Steady increases in the federal IT budget may result in a total federal IT budget in excess of $90 billion in FY’20 according to recent analysis conducted by Bloomberg Government.  Bloomberg states that IT spending in FY’18 was nearly $65 billion and that IT budgets are currently on a 5% annual upward trend. Overall, IT spending is divided almost equally between civilian agencies and the Department of Defense.  While spending on existing infrastructure is still the largest single area of where funds are allocated, cloud, agile technology, and emerging areas such as AI are all experiencing increased spending.  This is great news for contractors that can offer comprehensive, multi-faceted solutions.  While feds still need equipment, it is more and more the services that come from the equipment that they want, rather than the machines themselves.  GSA officials recently reinforced this with a prediction that almost all IT business will be service-based in the near future.  Larger companies are, frankly, generally better situated to conduct DOD business than smaller or newer market entries.  While DOD leaders do want innovation, many larger projects have at least one established company as part of the team.  The risk-averse nature of acquisition decision making is one thing that hasn’t changed.