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Cyber, Cloud, AI Spur IT Spending Growth in FY 2019: This Is IT - Bloomberg Government

With a surge in spending on cybersecurity, cloud services, and software development, the U.S. federal government obligated $69 billion on unclassified IT contracts in the 2019 fiscal year, a 6% increase from fiscal 2018 IT spending, according to a Bloomberg Government analysis.

These figures — $69 billion in total IT contract spending and 6% growth — are largely consistent with recent trends.

Though federal IT spending grew by 6% overall, that figure would appear to understate the steep rise in obligations in key horizontal markets, such as cloud computing and artificial intelligence, which saw double-digit growth in defense and civilian agencies alike.

Similarly, agencies’ investments in emerging technologies through the use innovative procurement mechanisms such as other transaction agreements (OTAs) surged to $7.5 billion in fiscal 2019.

Five represent IT sub-markets as defined by the General Services Administration’s category management taxonomy (see below), four depict high-growth IT markets as defined by BGOV analysts, and two display spending that flows through novel acquisition mechanisms, OTAs and “Best in Class” (BIC) IT contracts.

The position of each bubble refers to the growth rate in each market between fiscal years 2018 and 2019, with Pentagon spending on the x-axis (horizontal axis) and civilian spending on the y-axis (vertical axis).

BGOV Analyst-Defined Markets The following four market definitions were created by Bloomberg Government analysts to track spending in fast-growing markets for which agencies don’t produce official estimates of contract obligations.

#nationalcybersecuritymonth | Cyber Threats from U.S. Adversaries Spur Innovative American Countermeasures

Cyber threats from U.S. adversaries are spurring innovative American countermeasures to help protect against potentially devastating attacks targeting U.S. government agencies and private sector organizations.

The first stock every investor should buy to profit from the most fruitful research and development (R&D) in cybersecurity defense is one of the biggest, Redmond, Washington-based Microsoft, which will be running the Pentagon cloud, said Hilary Kramer, host of a national radio program called “Millionaire Maker.” Kramer, who also heads the 2-Day Trader service that has netted profits in 22 of its first 28 trades for an average return of 11.04 percent, said the Microsoft contract is worth $1 billion a year over the next decade.

The Joint Enterprise Defense Infrastructure (JEDI) Cloud contract will provide enterprise level, commercial Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) to support DoD business and mission operations. Funds of $1 billion will cover the minimum guarantee for fiscal year 2020. The expected completion date of the 10-year pact is Oct. 24, 2029.

Chart courtesy of www.stockcharts.com Fund Focuses on Cybersecurity Ingenuity to Thwart U.S. Adversaries “A conservative but profitable way to invest in cybersecurity is through the fund ETFMG Prime Cyber Security (NYSEARCA:HACK),” said Bob Carlson, who leads the Retirement Watch investment advisory service.  The exchange-traded fund, launched in 2014, holds technology stocks, but has trailed broad technology indexes during bull markets, Carlson said.

The hearing, before the House Armed Services Committee’s Subcommittee on Intelligence and Emerging Threats and Capabilities, as well as the Committee on Oversight and Reform, and its Subcommittee on National Security, covered the “Role of the United States government in Securing the Nation’s Internet Architecture.” “Our adversaries have been developing and using advanced cyber capabilities in attempts to undermine critical infrastructure, target our livelihoods and innovation, steal our national security secrets and threaten our democratic institutions,” Manfra said.

Thompson, D-Mississippi, chairman of the House Committee on Homeland Security, advised at the same hearing that emerging cyber threats from U.S. adversaries against America are evolving and growing.  “As new networked devices and information technologies entered the marketplace, many became so mesmerized by their potential for good that we failed to appreciate and plan for the security consequences,” Chairman Thompson opined.

“Although I am encouraged that we are having more conversations about the nexus between technology and security today, there is still much to be done.” Cyber Threats Now Come from Attackers Seeking to Hide Their Identity Specifically, Chairman Thompson recalled when the House Committee on Homeland Security came into existence on January 4, 2005, it focused on defending against physical attacks by terrorists who would claim responsibility for their actions.

A month later, then-Director of National Intelligence Dan Coats warned that “our adversaries and strategic competitors will increasingly use cyber capabilities,” including cyber espionage, attack and influence, to seek political, economic and military advantage over the United States, its allies and their partners, he added.

The momentum Russia, China, Iran and North Korea have demonstrated related to their use of cyber tools show no signs of slowing.” America must prepare to harness the security, economic and health care benefits of emerging technologies like AI and quantum computing, while defending against adversaries who seek to use technology to attack the United States, Chairman Thompson stated.

But the government cannot do it alone, he added.  The importance of the private sector in aiding the U.S. government in protecting against cyberattacks was reflected when the Senate Committee on Homeland Security and Governmental Affairs held a roundtable meeting for members and their staff last May 15, titled “Cybersecurity Roles and Responsibilities: Private Sector Perspectives.”  In an example of bipartisanship, Sen. Ron Johnson (R-Wisconsin) and Sen. Gary C.

They also addressed the challenges of public-private collaboration to share information, to respond to cyber incidents and to defend critical infrastructure against cyber threats.  Lockheed Martin Is Helping the Pentagon Defend Itself from Cyber Threats  As the U.S. and international governments continue to focus on and invest in cybersecurity, Lockheed Martin (NYSE:LMT) provides important national defense capabilities across all five military domains — cyber, space, ground, maritime and air.

“China has deployed AI to advance an autocratic agenda, and to commit human rights violations, setting an example that other authoritarian regimes will be quick to adopt and that will be increasingly difficult to counteract,” according to the commission.  In addition, the Defense Advanced Research Projects Agency (DARPA), which funds projects for the U.S. military, announced in September 2018 a multi-year investment or more than $2 billion in new and existing programs called “Next AI.” Goals include automating critical DoD business processes, such as security clearance vetting and accrediting software systems;

An Artificial Intelligence Exploration (AIE) program, first announced by DARPA in July 2018 and renewed in August 2019, is involved with a series of high-risk, high-payoff projects where researchers work to establish the feasibility of new AI concepts within 18 months of award.

It seeks to protect against in-orbit collisions, radio frequency interference (RFI) and the actions of U.S. adversaries that pose risks to U.S. space assets.  National security threats in space include a growing number of foreign satellites and non-space assets that seem designed for intelligence gathering, counterspace technology testing and radio frequency interference.

China’s highly maneuverable and experimental Shijian 17 (SJ-17) and its early-warning military TJS series satellites also have drawn the attention of space experts who are monitoring their movements in geostationary orbit roughly 22,236 miles above the Earth.

Further Chinese cyber actions against a foreign government came in 2017 with a computer network attack against Indian satellite communications and again in 2018 when China targeted satellite operators, defense contractors and telecommunication companies.

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