Lockheed Martin Corp. To Exit Cybersecurity, Double-Down On Helicopters And Combat Jets
December 4, 2015
Lockheed Martin Corp. has been planning to sell off or spin off its roughly $4 billion government information technology business since earlier this year. That would include its Cybersecurity unit.
Deltek’s annual forecast report, “Federal Information Technology Market, 2015-2020,” predicts a slight decline in the federal IT market from $97.7 billion in FY 2015 to $94.4 billion in FY 2020. Although IT spending will remain relatively flat over the forecast period, Deltek expects growth opportunities in key areas such as cloud, cybersecurity, big data and infrastructure modernization.
The U.S. federal government has spent $100 billion on cybersecurity over the past decade, and President Obama has $14 billion budgeted for cybersecurity in 2016.
More broadly, the worldwide cybersecurity market is expected to reach $170 billion by 2020. U.S. corporations are increasingly looking to defense contractors of all sizes who bring ex-government hackers to help defend against the growing cybercrime epidemic.
These numbers would seem to suggest a big opportunity in cyber for Lockheed, which has been the top provider of Information technology services to the U.S. government for the past 20 years… and defending critical infrastructures worldwide against cyber threats for over a decade.