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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Neil S who wrote (847)	10/30/1998 8:42:00 AM
From: J Fieb	Read Replies (1) \| Respond to of 4808

The DOD needs some big SANS and other networking gear...... Networks drive 7% rise in DOD forecast Margaret Quan Mclean, Va. - Defense spending on electronics will increase 7 percent over the next 10 years despite a declining Pentagon budget, an arm of the Electronic Industries Alliance predicts. The money will be used in part to create a network that would let U.S. armed forces share voice, video and data in real-time, to gain what the Pentagon calls "information superiority" over an enemy in a war. Spending for electronics hardware and software is projected to climb from $57.6 billion in fiscal 1999 to $61.7 billion in FY 2008. Overall Department of Defense appropriations in that same period will decline 3 percent, from $261 billion to $253 billion. The projections, all measured in constant fiscal 1999 dollars, are contained in the 34th Annual Ten-Year Forecast of Defense & NASA Electronics Markets, compiled by the EIA's Government Electronics and Information Technology Association (GEIA), released last week. Of total Pentagon spending for electronics, electronic content for procurement will show the best growth, from $19.8 billion to $22 billion, GEIA said. In addition, spending on electronics from operations and maintenance accounts will rise from $19.1 billion to $21.1 billion, while money for electronics from research, development test and evaluation accounts will remain essentially flat, from $18.5 billion to $18.7 billion. Electronics continues to represent a growing portion of the nation's shrinking defense spending-between 22 and 24 percent in 1999-2008. This has been the case since the early 1990s when the DOD budget began its post-cold war decline. Richard Wieland, market- analysis project manager for Raytheon Systems Co. (Arlington, Va.) and chairman of the GEIA's forecast committee, said this year's forecast represents a more stable forecast than 1997's report. Last year the EIA forecast the electronics portion of the DOD budget growing 14 percent, from $51.5 billion to $58.9 billion, and the defense top-line budget falling from $254 billion in FY 1998 to $243 billion in FY 2007. Real-time net The Joint Chiefs of Staff have asked the services to emulate a Navy model for such "network-centric warfare." The GEIA concluded that such a capability would allow U.S. military forces to pull together a range of assets-from computers, communications systems, ground forces, intelligence services-to gather intelligence about the enemy and its position on and off the battlefield. GEIA predicts a stable budget for NASA at $13.5 billion for the rest of the decade, and a constrained budget for the Federal Aviation Administration, which will slow modernization plans for the air-traffic-control sy