Industry Execs Say Open Architecture Could Lower Defense Market Entry Barriers, Drive M&A Pursuits

BAE Systems and Dcode executives said during Baird's Government & Defense Conference earlier this month that open architecture and modular systems design requirements could make it easier for technology vendors to enter the federal market, the Washington Business Journal reported.

Joshua Niedzwiecki, vice president of strategy and planning at BAE's U.S. subsidiary, told event audience the Department of Defense’s efforts to keep up with the pace of industry development drove demand for adaptable and plug-and-play platforms.

He added that technology expansion trends may also prompt larger contractors to pursue mergers or acquisitions as more nontraditional companies seek to do business with the government.

Nate Ashton, managing director at Dcode, said at the same conference partnerships between contracting firms on artificial intelligence and automation projects have the potential to expand into M&A transactions as some agencies seek commercial off-the-shelf offerings.

Ashton noted that traditional consolidation efforts are primarily based on contracts and professional relationships.

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