Cloud Computing–Top IT Trend in Government Contracting Over Next Five Years


A new research study projects government IT spending on cloud computing will grow at a dramatically faster rate than other IT expenditures.  According to a post on Nextgov.com, a study by INPUT projects Federal IT spending to grow by 3.3% over the next five years.  This compares to an expected growth rate of 27% for cloud computing over the next five years.

Cloud computing is a term describing software applications or platforms delivered as a service over the Internet.  In contrast to applications residing at each local computer, cloud configurations provide users with centrally accessible applications through a browser interface.

IMPLICATIONS

In the past, IT managers and organizational leaders have been fearful of cloud computing mainly for security reasons.  Also, in sectors such as public safety, funding mechanisms were tied to asset acquisition (e.g. buying hardware) and could not be used for “subscription-based” services. 

Expect these attitudes to change over time.  New security applications are in development that will continue to increase cybersecurity.  Restricted cloud solutions, where applications are delivered via a private, secure network as opposed to the public internet, should see a rise in deployments.  And, government procurement rules are changing to allow for the SaaS (Software as a Service) model.

In all, software and technology government contractors should be planning for a shift in how its applications are delivered, priced and serviced.  The cloud model may ultimately provide greater profitability for vendors while lowering maintenance and other costs to the taxpayer.

-LBB

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2 comments on “Cloud Computing–Top IT Trend in Government Contracting Over Next Five Years

  1. […] Site Makes Tracking Stimulus by Federal Department Easier August 7, 2009 In line with our blog post of August 5 on cloud computing, the General Services Agency (GSA) has released a special notice outlining requirements of cloud […]

  2. […] 10.  Cloud Computing–Top IT Trend in Government The movement of government IT professionals to adopt cloud computing solutions and methods. […]

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