS JOURNAL NEWS NETWORK

COOL PLACES. SMART PEOPLE.

How is EDGE helping to transform the regional economy? Check out EDGE’s 2016 Annual Report: www.mvedge.org

www.MVEDGE.org www.facebook.com/mvedge 584 Phoenix Drive, Rome, NY 13441 315.338.0393

James Smyth CEO of EZ3D, a company based at the Tech Garden in Syracuse, which won $250,000 in the Genius NY business-accelerator program. Using low-cost drones, EZ3D allows professionals to photograph, inspect, and measure buildings without climbing a ladder or waiting for a dated aerial report.

EZ3D seeks to make roof and building measurement easier with drones BY ERIC REINHARDT ereinhardt@cnybj.com SYRACUSE — EZ3D, a software company currently based at the Syracuse Technology Garden, says its platform could make the inspection and measurement of roofs easier when used with drones. The company captured one of three $250,000 cash prizes in its participation in the Genius NY program that New York State is sponsoring at the Tech Garden in Syracuse. Three other teams in the program won larger cash amounts. Genius NY stands for Growing ENtrepreneurs & Innovators in UpState New York. It’s an in-residence business competition accelerator at the Tech Garden, a facility that CenterState CEO operates. “We’re a software as a service company. We do not sell drones,” James Smyth, CEO of EZ3D. Smyth spoke with The Business Journal on April 19 at the Tech Garden. EZ3D founder Marty Marra currently lives in Boulder, Colorado. Besides Marra and Smyth, EZ3D doesn’t currently have any employees, but it does have five shareholders, according to Smyth. “We’re in early stages … We’re just doing alpha testing of our first product, which is EZRoof, which quickly gives you the dimensions of a roof. We’re [currently] testing that with customers,” says Smyth. Smyth, who lives in Richmond, Virginia, graduated from SUNY Oswego in 1979. Marra, his business partner, is a native of Niagara Falls, according to Smyth.

About EZ3D

Using low-cost drones, EZ3D allows professionals to photograph, inspect, and measure buildings without climbing a ladder or waiting for a dated aerial report, according to a description on the

Company Profile: EZ3D

235 Harrison St., Suite 25 Syracuse, NY 13202 www.ez3d.io  Year Established: 2015  Industry: Information technology and services  Products: EZ3D Platform: A full software solution to quickly inspect, measure, and document roofs with consumer drones. Gathers photos of the whole building exterior with a standard DJI drone and uploads them to the cloud using the firm’s EZFly mobile app.  CEO: James Smyth  Founder: Marty Marra  Employees: None currently (5 shareholders)

Genius NY website. “Repair estimates, claims adjusting, and solar installation can be done ondemand in a fraction of the time and cost, replacing traditional methods for a billionplus dollar market,” the description says. The company’s mobile app is called EZFly, which allows the user to capture the data “quickly and easily” when out in the field using a standard DJI drone. DJI is a Chinese drone company, says Smyth. The firm is headquartered in Shenzhen, China, according to its website. The customer can then upload the photos to EZ3D’s cloud web application for viewing photos, processing for EZRoof reports. EZRoof “gives you the information you need about the property, including the dimensions of the roof itself,” says Smyth. EZ3D includes a “team of industry exSEE EZ3D, PAGE 19


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Academic, government, and unmanned aerial systems (UAS) industry leaders from across the U.S. met at Syracuse University’s Center of Excellence on April 11 to discuss plans to construct the NUSTAR (National Unmanned Aerial System Standardized Testing and Rating) facility

NUSTAR Advisory Committee gets started on the next step BY JOURNAL STAFF news@cnybj.com SYRACUSE — Academic, government, and unmanned aerial systems (UAS) industry leaders from across the U.S. met at Syracuse University’s Center of Excellence on April 11 to discuss plans to construct the NUSTAR (National Unmanned Aerial System Standardized Testing and Rating) facility. “The NUSTAR advisory committee will inform the NUAIR Alliance on elements and partnerships needed to build a stateof-the-art facility that will accommodate testing for rapidly changing drone technology,” according to a NUAIR Alliance blog and Flickr page posting. NUSTAR calls for setting up a new testing center for drone safety, durability, and cybersecurity based in Central New York and is part of a project to establish a traffic-control system for safe drone operation, known as Project U-SAFE (UAS Secure Autonomous Flight Environment). The center will offer independent performance and safety benchmark testing

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for drones and drone-related products. The goal is to help draw to Central New York industries that are involved in the production and use of drones, per the blog. As manufacturers continue to develop unmanned aircraft systems, the need for standardized safety tests will be important to developing and improving UAS products. NUSTAR says it will offer “credible and comprehensive standardized tests and scenarios to assure UAS performance, and provide ratings that assess UAS ability to meet recognized performance standards.” This is supposed to allow for industries using UAS technologies to work more safely and productively in applications such as agriculture, industrial inspection, natural resource management, and parcel delivery. Companies interested in growing within the UAS or related sectors can contact Mike Novakowski, director of business development at CenterState CEO, for more information at mnovakowski@centerstateceo.com. 

SRC wins $65 million U.S. Army contract for counter UAS technology Expects to add 50 engineers in Central New York BY ERIC REINHARDT ereinhardt@cnybj.com CICERO — The U.S. Army in early February awarded SRC, Inc. a $65 million contract to provide a counter UAS system “to meet an urgent requirement to detect and defeat drones.” UAS is short for an unmanned aircraft system, which is also called a drone. SRC will perform the “majority” of the contract work, the organization said in a news release. The firm’s scope of work includes engineering, production, and sustainment. Because of this award and other recent contract wins, SRC said it is “actively” hiring more than 50 engineers in Central New York. SRC anticipates “continued growth” in several technology areas, re-

quiring an additional 300 employees nationwide over the next three years. The nonprofit SRC is headquartered in Cicero and focuses on areas that include defense, environment, and intelligence. SRC is also working on the contract with DRS Sustainment Systems, which is located in St. Louis, Missouri, and a division of Arlington, Virginia–based DRS Technologies, according to Lisa Mondello, a spokesperson for SRC. “We are proud to partner with the Army to provide critical technology that will defend against evolving threats like small drones,” Paul Tremont, president and CEO of SRC, said in the release. “Central New York has become a hub for unmanned aircraft systems innovation and manufacturing, and SRC is a leader in this field,” U.S. Representative John Katko (R–Camillus) said. “This investment will help support the Army in combating the ever-evolving threats that we face, while creating a significant number of high-tech jobs in our region’s growing UAS industry.”


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FOCUS: UAS

PHOTO CREDIT: THE TECH GARDEN TWITTER PAGE

COMPANY SPOTLIGHT

AutoModality officials pose with the ceremonial, oversized $1 million check for winning the top prize in the Genius NY business competition.

AutoModality captures top prize in Genius NY business contest BY ERIC REINHARDT ereinhardt@cnybj.com SYRACUSE — AutoModality, one of six finalists in the Genius NY business competition, won the $1 million top prize in the competition during an event held March 15 at the Marriott Syracuse Downtown. The event was dubbed the “315 Finals,” according to Syracuse–based CenterState CEO, Central New York’s primary economic-development organization. Genius NY stands for Growing ENtrepreneurs & Innovators in UpState New York. It’s an in-residence businessaccelerator program at the Syracuse Technology Garden. AutoModality, which started in California, is working to create autonomous mobile systems that “sense, explore, and analyze the world around us,” according to CenterState CEO. The firm is currently focused on inspecting agriculture and infrastructure assets. Ascent AeroSystems won a cash prize of $600,000. The company, which started in Arizona, designs, manufactures, sells, and supports small unmanned-aerial vehicles. The company says it has designed a “unique” vehicle configuration that is “superior” to typical multirotors. OmniMesh of Syracuse won $400,000. The company is designing a wirelessnetwork protocol that it says is “more reliable, secure, and convenient” than current internet routing. The OmniMesh network will “boost” drone safety and security, and “greatly expand” the feasibility of drone control and data transmission “beyond visual line of sight.” Three additional finalists earned investment of $250,000 each.

EZ3D, which launched in Virginia, uses “low cost” drones and allows professionals to photograph, inspect, and measure buildings without climbing a ladder or waiting for a “dated” aerial report. The work allows repair estimates, claims adjusting, and solar installation “on-demand in a fraction of the time and cost, replacing traditional methods for a billion-plus dollar market,” the company contends. (For more information on this company, see separate story — entitled “EZ3D seeks to make roof and building measurement easier with drones” — in this publication.) The runners-up included SkyOp, which launched in Canandaigua in Ontario County. SkyOp is an unmanned aerial-systems training company. It provides classes directly and through workforce-development partnerships currently at a “growing list” of 12 community colleges in four states. In addition, Akrobotix of Syracuse was along among the runners up. It develops “robust and stable autonomous vision-inertial navigation systems” (ROSAVINS). The firm is developing autopilot products for reliable and safe unmanned ground, aerial, and marine vehicles based on the proprietary ROSAVINS technology.

ESD support

Empire State Development (ESD), New York’s chief economic-development agency, is providing $5 million in funding for the Genius NY program in a model similar to Buffalo’s 43North program. It’ll invest more than $3 million in six companies over the course of the yearlong competition, “making it the largest business-accelerator competition for the UAS industry in the world,” CenterState CEO said. n

 Name of Business: The Project Fibonacci® Foundation, Inc. presented by ANDRO Computational Solutions, LLC  Website: Projectfibonacci.org • androcs.com  Products/Services: Promote the next wave of young scholars, scientists, artists and productive citizens through a journey of self-discovery by positively motivating and enlightening them. Through this educational program, we will enable our youth to deal more effectively with the challenges of our ever-increasingly complex and diverse world. ANDRO Computational Solutions, LLC is a leader in developing emerging prototypes for cyber-secure RF communications, command and control, multisensory resource management for radar target tracking and related applications. Spectrum Fusion, Inc. provides Spectrum Management as a Service; including wireless cyber-secure solutions for federal and civilian  Internet of Things focusing on: • Unmanned Air Systems; RF Sense & Avoid for UAS Traffic Management • Autonomous Systems & Vehicles “Big (Spectrum) Data” Processing • Medical Technologies: Wearable biosensors, Brain-Computer-Interface (BCI) applications, Medical Image feature/anomaly detection, Software apps for nutrition programs in schools & public institutions  Total Employees: 35+ Steering Committee Members from educational institutions & local companies.  Top Executive(s): Andrew L. Drozd, Project Fibonacci® Founder and Sr. Advisor, President and Chief Scientist at ANDRO Computational Solutions, LLC  Geographic Area Company Serves: Central New York, Mohawk Valley; nationwide  Corporate Highlights: We are very involved with community activities: UAS Seminar & Challenge Event for students, IEEE events, Rome United Way Campaign, Rome Chamber’s Honor America Days Silent Auction, Rome Rescue Mission Family Fun Day, Rome Catholic Schools, Rome Generals Baseball Team, The Genesis Group, Dr. Martin Luther King Celebration at Utica College, American Heart and Association Go Red for Women


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FOCUS: UAS

BY NORMAN POLTENSON npoltenson@cnybj.com ROME–SYRACUSE — “Part-107 turned on the spigot,” says Lawrence (Larry) Brinker, executive director of the Northeast UAS Airspace Integration Research (NUAIR) Alliance. NUAIR is a New York State, 501(c) (4) corporation comprised of more than 100 private, public, and academic entities collaborating to manage unmanned-aircraftsystems (UAS) test ranges and to promote unmanned-transportation systems. Griffiss International Airport, located in Rome, is the home of the New York UAS Test Site operated by Oneida County through its Department of Aviation. NUAIR manages the test site, which is one of only seven Federal Aviation Administration (FAA) approved test sites in the country. “The FAA stiff-armed private industry for years by dragging its feet,” continues NUAIR’s executive director. “This put the U.S. behind the development of small, commercial drones. It wasn’t until 2012 Brinker that Congress passed the FAA Modernization and Reform Act which mandated that the FAA figure out how to integrate UAS into our national air space. The Act also directed the creation of federal test ranges and authorized the exemptions from current aviation regulations. The Act attracted some companies to begin commercial operations in the U.S., but the real catalyst was Part-107 of the FAA regs which, in August [2016], spelled out new rules — including registration of all drones, pilot certification, and operational waivers — for a broad spectrum of commercial uses for unmanned aircraft (under 55 pounds). A few months after Part-107 was issued, the FAA had issued 35,000 commercialoperator licenses. That gives you an idea of the pent-up demand driven by multiple business sectors ranging from the media and engineering to agriculture and public safety.”

Developments in 2016

Griffiss International Airport serves as a

key element of integrating UAS into the national airspace. The testing is conducted at the airport as well as in locations around the country utilizing the test-site certificate of waiver or authorization that allows the test site to conduct testing in class “G” airspace anywhere in the U.S. Additionally, the test site has received authorization to operate in class “C” and “D” airspace. Future testing will include flight along a 50-mile corridor that stretches from Rome to Syracuse. “This corridor will be outfitted with tracking devices to allow drones to fly beyond visual line of sight (BVLOS),” says Russell Stark, commissioner of aviation for Oneida County. “Our phase-I, range instruStark mentation of the LSTAR and WAM sensors is operational, and more than 700 flights have been conducted since the test became operational (645 flights in 2016, a 10-fold increase over 2015)). Future testing will involve multiple-platform flights as well as flights beyond visual line of sight. The UAS Center at Griffiss has also conducted counter-drone detection tests with the FBI and FAA at JFK Airport. We continue to add new multi-sensor feeds to our Ops center and to NASA, which is supporting our effort to create an unmannedtraffic-management (UTM) system. While our focus continues to be on small drones (sUAS), R&D has already begun on highaltitude, long-endurance UAS.” Gryphon Sensors, formed in 2014 by SRC Inc. as a for-profit subsidiary focused on non-defense customers, has taken the lead on phase-I. “Gryphon is helping the test site develop a multi-sensor, ground-based, detect-andavoid capability,” says Dave Whitaker, director of programs at Gryphon Sensors. “The initial area covers the southeast corner of the corridor, about 400 square kilometers, and forms a triangle from Griffiss International Airport to Wampsville and ends at the old Oneida County Airport in Oriskany. Our company is feeling the pressure now, because Gryphon needs to be ready this summer to demonstrate the capabilities of our build-out. This demo is

PHOTO CREDIT: NUAIR ALLIANCE WEBSITE

Regional drone innovation corridor takes off one of four to show the BVLOS concept of operations and performance in increasingly complex environments. The need to complete the UTM work to avoid collisions is growing, because last year there were approximately 1,300 visual reports of drones in the national airspace, a 50 percent increase from 2015.” In August 2016, Gov. Andrew Cuomo announced a $5 million investment by New York State in phase-I. Deployment of the UTM corridor is scheduled for 2018.

U-SAFE

In 2016, NUAIR embraced the U-SAFE program (UAS Secure Autonomous Flight Environment), a five-year initiative by the Central New York and Mohawk Valley area to provide infrastructure and resources that will expand the existing UAS industry locally and attract new companies to the region. The $250 million program is funded by a New York Upstate Revitalization Initiative (URI) grant to create a testing facility for sUAS and other commercial applications. The grant supports the development of the UTM corridor; the building of an indoor-test laboratory called NUSTAR (National Unmanned Aerial Standardized Performance Testing and Rating); a droneinnovation and business-park; a law-policy institute at Syracuse University; and an autonomy school that will focus on R&D, testing, and deployment of autonomousaviation systems. Efforts at the autonomy school should eventually expand to include autonomous-marine and -ground systems. U-SAFE will be the first in the nation to set standards for UAS-airworthiness certification. NUSTAR facility requirements and conceptual design are in progress with a preliminary construction cost estimated at $50 million to $100 million, according to a request for expression of interest (RFI) released by NUAIR in February. Submission of RFIs was scheduled for March 15. “NUSTAR should become the best-

known UAS test lab in the world,” proclaims Brinker. “I call it the … [drone] underwriters laboratory. The facility will operate as a fee-for-service testing service to certify civilian small drones and for autonomous BVLOS flight operations within a UTM system operating at altitudes below 1,200 feet. The lab will also perform cybersecuritybenchmark testing. Our goal is to attract every UAS provider to the facility for certification testing and to draw manufacturers and partners to locate close to the facility. In addition, NUSTAR will conduct forensic testing to investigate incidents and accidents and serve as a data keeper of drone performance and capabilities. An advisory committee consisting of project stakeholders and industry experts is identifying the key functions to be performed at the facility which will determine the building’s functionality, layout, and specifications. Those interested in investing in NUSTAR should be aware that a key objective is to maximize direct and indirect employment. The plan calls construction to begin in 2018 and to be completed by the summer of 2019 … NUSTAR is eager to create a working relationship with any potential partners.”

UTM Convention

On Nov. 8, 2016, the UAS industry shined a spotlight on the Mohawk Valley and Central New York. Onondaga County, Oneida County, CenterState CEO, and the Association for Unmanned Vehicle Systems International, in partnership with Empire State Development, the Air Traffic Control Association, and Syracuse University opened the second annual UTM convention. More than 500 attendees and 38 vendors from the systems-integration, unmannedaerial vehicle, and unmanned-traffic-management sectors plus academe descended on the region from around the globe. “The three-day convention showcased the test SEE DRONES, PAGE 12

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FOCUS: UAS

BY JOURNAL STAFF news@cnybj.com SYRACUSE — The Syracuse Center of Excellence has opened a new unmanned aerial vehicle (UAV) laboratory to perform flight tests with drones. Amit Sanyal, associate professor of mechanical and aerospace engineering at Syracuse University’s College of Engineering and Computer Science, and his doctoral student Sasi Prabhakaran, developed an open space at the Syracuse Center of Excellence into the UAV lab, according to an April 17 news release posted on the Syracuse University News website. Sanyal, Prabhakaran, and a team of mechanical and aerospace engineering students designed a large cage where drones could fly safely — up to about 20 feet high — while being tracked by a series of cameras mounted above. The team considered everything from wiring and acoustics to minimizing structural vibrations when building the cage. “Years of work culminated in this,” Sanyal said in the release. “We wanted to build something without

constraints,” Prabhakaran said. “Sensors won’t give you good results if you are flying at a low altitude.” The UAV lab’s camera-based motion tracking system currently provides realtime, 3D monitoring of how a drone responds to changing conditions. The UAV lab opened last fall and “has been busy from day one,” per the release. Mechanical and aerospace engineering students share the lab with teams from the Genius NY businesses accelerator competition. Prabhakaran’s startup company, Akrobotix, won a $250,000 award in that contest in mid-March. The firm is developing autopilot products for reliable and safe unmanned ground, aerial, and marine vehicles based on the proprietary ROSAVINS (“robust and stable autonomous vision-inertial navigation systems”) technology. “We want to see them operating here so we can learn from each other,” Sanyal said. The lab offers engineering students a “unique opportunity” to design solutions to challenges that crop up in unmanned flight. “Between industry and academic con-

PHOTO CREDIT: SYRACUSE UNIVERSITY NEWS WEBSITE

Unmanned aerial vehicle lab takes flight at Syracuse Center of Excellence Amit Sanyal, associate professor of mechanical and aerospace engineering at Syracuse University, pilots a drone in the test space at the Syracuse Center of Excellence.

nections — the students can gain a lot,” said Prabhakaran. While UAV technology has been advancing rapidly, most commercial drones are still not capable of operating autonomously in high wind or unstable weather conditions. “If the breeze catches it at the wrong angle, it comes crashing down,” Sanyal noted in the release. Sanyal and his research team are developing an auto-pilot system that uses “specially designed algorithms to go through difficult weather conditions and be more efficient than piloting options currently available for commercial use.” The new lab also allows Sanyal and his team to incorporate fans and create specific air disturbances to test their algorithms. He said he believes the application they are developing could go “far beyond”

drones and may be used to provide auto piloting for unmanned systems in general. “Robotic systems are going to be increasingly important,” Sanyal noted. The lab provides “complete testing facilities” for autonomous guidance, navigation, and control of UAVs in an indoor setting. The Center of Excellence equipped the lab with a “sophisticated optical tracking system and decentralized wireless ad hoc network (or WANET) for real-time telemetry, making it a state-ofthe-art test facility to develop autonomous navigation and control of UAVs using onboard sensors and actuators without external navigation aids like GPS or known beacons,” according to a web page for the lab on the Syracuse Center of Excellence website. The lab will be used to test both single vehicles and multi-vehicle formation and synchronization maneuvers. 

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FOCUS: URBAN RENEWAL

Greater Utica Chamber celebrates grand opening of Landmarc Building office BY JOURNAL STAFF news@cnybj.com UTICA — The Greater Utica Chamber of Commerce held a ribbon cutting/ grand opening/ open house event on April 24 at its new offices at the Landmarc Building at 520 Seneca St. in Utica. The event had been originally scheduled for mid-March but was postponed twice due to the major snowstorm Stella. The Greater Utica Chamber moved to the Landmarc Building just over a year ago, from its previous home at 22 Genesee St. The move to 520 Seneca St. is a return to the chamber’s roots when it used to be located there before it was called the Landmarc Building, the organization said. The building has undergone a complete renovation and is a part of downtown Utica’s revitalization. This has provided the chamber with a “fresh new look” and allows it to provide expanded services to its members, the Greater Utica Chamber said in an email announcement. The chamber offers the new office space to members, free of charge, for a variety of different uses. “From individual usage, to a location for an educational seminar, we can provide an appropriate space for many purposes. We have a large, convertible space in our Education Room. This area offers a smart TV for presentations, tables and chairs that can be adapted, a kitchenette with coffee bar, and a space for refreshments,” it said in the email. The Landmarc Building is also home to Galaxy Communications, a Syracuse–based company that operates radio stations in both the Utica and Syracuse markets. Galaxy has its Utica headquarters in the building. 

FOCUS: HEALTH-CARE INNOVATIONS

Nano-material technology startup gets $100K co-investment from Launch NY, CenterState CEO Pelitex’s Nanogradient platform could aid in early cancer detection BY JOURNAL STAFF news@cnybj.com SYRACUSE — Launch NY announced in mid-April that it has made a $100,000 co-investment with CenterState CEO in Pelitex Inc., a nano-material technology startup based in Syracuse. Pelitex has new nano-material technology platform — which is called Nanogradient and was developed at Syracuse University — with the potential to offer “superior materials in numerous applications,” including the in-vitro diagnostic industry, according to a Launch NY news release In particular, it could “revolutionize” the liquid biopsy marketplace for early cancer detection. The technology can be used to identify, capture, and separate DNA and circulating tumorcell fragments in a simple blood test that can help detect the presence of cancerous tumors at the earliest stages of the disease. This could result in improved, less costly treatments and higher survival rates. “This investment has provided Pelitex with early seed funding that has allowed us to verify the performance of our material, and to use this data to attract the attention of very large strategic partners, as well as transition our technology license to an exclusive status,” stated Joe Dickson, CEO of Pelitex, in the Launch NY release. “We are presently preparing to enter into a product development contract with the leader in magnetic diagnostic beads, and we continue to work with their top competitors as well.”

The Launch NY Seed Fund is a nonprofit fund, fueled by grants and donations, with all returns “coming back to the fund to support investments in future startups in what is known as an evergreen cycle,” per the release. The fund is patterned after successful models of other venture-development organizations in comparable areas of Pennsylvania, Ohio, and other U.S. states that have used this approach. Due to the nonprofit structure of its fund, Launch NY says it is able to support entrepreneurs like Pelitex, while it continues to seek capital toward its $5 million fundraising goal. “Programs like the CenterState Growth Innovation Technology Commercialization Fund help fill a gap in the Central New York investor community for early-stage companies, and incentivizes business development,” Rick Clonan, VP of innovation and entrepreneurship at CenterState CEO, said in the release. “We are proud to be part of this investment that provides an infusion of capital needed for companies like Pelitex to grow their innovative concepts into viable businesses.” Launch NY says it’s a nonprofit 501 (c)(3) venture development organization focused on identifying, supporting, and investing in high-growth companies in a 27-county region of upstate New York. The organization is headquartered in Buffalo and has regional co-location with partner organizations in Binghamton, Ithaca, Rochester, and Syracuse. CenterState CEO, based in Syracuse, is an independent economic-development strategist, business-leadership organization, and chamber of commerce with nearly 2,000 member businesses of all sizes across Central and Northern New York. It operates the Tech Garden, an incubator and resource for early stage businesses. 

DRONES: At the convention, Cuomo announced a $30 million state investment in phase-II site and our regional partners,” Brinker emphasized. “We also developed new connections with companies that are looking to grow in this sector. The convention gave us the [unique] opportunity to expose our regional assets and remind the attendees that we have the largest, live-scale test bed for unmanned-aerial systems in the world.” At the event, New York Gov. Andrew Cuomo announced a $30 million state investment in phase-II.

NUAIR

The NUAIR Alliance was founded by members of CenterState CEO, a nonprofit corporation focused on business

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Improving business decisions, operations, and performance

and economic development, innovation and entrepreneurship, and research and policy planning, and later joined by MassDevelopment, Massachusetts’ economic development and finance agency, to respond to the UAS test-site opportunity created by the FAA Modernization and Reform Act in 2012. The Alliance was designed to provide economic-development leadership for growing UAS businesses in the region. “Our original focus was on sense-and-avoid protocols,” affirms the Alliance’s executive director. “It wasn’t long before cybersecurity was added to our menu of things to do, followed by developing and ‘demo-ing’ the future of UTM, educating the public,

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and most recently an emphasis on creating drone/counter-drone measures by protecting the communication links from mischief. In other words, we’re looking at software internal to the drone while it’s in the air and also ground-based systems to prevent hacking … We’re getting used to mission creep.” Brinker is an experienced pilot and aviation attorney. He retired from the U.S. Air Force as a Lt. Colonel with 25 years of active and reserve service and has garnered more than 30 years of experience as an aviation-public-policy adviser to both public and private clients. Brinker runs NUAIR with a small staff, partnering with CenterState CEO to furnish government-

Continued from page 10

relations, communications, and back-office support. “Things are beginning to move faster,” Brinker says in a late March interview. “On March 10, we held a panel discussion to set up and develop policy for the Law and Policy Institute. On March 15, NUAIR held its ‘info day’ for partners interested in joining us to create NUSTAR. We’re now adding staff in anticipation of letting contracts for the corridor and for NUSTAR. With the assets NUAIR has assembled, we suggested to the FAA that our Alliance take the lead in large drones (over 55 pounds). The corridor is perfect for that, and it will be SEE DRONES, PAGE 17

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CYBERSECURITY: The need to educate enterprise leaders

that security is now an asset

employee training and awareness programs, and a business-continuity management strategy. Ponemon notes another trend: Investing more in data-loss prevention controls and activities, such as encryption, and participating in threat sharing. In this age of digital transformation when enterprises are in a high-stakes battle to ward off competitors, maintain or enlarge market share, and meet the changing demands of their customers, they are now compelled to add combating modern cybercriminals as a fourth imperative. A May 2016 discussion summary of current cybersecurity measures released by the International Institute for Analytics focuses on data management as a primary cybersecurity countermeasure. The authors of the report see a paradigm shift by cybersecurity professionals away from preventing attacks to faster detection and remediation. Because of the volume of data generated by the IoT, the need for better security analytics holds the best promise of detection. This requires a steady stream of integrated data with the proper interfaces and processes for pulling the data together for analysis in real-time. The report concludes that cybersecurity is a people-process-technology challenge — a moving target with data evolving and multiplying that requires a parallel improvement in analytical methods. In 2017, Forbes Media published a “Forbes Insights” research paper examining how corporate CEOs are rewriting their cybersecurity playbooks to create a culture of cybersecurity enterprise-wide. The motivation for the change is the agita caused by the growing risk of a sophisticated army of global cyber-thieves bent on stealing corporate data and customer information. The Forbes Insights report lists the top-three technologies that corporate executives identify as having the biggest security implications: public clouds, big data, and mobile applications, all of which have enjoyed high adoption rates in recent years. A survey of enterprise executives showed widespread agreement that the primary security challenges were end-user authentication, keeping the organization up-to-date, and improving security training for end-users. A solid majority — 74 percent — of CIOs (chief information officers) and CISOs listed security as a higher priority over the previous year, and 82 percent of all executives surveyed noted that security investments are projected to increase again in 2017. The highest areas of investment this year are IT and automated-patching systems, cloud-based security tracking, and breach detection. Anti-malware solutions ranked lowest in funding plans. Forbes Insights also noted a lack of agreement on how the CISO reports. Some executives see security as an IT issue with the CISO reporting to the CIO. Others see the CISO reporting directly to the company board of directors. The disconnect appears to be that CIOs in general are focused more on technology innovation than security while CISOs are concerned primarily with cyber threats. Not surprisingly, the survey uncovered a substantial difference in cyberthreat evaluation between the two officer categories. Two other trends appeared in the report: The need for security staff to collaborate more closely with operations teams, and line-of-business managers must take more responsibility and a greater role in explaining what applications they are using and in prioritizing security investments.

A new security model

The need to educate enterprise leaders

Continued from page 2

that security is now an asset and not just a costly expense is becoming a thing of the past. Executives realize that customers gravitate to organizations with a reputation for security. These executives also know that organizations can’t fund every new spending request; they need to target available resources to mission-critical applications. The CIOs and CISOs must look beyond technology as the answer to all security problems: they can help by addressing both organizational and personnel issues. The reality of cyber breaches is forcing executives to create a culture of security by making it everyone’s responsibility for cybersecurity.

Mohawk Valley leads in cybersecurity assets

Air Force Research Lab The Mohawk Valley began developing security assets immediately following the conclusion of World War II. The Griffiss Air Force Base, located in Rome, supported the Air Defense Command and the Strategic Air Command. Renamed the Rome Air Development Center (RADC) in 1951, the RADC was designated as the Air Force’s research-and-development center for ground electronics and intelligence systems. In 1990, the organization became the Rome Laboratory and, in 1997, was designated as the Air Force Research Laboratory (AFRL). The lab has spent the last six decades researching revolutionary technologies from satellite communications to computer networks, including pioneering work on the Internet. While the focus of AFRL is on military research, development, and integration of war-fighting information technologies for air, space, and cyberspace forces, consumers have benefitted from the lab’s work on transistors, integrated circuits, the personal computer, lasers, and compact discs. The research conducted at AFRL serves as a catalyst for the region’s leadership in cybersecurity. The Rome site houses 1,204 military, civilian, and on-site contractor personnel with an annual payroll of $143.5 million, according to the “2016 Economic Impact Analysis” report released by the organization’s controller. Adding indirect jobs created and operating expenditures together with payroll creates a total annual impact in the surrounding, five-county region exceeding $350 million. AFRL’s annual budget, funded by the Air Force, the Department of Defense (DoD), Small Business Innovation Research grants, and non-DoD sources, exceeds $1 billion. In addition to performing its primary mission, AFRL has partnered other elements of the federal government, national intelligence agencies, other nations, state and local governments, and major universities to work on problems of common interest. Griffiss Institute New York State created the Griffiss Institute in 2002 for the purpose of getting the ideas, inventions, and technologies developed at AFRL into the hands of the private sector. “The concept of technology transfer is mandated by federal law,” says William Wolf, president of the Griffiss Institute. “The public owns the intellectual property created at AFRL, so they should benWolf efit from their investment. SEE CYBERSECURITY, PAGE 15

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of matter on an atomic scale. In a commercial sense, it’s the engineering of functional systems at the molecular level. Visualize the scale as one meter and then divide it into 1 billion parts, each part called a nanometer. Perhaps it’s easier to visualize 1 inch and divide that into 25.4 million parts? Okay, forget the numbers. Consider that a nanometer is the marble you are holding and a meter is the earth. Or imagine an object 1/100,000 the width of a human hair. Staying with hair, let’s say a nanometer is the amount a man’s beard grows in the time it takes to lift a razor to his face. Bottom line, we’re talking a scale that is magnitudes beyond miniscule. It was only a few years ago that nanotechnology was considered futuristic. In 1981, the scanning tunneling microscope was invented so researchers could actually see an atom. Seven years later, they learned how to manipulate individual atoms. Another breakthrough occurred in 1985 when researchers at Rice University discovered Carbon-60, which suggested potential applications for nanoscale electronics and devices. Just a decade ago, commercialization based on advancements in the science began to emerge. The constant demand for more microchips in devices as widespread and diverse as personal computers, smart phones, airplanes, and missile-guidance systems drives the electronics industry to double every two years the number of components in an integrated circuit. The eponymous law was first articulated in 1965 by Gordon Moore, co-founder of Fairchild Semiconductor and Intel. Semiconductor fabricators generally make their microchips from silicon, the second most abundant element on the planet after oxygen. The microchip process starts with cylinders of silicon, which are sliced into thin wafers and polished. Microscopic patterns of electronic circuitry are then imprinted on the wafers by a photolithography process. Patterns are etched with acid and replaced with conductors, such as aluminum or copper. The wafers next receive a chemical bath, and the imprint process is repeated. A complex chip can contain multiple layers of circuitry containing more than a billion circuits. Once the process is completed, the wafers are cut into individual chips and encased for shipment to an equipment manufacturer. The final product contains millions of tiny electronic components. The process of manufacturing is so delicate that it can only be done in a cleanroom, free of all airborne matter. To preclude any contamination, the operators and technicians inside the cleanroom wear bunny suits — protective outer garments — and whenever they

enter the manufacturing space, all personnel must be decontaminated. Want cash from your ATM, need to make a call on your mobile phone, require a medical implant, time to turn on your coffeemaker, drive to work in the family car, fly to Disney World, surf the Internet? Today, everything we do is dependent on microchips. That’s why U.S. semiconductor manufacturing is big business. It’s the third-largest manufacturing sector, behind petroleum-refining and pharmaceutical-preparation. It is also the fastestgrowing of any major U.S. industry. Chip makers generate about $200 billion in annual sales and employ more than 250,000 workers. Indirectly, the industry supports an additional 1 million jobs. Most fab plants employ 1,000 to 1,500 people and pay salaries, on average, of more than $70,000 annually. For every fab job created in the U.S., 1.9 jobs are created in the region where the plant is located; in New York state, 2.2 additional jobs are created. Each fab facility is estimated to generate a $2.8 billion economic impact on the local economy over a five-year period.

Setting the stage

The selection of the Marcy campus of SUNY Polytechnic Institute to stage the Nano Utica production is ideal. The site anchors the western end of a “silicon corridor” that stretches eastward to the sprawling 1.3 million-square-foot NanoTech megaplex of SUNY Poly located in Albany. SUNY Poly, which was formed by the merger of SUNY College of Nanoscale Science and Engineering located in Albany and SUNY Institute of Technology in Marcy, boasts more than $20 billion in high-tech investments and more than 300 partners. The Marcy campus currently contains the Marcy Nanocenter site, established for fabrication plants, and the Computer Chip Commercialization Center (Quad C), constructed as a research laboratory to study chip production and packaging.

Marcy Nanocenter

“The manufacturing site comprises 428 acres,” says DiMeo, “enough room to accommodate more than 8 million square feet of production space. The infrastructure can furnish 28 million gallons of water per-day, it’s free from any background noise or vibrations, major highways are close by, the road and sewer infrastructure are almost complete, and we’ve laid fiber-optics. At full build-out, the projected power load will be 320 megawatts. In addition to the advantages of the physical location, a significant (more than 67,000) engineering and technician talent base resides within a 100-mile radius of

Continued from page 4

PHOTO CREDIT: MARCYNANOCENTER.COM

NANO UTICA: It was only a few years ago that nanotechnology was considered futuristic

Located at SUNY Polytechnic Institute in Marcy, the Marcy Nanocenter is a nearly 430-acre greenfield site developed for semiconductor manufacturing facilities.

the site. The area also has an advancedelectronics and supply-chain ecosystem within a short drive. New York State has set aside $638 million as a further incentive to support fab construction, tooling, license acquisition, R&D, job training, and recruitment-relocation costs. The region’s higher-education institutions provide cutting-edge research in nanotechnology and numerous partnership opportunities … The potential benefits of the Marcy Nanocenter are huge: $12 billion in investment, 4,000 direct jobs, and 8,000 indirect, supply-chain jobs in Upstate.” In August 2015, Gov. Andrew Cuomo announced that an Austrian microchip fabricator — ams A.G. — would be the first tenant at the Marcy Nanocenter. New York State agreed to build the manufacturing plant and lease the facility to ams for $1 per year. The Austrian company pledged to invest a minimum of $2 billion in capital equipment and for operating costs in the 200- to 300-mm wafer plant over the 20-year life of the lease and estimated hiring 700 full-time employees. The groundbreaking ceremony was celebrated on April 20, 2016. However, in December, ams terminated its lease and decided not to pursue the project, citing the lack of progress in construction. DiMeo, who has pursued the Nano Utica dream for 20 years, saw the development “… as a bump in the road.” In a February interview, he says, “We’re disappointed, but the work invested in infrastructure such as roads, storm drainage, and utilities, plus the 400,000 cubic yards of earth moved as part of the site preparation, has made the location more appealing to a future operator eager to expand production capacity quickly.” The Marcy Nanocenter infrastructure program budgeted $49.1 million for improvements in 2016 and has budgeted another $29.1 million in 2017.

Quad C

The opening of phase-I of Quad C in

2015 helps to cement New York’s efforts to be the preeminent hub for 21st-century nanotechnology innovation, education, and economic development. Located on the SUNY Poly Marcy campus a halfmile from the Marcy Nanocenter, the 253,000-square-foot building, which includes 56,000 square feet of cleanroom space, is designed to serve as a power-electronics packaging facility providing leading-edge R&D to facilitate the commercialization of nanotechnology and nanoelectronics innovation, including 3D packaging. The industry’s use of the term “packaging” translates into the ability to stack wafers of computer chips in multiple levels in order to reduce power consumption and improve bandwidth. The process requires specialized design and machinery to line up the dies and attach them, all of which must be done in a cleanroom. New York spent $125 million to construct the Quad-C building and pledged another $100 million to refit and equip it. When the project is fully built out, the edifice will contain more than 600,000 square feet. The state projects that the research facility will eventually employ more than 800 people and operate with an annual budget of $500 million. In August 2015, Gov. Cuomo announced that GE Global Research would expand its Empire State operations by heading the New York Power Electronics Manufacturing Consortium (NY-PEMC) as the anchor tenant in Quad C. The consortium plans to conduct next-generation research, development, and commercial fabrication to meet the global demand for smaller, faster, and more efficient devices and to change the current industry standard from 4-inch to 6-inch wafer production. The initiative, which is viewed as the next revolution in power, expands the Nano Utica focus from computerchip commercialization into power-chip SEE NANO UTICA, PAGE 16

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CYBERSECURITY: The Griffiss Institute interprets

its technology-transfer mission broadly Government labs generate technology primarily for military applications, so the idea is to share the research with industry and let business create products for commercial applications. The Griffiss Institute has a partnership intermediary agreement (PIA) with AFRL that allows us to assist business through cooperative research and development agreements (CRADA) between AFRL and industry and with institutions of higher education through education partnership agreements (EPA). The Institute has created more than 70 CRADAs and more than 100 EPAs. Through our PIA, the Griffiss Institute facilitates a wide range of licensing and other technology-transfer initiatives based on appropriate AFRL technologies.” Wolf points out that the Griffiss Institute interprets its technology-transfer mission broadly. “We do more than draw up agreements,” states the president. “[The organization also] … has a strong STEM (science, technology, engineering, math) outreach program to local schools. We run many programs, including Dimension U, a math-based videogame requiring solving problems in order to advance to the next level. The kids become so excited; I call it a pep-rally for geeks. Griffiss also runs weeklong summer camps where the students immerse themselves in robotics, drones, and cyber. Hiring student interns is another example of our outreach. Every year, we collect between 500 and 800 student applications for paid-internships at AFRL. Some applicants are in high school and the rest are in college, mostly undergrads. AFRL determines the qualifications needed for each position, and Griffiss Institute hires them.” The institute also addresses newbusiness development. “Griffiss set up a Commercialization Academy back in 2013,” Wolf continues. “Initially, we organized 12 teams of college students to create new businesses and facilitate the transfer of technology to the marketplace. We then opened up the concept to entrepreneurs across the country to form new ventures paired with AFRL technologies that have a high potential of commercialization. The goals include developing entrepreneurial leaders and launching new technology ventures. The companies locate in the Utica–Rome area for the six-month course, and in the fall of 2016, seven teams pitched their ventures at ‘Demo Day’ in downtown Utica. The funding for prizes and for the initial start-up costs was furnished by area companies, local government, and local foundations. Our hope is that the companies will remain in the area after Demo Day. In addition to the Academy, the Institute runs a business incubator and has assisted more than 20 new companies. …Griffiss Institute is an unusual entity, because we are both a partnership-intermediary under contract and a business incubator. I think of the arrangement as a self-licking ice-cream cone.” Wolf points out one more aspect of the institute’s broad mission. “We are also a conference and meeting center and an education and training facility,” he adds. “Businesses often rent our facility for meetings and training programs. In addition, they can utilize the Pearson VUE Test Center for third-party certification and licensure exams.” Summing up the Institute’s role, Wolf says “Our job is to make things happen.” The Griffiss Institute makes things happen in 10,000 square feet of space at the Griffiss Business and Technology Park with a staff of 16, of whom five are full-time em-

Continued from page 13

ployees. Its annual budget is about $5 million. Cyber Research Institute In 2012, New York State legislated the creation of the Cyber Research Institute (CRI) as a subsidiary of the Griffiss Institute. The 501(c)(3) corporation was established in 2013 to promote partnerships with industry, nonprofits, and academia that leverage the groundbreaking cybersecurity-research work conducted at AFRL–Rome. CRI’s goals include protecting the infrastructure of cyberbased infrastructure; fostering a sustainable program that will grow the cyber economy in New York; expanding the region’s cyberbased workforce; provide unbiased expertise for strategic research, planning, and program development; and promote New York as the leader in public-private collaboration in cyber research. CNY Defense Alliance Another asset in the Mohawk Valley’s cyber quiver is the CNY Defense Alliance (d/b/a Cyber NY Alliance). A 501(c)(6) corporation created in 2011, “We support new initiatives that enable collaboration and partnerships between our regions and federal assets, in particular AFRL and the NY UAS Test Site at Griffiss International Airport, and enhance our high-tech footprint,” says Mary Carol Chruscicki, executive director. “The Alliance is the only notChruscicki for-profit corporation in the region positioned to legally engage in lobbying to advocate for the area’s DoD and federal assets with emphasis on AFRL’s C4I (Command, Control, Communications, Computers, Intelligence) cyber-technology base. In promoting the area’s high-tech eco system, the Alliance is focused on a number of initiatives that support AFRL, [thus] … helping to develop synergistic partnerships to advance tech transfer. In addition, the Alliance works to promote and advocate for Defense, Finance, and Accounting Services and for the Eastern Air Defense Sector, assets also located in the Griffiss Business and Technology Park. We have more than 40 members, including large and small businesses, academic institutions, and nonprofits, which support the work of the organization.” CNY Defense Alliance operates on a budget of about $200,000 a year, which covers salaries, lobbying fees, and consultants. Private sector AFRL–Rome isn’t the only regional organization to have a long history in cyber research. SRC, Inc. (formerly Syracuse Research Corp.), founded in 1957, today employs 1,000 people in the areas of defense, environment, and intelligence. In the area of intelligence, SRC is focused on operational solutions in electronic warfare, information operations, and cybersecurity. More recently, major contractors such as Lockheed Martin, Saab-Sensis, and Raytheon have made major investments in the region’s cybersecurity. Smaller companies, such as ANDRO Computational Solutions, Capraro Technologies, and Assured Information Security (AIS) are also local examples of active players in developing cyber solutions. The history of AIS is a roadmap of how the cyber sector has mushroomed. Founded in 2001 by four partners with extensive cyber SEE CYBERSECURITY, PAGE 20

The Griffiss Institute Certified Business Incubator is located in Rome, NY, and serves the CNY region. We partner with the thINCubator, and other regional economic development entities, to combine our region’s numerous high tech, information, and cybersecurity assets with business development programs and services to support our local entrepreneurs. Among our unique capabilities, is the ability to connect entrepreneurs with technology developed at the Air Force Research Laboratory in Rome, NY, enabling technology transfer to industry for commercialization. WWW.GRIFFISSINSTITUTE.ORG/BUSINESS-INCUBATOR CONTACT: JOHN LIDDY AT INCUBATOR@GRIFFISSINSTITUTE.ORG

The Commercialization Academy is a Griffiss Institute entrepreneurial education program sponsored by the Air Force Research Laboratory Information Directorate. The program is designed to develop entrepreneurial leaders through the commercialization of federal intellectual property (IP). Each IP technology and entrepreneur goes through an intense vetting process. Each entrepreneur selected embarks on a six-month acceleration process to build a piece of IP into a sustainable startup. WWW.GRIFFISSINSTITUTE.ORG/COMMERCIALIZATION-ACADEMY CONTACT: DAN FAYETTE AT DFAYETTE@GRIFFISSINSTITUTE.ORG

GRIFFISS INSTITUTE 725 Daedalian Drive, Rome, New York 13441 Tel: 315.838.1696 | www.griffissinstitute.org


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NANO UTICA: New York will spend $100 million to complete portions of Quad C applications for industrial products such as wind turbines, utility-scale solar invertors, data centers, and hybrid cars. The consortium’s efforts are built on GE’s silicon-carbide technology as a new material platform to replace silicon. On March 24, Gov. Cuomo and Empire State Development announced that Danfoss Silicon Power GmbH plans to establish packaging operations in Quad-C in Marcy and is expected to create 300 new jobs. The German firm is a supplier of power electronics; heating, air conditioning, and ventilation; and mobile-hydraulic products. New York will spend $100 million to complete portions of Quad C in order for Danfoss to establish its facility, Cuomo’s office said in a news release. These are “exciting times” in the Mohawk Valley, as the region has “solid momentum” with Danfoss’s added investments at the Quad C, DiMeo of MV EDGE, said in the governor’s release. “This partnership adds to the high-tech ecosystem already in place around the

region, and compliments the developments happening at Marcy Nanocenter.” (For more information on Danfoss, see separate story by Eric Reinhardt on page 5 in this publication.)

Advance Manufacturing Performance Center

In February, SUNY Poly announced that the U.S. Department of Commerce had awarded a $1.25 million grant matched by a $500,000 grant from New York State to establish an Advanced Manufacturing Performance Center (AMP) on the Albany and Marcy campuses. The AMP will have access to a suite of state-of-the-art manufacturing tools and innovative data platforms in order to work on multiple levels to build better chips. The center will work with companies to improve their chip manufacturing and with suppliers to improve their parts. Joining the new venture are Edwards Vacuum, experienced in the vacuum technology to create clean rooms, and Inficon, which provides advanced instruments for gas analysis,

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measurement, and control. The AMP involves three phases. The first is the research phase to determine what causes wafer defects. The second is the development phase to analyze the data to determine the cause of defects or variations in manufacturing. The third is the deployment phase to educate the technicians. Partnering with Albany–based Wired for Education through an online portal, the Center will help interested students assess the state’s nano job market and find an appropriate course of study.

Capital investment

In October 2013, Gov. Cuomo first announced the state’s financial commitment totaling $1.5 billion to support the Marcy Nanocenter and Quad C. Private industry is projected to invest billions of dollars in operations and research at the Marcy facilities. The Mohawk Valley’s academic institutions, recognizing that most nano jobs require a degree or certificate at the college level, are also investing to create a high-tech learning environment by providing programs to fill the anticipated

Continued from page 14

jobs. SUNY Poly offers undergraduate and graduate courses in nanoscale engineering to prepare students for a career at the highest level of research and development. Mohawk Valley Community College offers a two-year-degree program and certificate programs in semiconductor-manufacturing technology geared to engineering technicians, assemblers, inspectors and testers, supervisors and managers, IT specialists, and mechanics. Herkimer Community College has added curriculum programs for students pursuing science, technology, engineering, and math (STEM) careers, including opportunities locally in nanotechnology. The new curriculum includes laboratory technology to help students develop basic math and technical-writing skills along with the knowledge and understanding of laboratory protocols. The goal is not only to make the STEM students technically proficient, but also to make them think critically. It’s been a long production cycle to bring Nano Utica to the stage. It’s time to raise the curtain. 

RANSOMWARE: What are organizations or private citizens

to do in response?

clude a web portal, templates with various social-engineering attacks, botnets to launch attacks, and encryption features, along with a “PayPal like” financial infrastructure to process paid ransoms. • Movement will be swift away from using mainly spam to web drive-by attacks. Simply click the link, visit the malware resident site, and have it infect your machine. • Attacks will be harder to see and block as attacker funding increases, thereby the code being authored will be more professional in nature, harder to detect, and will exhibit sophisticated evasion techniques. So, given this current state of the ransomware attack landscape, what are organizations or private citizens to do in response? We recommend all the following actions: • Every device attached to your network must have anti-virus software that is not solely signature based, but must use a sophisticated artificial intelligence algorithm as well. • Encrypt your own data at-rest. This will not prevent ransomware from working, but may confuse it by not allowing file-extension recognition of your unstructured data. • Protect your users from themselves. Not everything in cyber is at it appears. Whitelist what they can use, and keep all else off-limits. Use geo-fencing. Most ransomware only comes from about five to seven countries. Limit traffic to what people need to do their jobs. We call this concept: “guardrails are better than gates”.

Get Connected

Networking  Events  Marketing

Continued from page 3

• Backup, backup, backup. Maintain three copies of your data, on two different types of media in two different locations with one of them off-site and off-line. • Have a configuration management database. This is the repository of all info about devices in your network. This will help you identify changes to baseline images that may be anomalous or maybe signs of rogue access. • Enable file extensions — this will make it easier to spot malicious files. • When a new version of OS or application software is pending release, you need to plan on how to implement it rapidly. The days of doing cycles upon PC refresh are likely over. • Trust nothing you see on your network at first glance. We call this “zerotrust” but the concept is that flows of data on your network should always be checked for consistency, prevalence, trajectory, and relevancy. Place IPS/firewalls close to where your crown jewels of data are located. • Disconnect from all network connections when you spot a rogue file or unknown process. This includes Wi-Fi and Bluetooth. Lastly, be digitally hygienic and stay vigilant. Ransomers don’t take vacations or days off.  Joe Vigorito is director of mobility & security at Annese & Associates, Inc. a technology solutions integration company with offices across upstate New York.


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DRONES: Microdrones and ANDRO are just two examples of area companies that have invested in the UAS corridor

Continued from page 12

easier to integrate large UAS into the FAA system than sUAS.”

Investing in UAS (private sector)

The increased level of interest in the commercial use of drones is recent. In 2011, venture capitalists limited their investments in drone companies to a meager $7.9 million, according to Dow Jones VentureSource. Last year, the number topped $1 billion, spurred by the issuance of Part 7 of the FAA regulations. DroneII.com reports that high-risk, early-stage venture deals by angels, seed-investors, accelerator/incubators, crowdfunding, and early venture-capital investments represent 70 percent of the UAS action. Investors are not only snapping up equity in platform manufacturers, but also in companies making critical components such as chips and cameras. In addition, money is flowing into software-development firms, data-analytics companies, and companies helping to build the integration system. A Global UAV Market research report projects that, within a decade, the military, commercial, and civil unmanned-aerial vehicle market worldwide will generate nearly $115 billion in annual sales. Hickey & Associates, LLC, in a report published by the Association for Unmanned Vehicle Systems International, estimates that this sector will create more than 70,000 jobs by 2018 and more than 100,000 by 2025. “I see a $90 billion [U.S.] market by 2025 and a global market [that year] of a $1 trillion,” Brinker forecasts. Microdrones and ANDRO Computational Services are two local companies which have made major investments in the local drone industry. Microdrones, a global company, became the first enterprise to join the Griffiss site. The president resides in New York City, marketing is directed from Rome, New York, new-packaged solution development is centered in Canada, and aircraft design and development is in Germany. Designated a START-UP NY company, Microdrones has committed $1 million over three years to its Rome operation to develop, manufacture, and sell a variety of drone platforms, software, and data analytics. Mike Dziok, the company’s marketing director, expressed pleasure at seeing “… the FAA issue Part 107 and NUAIR making substantial progress in developing and testing not only collisionavoidance systems but also in developing policy Dziok to deal with the public’s concerns about safety, noise, and privacy … Microdrones is well positioned to sell our solutions globally. We are especially excited about our partnership with the Trimble, Inc. (NASDAQ: TRMB) network of geospatial-equipment dealers and professionals. Our sales teams are busy demonstrating and helping to sell mapping solutions to surveyors worldwide.” Andy Drozd, founder and president of ANDRO Computational Solutions, LLC, headquartered in Rome, has also committed to invest $1 million to expand the services offered by his computer-software, research-and-development company. In order to capitalize on the area’s rapid growth of nanotechnology, UAS, and cybersecurity, Drozd has already expanded his labora-

tory and office space on the Beeches Professional Campus and is in the process of hiring an additional five to 10 employees. “In the fourth quarter of 2016, ANDRO created Drozd a wholly owned subsidiary called the Spectrum Fusion Division,” notes Drozd. “The plan is to spin off this division into a woman-owned company sometime in the second quarter of 2017 to provide Spectrum Management as a Service (SMaaS) offerings. While ANDRO is focused on defense, Spectrum Fusion is focused on the commercial sector. Spectrum is anticipated to be a partner in the development of the corridor, and, with ANDRO’s experience in the RF-spectrum and secure-communications in general, the new company is well-positioned to provide products and services for [UAS] pre-test spectrum testing and certification to ensure that radio frequencies don’t interfere with each other.” ANDRO has also carved out a niche in the medical-biosensor field. “Last November, we opened an office in Syracuse at the Biotech Accelerator,” adds Drozd, “where we are beginning to work with the folks at SUNY and Upstate Medical on research in areas such as brain-computer interfaces and imaging technologies. The new office creates a bridge between the Mohawk Valley and Syracuse.” ANDROID currently employs 51 people. Drozd projects that by 2019, when the company celebrates its 25th anniversary, its employee count will be more than 100. Microdrones and ANDRO are just two examples of area companies that have invested in the UAS corridor. Gryphon Sensors estimates that it has leveraged its receipts for work done on phase-I by investing $3 of its own money for every $1 received. Other NUAIR partners such as Saab Sensis, Raytheon, and Lockheed Martin are also investing in the effort to build out the corridor.

Investing in UAS (public sector)

For-profit businesses are not alone in making UAS investments. The public sector has also made a major commitment to its development. Mohawk Valley Community College (MVCC) has recently added a foursemester series of sequential, technical courses to its curriculum encompassing the mechanical and electrical systems and operations found in sUAS. The college also offers an introductory, non-credit training course that explains the requirements of a commercial-drone operator and the steps to a potential career. In the fall of 2016, MVCC opened a new UAS simulation and training lab on its Utica campus, where students can hone their operation and flight skills as part of the Associate of Applied Science degree program. New York State has been a major financial supporter of the UAS innovation corridor. The state has agreed to commit $250 million as part of the area’s URI to nurture the industry and to attract new businesses. “We believe … [this region] can be the capital of unmanned flight,” Gov. Cuomo told the attendees at the UTM conference in Syracuse last November. He went on SEE DRONES, PAGE 20

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Business Journal

News Network NEXTGEN II MOHAWK VALLEY BUSINESS JOURNAL CENTRAL NEW YORK BUSINESS JOURNAL

NEWS EDITOR-IN-CHIEF Adam Rombel arombel@cnybj.com ASSOCIATE EDITOR Maria J. Carbonaro mcarbonaro@cnybj.com STAFF WRITERS Eric Reinhardt ereinhardt@cnybj.com Norman Poltenson npoltenson@cnybj.com CREATIVE DIRECTOR Erin Zehr ewebb@cnybj.com

ECONOMY: The Mohawk Valley is also focusing on the need to improve its transportation system Continued from page 1

sensing-technology, but it also has tremendous capabilities in autonomous decisionmaking, generally called data-to-decisions,” asserts Robert (Rob) Simpson, president and CEO of CenterState CEO and a partner organization in developing the corridor. “The work we are doing developing the corridor is positioning the region to capitalize on a much larger market — IoT. This crossplatform concept covers everything from smart cities, smart buildings, energy, and the [electrical] grid to connected vehicles, UAS, and even smart health care. IoT creates a perfect storm: broadband Internet is widely available, more devices with Wi-Fi capabilities and embedded sensors come on the market every day, technology costs are declining, and smart-phone sales are skyrocketing. In a few years, we’ll see between 25 billion and 50 billion devices connected, and by 2025 the market could hit $10 trillion. Our goal is to establish this

innovation corridor and make the region a global leader that dominates the market.”

Preparing for the new economy

The confluence of three major, high-tech sectors in the region begs the question: Is the community prepared to capitalize on the effort? The answer, according to Oneida County Executive Anthony Picente, Jr. is affirmative. In 2013, he reached out to the community with a plan to ensure that the growth of the new economy would be sustained. He called his plan a bridge to the future and shared his blueprint to create a world-class workforce, enhanced housing, and accessible job opportunities for all residents. Picente called the plan Vision 2020 and created three committees to develop strategies to effect the needed changes. The county executive also convinced the county legislature to commit $5 million over five years to support the incentives, infrastruc-

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ture improvements, education, and qualityof-life issues outlined in his plan. The redevelopment of urban centers was also a concern in the Vision 2020 plan. Aware that millennials have a different lifestyle than previous demographic cohorts, downtown redevelopment was a major issue to attract and retain a high-tech workforce. In Utica, the downtown is being revitalized with development at Harbor Point, Bagg’s Square, the former ConMed building, the Landmarc Building, and the decision to build a new hospital complex across from the auditorium, to name a few. Rome is also benefitting from downtown redevelopment with remedial efforts at the Rome Cable Complex 4, American Alloy Steel, and 1333 East Dominick St., which will undergo a “gray-to-green” transformation. In addition, Rome is planning upgrades to West Dominick Street, improvements to Bellamy Harbor, and repurposing vacant buildings, including the 100-care Woodhaven site. The city recently celebrated the completion of the Mohawk Valley Community College (MVCC) campus expansion, a $30 million project, and a developer is exploring converting the former DeWitt Clinton Elementary School into housing. Complementing this activity is the continued development and growth at the Griffiss Business and Technology Park, currently comprised of 79 businesses and close to 6,000 employees. “This community sees a number of positive developments,” says William Guglielmo, president of the Rome Area Chamber of Commerce. “The Chamber continues to be in the forefront, promoting all the attributes of living and doing business in Rome and working in cooperation with the business community, elected officials, and economic development/community promotion partners.” The Mohawk Valley is also focusing on the need to improve its transportation system and on actions to take in promoting the area’s entrepreneurs and STEM (science, technology, engineering, and mathematics) employees. The MVCC thINCubator and Andy Drozd’s Project Fibonacci are just two examples of encouraging entrepreneurs and promoting STEM. For decades, the Mohawk Valley economy has been knocked down. Now it’s getting back up with the confidence and determination to build the bridge to the new economy. Despite some recent bumps in launching the nano-manufacturing center and coaxing the first occupant of Quad C, efforts are on track to convert the region’s vision into reality. Success is dependent on a team effort of the public, private, and academic sectors joining with the populace in a single-mindedness of purpose and the confidence to win. 

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I 19

DANFOSS: The U.S. demand for power modules is “mainly driven” through Japanese and German imports State incentive

New York State plans to spend $100 million to finish work at Quad C, which will include construction, tools, and equipment. Danfoss will lease both the facility and tools from New York in return for the creation of at least 300 new jobs in Utica for the next 15 years. The state expects Danfoss to be operational in the Mohawk Valley and serving its customers by early 2018. “With Danfoss’ commitment to establishing state-of-the-art manufacturing operations in Utica, we are cementing New York’s role as a leader in semiconductor research and development, while creat-

ing hundreds of good-paying jobs in the region,” Cuomo contended in the release. “This expansion is proof positive that we are attracting 21st century companies from across the globe to Utica, and leveraging next generation technology to foster the continued growth and success of Mohawk Valley communities for years to come.”

Expanded U.S. presence

This facility will allow Danfoss Silicon Power to “better serve” its U.S. customer base and will bring “cost efficiency and quality manufacturing to the fast growing” silicon carbide industry, Cuomo stipulated. Danfoss Silicon Power is an indepen-

dent, custom power-module manufacturer, which serves the automotive, renewable energy, and industrial sectors. It chose New York for the state’s “strong technology ecosystem” and “skilled” workforce. The Quad-C facility expands the company’s presence in the U.S. and “complements” the output of its Flensburg, Germany operations. The U.S. demand for power modules is “mainly driven” through Japanese and German imports, Claus Petersen, VP & GM of Danfoss Silicon Power, said in Cuomo’s release. “With this investment Danfoss will offer the U.S. market a strong local partner, capable of providing best in class in pack-

GeniusNY

Smyth and Marra attended a show focused on drone technology in Las Vegan “a few years ago” and heard about the Genius NY program. “There’s some interesting money here. There may be some interesting opportunities for us to work with other companies. Let’s make an application and that’s what we did,” Smyth recalled. The company plans to use its $250,000 award to address five “priorities.” They include “accelerating” the development of EZ3D’s applications by finding “the best” developers to finish the applica-

tions to give customers “exactly what they want.” “We’ve got pilot customers now, including some large companies that are being very specific about what they want our product to do for them,” says Smyth. EZ3D also has to spend money on sales and marketing for its applications. Its third investment will focus on patents for its work. The company also plans to participate in trade shows, which Smyth refers to as “the real cost of sales and marketing.” “Then the last piece is relocating and bringing the other resources together to execute as a small company,” he adds.

Customers

EZ3D is currently servicing a “handful of customers” as it continues conducting alpha testing on its platform to make sure it work properly. “We’re getting ready for mid-year release of our product to a wider variety of customers around the traditional trade shows that happen in the industry,” he adds. EZ3D has also had discussions with the City of Syracuse about using its software to address several abandoned properties in the city. Smyth says he’s had discussions with the Greater Syracuse Land Bank, which owns several properties that it’s “trying resell but many of them are collapsing.” With the EZ3D platform, Smyth contends officials can “very quickly” gather in-

Continued from page 6

formation on the properties, get pictures, and figure out if a given property’s roof has any damage. The roof area, says Smyth, is “typically” where problems start with a hole around a chimney, which leads to any leakage. His discussions with city officials included representatives from the fire and code-enforcement departments. Those discussions are still in the “very early stages.” “We’re still trying to figure out exactly what will be the right use cases and to try the service out,” says Smyth.

Future plans

When asked how long EZ3D would have its headquarters at the Tech Garden, Smyth said that he is “evaluating that,” and examining available spaces and costs. “Right now, we’re on a trajectory to build our business here in Syracuse. We made a commitment to Syracuse,” he says. When asked about employee hiring, Smyth says EZ3D would like to have its sales and marketing employees in Syracuse, along with administrative and support personnel. “There’s potential to put production people here over time … I won’t make promises I can’t deliver on,” he notes.

Company origin

Continued from page 5

aging technology and high volume, high quality manufacturing,” said Petersen. Danfoss Silicon Power will occupy the entire Quad-C facility in Marcy. It includes two clean rooms, and lab and office space. This project “supports and advances” the New York Power Electronics Manufacturing Consortium, Cuomo’s office said. The consortium is a public-private partnership in “developing the next generation of semiconductor materials and packaging to enable the creation of smaller, faster and more efficient mobile devices,” per the release. Parent company Danfoss employs more than 25,000 worldwide. 

EZ3D: The company plans to use its $250,000 award to address five “priorities” perts who have been delivering” advanced technology for aerial imagery, inspection and measurement for over a decade, according to its website. The firm contends it has created the “fastest and most accurate way” to measure, inspect, and document a roof. A customer can now “quickly” inspect and measure any roof or building using a consumer drone, which is “faster, safer and more accurate” than traditional methods, its website says. The principals originally thought that they could customize drones that are in the marketplace. “But the drone technology moves so quickly and there’s such good products out there, we just turned completely to writing the software programs for the most popular drones out there,” says Smyth.

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Smyth spent “decades” in the information-technology industry with New

York City–based LexisNexis, which he described as “the first search engine ever” in the world. It started in New York City and eventually moved to Miamisburg, Ohio. “I worked with that company … over three decades in a variety of positions, ultimately all over the world with them,” says Smyth. He handled sales, marketing, and product development at the firm. Smyth eventually decided to pursue consulting work and discovered that aerial imagery “was a really interesting space” where clients were deriving information for databases. He later worked for two years as chief marketing officer of Henrietta, New York– based Pictometry International, an aerialmeasurement company. In that role, Smyth worked with developers at Microsoft Bing maps, which is how he became familiar EZ3D founder Marty, who was a developer with Microsoft at the time. The two came together when they worked in the Ottawa, Ontario location of another company, Atlanta, Georgia–based GeoDigital, a firm that focused on collecting data for utility companies. “When that company chose to focus solely on the utility industry, we decided to leave [the firm], says Smyth. They wanted to specialize in what they believed are drone technologies that focus on data that people are collecting with planes and helicopters, he adds. 

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20 I

NEXTGEN II I CENTRAL NEW YORK BUSINESS JOURNAL MAY 15, 2017 / MOHAWK VALLEY BUSINESS JOURNAL MAY 22, 2017

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DRONES: In 2016, the small community of U.S. drone hobbyists transformed into a growing commercial marketplace

to say that the corridor could become “… the most sophisticated testing area in the country … [for what could become] “… a $1 trillion industry.” Empire State Development has also committed $5 million for a UAS competition modeled on Buffalo’s successful 43 North program. The business-accelerator program —dubbed Genius NY — is run by CenterState CEO at the Tech Garden in downtown Syracuse. “We chose six companies from an application pool of 250,” says Jonathan Parry, the director of Genius NY. “This is the largest business-accelerator competition for the Parry UAS industry in the world. Three of the finalists are from the area with the other three traveling from California, Virginia, and Arizona. The entrepreneurs who … [propel] these companies are ‘rock stars,’ selected by a group of judges. Each company is conducting cutting-edge research in creating autonomous-unmanned systems, designing

improved UAS-vehicle configurations, and developing UAS training. The focus on autonomous systems can be applied not just to aerial-operations but also to marine and ground-operations.” Parry, who joined Genius NY last October, explains that the prizes were awarded in March, and the money is distributed to the companies over a nine-month period for operational and development costs. AutoModality, a company that develops technology to allow drones to inspect building, bridges, power lines and other infrastructure up-close, won the $1 million grand prize. “Using our automated drones, AutoModality can get inches from remote, inaccessible assets and place our cameras and sensors at just the right location to get the best results,” the firm says on its website. The company plans to use the funding to hire employees and set up operations in Central New York (See story, page 9). “In addition to the financial investment,” Parry says. “Genius NY provides a variety of local resources to help each company in the areas of intellectual property, mar-

keting, business planning, placement, networking, and venture capital. There is even follow-on funding at the end of the program to induce companies to stay in the area and grow. There has been great participation by the community to serve as mentors to these companies … Genius NY has already begun to reach out to investors to make them aware of the program and to attract them to our demo day at the end of the program when each company pitches its concept and business model to investors. There are a lot of dollars going into this sector, and the program is attracting investor interest … While the six teams directly benefit the UAS industry, their work on autonomous decision-making, connectivity, and crossconnected platforms positions the area to be at the forefront of the IoT market.” NASA has also contracted with NUAIR to invest about $5 million a year for five years to develop a UTM system.

What’s next

In 2016, the small community of U.S. drone hobbyists transformed into a growing commercial marketplace. Both startup

and established companies are rushing not just to build the drones but also to improve safety, navigation, and the ability to carry a variety of equipment in small packages. The utility of drones seems to be unlimited. They detect gas leaks from oil pipelines, conduct environmental research, and help farmers spray pesticide and collect data in the field. In the Sacramento–San Joaquin Delta, for example, drones provide data so detailed that the farmer can count individual melons and know precisely how big his harvest will be. Drones are now critical in disaster management, insurance, real estate, surveying, law enforcement, weather monitoring, news reporting, film-making, power-line surveys, bridge inspections, and oil-and-gas exploration, just to name some markets that are adopting unmanned-aerial vehicles. “UAS is a huge, potential market,” concludes Brinker, “and this region is positioned to lead the industry. We’re making the right investments in the U-SAFE program to provide testing, certification, forensics, and data collection on drone performance. When it comes to UAS, the n future is here.”

CYBERSECURITY: The total annual cost of cyber crime is estimated to be in excess of $400 billion experience, the company grew rapidly providing R&D solutions and, in some cases, placing staff at a number of DoD installations. AIS has specialized in cyber research and development, reverse engineering, software development, cyber forensics, and more. “Our mission is to define and develop generationafter-next concepts and capabilities to support and defend cyberspace,” explains Steven J. Flint, the company COO. “Our staff Flint includes a large number of highly credentialed professionals, many with advanced degrees or professional certification in disciplines as diverse as computer science, computer engineering, software engineering, electrical engineering, and operations research … The growing awareness of cyber threats in defense and in the commercial marketplace has accelerated our recent growth. Just last year, we hired an additional 49 employees and 33 seasonal hires, most of whom were college interns. AIS also acquired two companies — Ross Technologies (Columbia, Maryland) and GreyCastle Security (Troy, New York) — which brings our current employment level to 255. (The employee count in August 2014 was 121, based on an interview with this reporter.) In the first two months of 2017, AIS hired 12 more employees to staff not only our Rome headquarters but also our other seven offices nationwide … The Rome office has now expanded to fill a 46,000-square-foot building at the Griffiss Business and Technology Park, [up from 31,000 square feet in 2014].” Educational sector “Utica College positioned itself early to be a national player in the digital revolution,” says James Norrie, former dean of the School of Business and Justice Studies. “We live in an age of [proliferating] digital services that open us up to the entire world.

The digital revolution gives societies a tool that facilitates information and acts as a catalyst to make connections. [Like fire and atomic power] … it has the capacity to do good things, [but] it also has a … [dark] side. The Internet provides unprecedented scalability of action where even a single individual can attack millions of computers. … [Unfortunately], not all users are trustworthy.” Utica College recognized the cyber threat in 1988 when it established the Economic Crime Institute. (ECI has since morphed into the Economic Crime & Cybersecurity Institute.) The original academic program in cybercrime has grown exponentially. In 2016 alone, the college received approval for six, new, online certification programs in advanced-computer forensics, cyber operations, cybercrime and fraud investigation, cybersecurity technologies, cyber-network defense, and advanced-cyber policy. The new programs complement a suite of online and campus-based undergraduate- and graduate-level programs leading to bachelor’s and master’s degrees. The college was recognized by the National Security Agency (NSA) and the Department of Homeland Security (DHS) as a National Center of Academic Excellence in Cyber Defense Education and by the Defense Cyber Crime Center as a National Center of Digital Forensics Academic Excellence. The dualaccreditation recognized Utica College as the first in the nation to receive the distinction. “It’s the gold standard for institutions of higher education,” Norrie asserted. Utica College also hosts the Northeast Cybersecurity Forensics Center (NCFC). “We are a partnership of academic, government, and private-sector resources,” stresses Professor Anthony Martino, the center’s director. “NCFC provides digitalMartino forensic services as well as a state-of-the-art, computer-crime lab. The

forensics lab has been a resource for Oneida County, the FBI, Homeland Security, the Secret Service, and other state and local agencies. NCFC has become a trusted source, especially to the financial-services industry, providing vulnerability testing, risk assessment, training, data recovery, and expert-witness testimony. Our training, which is both in a classroom setting and online, focuses on human vulnerabilities. “In 2013, I and two other professors formed Anjolen, Inc., a company focused on providing cyber services to the corporate world. Anjolen currently employs nine current and former students; in that sense, we operate like a small-business incubator. While most cyber companies approach the subject defensively, our approach to cybersecurity is to be proactive. The goal is to prevent disaster by deploying the most cost-effective tools and human resources. For small companies, Anjolen can also act as a company’s virtual CISO. Most of our marketing efforts have been to potential clients in the financial-services and health-care sectors, two markets that attract a lot of hackers and which are highly regulated, [raising the cost of breach-remediation].” SUNY Polytechnic Institute The high demand in the security field for analysts, researchers, engineers, and risk specialists is also being met by SUNY Polytechnic Institute through its Network and Computer Security program. Graduates receive a bachelor’s degree which confirms their understanding of the technologies used to provide and secure modern network and computing infrastructures. Mohawk Valley Community College Mohawk Valley Community College (MVCC) has also recognized the growing gap in providing qualified cybersecurity experts. MVCC’s Business, Cybersecurity, and Computer Sciences Department has developed a number of associate degree and certification programs to provide cyber pro-

Continued from page 17

Continued from page 15

fessionals to fill a growing employment gap. The program also prepares those students who want to transfer to upper-division programs in order to earn a bachelor’s degree. In August 2016, MVCC was designated a National Center for Academic Excellence in Cyber Defense Two-Year Education by NSA and by the DHS At the time of the designation, MVCC was only one of 40 community colleges nationwide to have the distinction. The popularity of the program is confirmed by the growth in the number of students registered, rising from 26 in 2013 to 130 in 2016, many of whom are foreign nationals.

Mohawk Valley: Global cyber-hub

The total annual cost of cyber crime is estimated to be in excess of $400 billion, a figure that surpasses the value of global drug-trafficking. Worldwide spending on cybersecurity products and services currently exceeds $100 billion. On March 1, a Cybersecurity Ventures (CV) report projected that spending would eclipse $1 trillion in the five-year period 2017-2021, fueled by both large, recognized brands and by startups. Steve Morgan, editor-in-chief of CV, noted that there are currently 1 million job openings in the field, which will grow to 1.5 million over the next two years. The proliferation of the Internet of Things, which connects billions of digital devices and attracts concomitant cyber attacks, is driving a rapid change in technology to develop countermeasures. Cyber defense has never been more critical to the military and commercial security of the nation. With the array of assets deployed in the Mohawk Valley, the region today is a global hub on the cuttingedge of cyber research and development. At the height of the Roman Empire’s power when all roads radiated out from the capital city, it was common to say that all roads lead to Rome. The idea was that all activities come to the center of things. In this age of cybersecurity threats, all roads indeed lead to Rome in the heart of the Empire State. n


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