Federal Priorities: Cloud, Big Data, Mobility, and Data Centers, 2015-2020

Deltek forecasts federal demand for vendor-furnished cloud computing services will increase from $2.4 billion in FY 2015 to $6.2 billion in FY 2020 at a Compound Annual Growth Rate (CAGR) of 21.4%. Similarly, Deltek forecasts federal demand for vendor-provided core big data solutions will increase from $1.6 billion in FY 2015 to $3.2 billion in FY 2020 at a Compound Annual Growth Rate (CAGR) of 14.4%.

Key Findings

Federal agencies are investing in cloud computing, big data, data center optimization and mobility solutions to fundamentally transform their IT environments, resulting in greater efficiency, better managed costs, and improved citizen services. With budget pressures easing in fiscal 2016 and 2017, agency investments in these areas show increased promise and represent growth opportunities for vendors with robust and secure solutions.

Significant factors shaping these technology areas:

• Cloud spending grew moderately in FY 2014, with civilian agencies moving to the cloud more aggressively than the Department of Defense.
• The number of FedRAMP certified cloud vendors grew, but at a slower-than-anticipated pace that is hampering cloud adoption.
• Agencies continue to lack enterprise strategies for employing big data solutions, limiting use of the technology to niche areas and pilot programs.
• By May of 2015, agencies had closed nearly 1,700 data centers, but in order to meet the FDCCI goal of closing 40% of non-core data centers, another 2,000 data centers still need to be closed.
• Agency mobility spending continues to be fragmented and decentralized. Reporting requirements are only just beginning to provide transparency into agency mobility usage and management.
• Security concerns remain a major barrier for broader mobility adoption, with agencies seeking a number of identity management and access solutions from industry.

Critical Insight for Vendors

Deltek’s Federal Priorities: Cloud, Big Data, Mobility, and Data Centers, 2015-2020 report takes a strategic 5-year view of the market factors shaping federal procurement of goods and services related to cloud computing, big data, mobility, and data center consolidation. This report is delivered in PowerPoint® format and includes an Executive Briefing and an Excel® workbook.