A Houston founder explains why you should shift the way you think about cybersecurity from a cost to an investment in your business. Photo via Getty Images

For companies big or small, scaling your revenue securely is about building people, processes, and technology to help you deliver your value to market in the most efficient way possible. But shifting cybersecurity as a cost to an investment takes a shift in thinking.

Here are three tips to make cyber a business decision for your company.

Don’t fail at digital transformation. Whether you’re considering a digital “initiative” to stay ahead of competitors, reduce operational expenditure when possible, or simply drive efficiency to customer value delivery, transforming how you’re doing business should rest upon a foundation of security across your existing people, process, or technology. An effective cybersecurity program should drive confidence to your team to expand your tooling, processes, or delivery mechanisms with confidence. The alternate reality is you shift a working process to incorporate new technology, and something fails or breaks, causing frustration of your team and fewer dollars in the door. Here are a few tips that will help you make sound business investments in technology:

  1. New technology or system can introduce new cyber risks to your company. As a result, it is good practice to balance the value gained with the risks absorbed. Establishing a “new product” risk vs reward process will reduce ad hoc purchases and introduce more sound thinking to your team’s decisions.
  2. New technology purchases will come with vendor onboarding but beware of the challenges you face when those implementation or training hours run out. Ask for additional support hours as part of your purchase so that you’re always able to call a help desk for real support.

Secure design reduces long-term costs. Regardless of your business type, if some type of cyber-attack could affect your business outcome(s) — be it your product, the loss of sensitive customer data, theft of intellectual property, or disruption to service delivery — consider investments in your cyber program an investment towards the cost of future business operations.

For instance, manufacturers across virtually every sector continually balance “secure design” with efficiency/cost as they compete in the market. Their challenge: estimating future recalls and product “updates” to be paid for by future operational expenditure. The same can be applied to unforeseen downtime of a critical inventory, payment capture, or website system. In both cases, here are two tips to shift cyber from a “security cost” to a “business” mindset:

  1. Work with your security vendors to develop a long-term strategy rather than quoting an “install and leave” project. Security vendors are businesses too. They will respond positively if you tell them you will offer longevity in return for payment over time. 
  2. Amortize your costs this year into next year's costs of goods. If you can negotiate monthly or quarterly payments with your security vendors, adding 30-60 days of net pay dates, you’re already starting to shift security improvements realized tomorrow to costs you pay next quarter.

Your customers want you to have a great cyber program. Especially in regulated spaces like healthcare, defense, and other critical infrastructure sectors, there is a high chance your company’s cyber program must meet minimal cyber guidelines. Investing in the training, processes, and technology required to achieve some element of “compliance” is a must-have investment for doing business with big companies.

A mistake small companies make is allocating the minimal resources “reach the bar” without thinking about the risks. Employee turnover, scaling your business in new regions, and increasing purchase order sizes all carry a potential “new bar” you must reach on your cyber maturity. Building a cyber program initiative may help you increase sales. Imagine you say this in your next prospect meeting as you aim to win that big contract, “Additionally, we reviewed your cybersecurity supplier requirements online and are pleased to say we have certified documentation showcasing an evolving, continually improving cyber program that exceeds your requirements. We feel that adds to our differentiation.”

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Ted Gutierrez is the CEO and co-founder of SecurityGate, a SaaS platform for OT cyber improvement.

Three Houston startup founders took the stage to talk product/market fit, customer acquisition, funding, and the rest of the startup journey at a panel at SXSW. Photo courtesy of the GHP

Houston founders demystify startup journey on SXSW panel

Houston innovators podcast episode 177

Editor's note: On Monday at Houston House, a SXSW activation put on by the Greater Houston Partnership, I moderated a panel called “Demystifying the Startup Journey.” Panelists included three Houston founders: Ted Gutierrez, co-founder and CEO of SecurityGate.io, Simone May, co-founder and CTO of Clutch, and Gaurav Khandelwal, founder and CEO of Velostics. The three entrepreneurs discussed their journeys and the challenges they face — from product/market fit and hiring to fundraising and customer acquisition. Listen to the full conversation on this week’s episode of the Houston Innovators Podcast below. Thank you to SXSW and GHP for the recording.


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Houston ranks among top 5 cities for corporate HQ relocations in new report

h-town HQ

The Houston area already holds the title as the country’s third biggest metro hub for Fortune 500 headquarters, behind the New York City and Chicago areas. Now, Houston can tout another HQ accolade: It’s in a fourth-place tie with the Phoenix area for the most corporate headquarters relocations from 2018 to 2024.

During that period, the Houston and Phoenix areas each attracted 31 corporate headquarters, according to new research from commercial real estate services company CBRE. CBRE’s list encompasses public announcements from companies across various sizes and industries about relocating their corporate headquarters within the U.S.

Of the markets included in CBRE’s study, Dallas ranked first for corporate relocations (100) from 2018 to 2024. It’s followed by Austin (81), Nashville (35), Houston and Phoenix (31 each), and Denver (23).

According to CBRE, reasons cited by companies for moving their headquarters include:

  • Access to lower taxes
  • Availability of tax incentives
  • Proximity to key markets
  • Ability to support hybrid work

“Corporations now view headquarters locations as strategic assets, allowing for adaptability and faster reaction to market changes,” said CBRE.

Among the high-profile companies that moved their headquarters to the Houston area from 2018 to 2024 are:

  • Chevron
  • ExxonMobil
  • Hewlett-Packard Enterprise
  • Murphy Oil

Many companies that have shifted their headquarters to the Houston area, such as Chevron, are in the energy sector.

“Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future,” Steve Kean, president and CEO of the Greater Houston Partnership, said in 2024. “With deep roots in our region, Chevron is a key player in establishing Houston as a global energy leader. This move will further enhance those efforts.”

According to CBRE, California (particularly the San Francisco Bay and Los Angeles areas) lost the most corporate HQs in 2024, with 17 companies announcing relocations—12 of them to Texas. Also last year, Texas gained nearly half of all state-to-state relocations.

In March, Site Selection magazine awarded Texas its 2024 Governor’s Cup, resulting in 13 consecutive wins for the state with the most corporate relocations and expansions.

In a news release promoting the latest Governor’s Cup victory, Gov. Greg Abbott hailed Texas as “the headquarters of headquarters.”

“Texas partners with the businesses that come to our great state to grow,” Abbott said. “When businesses succeed, Texas succeeds.”

CBRE explained that the trend of corporate HQ relocations reflects the desire of companies to seek new environments to support their goals and workforce needs.

“Ultimately, companies are seeking to establish themselves in locations with potential for long-term success and profitability,” CBRE said.

SpaceX test rocket explodes in Texas, but no injuries reported

SpaceX Update

A SpaceX rocket being tested in Texas exploded Wednesday night, sending a dramatic fireball high into the sky.

The company said the Starship “experienced a major anomaly” at about 11 pm while on the test stand preparing for the 10th flight test at Starbase, SpaceX’s launch site at the southern tip of Texas.

“A safety clear area around the site was maintained throughout the operation and all personnel are safe and accounted for,” SpaceX said in a statement on the social platform X.

CEO Elon Musk ’s SpaceX said there were no hazards to nearby communities. It asked people not to try to approach the site.

The company said it is working with local officials to respond to the explosion.

The explosion comes on the heels of an out-of-control Starship test flight in late May, which tumbled out of control. The FAA demanded an investigation into the accident.

Rice University spinout lands $500K NSF grant to boost chip sustainability

cooler computing

HEXAspec, a spinout from Rice University's Liu Idea Lab for Innovation and Entrepreneurship, was recently awarded a $500,000 National Science Foundation Partnership for Innovation grant.

The team says it will use the funding to continue enhancing semiconductor chips’ thermal conductivity to boost computing power. According to a release from Rice, HEXAspec has developed breakthrough inorganic fillers that allow graphic processing units (GPUs) to use less water and electricity and generate less heat.

The technology has major implications for the future of computing with AI sustainably.

“With the huge scale of investment in new computing infrastructure, the problem of managing the heat produced by these GPUs and semiconductors has grown exponentially. We’re excited to use this award to further our material to meet the needs of existing and emerging industry partners and unlock a new era of computing,” HEXAspec co-founder Tianshu Zhai said in the release.

HEXAspec was founded by Zhai and Chen-Yang Lin, who both participated in the Rice Innovation Fellows program. A third co-founder, Jing Zhang, also worked as a postdoctoral researcher and a research scientist at Rice, according to HEXAspec's website.

The HEXASpec team won the Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge in 2024. More recently, it also won this year's Energy Venture Day and Pitch Competition during CERAWeek in the TEX-E student track, taking home $25,000.

"The grant from the NSF is a game-changer, accelerating the path to market for this transformative technology," Kyle Judah, executive director of Lilie, added in the release.