US Department of Defense Computer Software Growth Opportunities

US Department of Defense Computer Software Growth Opportunities

This Frost & Sullivan research service focuses on US Department of Defense (DoD) computer software program spending and contracts. The DoD makes extensive use of computer software for both enterprise business functions and specialized combat mission systems. It has approved a software modernization strategy that is ensuring stable budgets, improved acquisition, and faster delivery of software upgrades. Software improvements will help meet data sharing priorities and give the DoD a competitive advantage in the future.

The department seeks to quickly field software by direct purchase and, when necessary, custom development. Leadership understands the necessity of delivering software capability at the speed of relevance and is building internal coding capability and expanding external software services.

Instead of piecemeal, organization-specific software requirements and purchasing, the DoD is adopting an enterprise-wide approach emphasizing industry partnerships and internal development. Though the DoD computer software market is mature, some new implementation processes are underway.

The study includes research, development, test, and evaluation (RDT&E) as well as procurement activities and operations and maintenance (O&M) activities. The programs listed are from the FY2022 DoD budget request, and contract activity is for FY2021. DoD computer software programs include Army, Navy/Marine Corps, Air Force/Space Force, and joint service spending. The base year is FY2021.


  • Strategic Imperatives
    • Why is it Increasingly Difficult to Grow?
    • The Strategic Imperative 8™
    • The Impact of the Top 3 Strategic Imperatives on the US Department of Defense Computer Software Industry
    • Growth Opportunities Fuel the Growth Pipeline Engine™
  • Growth Opportunity Analysis
    • Purpose and Overview
    • Trends and Challenges
    • Market Segmentation
    • Technology Application Examples
    • Growth Drivers
    • Growth Restraints
    • Program Funding by Department
    • Representative Programs
    • Contract Funding by Department
    • Representative Industry Participants
    • Representative Contracts
  • Growth Opportunity Universe
    • Growth Opportunity 1: Computer Software Research
    • Growth Opportunity 2: Computer Software Procurement
    • Growth Opportunity 3: Computer Software Services
    • Conclusions and Future Outlook

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