When companies think of building new data security centers, the city of Denton might not be on top of their list. But that could soon change.
A recent report lists Denton among the 10 best data security cities in the U.S. Cities were chosen based on their "robust bandwidth, telecommunications, power infrastructures, and favorable operating cost structures and secure location insulated from natural disasters," the study says.
The study, "Banking & Financial Services: A Comparative Cost Analysis for Information Assurance Operations," by New Jersey-based The Boyd Co., compares the nation's largest regional centers and selected the best cities that met certain criteria for housing highly secure, low-risk and cost-effective data security operations for the banking and financial services industry.
"This will be the big generator of high-paying jobs in our economy - data security jobs," John Boyd, CEO of the company, said last week.
Boyd said there is a focus on data management and security because of federal mandates that have required financial institutions to respond to escalating cyber attacks.
"What it all comes down to is peace of mind, and what we are willing to pay for it. In my industry, data security is everything," said Blake Crenshaw of WeScanFiles.com, a consulting firm that works with medical offices, law firms and local governments and provides scanning, imaging and paperless solutions.
"The cost into infrastructure to ensure data security is nothing compared to risk of data loss or, worse, that the data has been compromised," Crenshaw said. "It is great to see that we [in Denton] are striving to protect our clients as well as anybody in the industry."
According to Boyd, legislation including "Dodd-Frank, the Patriot Act, Gramm-Leach Biley Act, the Cyber Intelligence Sharing and Protection Act and the Federal Financial Institution Examination Council Authentication Guidance all make data security a critical profit and loss center for the banking and financial services industry."
"The big banks can handle this. This will be particularly stressful on community banks," Boyd said.
The report provides analysis on annual operating costs to operate an information assurance center, from as high as $23.6 million in New York to a low of $10.3 million in Sioux Falls, S.D.
In Denton, operating a data security center would cost about $12.2 million, according to the study.
The cost includes getting the skilled labor needed for information assurance and financial services; land costs; construction costs, taxes, utilities, corporate travel and other occupancy costs. The study estimates the cost of building a 75-worker financial services center occupying 125,000 square feet of space in the city. The total operating costs do not include startups or relocation costs.
Another reason for Denton's selection, Boyd said, is because it has a National Security Agency-accredited National Center for Academic Excellence (CAE) in Information Assurance Education at the University of North Texas.
Because of its strong computer and information security program, UNT was among 10 new CAE designees in 2004. Housed in the College of Engineering's computer science department, UNT's Center for Information and Computer Security is one of 11 CAE-accredited institutions in the state, according to the NSA's Central Security Service website. Other regional institutions that have received the accreditation include Richland College, Southern Methodist University, the University of Dallas and the University of Texas at Dallas.
"It is good for Denton, and it is good for our students," Ram Dantu, a computer science and engineering professor at UNT, said about the study.
Dantu said UNT is doing a lot of research related to information assurance because it touches a lot more than the banking and financial markets.
"Information assurance is being addressed in different angles at UNT," Dantu said.
For example, computer science, criminal justice and library information are some of the courses already addressing information assurance topics, he said.
In the future, Dantu said, the school is looking to host information assurance workshops in Denton. The first workshop could take place this April, he said.
KARINA RAMÍREZ can be reached at 940-566-6878. Her e-mail address is kramirez@dentonrc.com.
TOP 10 CITIES FOR DATA SECURITY
1. Sioux Falls, S.D.
2. Tulsa, Okla.
3. Ames, Iowa
4. Council Bluffs, Iowa
5. Bloomington, Ind.
6. Albuquerque, N.M.
7. San Antonio
8. Omaha, Neb.
9. Colorado Springs, Colo.
10. Denton
Source: The Boyd Co.
LEARN MORE
Center for Information and Computer Security at the University of North Texas: www.cics.unt.edu
