After a decade of war in Afghanistan and Iraq, the Obama Administration has adopted a new defense strategy that recognizes the need to limit our strategic ends in an era of increasing limits on our military means. The strategy calls for armed forces capable of conducting a broad range of missions, in a full range of contingencies, and in a global context that is increasingly complex. It calls for doing so with a smaller defense budget. Opportunities for savings come from reducing the ability to fight two regional conflicts simultaneously and from not sizing the force to conduct prolonged, large-scale stability operations.