The Army is changing more than the equipment it buys. It is changing how that equipment connects, how quickly capabilities reach soldiers and how industry participates in modernization. The Army’s FY27 budget request gives IT companies a clearer picture of
where IT hardware modernization is heading: toward the infrastructure that connects soldiers, sensors, command applications, autonomous systems and electronic warfare capabilities.

The Department of Veterans Affairs (VA) is entering a pivotal phase of its Electronic Health Record Modernization (EHRM) initiative, creating a growing market for vendors and resellers supporting healthcare technology, infrastructure, cybersecurity, and data integration. With 26 planned deployments accelerating across VA medical facilities nationwide and increased investment in FY27, we see opportunities positioned to support modern infrastructure, secure connectivity, interoperable data, and reliable systems capable of supporting healthcare delivery for millions of veterans.

Quantum is now a high priority in federal IT modernization, cybersecurity, procurement and national security. Federal mandates and directives are accelerating the need to strengthen quantum leadership and preparing government systems for post quantum cyber resilience.

Driven by initiatives such as the AI Action Plan, Department of Energy Genesis Mission and the National Security Strategy, there has been exponential adoption and investment for AI in the last year. As AI expansion is expected to move from experimentation to enterprise deployments, demand for the infrastructure that powers AI is anticipated to continue rapidly accelerating. 

The US Department of the Air Force has been undergoing a steady stream of transformations as it forges toward technology modernization. A notable change this year has been the formation of Portfolio Acquisition Executives, responsible for procurement of goods and services to address a specified mission, with the main goal to speed up technology procurement in support of warfighters.

School districts are often seen as easy targets for cyberattacks given an abundance of sensitive information but little security. According to the Department of Homeland Security, more than 1,300 cybersecurity incidents happened between 2018-2021 (not including non-publicly documented incidents). The Department of Education says that every week the average school district experiences 5 cyber incidents.

Over the last few years, SLED cloud strategy has played a pivotal role in public sector modernization efforts. Agencies have invested in application migration, utilized more software-as-a-service capabilities, and constructed increasingly hybrid environments across public cloud, private cloud, and on-premises infrastructure.

The defense industrial base is a critical partner in advancing the DOW’s national defense priorities. To accelerate industry participation, the DOW has launched the Golden Dome Hub as a practical digital entry point for organizations that want to contribute to the Golden Dome Initiative.

Over the last few years, AI has been the hot topic of conversation in SLED IT. We’ve seen AI move from theoretical to actual implementation. SLED agencies are now deploying AI across a wide range of use cases including citizen services, workforce productivity, document processing, case management, fraud detection, and analytics and decision support, among others.

Kirsten Baesler, Assistant Secretary for the Office of Elementary and Secondary Education, made clear in an August 2026 Dear Colleague Letter (DCL) that technology certainly plays an important role in education. At the same time, vendors and partners need to increase transparency and shoulder accountability with schools regarding student success and outcomes.