OCTOBER 1, 2013

Open West Developer Conference

May 8, 2014

Spencer J. CoxLt. Governor

Utah will lead the nation as the best performing economy and be recognized as a premier global business destination.

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Strengthen and Grow Existing Utah Businesses, Both Urban and Rural

Increase Innovation, Entrepreneurship & Investment

Increase National andInternational Business

Prioritize Education to Develop the Workforce of the Future

Governor’s Vision for the State

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Source: Utah DWS, GEOD Analysis of Utah DWS data

Aerospace & De-fense16%Energy

10%

Life Sciences15%

Financial Services26%

Soft-ware /

IT29%

Outdoor Recreation

4%

47,320

26,499

18,61128,876

6,208

51,451Utah’s six strategic industry clusters

Total Clusters Jobs:

178,965

Utah Clusters

IT/Software Cluster Scorecard – Q1 2013

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2008 2009 2010 2011 20121,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

3,429 3,5273,679

3,8054,111

Establishment Count

UT IT

2010 2011 20120.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

5.1%5.8%

6.5%

1.2%

2.8%3.2%

Jobs Growth Rates

UT IT UT

2010 2011 2012$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000$69,685 $66,771

$76,052

$38,829 $39,662 $39,264

Average Wage

UT IT UT Total

Top 5 States by Concentration

Rank State LQ

1st Idaho 2.6

2nd Vermont 1.9

3rd Washington 1.8

4th New Hampshire 1.7

5th Virginia 1.7

9th Utah 1.4

Source: Utah DWS, BLS, Census Bureau

Key Stats

Jobs• Utah IT Jobs: 51,451• 4.0% of Utah Total Jobs

Wages• IT Avg. Wage: $76,052• 193% of Utah Avg. Wage

Locations / Businesses • Establishments: 4,111

California , 15.1%Texas, 8.2%

New York, 5.7%

Virginia, 4.8%

Florida , 4.4%

Washington, 3.9%

Massachusetts , 3.8%

Illinois , 3.5%

Georgia, 3.1%Pennsylvania, 3.0%

Utah, 1.4%Rank: 24th

All Other States, 43.1%

Market Share

COMPANY JOBS1 EBAY 1,7982 IM FLASH 1,6273 ACS COMMERCIAL SOLUTIONS 1,0494 CLEAR LINK 1,0425 ADOBE SYSTEMS 8856 OVERSTOCK.COM 8787 ACS BUSINESS PROCESS SOLUTIONS 7548 UNITED HEALTHCARE 6609 QWEST 64110 BLUEHOST 62211 MYFAMILY.COM 61512 NOVELL 58313 EMC CORPORATION 49914 FAIRCHILD SEMICONDUCTOR 44815 XACTWARE 445

Utah Top Tech Companies

Recent jobs incentives

Accolades• “Fastest Internet in the West”

–Utah Broadband Project-July 2013

• What are the best cities for IT professionals when it comes to job satisfaction? Salt Lake City is #4 on the nationwide list produced by Glassdoor Employment.

• Milken Institute State Technology and Science Index. Utah is #7 overall AND

• #1 in the Technology Concentration and Dynamism Composite index

Governor’s Roundtable

Challenges: 1) Finding talent within the state or

recruiting from out of state2) Education e.g. preparing children for

STEM related jobs.

Met with Software/IT CEO’s in Utah and discussed needs that state government could address

UofU Data Center Certification

• College of Engineering received approval for its new undergraduate certificate program in data center engineering.

• Designed to prepare students to work for companies & government organizations supporting data centers in Utah such as eBay, Oracle and Goldman Sachs.

Business Incubators

Outlier Labs

Startup Ogden

Technology Commercialization & Innovation Program

(TCIP)

TCIP 2013: $1.76 million awarded to 44 different applicants, 12 out of the 44 grants awarded were IT related

Newsletter

Find out more about Utah’s current activity in the Software/IT industry by opting in to our Utah Talks Tech newsletter

Network Connection

The image below shows the location of the larger networks that inter-connect with each other and serve individual, local ISP’s (Internet Service Providers) as clients. The local ISP’s connect to one of the larger networks and are then able to provide nationwide and worldwide connections. Salt Lake City is in a fortunate geographic location sitting astride the major east-west Internet corridor.

Silicon Slopes

Utah has a long and distinguished history in the high-tech industry. Utah’s well-developed information technology industry includes such major employers as Intel, Iomega, IM Flash, Micron, Novell, L3 Communications, eBay, Oracle and Adobe, in addition to many co-location data centers to support smaller employers efforts in data in Utah.

Fiber Crossroads of the West

Ancillary construction of the I-15 freeway just below the Adobe site that began in 1998 an instances where Utah exhibited historic plans for the future – while the freeway was being constructed a large, sophisticated piping system was laid down in anticipation for increased demand of fiber connectivity. The piping system provided a secure and efficient means to easily thread conduit under the freeway without a need for additional excavation. I-15 makes a natural path for one of the most essential fiber backbones of the western U.S. What was left was the digital crossroads of the west.

The IT “Pipeline”Technical colleges: • Bridgerland Applied Technology

College• Dixie Applied Technology College• Mountainland Applied

Technology College• Ogden-Weber Applied

Technology College• Tooele Applied Technology

College• Southwest Applied Technology

College• Uintah Basin Applied Technology

College• Davis Applied Technology College• Ameritech College

ITT Technical InstituteUtah Applied Technology

Western Governors University

Program Examples

Program Examples

Program Examples

STEM: long-range pipeline of talent

The STEM Action Center is Utah’s leader in promoting science, technology, engineering and math through best practices that ensure collaboration between industry and education to ensure Utah’s long-term economic prosperity.

STEM Action Center:

Engineering Initiative

• Strengthen our premier engineering programs

• Support technology & technician education

• Strengthen collaboration & articulation among the nine statewide institutions

To sustain Utah’s economic growth at the current rate:

Utah Data Center Strengths

Strong Infrastructure

• Utah has 20 centers in operation for regional and national companies including disaster recovery and hot back-up sites.

• The Wasatch Front sits astride a major east-west line of the Internet “backbone,” with 10 major service providers delivering high-speed services to the area.

• Isolated geographically from both east and west coasts, Utah provides higher overall security and less vulnerability to attacks and natural disasters

• Utah has an extremely low incidence of large-scale natural disasters, including tornados, hurricanes and floods. The Wasatch Front is located in Seismic Zone 3, which has a very low frequency of occurrence.

• Utah is also recognized as one of the cheapest places for power and utilities in the Country.

Key Rankings & Headlines Technology Related

• Utah ranks 1st in the nation as a lead investor in technology• Utah ranks 1st as the most tech-savvy state in the nation for its progress in digital government.• Utah ranks 5th nationwide for its state technology and science overall index. The state ranks 1st in

technology concentration and dynamism.

Utah Data Locations

Venture Capitalism and Private Equity

VC/PE firms headquartered in Utah• Sorenson Capital • UV Partners• Signal Peak• Utah Fund of Funds• Park City Angels

• $11.1 billion total deal flow

• Venture capital/private equity climbing to $831 million

• $10.1 billion in mergers and acquisitions

VC/PE firms investing in Utah• Blackstone Capital Partners• Accel Partners• Sequoia Capital• Google Ventures• Intel Capital

Global firms: • eBay• Google• Adobe• Microsoft• Intel

Total Members = 447

4,700 IT & CT Utah Companies

31,405

31,060

25,868

25,445

24,840

>130,000

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May 8, 2014

Spencer J. CoxLt. Governor