Cyberwarfare is one of the few areas of national-security spending likely to grow in coming years. Not surprisingly, every major military contractor in the U.S. is trying to crowd into the field, with companies like BAE Systems and Raytheon aggressively buying up smaller players. However, the cyberwarfare market presents numerous obstacles to sustained profitability, including fragmented funding sources, unstable requirements, low barriers to entry, skill shortages and a capricious federal customer. The companies that are currently best positioned in the cyberwarfare space are General Dynamics, Lockheed Martin, Raytheon and Science Applications International. But staying on top will require continuous innovation and training, and the lineup of dominant players could change quickly depending on how threats evolve. I have written an essay this week for Forbes on the dangers of the cyberwarfare market that can be found here.
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