L-3 Communications Holdings Inc.
) hopes to benefit from the Big Data Analytic revolution by
acquiring Data Tactics Corporation. Data Tactics is a provider of
Big Data analytics and cloud computing solution services,
primarily to the U.S. Department of Defense.
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Why Big Data?
The nature of modern warfare has changed over time. Wars are
presently being fought in both symmetric and asymmetric
environments. In sync with the changing nature of warfare, the
U.S. Department of Defense (DoD) is also updating its strategies
by putting more emphasis on network-centric platform for dealing
Network-centric warfare involves the collection of data from
various sources as well as the seamless to and fro movement of
confidential information. This strategy involves collection of
huge volume of information and analysis of the same to provide
the best solution to end users.
Since the launch of Big Data initiatives in 2012, the U.S.
government has already invested $250 million in this initiative.
Collection of time-sensitive information, proper analysis of the
same and most importantly the security of the information will
aid the U.S. defense forces big time to secure its shores from
What Data Tactics Brings In
Management's decision to acquire Data Tactics will boost the
performance of the National Security Solutions business of L-3
Communication. The company forecasts that the acquired business
could generate sales of $50 million for the year ending Dec 31,
Apart from boosting the top line, the acquisition brings in more
than 150 data scientists, engineers, architects and developers,
the majority of whom possess U.S. government security clearances.
This talented group of individuals will spearhead cutting-edge
research in the field of ultra-large-scale data management and
cloud computing solutions.
The DoD has always been ahead of the technology curve. The
ongoing space programs are a classic example of their technology
leadership. With time, the volume of sensitive data will keep on
burgeoning. It is here that Big Data Analytics will come in
handy, providing solutions for proper storage, safety, data
mining and easy access to this information from a cloud based
Given the growing importance of Big Data solutions, we believe
this acquisition will be a long-term growth driver for L-3
Communications. The company currently has a Zacks Rank #3 (Hold).
Other defense majors like
Lockheed Martin Corp.
The Boeing Co.
) are already working on providing data solutions. The ultimate
objective of this technology is to help users to capture, manage
and analyze big volume of sensitive data, which would lead to
prompt decision making.