Unclassified Federal Cyber Security Spending Increased 23% to $12.7 Billion in 2014

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The Soter Group, LLC, a management and technology consulting firm based in Arlington, VA, recently released a report on unclassified Federal cyber security spending between fiscal years 2009 and 2014. This report details spending patterns and trends at the Department of Defense as well as across all Federal Civilian departments and agencies.

Only recently has the media and the general public really picked up on the severity and importance of cyber security.

The Soter Group, LLC released a report that analyzes unclassified cyber security spending across the Federal government. “Cyber security has finally become a hot topic. While it has been a long-standing problem, only recently has the media and the general public really picked up on the severity and importance of cyber security,” Soter Group President and CEO, Justin Taft explained. “Many look to the Federal government for guidance on how to approach this problem. The amount of spending and the manner in which these funds are distributed provides an indication of what the government is doing from a cyber security perspective.”

The report makes the following major observations:

  • Department of Defense (DoD) spending has more than doubled over the last five years – Reported DoD spending has grown from a reported $4.2 billion in fiscal year (FY) 2009 to $9.0 billion in FY14. This figure remains below levels report between FY10-12 of $9.5 to $12.1 billion.
  • Federal civilian spending has grown for two consecutive years – While Federal civilian cyber security spending is dwarfed by DoD, those departments and agencies have added approximately $1.2 billion in reported spending over the last two years (since FY12).
  • The FY15 and FY16 budget requests include $13 and $14 billion for cyber security, respectively – The budget requests for the current year and the budget year (FY16) suggest that cyber security spending will continue to grow. While spending figures have been extremely volatile over the last several years, perhaps there will be more consistency moving forward as “cyber security” becomes more firmly engrained in everyone’s vocabulary – not just the cyber security analysts and engineers, but also the Administration, appropriators, and department and agency leadership.

“There are more cyber security products and services out in the private sector than the Federal government could conceivably vet and consume. Conversely, the Federal government faces many cyber security challenges that could likely be addressed by an existing commercial solution,” Soter Group Director of Market Research, Peter Wong, added.

Access the full report, Unclassified 2014 Federal Cyber Security Spending Update, here:

Follow The Soter Group on LinkedIn to access other and future reports on the following topics:

  • Federal Homeland Security Mission Spending
  • Department of Homeland Security Contracting and Procurement
  • Federal Health IT
  • Federal Cloud Computing
  • Intelligence, Surveillance, and Reconnaissance (ISR)

About The Soter Group
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. To learn more, please visit http://www.TheSoterGroup.com.

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Justin Taft
The Soter Group

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