Growth Opportunities in the Global Combat Cloud for Defense Applications Market

Adapting Commercial Technology to Military Standards Drives Transformational Growth

Militaries are turning toward cloud computing for hosting their digital assets in a unified security platform to promote cross-branch collaboration and manage security risks effectively. In this research service, the publisher examines current market trends, identifies key cloud service providers and companies to watch, and offers insights into relevant projects and contracts. The analysis also explores the role of cloud in the regional military landscape and technology trends sparking innovation in the industry.

The commercial nature of most cloud combat systems means that sourcing directly from original equipment manufacturers rather than developing from scratch enables faster acquisition and deployment for defense departments. The United States is among the countries streamlining software procurement, as seen in the Department of Defense's Software Acquisition Pathway. However, transitioning to cloud hosting incurs high costs because of investments in hardware, software, and secure data centers, alongside expensive data migration and integration with legacy systems. Inflation also can reduce the real value of long-term contracts over time.

The Impact of the Top 3 Strategic Imperatives on the Combat Cloud for Defense Applications Industry

Why

• Militaries are turning toward cloud computing for hosting their digital assets in a unified security platform to promote cross-brand collaboration and manage security risks effectively.
• The cloud provides enhanced real-time connectivity and scalability as opposed to “on-prem” data systems.
• The digitalization of warfare gives way for massive information technology (IT) updates in most defense departments.
• The implementation of cloud architectures is one of the key axes in these modernization efforts, as lessons are learned from ongoing conflicts like the Russo-Ukrainian War.
• Commercial companies like Microsoft and Google are frequent providers of cloud technology to defense departments.
• Their existing vast infrastructures, plus their reputation as reliable suppliers, gives them an advantaged market positioning with militaries.

Analyst Perspective

• Defense departments require the adaptation on commercial systems to military standards and mission requirements.
• This interaction sparks growth opportunities for enhanced security protocols, DevSecOps*, data sharing, and interconnected assets in the Military Internet of Things (MIoT).
• These conflicts have showcased the importance of multi-domain capabilities to deliver a unified response to enemy attacks.
• The cloud creates a common operational picture across contested environments (land, air, sea, cyberspace, and the electromagnetic spectrum), providing commanders with a holistic view.
• Militaries implement one-stop shop models to gain access to cloud platforms from a wide range of commercial vendors.
• Such companies often partner with defense-focused businesses like Raytheon and BAE Systems to customize their platforms and make them more compliant with military requirements.

Scope of Analysis

• This study explores the global defense combat cloud market, highlighting trends, challenges, drivers, restraints, and growth opportunities.
• The research also points out key market participants, joint and national programs, and relevant contracts.
• The base year is 2024, and the study period ranges from 2024 to 2029.
• The monetary unit used throughout this study is the US dollar (USD).
• The exchange rates used are the United Nations Operational Rates of Exchange from March 14th, 2025.

Limitations

• The exchange rates used for this study may not reflect currency fluctuations over the study period. This could impact the accuracy of financial projections and market valuations in non-USD currencies.
• This report does not include classified programs, whether national or regional, leaving a portion of the defense combat cloud market unreportable.
• This study uses publicly available information from official government and military branches’ websites, news outlets, official budget documents, and insights from industry participants obtained through interviews.

Growth Drivers

• Several countries are carrying out long-term military cloud programs on their own or in partnership with other nations. These programs hold high priority within defense budgets and are a key component of larger modernization efforts.
• Some examples are the Joint Warfighter Cloud Capability program from the United States, the European Defense Operational Collaborative Cloud, and Australia’s Nexium Defense Cloud.

Militaries consistently emphasize the importance of ensuring readiness for multi-domain combat through joint training exercises, as real-life conflict will most likely require collaborative action instead of separate efforts.

• These initiatives rely on cloud computing for cross-force data sharing, command, control, and coordination, pushing the demand for these technologies.
• Given the commercial nature of most combat cloud systems, sourcing them directly from OEMs instead of developing them from scratch leads to faster acquisition cycles and deployment timelines.
• Some nations push forward frameworks to further streamline software procurement processes for defense departments. This is the case with the US Department of Defense (DoD) Software Acquisition Pathway.

Growth Restraints

• Restraint Transitioning from physical data systems to cloud hosting involves high implementation costs, as it requires significant investment in new hardware, software, and secure data centers.
• Data migration and labeling, plus the integration with legacy systems, can be costly and involve lengthy procedures for defense departments. Inflation plays a role here too, as real long-term contract values constrict over time.
• Compliance with cyber and data security regulations can slow down cloud adoption in defense departments. Since these systems work with sensitive information, companies can take longer to have their products approved for military use to ensure watertight security.
• This aspect is of particular importance in Europe, where frameworks like the General Data Protection Regulation enforce stringent standards for cloud providers.
• Certain combat or military training environments possess weak bandwidth and connectivity, limiting the use and reach of cloud technology and other communication systems.
• Cloud’s reliance on RF-based communications via satellite communications or tactical data links, which are prone to jamming and cyberattacks from enemies, can restrict its applications in these contested environments.