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The Cybersecurity 500 Top Defense Contractors

The Cybersecurity 500 Top Defense Contractors Homeland Security TodayEleven of the top defense contractors showed up on the Q2 Cybersecurity 500 list of the world’s hottest and most innovative cybersecurity companies.

The cybersecurity industry is growing from $71 billion in 2014 to more than $155 billion in 2019, according to consolidated estimates by IT research firms and analysts cited in the Cybersecurity Market Report, published quarterly by Cybersecurity Ventures.

There are many new entrants as well as mergers and acquisitions, investment and IPO activity that is constantly changing the vendor and service provider landscape. The Cybersecurity 500 creates awareness and recognition for the most innovative cybersecurity companies – ranging from the largest and most recognizable brands, to venture capital-backed start-ups and emerging players, to small firms with potentially game-changing technologies, to solution providers poised for growth around productized or vertically focused services, and federal agencies.

These are "the hottest and most innovative," and not the "biggest" (most revenue, most employees). Companies are evaluated on their security market category, problems solved, customer base, feedback, VC funding, company growth and published reviews, among other factors.

The Cybersecurity 500 does not rank companies by revenues, employees or annual growth. Our ranking criteria can be found here.

When it comes to the newest and most cutting edge cybersecurity technology, the defense contractors are not exactly at the top of the list.  But they are well represented in the context of the world’s hottest and most innovative and we’ve got 11 of them listed.  There are otherwise arguably hundreds of hot cybersecurity companies out there who don’t even make our list.

The media has reported on a number of occasions that we have a refreshing way of ranking companies.

If a company is big, it doesn’t necessarily mean they are hot.

If a company has a lot of employees, it does not mean they are profitable and entering new markets.

If a company raising a lot of capital and starts putting up sales, it does not mean they will be around long — they might burn through all their cash quickly and shut down.

To us, the typical metrics don’t cut it.

Consequently, using that criteria, the defense contractors, in the order in which they are listed on the Cybersecurity 500 list are:

#10, Lockheed Martin

#81, Leidos

#170, Raytheon

#238, Northrop Grumman

#257, HP

#269, CACI

#281, General Dynamics

#370, BAE Systems

#374, CSC

#378, Booz Allen

#391, SAIC

Boeing, which was on the Q1 list, was notably absent from the most current compilation.

The Wall Street Journal reported in early 2015 that Boeing was exiting the commercial cybersecurity business and that Symantec was acquiring staff and technology licenses from Boeing’s Narus unit.

Other media depicted the transaction as an “acquisition.” But further research indicated Symantec only hired some of the Narus staff. It appears Boeing retained ownership of the Narus intellectual property (software) and customer base.

“To be clear, Boeing has most definitely not exited the cybersecurity business,” said Andrew Lee, senior manager and division communications lead, Boeing Electronic & Information Solutions. “We continue to support a variety of defense, government and security customers with cybersecurity and data analytics products and services. It is correct that with the divestiture of Narus, we are not focusing on commercial cybersecurity for the time being.”

Hmm … Boeing has not exited the cybersecurity business, but they are not focused on it.

Defense contractor Raytheon made the biggest news in recent months. They are investing $1.57 billion to create a new cybersecurity company with private-equity firm Vista Equity Partners LLC. The new firm will combine Raytheon Co.’s cyber products unit with Websense Inc., which Raytheon agreed to acquire from Vista.

To see the entire list of 500 companies, click here.

The Cybersecurity 500, Q3 edition, will be published nextmonth. Stay tuned for an updated report on the top defense contractors by Homeland Security Today.

Steve Morgan is founder and CEO of Cybersecurity Ventures and editor-in-chief of Cybersecurity Market Report and the Cybersecurity 500 list of the world’s hottest, most innovative cybersecurity companies.

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Homeland Security Todayhttp://www.hstoday.us
The Government Technology & Services Coalition's Homeland Security Today (HSToday) is the premier news and information resource for the homeland security community, dedicated to elevating the discussions and insights that can support a safe and secure nation. A non-profit magazine and media platform, HSToday provides readers with the whole story, placing facts and comments in context to inform debate and drive realistic solutions to some of the nation’s most vexing security challenges.

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