MOUNTAIN VIEW, Calif.
Dec. 6, 2012
/PRNewswire/ -- Though service businesses tend to have low margins, spending on services almost matches procurement. The use of mature commercial technology is easing integration, engineering and sustainment requirements.
Frost & Sullivan's
Aerospace & Defense
) practice finds that Department of Defense (DoD) spending for
command and control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) services totaled
in 2011. These expenditures are estimated to reach
to view the
U.S. DoD C4ISR Services
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Continuing combat operations drives the demand for logistics, installation, and operational services not only in
, but across the C4ISR enterprise. As the planned drawdown of troops in
accelerates, the lessons learned will be applied to new areas of operations.
"Anti-access and area denial challenges invigorate engineering and management services as the DoD seeks to assign new missions, increase the range of sensors, enable collaboration, and ensure network survivability," said Frost & Sullivan Senior Industry Analyst
. "This operational concept will require extensive C4ISR services contracts through 2017."
Cloud computing and cybersecurity requirements put focus on commercial services and integration as the DoD seeks to improve reliability and security while simultaneously reducing costs.
C4ISR services spending through 2017 is expected to focus on joint service command and control networks.