Defense Funding for C4ISR Remains Stable

MOUNTAIN VIEW, Calif.: The U.S. Department of Defense (DoD) isexpected to offset a dip in research, development, test, and evaluation(RDT&E) with a hike in spending on ground forces supplies, services,and technologies. Command, control, communications, computers,intelligence, surveillance, and reconnaissance (C4ISR) funding islikely to remain stable, with robust growth restricted to currentdeployments and applications that have direct relevance tocounter-insurgency/terror operations.
Open-source intelligence (OSINT) and human intelligence (HUMINT)will be helpful in successful counter-terror/insurgency warfare.
New analysis from Frost & Sullivan, U.S. DoD C4ISR Markets,finds that the 2011 U.S. DoD C4ISR budget requests $43.3 billion. Thisis a $600.0 million increase over the 2010 enacted level. C4ISRspending continues to account for about 6.1 percent of the total DoDbudget.
The DoD will be particularly focusing on intelligence and special operations and therefore, repair, maintenance, training, information assurance, and operational services will continue to be funding priorities.
"Funding by segment reflects an attempt to rebalance technicalsensors/collection with less expensive but vital analysis and other'people' skills required for successful military operations," saysFrost & Sullivan Industry Analyst Brad Curran. "Intelligenceactivities of all types will have the largest growth rate through 2015."
"There is a great need for C4ISR services such as language andcultural skills, maintenance, engineering, integration, training,project management, especially for the popularinformation assurance and coalition partnering applications," notes Curran. "Surveillance & Reconnaissance is also receiving robust funding as unmanned vehicles and improved sensors are deployed, new units are stood up, and existing unit Tables of Equipment are expanded."
Considerable investments are required for the upgrade of neglected'conventional' capabilities, increasing the DoD's spending. There issubstantial demand for practical, rapid, and inexpensive platforms suchas balloons and commercial-off-the-shelf (COTS) tools such as WiFi.
With the trend of collaboration through social media gaining currency in operational and intelligence communities, continued investment in network infrastructure, software analysis, and dissemination tools is necessary.
Meanwhile, the DoD continues to make cuts in space budgets. While export controls constrain international sales,the commercial and foreign competition constantly escalates. Overall,there are likely to be fewer platforms of all types. Future salestrends are likely to move away from high-end platforms toward provenand reliable designs that afford maximum flexibility.
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