Federal Update: Cloud, Data Center, Big Data, and Mobility, 2013-2018

Deltek forecasts federal demand for vendor-furnished cloud computing services will increase from $2.3 billion in FY 2013 to $6.1 billion in FY 2018 at a Compound Annual Growth Rate (CAGR) of 18%. Similarly, Deltek forecasts federal demand for vendor-provided big data solutions, including storage, will increase from $5.2 billion in FY 2013 to $5.7 billion in FY 2018 at a Compound Annual Growth Rate (CAGR) of 2%.

Key Findings

Budget pressure, policy mandates, and rapidly evolving technology solutions are pushing federal agencies to employ new strategies for building efficiencies in their IT environments. Deltek predicts that against the backdrop of a shrinking overall federal IT market, cloud computing, data center consolidation, big data, and mobility present pockets of opportunity where vendors can help agencies fundamentally transform their use of IT to reduce costs and increase capabilities.

Significant factors shaping these technology areas:

In FY 2013 agencies dramatically ramped up contract awards for cloud computing from a total awarded contract value (TCV) of $721 million in FY 2011 to just over $17 billion in FY 2013; a 3-year CAGR of 187%.

Total awarded contract value across all agencies for Infrastructure-as-a-Service (IaaS) solutions rose to an all-time high of $12 billion over the period from FY 2009 to FY 2013, including $263 million in the Defense market sector and over $11 billion in the Civilian sector.

Agencies continue to struggle with data center consolidation as the phase of easy wins ends and the number of identified data centers grows from around 2,000 three years ago to more than 7,000 in FY 2013.

Agency investments in big data related goods and services achieved a total awarded contract value (TCV) of over $1 billion in FY 2013, above the 5-year annual average of $929 million from FY 2009 to FY 2013.

Many agencies took significant steps toward implementing the Federal Digital Strategy, laying the foundation for a rapid increase in their use of mobile devices for computing and communications.

In FY 2012 agencies showed a marked preference for using delivery orders to order mobile devices and services over using Blanket Purchase Agreements or definitive mobility-specific contracts.

Critical Insight for Vendors

Deltek’s Federal Update: Cloud, Data Center, Big Data, and Mobility, 2013-2018 report takes a strategic 5-year view of the market factors shaping federal procurement of cloud computing, data center consolidation, big data, and mobility goods and services.

This report is delivered in PowerPoint® format and includes an Executive Briefing and two Excel® workbooks.