Military VME market depends increasingly on systems upgrades and technology refresh

SCOTTSDALE, Ariz., 13 Feb. 2008. In 2008 military systems integrators will upgrade existing legacy platforms more than ever before, and VME embedded computers will play a big role, says VME industry expert Ray Alderman.

Requests for price quotes from systems integrators -- better-known as RFQs -- were more common in 2007 than they were in 2006, and "we should see a near doubling of RFQs for more VME legacy products in 2008," says Alderman, executive director of VITA, the open-standards trade association in Scottsdale, Ariz., in a white paper released today entitled 2008 State of the VME Technology Industry.

Most of the RFQs seen in 2008 will be for VME32 and VME64 products (i.e., newer CPUs, faster A/D cards, etc.), Alderman predicts. Still, several reset programs will require hundreds of new chassis and backplane products, he says. In addition, "order sizes of 50 to 100 boards are showing up now with some as high as several hundred. So, I believe that they can anticipate a brisk business."

With this in mind, VME board suppliers must adjust to good business conditions for legacy VME boards, but the orders will be for small volumes, Alderman predicts.

Defense and aerospace continues to be VME's largest market by revenue, Alderman says. Spending on new programs will continue, yet at a relatively low rate as new major military platform programs have been unfunded or funding has been reduced.

"We will see some new technology systems built and shipped in 2008," particularly for the U.S. Army's Future Combat Systems program (FCS)," Alderman says. Even so, "there seems to be a shift in the DOD budget that favors legacy platform refresh over new platform deployment," he points out.

VME suppliers are well advised to keep an eye on military program upgrades and technology insertion of new boards, also known as "resets," Alderman says. "In 2006, the DOD budget allocation for resets was $6 billion. In 2007, that budget was increased to $24 billion and in the present 2008 DOD budget, it is $38 billion. A significant portion of the reset budget is used in electronics."

Overall, the market for VME products will grow about 10 percent in 2008 from the current base of $1 billion, Alderman predicts. To learn more about specific VME Technology, review VITA's VME Technology white paper at For other VME information contact VITA online at

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account.

The Innovation That Matters™ Quiz

Innovation is one of the key drivers in the Defense industry. View this short video of Leon Woo, VP of Engineering at Mercury Systems, on the role of innovation. Then, answer 3 simple questions correctly to be entered into a drawing to win an Eddie Bauer fleece jacket!


Military & Aerospace Photos

Related Products

RR2P Removable Canister RAID System

Transportable data storage for mobile field use aboard planes, ships and ground transport. 2U, du...

API DC Link Power Film Capacitors

High reliability DC link capacitors for power inverter applications which require superior life e...

XPort9200 Conduction- or Air-Cooled 12-Channel High-Speed CAN Bus XMC or PMC

The XPort9200 is a conduction- or air-cooled 12-channel CAN bus XMC or PMC module. Each high-spee...

Related Companies

Winchester Systems Inc

At its founding in 1981, Winchester Systems introduced its first 5 MB disk system for Intel development system users....

API Technologies Corp

Who We Are API Technologies is a dominant technology provider of RF/microwave, microelectronics, and security technol...

Extreme Engineering Solutions Inc (X-ES)

 Extreme Engineering Solutions, Inc. (X-ES) is a leader in the design, manufacture, and support of standard and ...
Wire News provided by   

Most Popular Articles


Meeting the Gen3 backplane challenge with OpenVPX and COTS

Tight Pentagon budgets mean military systems must stay in the field for longer than ever before. This doesn't mean obsolete technology, however. Today's military electronics are being upgraded constantly, an...
Sponsored by:

Digital signal processing for signals intelligence and electronic warfare

Military & Aerospace Electronics presents an expert Webcast on the design considerations for blending general-purposes processors (GPUs), general-purpose graphics processors (GPGPUs), field-programmable ...
Sponsored by:

Advantages of Intel Architecture Products and Wind River Solutions in Military & Aerospace Applications

This webinar explains the individual advantages of the Intel Architecture hardware, available for long-life supply, and the WRS software portfolio.  There are extraordinary advantages of combining such ...
Sponsored by:

social activity

All Access Sponsors

Mil & Aero Magazine

February 2014
Volume 25, Issue 2

Download Our Apps




Follow Us On...


Military & Aerospace Electronics

Weekly newsletter covering technical content, breaking news and product information

Defense Executive

Monthly newsletter covering business news and strategic insights for executive managers

Embedded Computing Report

Monthly newsletter covering news on embedded computing in aerospace, defense and industrial-rugged applications

Unmanned Vehicles

Monthly newsletter covering news updates for designers of unmanned vehicles