Boeing's Big Data Investments
Jennifer Lynn | Jun 13, 2013 10:39AM ET
The Boeing Company (LMT ) shares fell $.12 or .1 percent, to $97.18 April 12. The company show weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow. The debt-to-equity ratio is very high at 161.74 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
The company is implementing cost-effective ways to detect and prevent fraud through analyzing huge data sets generated by various application logs at a major government agency. The company has the potential to save the government a significant amount of money. Lockheed Martin is implementing secure ITIL-based Cloud solutions at defense and civil government agencies. They benefit by significant reductions in infrastructure acquisition time.
Boeing is about twice the size of Lockheed. Both companies are about the same size when it comes to the defense industry about $30 billion. UCAV plans to be completed over the next couple of years which could end up being a Boeing win. The government wants both Lockheed and Boeing to survive, keeping the rivals competition strong.
Boeing has cut costs and increased productivity in order to better compete over its rivals. Boeing is also investing in areas that address “the macro trends” its customers are facing. They include data proliferation, persistent and asymmetric security threats, the consumerization of information technology, the government’s need for more efficiency, the rapid adoption of mobility and a shift in the business model to move to managed services.
For investors, big data and cloud computing is no doubt a huge area of opportunity today and over the next five to seven years. Investing here should be priority. Big Data companies with stability, low operating costs and longer experience will come out winners. According to Cisco, global Internet traffic will reach 966 exabytes per year by 2015. Expect Boeing to continue to evolve, developing significant projects and investments in big data to be underway.
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