A new Deltek report predicts that agency investment in commercial cloud computing products and services will increase from $5.3B in the current fiscal year to $9.1B by FY 2024.
The federal cloud market is projected to experience a 9.6 percent compound annual growth rate over the next five years as civilian agencies look to replace legacy information technology systems, bolster cybersecurity and incorporate artificial intelligence into IT operations.
“Pressure from the White House and Congress on agencies to leverage modern commercial capabilities and divest expensive legacy IT infrastructure is growing, and agencies are developing more aggressive strategies for cloud adoption,” Deltek’s Alex Rossino, Deniece Peterson and John Slye wrote in a joint report published Saturday.
They noted new working capital funds can help agencies manage budget for cloud-focused programs, while the Office of Management and Budget’s Trusted Internet Connections policy can aid agencies in addressing network-related technical challenges.
Rossino, Peterson and Slye also forecast that federal spending on infrastructure-as-a-service platforms will continue to dominate the market.
Vendors who offer management and integration services have the opportunity to support multicloud environments in the government, according to the market analysis report.