Students occupy defence firm Leonardo's Turin headquarters to protest over Gaza

On the same subject

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  August 24, 2022 | International, C4ISR

  Pentagon vision for synchronized forces hinges on digital engineering

  Under JADC2, the Pentagon is working to connect sensors from the Air Force, Army, Marine Corps, Navy, and Space Force into a single network.

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  September 18, 2018 | International, C4ISR

  Pentagon spending could lead to consolidation of cybersecurity industry

  By: Justin Lynch Spurred in part by Russia's campaign of hybrid warfare in Ukraine, the Pentagon will purchase more electronic warfare equipment, a move that could lead to consolidation in the cybersecurity industry, an analyst said in a new report. Russia's use of electronic warfare combined with conventional combat tactics during its 2015 invasion of Ukraine exposed how the Department of Defense needed to increase its spending on cybersecurity, Brad Curran, an analyst at Front & Sullivan told Fifth Domain. Greater use of offensive cyber and electronic weapons by Russia means that the U.S. is expected to boost defense of its communications systems, and possibly look to increase its own offensive weapons. A September report from Frost & Sullivan projected a 2.9 percent compound annual growth rate in cybersecurity spending from the Pentagon through 2023. Securing electronic communications “is a high priority,” Curran said. The Defense Department is “just getting started” and it will be “a continuous effort to make sure our combat networks are secure.” The focus could benefit firms like Raytheon, which have invested heavily in electronic warfare, Curran said. Curran said that government purchases of enterprise systems will likely stay the same or even shrink because many of the acquisitions are meant to boost efficiency. One example is the government's investment in the cloud. But he predicts an increase in purchases of electronic warfare and offensive cyber capabilities, which will favor larger defense firms. The result will be consolidation of the cybersecurity industry among the biggest companies. During the Black Hat conference, one cybersecurity firm described the industry as “cut-throat” and added they expected industry consolidation because of purchases from the largest contractors. In 2017, the Pentagon awarded more than $1.22 billion to cyber contractors. That money went to 69 prime contractors and 50 different companies. The Pentagon's 2019 budget request for cybersecurity totals $3.6 billion, according to the report, half of which is dedicated to operations and management. The Air Force has the largest share of cybersecurity programs, at $2.19 billion. Booz Allen Hamilton was the top recipient of public contracts from the Pentagon in 2017 with a total of $115.4 million in awards, according to the report. In August, the Pentagon awarded Booz Allen Hamilton a $91 contract to manage cybersecurity for the Ballistic Missile Defense System. But while artificial intelligence will be an area that the U.S. government focuses its investments on the future, Curran said it is not currently a major factor in acquisition. “The future is AI but right now it is more of a concept," he said. https://www.fifthdomain.com/industry/2018/09/17/pentagon-spending-could-lead-to-consolidation-of-cybersecurity-industry

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  August 14, 2019 | International, Aerospace

  Big A&D Firms Seem To Be Merging Or Acquiring—Where’s Honeywell?

  Michael Bruno United Technologies (UTC) and Raytheon are working hard to convince shareholders to approve their mega-merger. L3 Harris Technologies is riding high after its heritage companies consolidated recently. Industry insiders are making bets on who is next. But Honeywell International has been conspicuously absent in all the major merger and acquisition (M&A) moves in recent years. Why? Honeywell Aerospace chief executive Tim Mahoney recently explained how his company still plans to take advantage of the wave of consolidation hitting aerospace and defense. “We've looked,” Mahoney told an Aug. 7 investor conference. “We've never thought—and we continue to not think—that scale is a major discriminator and a differentiator within our marketplace. Having said that, you need to be large enough to be relevant, and we have been at that point. But scale is not something that is attractive or makes you more attractive from an OEM perspective or from an aftermarket perspective. We've continued to differentiate ourselves relative to value-added offerings.” Mahoney spoke during a live interview with analyst Sheila Kahyaoglu at the Jefferies Global Industrials Conference. While Honeywell has remained active with bolt-on acquisitions—including the July 24 announcement it will buy autopilot specialist TruTrak Flight Systems for an undisclosed amount—the company has not consummated a prime- or OEM-level deal and even walked away from talks with UTC in 2016. That same year, Honeywell did buy warehouse automation specialist Intelligrated for $1.5 billion. And Honeywell leaders have long assured Wall Street that they keep their eyes open in A&D, as Mahoney reaffirmed. But they have complained that valuations were too rich to be conducive to dealmaking. Mahoney also indicated that Honeywell could take advantage of the consolidation trend in another way. “We've actually gone back and looked at when there has been very significant consolidations, or two companies coming together,” he explained. “That has actually helped us from a market share perspective, because typically when there's a large-scale integration of two companies, those two companies become inwardly focused, which is understandable. “As a result, we've been opportunistic relative to that,” he continued. “If you look at our cockpit systems business or some of those areas where we've competed with some of the companies that have consolidated, our auxiliary power unit business, you would see that we've actually grown disproportionately larger during those time periods.” One area Honeywell is now focusing on growing is its new big-data analytics software Forge, which the company recently rolled out for airlines and other industrial companies (Aviation DAILY, June 6). While the software expectedly looks to provide aircraft operators with predictive maintenance, fuel optimization and other flight operation benefits, Honeywell is looking to add ground operations through an expanding experiment with Swissport, one of the world's largest airport ground service providers. Last December, Honeywell and Swissport signed a five-year agreement initially to apply Honeywell's GoDirect Ground Handling product used across Swissport's global operation base. Ben Driggs, president of Honeywell Connected Aircraft, told the investor conference that the goal is to achieve faster airplane turnarounds in the 20-40% of the time the aircraft is on the ground. He said the partnership is first being implemented in Kansai International Airport (KIX) for Osaka, Japan, with Miami, Basel, Switzerland and “numerous” other Swissport airports planned. https://aviationweek.com/defense/big-ad-firms-seem-be-merging-or-acquiring-where-s-honeywell