Increasing Big Data in Government noted as key trend for Government Cloud Market

Posted by Devanshu Shrivastava on February 27th, 2020

The rising government inclination toward digital transformation is another factor driving the growth of the government cloud market. The ongoing trend of digital transformation has positively impacted the government sector for adopting new cloud computing technologies. For example, the Obama administration’s “Cloud First” initiative kicked off the mainstream implementation of government cloud, which has further attracted other central/federal agencies to opt for digital solutions and ramp up their traditional data centers. Hence, the effort for streamlining the government’s inefficient technology infrastructure is creating a huge demand for government-specific cloud offerings in the last few years.

A key trend being observed in the government cloud market is the surging big data in the government-industry. Big data in the government sector facilitates effective decision making with enhanced administration. The huge amount of public data is being generated on a daily basis due to the surging population around the world and the digital transformation of the government-industry. By making use of this big data, governments can enable breakthroughs in several management programs, where they can use the best available public information and modify or update citizen welfare policies as per data patterns.

In 2017, the global government cloud market generated a revenue of .8 billion and is expected to register a 15.4% CAGR during the forecast period (2017–2023). The market is growing due to the increasing inclination of government toward digital transformation, reduction in total cost of ownership (TCO), and government cloud-enabling improved agility and adaptability. The advanced cloud computing solutions which are majorly developed for government organizations and institutions are referred to as government cloud. The solutions focus on the hosting of critical and bulk agency’s data onto the cloud.

When a product is taken into consideration, the government cloud market is bifurcated into service and product. Between these two, the market was dominated by the product classification during the historical period (2013–2016). In terms of product, the market is divided into disaster recovery (DR), risk & compliance (RCM), storage, identity & access management (IAM), and others (which include work load management and security). The storage division held the largest share of the market during the historical and is predicted to dominate the market during the forecast period.

Hence, the market is growing due to the rising inclination of government toward digital transformation and reduction of TCO by using government cloud.