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Strategy Analytics: COTS Obsolescence Management Needs Defense Industry Standards
COTS Economic Benefits Eroding
Boston, MA - May 13, 2010 – Increasing use of COTS (commercial-off-the-shelf) components has gone hand-in-hand with the growing problem of COTS obsolescence. The Strategy Analytics Advanced Defense Systems (ADS) service report, “Cost Implications of COTS Obsolescence Management Trends,” concludes that while several methods for COTS obsolescence management have found favor in military procurement in mitigating specific aspects of COTS obsolescence, the defense industry needs to develop a comprehensive and standardized solution.
From 1980 to the present there has been a steady growth of factors driving obsolescence in COTS components. As the solutions for COTS obsolescence move "off-the-shelf" systems further away from their commercial economic characteristics, it will become increasingly necessary
- to develop a comprehensive and standardized solution for COTS obsolescence management; and
- to redefine the characteristics of these systems so that TCO (total cost of ownership) can be effectively evaluated and assessed.
“Even as the defense industry faces multiple challenges in terms of environmental legislation, there is a growing requirement to incorporate countermeasures capabilities in COTS-based systems,” noted Asif Anwar at Strategy Analytics. “This introduces another catalyst for COTS obsolescence that needs to be managed.”
Mr. Anwar added, “Implementation of systems for management and elimination of COTS obsolescence all incur significant costs. But it is currently difficult to assess how much these additional "value-added" activities cost over the life of the platform. With growing pressure on defense budgets, Strategy Analytics believes that it is vital that standards for obsolescence management be established, so as to allow the economic implications of those specifications to be properly evaluated on a TCO basis.”
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