Cloud Computing in the DOD’s New Fulcrum IT Strategy

Last month, the Department of Defense (DOD) published a new document called the Fulcrum IT Advancement Strategy. The strategy provides a roadmap for better aligning IT investments with the department’s strategic priorities by establishing four lines of effort (LOE) compatible with the complex demands of a dynamic operating environment and modern battlefield.

The LOE outlined in the strategy are:

• LOE 1: Provide Joint Warfighting IT Capabilities
• LOE 2: Modernize Information Networks and Compute
• LOE 3: Optimize IT Governance
• LOE 4: Cultivate a Premier Digital Workforce

Not surprisingly, given the pace with which DOD components have been adopting “as-a-Service” based solutions in recent years, cloud computing plays a prominent role in meeting the Fulcrum strategy’s objectives. Statements pertaining to cloud computing appear under two of the strategy’s four lines of effort – LOE 1 and LOE 2.

Today’s post details the LOE and cloud imperatives, followed by thoughts on the possible implications of these objectives for industry.

LOE 1: Provide Joint Warfighting IT Capabilities

Transition operational systems to a secure, scalable, and resilient network of cloud and edge nodes.

Analyst Comment – This process has been underway since the award of the Joint Warfighting Cloud Capability (JWCC). In March 2024, for example, Lieutenant General Robert Skinner, the director of the Defense Information Systems Agency (DISA) stated that his agency had deployed an overseas cloud supporting the Indo-Pacific Command. To quote General Skinner, DISA has “expanded the availability of its Stratus private cloud outside the continental U.S. (OCONUS) to enable hybrid cloud deployments overseas.”

Enhance terrestrial, maritime, space, and aerial transport infrastructure to enable the delivery of cloud-based capabilities.

Analyst Comment – Extending OCONUS network capacity is a key capability for enabling the expansion of cloud capabilities to defense customers. It is also an area where JWCC providers generally don’t play, potentially providing business opportunities to other industry partners.

LOE 2: Modernize Information Networks and Compute

Expand the use of cloud service providers (CSPs) to provide scalability across all classification levels.

Analyst Comment – This objective is likely to involve JWCC contract holders before other CSPs.

Increase Joint Operational Edge (JOE) nodes globally to enable rapid compute and data processing at the edge while supporting the caching of data in secure conditions.

Analyst Comment – JOE is related to the extension of the Stratus private cloud mentioned above. JWCC CSPs are also involved. Providing cloud capabilities to warfighters in remote locations is the overall objective. INDOPACOM is the primary area of focus at the moment, but further deployments of cloud services are planned for the Western Pacific, Europe, and other locations.

Increase Outside the Continental U.S. (OCONUS) on-premises cloud capabilities (e.g., Stratus) to complement commercial clouds with DOD-operated cloud services.

Increase logging capabilities to improve visibility into cloud security status and rapidly respond to threats in the DOD’s hybrid-cloud environment.

Market Implications

The Fulcrum strategy confirms that in addition to leveraging commercial partners, the DOD intends to make significant investments in on-premise cloud capacity and transport capability overseas. The commercial partners involved are likely to be those holding JWCC contracts. Providing select commercial capabilities and more varied transport capacity should be areas of interest to business partners beyond JWCC.