Australia Markets closed

Science Applications Wins Award for Innovative IoBT Solution

Zacks Equity Research

Science Applications International Corp. SAIC recently announced it has been recognized as an Industry Innovation Winner for 2019 by the Government Innovation Awards for its Internet of Battlefield Things (IoBT) solution.

Military operations are raising their dependence on interconnected technology for situational awareness and communication. The IoBT includes a network of connected sensors leveraging cloud technology embedded within biometric wearables, combat gear, vehicles and like, which equip soldiers with improved capabilities for identifying the enemy.

The IoBT solution has been implemented in the ground vehicles currently used by the Department of Defense. Notably, the vehicles are embedded with features such as a data center, sensors, hardened military communications and advanced analytics capabilities that can function in any operational environment. 

Science Applications International Corporation Price and Consensus

Science Applications International Corporation Price and Consensus

Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote

Importance of Edge Computing in IoBT

Timing is key to powerful edge architecture. With the high number of connected sensors and even larger amount of data, the IoBT system can be overloaded quickly.

To bridge this gap, experts recommend a fully equipped architecture, complete with intelligent data filters, edge device regulation and network infrastructure upgrades, thereby providing maximum bandwidth.

Science Applications’ IoBT solution addresses the gap in battlefield capability for U.S. war fighters, and enables war fighters to have real-time situational awareness of various domains, as well as the ability to utilize cloud technology. Moreover, the company is sanctioning more mission functionality at the tactical edge.

Boosting Presence in Various Related Industries

The IoBT solution has fortified Science Applications presence in the IT space and various other markets like the general IoT market and the C4ISR (Communication, Command & Control, Computers, Intelligence, Surveillance & Reconnaissance, and electronic Warfare) market.

Per IDC, worldwide spending on the IoT is expected to hit $745 billion in 2019, an increase of 15.4% year over year. Moreover, it is expected to outpace the $1 trillion mark in 2022. This spells good news for Science Applications, as its efforts and solutions are helping it forge ahead in the IoT market.

Furthermore, per Zion Market Research, the C4ISR market is expected to witness a CAGR of 3.6% during the period between 2018 and 2024 to hit $127.2 billion globally. With advanced technical solutions for warfare, such as its IoBT solution, Science Applications seems well poised to establish a stronger foothold in this space.

Areas of Competition

In the IT services for defense space, Science Applications already competes strongly with CACI International CACI. However, the IoBT solution has heated up its competition with companies like Mercury Systems MRCY in the C4ISR market and Viasat VSAT in the market.

Viasat has partnered with various cloud computing providers globally to strengthen its capabilities through its secure, high-speed and resilient SATCOM network and tactical network technologies. These have helped the company to deliver powerful IoBT to improve military readiness for defense entities.

Moreover, making full use of its technological knowhow and relationship with defense contractors, Mercury is forging ahead in the C4ISR market.

Nonetheless, Science Applications’ strong technical knowledge and expertise is helping it maintain its position in the IT industry, as the industry moves toward modernization.

Science Applications currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>