Boeing and IBM team up for defence

That's defence meaning war

By John Oates • Get more from this author

Posted in Hardware, 21st September 2004 13:15 GMT

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Big Blue is teaming up with Boeing to go after the defence and security market in the US. The two will work together on winning military and intelligence contracts.

No financial terms were released but the deal will run for ten years. It is non-exclusive - IBM may work with other defence contractors.

The two firms estimate the US government could spend as much as $200bn in the next ten years on improving intelligence and security networks. They believe computing networks will play an increasing role in passing communication between satelites, ships, planes and submarines.

Jim Albaugh, president and CEO of Boeing Integrated Defense Systems, said: "The conflicts of the future will be less dependent upon who has the most physical assets such as ships, planes and tanks, but determined by who has the best information and the most efficient means of sharing it among all elements of the fighting forces."

The firms have set up a committee of executives to look for sales opportunities. They have already identified four possible intelligence-related contracts and eight "military-business opportunities", according to the Seattle Times.

IBM says it had helped create modern integrated IT structures for hundreds of commercial organisations and could now offer the same service to the Department of Defense.

Boeing Defence is the second largest military supplier in the US with turnover of $27bn.

The press release is here. ®