Sunday, July 12, 2009

Input: Cloud Computing, Security to Drive US Gov't IT Spending

According to a PC World article, cloud computing and cybersecurity will be the high-growth areas for government IT spending over the next few years. The analysis and consulting firm Input projected that the federal government's cloud-computing market will grow by 27 percent over the next five years, with spending of more than $1 billion in 2014. Cybersecurity spending is expected to grow at a compounded annual growth rate of more than 8 percent, from $8.2 billion this year to $12.2 billion in 2014.

According to Deniece Peterson, manager of industry analysis at Input, the growth in cloud computing is a big area to watch. Instead of trailing the commercial sector, government use of cloud computing is expected to grow about the same rate as in the private sector.

Last year, Input projected a compound annual growth rate of 4.1 percent in total government IT spending over five years, and this year the five-year growth rate is down to 3.3 percent a year. While Input has adjusted the numbers downward, there are still some "really promising" opportunities for contractors, given the bad economy, Peterson said.

Contractors should, however, be ready for acquisition reform efforts in the U.S. government, she added. The Obama administration, members of Congress and the U.S. Department of Defense are all pushing for more transparency and accountability in contracts, and contractors should expect more reporting requirements and oversight, she said.

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