Federal Cloud Computing Services Outlook, 2012-2017

Deltek forecasts demand for vendor-furnished Cloud Computing Services by the U.S. government will increase from $734 million in FY 2012 to $3.2 billion in FY 2017 at a compound annual growth rate (CAGR) of 34%.

Key Findings

Amidst a backdrop of tightening agency budgets is a state of IT infrastructure consolidation that is enabling federal agencies to create their own private clouds. Adding to the complexity is an increasing number of vendor contracts awarded for providing these services. The result is a “schizophrenic market, as agencies contract some IT programs and services to commercial cloud providers, while keeping others in-house.

Deltek believes the cloud computing market will grow steadily over the next few years as agencies increase their use of cloud-based solutions. There are several issues that will shape the cloud services market over the next five years:

• The pace of data center consolidation will determine the direction of cloud adoption as agencies decide whether to leverage their internal resources for private clouds or contract to commercial providers.
• FedRAMP is expected to accelerate the rate of cloud adoption as agencies leverage the “certify once, use many times” process for determining the security of a cloud service provider’s solutions.
• Private cloud deployments will continue to dominate the market in the near-term, but a shift toward the use of hybrid and community cloud deployment models may appear in the long-term, spurred by the “Shared First”.

Critical Insight for Vendors

Deltek’s Federal Cloud Computing Services Outlook, 2012-2017 report is intended to provide companies and other interested parties with a detailed view of the issues molding future cloud computing adoption over the next five years, and is designed to enhance a vendor’s federal planning process with strategic market analysis. The report:

• Evaluates the “cloud readiness” of agencies as IT infrastructures evolve toward optimal cloud conditions
• Identifies agency preferences in cloud service delivery types and deployment models, including how cloud services are being used and how those services are being deployed.
• Evaluates the effect that OMB Cloud First, the Federal Data Center Consolidation Initiative, and FedRAMP mandates are pushing agencies in conflicting directions and creating flux in the federal cloud market.
• Explains the complexity of budgeting for cloud services that agencies face, and the current strategies agencies are using to procure cloud services.
• Describes how roadblocks to further cloud adoption at agencies are shaping vendor responses to those government pain points.

Deltek's Federal Cloud Computing Services Outlook, 2012-2017 Issue Report is delivered in PowerPoint® format. The report package also includes a PowerPoint Executive Briefing, and an Excel® workbook.