2015 unclassified federal government cyber security spending
DESCRIPTION
This analysis by The Soter Group provides an update on unclassified cyber security spending across the Federal government - including the Department of Defense (DoD) and the Federal Civilian departments and agencies.The Soter Group provides services to both the Federal government and the commercial entities that support it. Our Commercial Services Division provides market research and assessments, competitive assessments, and strategic advisory services to commercial clients seeking to enter or grow in the Federal government security market.TRANSCRIPT
June2016Issue#17
1100NorthGlebeRoad,Suite1010,Arlington,VA22201|Tel:703.224.4407|Fax:703.224.8001|[email protected]©2015TheSoterGroup.AllRightsReserved.
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Perspectives–UnclassifiedFederalGovernmentCyberSecuritySpending
Reportedfiscalyear(FY)2015unclassifiedFederalgovernmentcybersecurityspendingisup3%year-over-yearto$13.1billion.ThePresident’sBudgetRequestforFY17includes$19billioninfundingforcybersecurityactivities.
UnclassifiedFederalgovernmentcybersecurityspendingshowedmodestgrowthinFY15–increasing3%to$13.1billionversusthepreviousfullfiscalyear.FY15alsomarkedthefirstfiscalyearthatFederalciviliancybersecurityspendingeclipsed$4billion.Whilecybersecurityspendinghasoscillatedaroundroughly$12and$13billionoverthelastseveralyears,theFY17budgetrequestindicatestheFederalcybersecuritymarketmaybereachinganewinflectionpoint–perhapsakintotheinflectionpointbetweenFY09andFY10precipitatedbytheComprehensiveNationalCybersecurityInitiative(CNCI).The$19billionbudgetrequesttosupportcybersecurityactivitiesmarksasignificantdeparturefromthespendingpatternofthepost-CNCIera.
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
(Ena
cted
)
FY17
(Req
uest)
FY15
v.
FY14
,%Δ
TotalUnclassifiedFederalCyberSecuritySpending
$6.8 $12.0 $13.3 $14.6 $10.3 $12.7 $13.1 $14.1 $19.0 +3%
OfWhich:Dept.ofDefense(DoD) $4.2 $9.5 $10.1 $12.1 $7.1 $9.0 $9.1 TBD TBD +2%
OfWhich:FederalCivilian $2.6 $2.6 $3.2 $2.6 $3.2 $3.8 $4.0 TBD TBD +7%
(in$billions)
Thejumpinanticipatedcybersecurityspendingmaysoundpromisingtobothcybersecurityproductvendorsandserviceprovidersaswellastraditionallycash-strappedgovernmentprogrammanagers,butthereremainsasignificantamountofuncertainty.Howmuchofthe$5billionincreaseovercurrentyearlevelsisnetnewmoney?Howmuchoftheincreaseisaresultofreorganizationandreprogrammingoffunds–similartowhatoccurrednearlyadecadeago?Partofthisincreaseinfundingstemsfromaproposed$3.1billionITmodernizationfund–whichisstillinfluxduetopoliticaldifferences.Additionally,assumingitisincludedintheappropriations,theproportionoftheseITmodernizationfundsthatwouldapplytocybersecurityversusnon-cybersecurityactivitieswoulddependonthelegacyITsystemsandprogramsthatareprioritizedformodernization.
Whetherthelargeincreaseinfundingisrealizedornot,thereareotherimportanttrendsthatareindicativeofFederalgovernmentcybersecurityprioritiesandinitiatives.Forthepastseveralyears,theOfficeofManagementandBudget(OMB)hasbeenusingthreeprimarycategoriesforcharacterizingcybersecurityspending:(1)PreventMaliciousCyberActivity;(2)Detect,Analyze,andMitigateIntrusions;and(3)ShapetheCybersecurityEnvironment.
June2016Issue#17
1100NorthGlebeRoad,Suite1010,Arlington,VA22201|Tel:703.224.4407|Fax:703.224.8001|[email protected]©2015TheSoterGroup.AllRightsReserved.
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TheSoterGroup
FY15showedcontinuedinvestmentinShapetheCybersecurityEnvironment,whichhasalargefocusonworkforcedevelopmentandtrainingaswellascybersecurityresearchanddevelopment.Thiscategoryaccountedfor43%oftotalspending,orapproximately$5.6billion.Theprimaryareaofgrowth,however,wasPreventMaliciousCyberActivity,whichincreased22%year-over-yearto$4.6billionthispastfiscalyear.Thisgrowthalignswithseveralmajor,on-goinggovernmentcybersecurityinitiatives,suchaslargenetworksensorprogramsandtheContinuousDiagnosticsandMitigation(CDM)program.
ItcontinuestobeadynamicperiodfortheFederalcybersecuritymarket,fromallangles–budget,policy,technology,andthreatenvironmentincluded.Muchofthiscanbeattributedtoincreasedunderstandingofthethreatandthecybersecurityproblemacrossgovernmentstakeholders;increasedcommitment,includingbudgetarycommitment,fromtheWhiteHouse,Congress,anddepartmentleadershiptoaddressthesecybersecurityconcerns;andincreasedestablishmentandformalizationofcybersecurityprogramsandorganizations–andassociatedsupportcontracts.Theimpendingtransitiontothenextadministrationisalreadyatthetopofeveryone’sminds,andonlytimewilltellwhetherthiscybersecuritymomentumandrenewedsenseofurgencypersists.
AboutTheSoterGroup
TheSoterGroupprovidesservicestoboththeFederalgovernmentandthecommercialentitiesthatsupportit.OurCommercialServicesDivisionprovidesmarketresearchandassessments,competitiveassessments,andstrategicadvisoryservicestocommercialclientsseekingtoenterorgrowintheFederalgovernmentsecuritymarket.JustinTaft,President&CEO,andPeterWong,DirectorofMarketResearch,authoredtheseperspectives.TheSoterGroupwelcomestheopportunityforourresearchtobecitedinthird-partyreports.Tolearnmore,pleasevisitwww.TheSoterGroup.comand/[email protected],pleasevisit:TheSoterGroupMarketReports.
ReportJune2016:Perspectives–UnclassifiedFederalGovernmentCyberSecuritySpending
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FY13 FY14 FY15
Billion
s
GovernmentFiscalYear
UnclassifiedFederalCyberSecuritySpendingbyMajorCategory
PreventMaliciousCyberAclvity
Detect,Analyze,andMilgateIntrusions
ShapetheCybersecurityEnvironment