Data Snapshot

Federal cloud spending projected to soar -- just not quite yet

New projections from Deltek's Federal Industry Analysis team predict that spending on federal cloud computing services will climb rapidly over the next five years, hitting $6.5 billion in fiscal year 2019.

The report projects a compound annual growth rate of 21 percent, even with an initial dip in spending due to cloud-adoption challenges.

Projected Federal Cloud Spending (2014 - 2019)

Numbers below are in billions of dollars

Deltek identified seven trends shaping many agencies' cloud investment decisions, including:

  • Inadequate data governance and management policies made available to agencies.
  • Security concerns for FISMA compliance and FedRAMP certification timelines.
  • Insufficient resources to manage investments, calculate costs, and determine ROI.
  • Cloud computing as a solution to inter- and intra-agency shared services goals.
  • Adapting cloud environments for complex and classified missions.
  • Military departments' cloud procurement independent of DISA.
  • NIST's Cloud Computing Roadmap has provided standards for agency cloud procurement.

Civilian spending might be advancing more quickly than agencies are prepared to handle, the report suggests. The defense side has focused cloud initiatives on system preparedness, and spending on platform-as-a-service has fallen short of both infrastructure-as-a-service and software-as-a-service.

Additional details from the report are available here.

About the Author

Jonathan Lutton is an FCW editorial fellow. Connect with him at jlutton@fcw.com

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Reader comments

Wed, Nov 19, 2014

The biggest single problem is the roadblocks the agency IT shops put in place to protect their current near or complete monopoly on over-priced hosting. I can get all the storage I want at $2/GB/month at the data center without having to determine the ROI but it's a whole new ballgame if I want to store files in the cloud

Wed, Nov 19, 2014

This is half the story. Yes spending classified as "Cloud" may soar, but on a acquisition-by-acquisition basis I would bet you dollars to donuts that each new "Cloud" acquisition has a SMALLER BUDGET than the traditional infrastructure project that preceded it. That may be good for us all as taxpayers, but I think what Deltek is trying to imply is that there is MORE spending and MORE opportunity for IT deals in the market place. What's likely more accurate is that there are fewer deals due to modernization/consolidation and that the total value of these deals is LESS than the non-Cloud deals that preceded them.

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