C4iSR: Joint & Common Equipment

CAE sees cyber security as simulation, training opportunity

06 November 2017
CAE's CC-130J maintenance simulators located at Canadian Forces Base Trenton, Ontario. Source: CAE

Key Points

  • A CAE executive sees governments and organisations increasing investment in cyber training
  • The company is relatively satisfied with its current established markets

CAE Inc sees simulation and training opportunity in cyber security, according to an executive.

Joe Armstrong, vice-president of defence and security for CAE Canada, told Jane’s on 1 November that the company has noticed an increase in investment by governments and other big organisations and institutions on cyber training and preparedness for cyber threats. Armstrong said CAE sees the prevalence and increase of cyber security threats worldwide as a major problem across the sector for governments, banking institutions, and critical infrastructures.

“You’ll start to see, I think, an increase in opportunity there for us,” Armstrong told Jane’s at the Royal Canadian Air Force’s (RCAF) Air Mobility Training Centre (AMTC) 426 Squadron in Trenton, Ontario.

CAE is traditionally a simulation and training provider for defence, civil aviation, and healthcare. Armstrong told reporters that simulation and training products for defence and aviation are attractive because they cost roughly 10% of a flying hour. Armstrong said CAE is focusing on defence, civil aviation, and healthcare as opposed to expanding to new markets because the amount a potential customer is willing to pay for training is often a major limiting factor.

Armstrong said many times the capital investment requirement by potential companies does not necessarily match the same price points and market position that CAE would want to maintain for business in those markets. He said CAE investing in a new market is about analysing the lifecycle impact of being able to provide advance simulation and training services to an organisation and being able to translate that into a return on investment.

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