Federal Communications and Network Services Market, 2011-2016

Deltek forecasts demand for vendor-furnished Communications and Network Services by the U.S. government will increase from $21.0 billion in 2011 up to $31.0 billion in 2016 at a compound annual growth rate (CAGR) of 8.1%.

Key Findings

The federal communications and network services market, like all of federal IT, is in a state of transformation. Amidst a backdrop of tightening agency budgets, workforce gaps and policy changes is a state of convergence as the lines between voice and data and between “IT provider” and “communications provider” continue to blur. Adding to the complexity is the burgeoning scope and consolidation of the contracts providing these services. A critical new element of this market is cloud computing, which has the potential to change the federal IT landscape.

Deltek believes the market will remain steady over the next few years with tremendous growth potential, fueled by cloud computing, mobility, and expanding bandwidth requirements, in the latter years of the forecast period. There are several issues that will shape the communications and services market over the next five years:

• Budget issues tempering near-term growth, but facilitating small wins and efficiencies that will support future growth, particularly in cloud computing and mobility.
• Cloud computing making small strides with the launch of FedRAMP, but full potential is delayed due to aggressive timelines, lack of infrastructure readiness, and operational gaps such as security, standards, and metrics.
• Mobility is poised for explosive growth, driving the need for robust mobile security solutions.
• Demand for satellite communications will continue, alongside calls to better utilize existing resources.
• Emerging issues such as unified communications, Communications-as-a-Service, and Machine-to-Machine technologies (M2M) garnering more interest.

Critical Insight for Vendors

The report explores the federal communications and network services market environment and the market factors influencing the size and direction of federal spending over the next five years. For the top 12 departments, the report also provides analysis of the most used contract vehicles to identify most likely to be utilized for provide communications and network services, as well as the top contractors serving those agencies.

The report is intended to provide companies and other interested parties with a detailed view of the issues molding future communications and network services spending over the next five years, and is designed to enhance a vendor’s federal planning process with relevant strategic analysis.

Deltek's Federal Communications and Network Services, 2011-2016 report is delivered in PowerPoint® format. The report package also includes a PowerPoint Executive Briefing, and an Excel® workbook with charts and data.