Technology Selection: Government Cloud Spending by U.S. Federal Agency — Growth and Slight Contraction
This IDC Government Insights report takes a detailed look at how the U.S. federal government is spending part of its IT budget on cloud-based solutions. U.S. federal government investments in private cloud solutions have slowed for FY13, but they have not stopped. Meanwhile, public cloud investments will increase, but the spending is still dwarfed by overall private cloud investments.
The federal government is expected to spend $118.3 million on public cloud solutions in FY14 (an increase of 32.8% over the previous fiscal year) and over $1.7 billion on private cloud solutions (a decrease of 5.7%).
"There are clear indications that FY14 will continue to be a flat year for cloud computing investments," said Shawn P. McCarthy, research director at IDC Government Insights. "Yet beyond that, growth potential looks bright. Investments should reach a critical mass around 2015 and beyond." A new emphasis on cloud solutions is expected to return within the next 18 months, and private cloud investments should approach $7.7 billion by FY17.