Contractors increase acquisitions as DoD cyber budget grows

Tuesday - 6/14/2011, 6:01pm EDT

The Defense Department is making some serious budget cuts. But the DoD's cybersecurity budget is actually growing.

And defense contractors like Lockheed Martin and Northrop Grumman are trying to capitalize on that shift in funds.

The contractors have been snatching up small cybersecurity firms.

But Defense Industry Daily reports many insiders are skeptical, citing the recent hacks on Lockheed Martian as an example of potential cybersecurity problems.

This story is part of Federal News Radio's daily Cybersecurity Update. For more cybersecurity news, click here.