Federal Priorities: Cloud, Big Data, Mobility, and Data Centers, 2016-2021

Published: October 31, 2016

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Deltek's Federal Priorities: Cloud, Big Data, Mobility, and Data Centers, 2016-2021 report explores key trends in cloud, big data, mobility, and data centers that are transforming federal IT environments.

As the pressure to modernize IT infrastructure grows, federal agencies continue to invest in cloud computing, big data, data center optimization and mobility solutions. The need for a more secure IT footprint, greater efficiency and effectiveness, lower costs, and improved citizen services will continue to fuel investments in these areas. Budget stability in 2017 will support these investments in the near-term and provide growth opportunities for vendors with robust and secure solutions. Savings in operational costs and efficiency, as well as demonstrated security benefits, will help support long-term investment.

Deltek forecasts federal demand for vendor-furnished cloud computing services will increase from $3.1 billion in FY 2016 to $6.35 billion in FY 2021 at a Compound Annual Growth Rate (CAGR) of 15%. Similarly, Deltek forecasts federal demand for vendor-provided core big data solutions will increase from $1.95 billion in FY 2016 to $3.5 billion in FY 2021 at a Compound Annual Growth Rate (CAGR) of 13%.

Key Findings

  • Cloud spending rose from FY 2014 to 2015, but slowed compared to the previous year. Civilian agencies continued to outspend the Department of Defense, but both civilian and defense agencies continue to prefer private and community clouds vs. public clouds.
  • Modernization initiatives, both legislation and policy guidance, are ramping up pressure on agencies to adopt cloud computing. Reduced FedRAMP approval time is expected to greatly increase the number of compliant solutions available to agencies in the coming years.>/li>
  • Agency spending on big data goods and services rose from FY 2014 to FY 2015, continuing the growth trend from previous fiscal years. Although civilian agencies outspent the Department of Defense overall, DoD spending grew at a faster pace.
  • R&D related to big data and high performance computing continues to command billions of dollars in funding across both the civilian and defense sectors of the market.
  • Federal contract spending on mobile equipment and services as a whole is on the rise, with spending on equipment and products rising at a faster clip than that of services spending.
  • The new Data Center Optimization Initiative (DCOI) is expected to give new life to data center efforts, which were falling lower on agency IT priority lists behind cybersecurity, cloud computing, and mobility.
  • Critical Insight for Vendors

    Deltek’s Federal Priorities: Cloud, Big Data, Mobility, and Data Centers, 2016-2021 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 via several PowerPoint® chapters and includes an Executive Briefing and an Excel® workbook.
  • INTRODUCTION
    • Purpose of This Report
    • Scope and Methodology
  • CLOUD COMPUTING
  • BIG DATA
  • MOBILITY
  • DATA CENTER CONSOLIDATION
  • CONCLUSIONS AND RECOMMENDATIONS
  • APPENDIX
    • Terms and Definitions