A digital array radar system prototype is presented that makes use of a hierarchical digital backend coupled with highly-integrated, multi-channel RF transceivers. The general benefits of using such a hierarchical architecture are briefly discussed, along with how this prototype is in line with a vision for future radars that fully embrace the concept of low-cost integration in a panelized platform. A target tracking example is given using the prototype that illustrates some specific advantages to using a hierarchical digital backend.