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Deltek Forecasts Growth in Defense, Intell Community IT Investments

Two new Deltek reports say that information technology modernization, data proliferation and the current national security threat landscape are among the factors that will drive IT investments within defense and intelligence community agencies.

The company said it expects the DOD contractor addressable IT market to grow at a compound annual rate of 1 percent to reach $55.7 billion in fiscal year 2024, up from $53 billion in FY 2019.

DOD is rapidly advancing IT modernization with its adoption of 5G, cloud, artificial intelligence, internet of things and other modern commercial platforms, according to Deltek’s Defense IT Priorities and Strategies, 2021-2023 report.

The Pentagon also replaced the Joint Enterprise Defense Infrastructure program with a multicloud infrastructure strategy through the Joint Warfighter Cloud Capability initiative, which the market intelligence provider says will support the department’s multidomain operations concept and help pave the way for enterprise AI and cybersecurity systems.

“It was the growing reliance on cloud computing for overseas operations that helped solidified the idea among DOD leadership that the organization DOD needs a multi-cloud environment supported by several commercial providers,” said Alex Rossino, an advisory research analyst at Deltek.

Deltek forecasts near-term defense IT budgets to increase as DOD pursues the adoption of commercial technologies to enable the MDO concept and deliver new capabilities to warfighters.

The second iteration of the Pentagon’s Cybersecurity Maturity Model Certification program will likely reduce some of industry concerns over the CMMC requirements, according to the report.

Deltek’s Intelligence Community IT Landscape, 2021-2023 report forecasts IT investments to see a compound annual growth rate of 2 percent to reach $10.9 billion in FY 2023, up from $10.5 billion in FY 2021.

The report listed cloud computing, data management, big data analytics, AI, quantum technology, cybersecurity, augmented and virtual reality and modeling and simulation as some of IC’s IT priorities.

Intelligence agencies consider IT and other technology innovation as key to improving their capability to deliver cyberthreat intelligence, strategic and anticipatory intelligence, counterterrorism and counterintelligence, among others, in support of national security missions as adversaries become more sophisticated.

The GovWin Federal Market Analysis team produced the two Deltek reports.

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