Defense providers still going strong

CRN has a look at some of the top defense IT solution providers and how they did last year, and it seems they did better than most based on the first wave of earnings reports that are coming in. Specifically, Lockheed Martin and Teledyne came out on top with good numbers. VARs that serve customers in retail and travel industries on the other hand, didn't do so well.

Defense IT solution providers seem to have fared better last year than other types of VARs, based on early earnings reports. Of the handful of VARBusiness 500 solution providers releasing financials this week, Lockheed Martin and Teledyne were winners, Agilysys was a loser and iGate saw mixed results.

The question is though, did Defense see a boom just because of the hawkish policies of Mr. Bush? Is that boom over now that cooler heads prevail? Probably not. In peace or wartime, Defense is always a good business to be in. It is likely that there will be cuts in the Defense budget, although those cuts won't be as large as some believe. And even so, for IT solutions providers catering to the Defense community, an era of accountability and reduced spending may be a good thing--since reduced spending often is achieved through IT innovations, rather than axing programs wholesale.

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