Cybersecurity threats have risen with the continuous growth of digital age and sometimes they are considered as the modern warfare that different form of industries are experiencing (Cesar, 2015). In 2013, Forbes projected that expenditures on IT security would increase tenfold over a period of ten years (Stiennon, 2013). The US government current spending on IT security is over $37 billion dollars. Despite the significant growth of Cybersecurity industry, NAICS a standard system developed to define and classify business establishments based on similarity of processes does not have definitive codes for the cyber security industry (Cesar, 2015). NAICS is a hierarchical classification system composed of two and six digits which are assigned to business based on their core or primary activities (NAICS, 2017). NAICS standard codes are important due to reasons such as, a firm can use them to identify competitors and customers using the industry codes and people use them when seeking jobs in government agencies (Fields, 2015).


            Most of our direct competitors are categorized under NAICs codes 44- retail trade, 51- information industry, 334-computer and electronic product manufacturing and 54- professional, scientific and technical services industry.  The company’s product features match with the four NAICS classification codes. We manufacture network sensors whose characteristics fall under NAICS prefix 334 of computer and electronic manufacturing. Under this prefix our competitors uses sub categories 334112 (computer storage device manufacturing) and 334118 (computer terminal and peripheral manufacturing).The prefix only describes the capabilities of combined hardware to detect, collect and store data but does not accurately define Cybersecurity and the services it can offer. Our company also generate big data analytics, which aligns well with NAICS code 51 (information technology). NAICS prefix 51 has partial features of Cybersecurity which do not specifically define Cybersecurity. Our company’s purpose is to integrate the hardware (network sensors) and software (big data analytics) to provide advanced Cybersecurity threat detection. This is a service that aligns with the NAICS code 54 of professional, scientific, and technical service industry. Some of our competitors use subcategories such as computer system design services whose code is 541512.  Our products and services are sold to our customers whose features align with NAICS prefix 44 of electronic stores. Electronic stores are major outlets for most of our competitors (443112).


Identifying and understanding the best NACS classification codes to use for our Cybersecurity company is central to determining the relationships the company will form with other business partners, competitors and government agencies (Fields, 2015). As such I recommend that the company use the NAICS prefix 54 classification of the professional, scientific and technical industry, in particular the NAICS code 541690 that classifies security consulting services. It is the most appropriate code because it does not limit its classification only on retail trade, or software programming or the manufacture of hardware. Additionally, it conveys to our stakeholders that we do not only manufacture and sell products but also services.


            Indeed Cybersecurity is an industry despite the fact that it doesn’t have a definite prefix to identify it in the NAICS codes. NAICS standard codes are key in identifying the company’s competitors and customers and provide opportunities for competitive bidding for government contracts. Cybersecurity industry offers of a wide variety of products and services to counter Cybersecurity threats. As such it has features that align well with existing codes such as prefixes 334, 44, 51 and 54. Our company integrates hardware and software to provide advance Cybersecurity threat detection. Hence, it will be accurately represented by security consulting services category (NAICS 541690).


Cesar, M.-L. (2015). Cybersecurity Becoming a Major Industry for Investors. Retrieved February 8, 2017, from;for;investors-cm503813

Fields,J. (2015). It’s Time the industry focuses on something constructive: Reg SCI & Cybersecurity. Retrieved from market media: Http//

NAICS Association (2015). NAICS Search Results. Retrieved February 8, 2017, from http://www. -search-results/

NAICS Association (FAQs). (2017 February, 8).  Frequently Asked Questions. February 8, 2017, from http://www. frequently -asked questions/

NAICS (2017). NAICS update process fact sheets. Retrieved on February 8, 2017, from;

Stiennon, R. (2013). IT Security Industry To Expand Tenfold. Retrieved February 8, 2017, from


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