Cybersecurity Spending: Will 2012 Show Us the Money?


Tracking cybersecurity spending has long been a difficult proposition. While security threats have existed as long as the Internet itself, the actual cybersecurity industry has seen massive growth over just the past several years. Couple that with the fact it’s rarely called cybersecurity in requests for purchase or contract announcement and it’s difficult to follow where the cyber dollars are actually being spent.

But with more businesses building core competencies based on cybersecurity and government agencies making record requests for cyber spending, we can expect cybersecurity to be one of the biggest ticket contract areas in the next several years. While contract announcements will not top what we see for programs like the Joint Strike Fighter or Ground Combat Vehicle, a variety of small to medium contract awards will add up to big contract opportunities for companies focused on cybersecurity.

Earlier this month Northrop Grumman was awarded a cybersecurity task order by the Defense Information Systems Agency to strengthen and coordinate cybersecurity across the defense and intelligence community. They will be implementing a Host Based Security System (HBSS). The $189 million task order includes software licensing, maintenance, training, and architectural infrastructure support personnel.

"Cybersecurity is one of Northrop Grumman‘s four core businesses due to its vital role in our nation’s defense," said Karen Williams, vice president of Northrop Grumman’s Defense Technologies Division. "The HBSS award reinforces Northrop Grumman’s position as a top provider of defense-in-depth cybersecurity solutions across the DoD and intelligence domains."

Northrop Grumman has been working on HHBS implementation within DoD since 2008. Like many major IT overhauls, however, it has been slow and steady progress integrating across the network. As the Department of Homeland Security, Department of Defense and intelligence agencies all seek to combat cyber threats and improve cyber defenses to attack problems before they hit, programs such as HBSS will increase in importance.

Cyber programs that stalled in previous years are expected to pick up steam as both private companies and government agencies look to recover from 2011, dubbed “the year of the hack” due to the high number of high-profile security breaches.

Lindy Kyzer is the editor of She loves cybersecurity, social media, and the U.S. military. Have a conference, tip, or story idea to share? Email

Lindy Kyzer is the editor of She loves the NISPPAC, social media, and the U.S. military. Have a conference, tip, or story idea to share? Email Interested in writing for Learn more here.

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