Via CRN: Government-Focused Cloud Industry Predicted To Reach $18.48B By 2018
The government cloud market is predicted to soar to $18.48 billion in revenue in 2018 from $2.87 billion last year, according to a just-released MarketsandMarkets research report.
According to Dallas-based MarketsandMarkets, the rise in cloud adoption in the government sector is primarily due to a colossal disruption in the traditional technology ecosystem, said Priyam Agarwal, research associate at MarketsandMarkets.
“This disruption will result in increasing opportunities for many key players in the market, including Web and cloud masters like Amazon and Google, along with a large number of telecom operators and other services providers,” said Agarwal. “In order to protect their security interests, government agencies at federal, state and local levels require a secure and a quick method to synchronize and transfer their confidential information across agencies.”
The ability for government agencies to pay as they go as well as increased storage and computing capabilities have helped boost cloud adoption in the space, said Agarwal.
“Today, there are online marketplaces for information and communication services specifically for the government agencies, [including] IaaS, PaaS, SaaS and various other consulting services. Government departments can easily purchase cloud services on a pay-as you-go model or on yearly contracts,” said Agarwal. “Government cloud helps the entities to securely and efficiently manage and store their data. This results in enhanced and unified teams, handling much bigger projects at an effective cost.”
IT standardization is yet another factor driving cloud adoption in government agencies, said Agarwal.
“Currently, the cloud adoption is purely driven by IT,” said Agarwal. “But, going forward, it will be driven by the respective government [agency’s] mission. The government agencies are modifying their IT portfolios to take advantage of cloud computing and to maximize the capacity utilization, to improve IT flexibility and responsiveness, and to minimize operating costs.”
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