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US Federal Cloud Computing: Now Represents 5 Percent of Total IT Budget
Last year the US Office of Management and Budget (OMB) forecast that the federal government would spend roughly $2.2 billion on cloud computing in 2014. Three-quarters of the way through the year though, spending is now closer to be nearly $3 billion for the year. IDC predicts that by 2015 that federal cloud spending will reach $3.4 billion.
Among cloud sectors, the government is spending the most on SaaS, more than $1.3 billion, and IaaS accounts for about $986 million. The cloud now represents about 5 percent of the federal government’s total IT budget. Many government agencies are deploying private cloud infrastructure, like the Pentagon, CIA and Department of Homeland Security. Amazon’s AWS is being used by US intelligence agencies.
Shawn McCarthy, a research director for IDC, said that “clearly cloud growth is ramping up in the U.S. Federal Government. Spending went higher than originally predicted this fiscal year and we expect that the growth will continue into FY2015, even though the Office of Budget Management has indicated that it will cut back slightly on cloud spending. The main reason we believe that growth will continue is that cloud is proving to be a cheaper solution in some cases for government agencies. For that reason alone, some will make the switch, although that kind of commitment should not be made without a detailed return on investment analysis.”
