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Downsized DoD Budget for C4ISR Forces Technology Developers to Consolidate Advances


News provided by

Frost & Sullivan

31 Oct, 2013, 11:43 GMT

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-- Incremental upgrades to existing programs seek to integrate technology improvements faster and at a lower cost

MOUNTAIN VIEW, California, Oct. 31, 2013 /PRNewswire/ -- Military force structure reductions will result in reduced spending by the U.S. Department of Defense (DoD) for command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR).  Priority funding will go toward meeting modifications and product improvements that increase sensor sensitivity and collaboration. As a result, a greater focus on computing, networking and collaboration tools based on commercial off-the-shelf (COTS) technology will emerge.

New analysis from Frost & Sullivan's Aerospace and Defense (www.defense.frost.com) practice predicts the U.S. DoD C4ISR market will reach $41.42 billion in 2014 but will shrink to $35.20 billion in 2018.

Click here to view the video on Frost & Sullivan's DoD C4ISR analysis and gain access to the online community - http://bit.ly/19bJdix

For more information on this research, please email Jennifer Carson, Corporate Communications, at jennifer.carson@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Combined effects of sequestration, continuing resolutions, reprogramming, overseas contingency operations (OCO) funding place holders, and the Strategic Choices and Management Review drive up costs of C4ISR procurement. In addition, these factors delay real reform to the requirements process and stifle innovative technology implementation.

"Providers of essential commercial technology, such as satellite communications, are unable to plan, invest and provide responsive and cost efficient services as a result of these uncertainties," said Aerospace and Defense Senior Industry Analyst Brad Curran. "In addition, they also affect large systems integrators' ability to retain skilled engineers or invest in or acquire small firms with innovative technologies."

However, with COTS-based computer networking technologies combining lower costs and more frequent technical refresh advantages, the DoD is showing interest in actively leveraging IT and sensor product advantages for social networking, mobile computing, cloud computing, and cyber security.

There has also been a dramatic rise in funding to improve collaboration and security of enterprise networks. The trend towards short-term and multi-vendor contracts has helped raise the number of market participants, including new commercial vendors, across all C4ISR technology areas.

There is potentially more value in utilizing COTS aircraft if the industry and the government could collaborate to find a common method for precisely defining and explaining program requirements.

"In future, the focus will be on mature, proven and common C4ISR systems," noted Curran.

DoD C4ISR is part of the Aerospace & Defense Growth Partnership Services program, which provides global Mega Trends, information on emerging markets, and the latest technology innovations, market, economic, customer, competitive, and best practices research. This CEO 360 degree perspective will enable your company to effectively plan your strategies for growth. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Connect with Frost & Sullivan on social media, including Twitter, Facebook, SlideShare and LinkedIn, for the latest news and updates.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion 
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DoD C4ISR
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Contact:

Jennifer Carson
Corporate Communications – North America
P: +1.210.247.2450
E: jennifer.carson@frost.com

Twitter: @Frost_Sullivan
Facebook: FrostandSullivan
Linkedin: Frost & Sullivan's Aerospace, Defence and Security Forum

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