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Cloud Computing: Sequestration Stalls Federal IT Budgets in 2013
Sequestration has hit federal budgets this year, resulting in budgets for 2013 that have been basically flat. A report from IDC expects that federal IT budgets will begin to grow again in 2014, and spending on the cloud is expected to increase accordingly.
Shawn McCarthy, research director at IDC Government Insights, said that “there are clear indications that fiscal year 2014 will continue to be a flat year for cloud computing investments. Yet beyond that, growth potential looks bright. Investments should reach a critical mass around 2015 and beyond. A new emphasis on cloud solutions is expected to return within the next 18 months, and private cloud investments should approach $7.7 billion by FY2017.”
- Federal cloud usage is skewed towards the private cloud ($1.7 billion in 2013 and expected to reach $8 billion by 2017)
- Use of the public cloud is limited by concerns about security and privacy
- The US Treasury is the leading federal user of the public cloud
- The Social Security Administration is the leading federal user of the private cloud
- The Department of Justice is the leading adopter of “community cloud” solutions
- The breakdown of IDC estimates for federal cloud spending growth between now and 2017 are: IaaS will grow to $5.4 billion, SaaS will grow to $2.4 and PaaS will grow to $1.1 billion
