The Software Engineering Institute has accomplished a great deal this year and has demonstrated how innovative, agile, and professional our men and women are. While our staff is well known for these characteristics, I still found myself impressed by the hard work and dedication shown by the SEI 's men and women in 2012.

• We added more than 90 new employees this year, including a new COO, Bob Behler; a new CTO, Dr. Kevin Fall; and a new cybersecurity deputy, Ned Deets.
• We transitioned Capability Maturity Model Integration (CMMI) out of SEI into a new standalone organization, the CMMI Institute, owned by Carnegie Mellon.
• We supported more than 100 government and commercial organizations—and received their thanks and recognition of the value we've added to their efforts.
• We established a new SEI Innovation Center to enhance our ability to explore the emerging opportunities of software intensive systems, especially for the intelligence community.
• We've built upon our strong foundations in cybersecurity, software architecture, process improvement, and measurement and estimating, and explored new issues related to scale and computing at the edge, while providing unique technical support to our sponsors.
• On an individual level, we recognized the significant career contributions of John Foreman, who was named the sixth SEI Fellow. A member of the SEI staff for 27 years, John currently serves as associate director—military services acquisition for the SEI 's Acquisition Support Program (ASP).
  

As we look to 2013, we see opportunity—for new research thrusts, for new collaborations with top scientists and engineers, for new contributions to our defense and federal clients, and for enhanced value to our sponsors.

Our men and women are eager to explore the frontiers of software engineering and cybersecurity—and to maintain our global reputation for quality and innovation.

Thank you for an exceptional year.

Paul D. Nielsen
Director and CEO