Information Technology
Spies and Spyware. Cybersecurity. Russian Hackers. The Election.
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The Information Technology sector has it all. Who doesn’t love a good spy story ? Today’s spies are nothing like the fictional James Bond or the real Kim Philby [1]. And of course, Mata Hari.
James Bond has cool stuff . His boss has a secretary with the best name ever, Miss Moneypenny.
Kim Philby was a real double agent. He was a British Intelligence officer working for the Soviet Union. He was the most successful double agent of the Cold War.
Fictional or real, neither had to deal with cyber criminals. They had to go face to face with the enemy.
Cyber spying, spreading disinformation and hacking are all a very real threat to national security. Prevention of cyber spying and other nefarious cybercrimes has become a big business in the last 20 years.
Who are the companies that build and supply software and hardware in the world of cyberspace ?
Who does the U.S.Government partner with to combat cyberespionage ?
The answer is in the Information Technology sector.
There are 73 companies in this sector. I was able to identify 30 of them, less than half. My curiosity has gotten the better of me and now I want to find out what the other 43 companies in this sector do.
Included in the Information Technology sector are the usual suspects:
- Adobe – Application Software
- Apple – Technology Hardware, Storage and Peripherals
- Cisco – Communications Equipment
- Corning – Electronic Components
- Intel – Semiconductors
- Mastercard Inc. – Data processing and outsourced services
- Microsoft – Systems Software
Although Corning stumped me. All I remembered about Corning were pre microwave glass dishes used for casseroles. Until Corning produced Pyrex. A household word for bakers and people like me who own several glass measuring cups. “Put it in a Pyrex dish”, common instruction.
Corning still produces glass, the glass that is on the front of your mobile phone [2]. As interesting as that is , it still didn’t answer my question about why Corning is classified as Information Technology.
A deeper dive into the Annual Report gave me the answer:
“This segment is classified into two main product groupings – carrier network and enterprise network. The carrier network group consists primarily of products and solutions for optical-based communications infrastructure for services such as video, data, and voice communications. The enterprise network group consists primarily of optical-based communication networks sold to businesses, governments, and individuals for their own use.”
Glancing through an annual report, if well written, provides a lot of information about what a company does. It is the first place I go to when I want to learn more.
Two of the companies I had never heard of (but that doesn’t mean anything) are:
Fortinet :
According to their corporate brochure, Fortinet is the Number One Cybersecurity firm in the world. I like their website because they have a glossary, and I must look up almost every word. Cybersecurity has its own language and jargon. I am learning as I go. I want to understand what makes the Information Technology sector tick.
Leidos : First, the name. Believe it when I tell you it comes from kaLEIDOScope.
Leidos works extensively with the United States Department of Defense (4th largest DoD contractor FY2012), the United States Department of Homeland Security, and the United States Intelligence Community, including the NSA, as well as other U.S. government civil agencies and selected commercial markets. [3]
An Information Technology company that contracts with Homeland Security, will work with the Cybersecurity and Infrastructure Security Agency (CISA).
The CISA is a new agency , formed in 2018. This is a brief description of want they do.
“As information technology becomes increasingly integrated with physical infrastructure operations, there is increased risk for wide scale or high-consequence events that could cause harm or disrupt services upon which our economy and the daily lives of millions of Americans depend. In light of the risk and potential consequences of cyber events, strengthening the security and resilience of cyberspace has become an important homeland security mission.”
With the election now a few days away, CISA has created numerous Public Service Announcements like the one below:
“Public Service Announcement : Foreign Actors and Cybercriminals Likely to Spread Disinformation Regarding 2020 Election Results
When we talk about diversification, one of the first investment recommendations is to choose stocks from different sectors of the market.
Before I started writing this article, I knew a lot less about cybersecurity than I do now.
This is the fun part of investing, learning something new.
An easy way to start your deep dive is to sort the companies in the S&P 500 by sector. Keep this link handy and choose a company you know nothing about.
[1] Great read on Kim Philby: “A Spy Among Friends” Kim Philby and the Great Betrayal by Ben Macintyre. Crown Publishing Copyright 2014
[2] Corning is one of the main suppliers to Apple Inc. since working with Steve Jobs in 2007 to develop the iPhone;[5] Corning develops and manufactures Gorilla Glass, which is used by many smartphone makers. It is one of the world’s biggest glassmakers.[6] Corning won the National Medal of Technology and Innovation four times for its product and process innovations.[7][8][9][10]
This segment is classified into two main product groupings – carrier network and enterprise network. The carrier network group consists primarily of products and solutions for optical-based communications infrastructure for services such as video, data, and voice communications. The enterprise network group consists primarily of optical-based communication networks sold to businesses, governments, and individuals for their own use.
[3] Leidos, formerly known as Science Applications International Corporation (SAIC),[6] is an American Defense, Aviation, Information Technology (Lockheed Martin IS&GS), and Biomedical Research company headquartered in Reston, Virginia, that provides scientific, engineering, systems integration, and technical services. Leidos merged with Lockheed Martin’s IT sector in August 2016 for Information Systems & Global Solutions business to create the defense industry’s largest IT services provider. The Leidos–Lockheed Martin merger is one of the biggest transactions thus far in the consolidation of a defense sector. Leidos works extensively with the United States Department of Defense (4th largest DoD contractor FY2012), the United States Department of Homeland Security, and the United States Intelligence Community, including the NSA, as well as other U.S. government civil agencies and selected commercial markets.
This website is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by The Modest Economist LLC.
