Federal cloud services budgets to exceed $6 billion in 2017
The evolving IT landscape is providing both private businesses and public organizations the ability to leverage a broad range of services to improve operations without driving costs through the roof. While these capabilities have always been important, the ongoing pressure to keep technological endeavors within a certain budget has increased the need for executives to pursue cost-effective strategies.
In many cases, the need to remain financially stable has brought a large number of federal agencies in particular to the cloud. This trend was highlighted in a recent Deltek study, which forecast that government spending on cloud services is to increase from $2.3 billion in the 2013 fiscal year to roughly $6.1 billion in 2017.
Although the draw to the cloud is largely from an economical standpoint, decision-makers are quickly realizing that leveraging the cloud enables them to adopt alternative next-generation IT strategies simultaneously, including big data, mobility and other endeavors. Deltek revealed that federal agencies are realizing the financial and operational benefits of embracing these initiatives at the same time.
"These solution areas are priorities for agencies individually," said Alex Rossino, principal research analyst at Deltek. "But in tandem, these solutions work together to facilitate the cost savings and improved performance that every agency seeks."
As the cloud landscape evolves, executives will likely find the hosted services even more appealing.
The dawn of the cloud
Data center consolidation is becoming increasingly important within the federal landscape, as maintaining expensive and expansive internal infrastructures is no longer advantageous for many organizations. The proliferation of cloud services allows decision-makers to consider outsourcing their IT architectures to trusted managed service providers that can help agencies keep costs down without compromising efficiency.
A separate Market Research Media report highlighted how the federal cloud computing market in the United States is expected to expand at a compound annual growth rate of more than 16 percent between 2013 and 2018. By properly planning and carrying out cloud procurement, deployment and management strategies, agencies of all sizes can experience innovative opportunities to improve internal operations and boost their long-term chances of survival.
The global cloud computing environment is forecast to continue to expand in the coming years, which will be encouraging to federal agencies that are looking to take part in the movement as the need to keep unnecessary IT costs to a minimum remains a priority.
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