Government Cloud Market - Growth, Trends, and Forecast (2019 - 2024)

The Government Cloud Market can be segmented by Deployment Model (Private Cloud, Public Cloud, Hybrid Cloud), Delivery Mode (IaaS, PaaS, SaaS), Application (Server and Storage, Disaster Recovery/Data Backup, Security and Compliance, Analytics, Content Management), and Geography.

Market Snapshot

govt cloud summary
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

18.74%

Key Players:

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Market Overview

The government cloud market is expected to register a CAGR of 18.74% during the forecast period (2019 - 2024). The Pentagon alone is expected to spend USD 2 billion on cloud in the coming year.

  • Government data generation is on the rise due to growing census data (ever-increasing population), new policies/initiatives introduction, partnerships with other regions, and GDP increase due to new enterprises mushrooming. Legacy systems consisting of physical hardware are not efficient and might run out of space. Hence, government cloud is mandatory. 
  • In 2009, the United States launched the data.gov portal. Since then, there has been a rapid increase in the systematic opening of government data around the world. Cloud is responsible for the transparency of government data, which promotes the government's accountability and reduces corruption. It also helps in empowering citizens and helps to solve complex public problems bringing a wider range of expertise and knowledge to bear on public problems.
  • The skills gap is the major challenge faced by cloud computing companies. As per IBM, shortage of skills in cloud technologies is one of their topmost prediction in 2018. OpRamp's Cloud Skills Survey also says that most of the enterprises are planning to go for a hybrid model where they will shift certain specialized workload to managed service providers and also the re-skill internal team. 

Scope of the Report

Cloud for government becoming the next big thing as vendors are providing public, private, or hybrid cloud solutions for government data related to its management, security, backup, or compliance. The offerings can be categorized by delivery modes, such as Infrastructure-as-a-Service, Platform-as-a-Service, or Software-as-a-Service. 

By Deployment Model
Public Cloud
Private Cloud
Hybrid Cloud
By Delivery Mode
Infrastructure-as-a-Service
Pltaform-as-a-Service
Software-as-a-Service
By Application
Server and Storage
Disaster Recovery/Data Backup
Security and Compliance
Analytics
Content Management
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Storage is the Most Widely Used Application

  • Downtime due to hardware failures, software misconfigurations, security breaches, and data loss impact the productivity of the government offices.
  • Cloud is a reliable option when it comes to storage of government data. That is because government budgets are limited and on-premise solutions are becoming costlier with an increasing volume of data.
  • Central and state governments have large amounts of data in the form of user records, public policies, and schemes. Thus, it becomes critically important that the government has a strong and robust storage option so that it delivers all the services on demand. 
  • Companies, like Pure Storage, offer all-inclusive software-based encryption, snaps, replication and cloning to ensure data integrity. That cloud database is then managed by Rubrik.
Storage Challenges to govt

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Asia-Pacific to Witness the Highest Growth

  • Asia-Pacific is in the middle of a transformation powered by cloud technologies. 
  • The increasing proliferation of smartphones and tablets are causing major companies to establish their cloud data center in Asia-Pacific. 
  • The governments in Australia and Singapore see cloud services as an opportunity to improve government service delivery outcomes by eliminating redundancy, increasing agility, and providing information and communication technology (ICT) services at a cheaper cost.
  • Moreover, the Government of India has implemented a number of ICT initiatives under the National e-Governance Plan (NeGP), including the creation of ICT infrastructure both at the center and state levels. The infrastructure, thus, created is providing the basis for the adoption of cloud computing for the government with the objective of making optimum use of existing infrastructure, re-use of applications, efficient service delivery to the citizens, and increasing the number of e-transactions in the country, as a result, helping achieve the ultimate goal of NeGP.
govt cloud map

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Competitive Landscape

The market for government cloud is concentrated with major giants, such as Microsoft, Oracle NEC, IBM, and Google, providing cloud solutions and services for the government. The entry barrier is high for this market since the existing vendors have a strong foothold in the market. 

  • April 2019: Amazon and Microsoft are competing for a USD 10 billion military cloud contract called JEDI (Joint Enterprise Defense Infrastructure). JEDI is designed to upgrade legacy systems with newer cloud services. According to the original proposal, JEDI Cloud will provide enterprise-level, commercial IaaS and PaaS to the Department and any mission partners for all Department business and mission operations.
  • November 2018: Amazon Web Services opened a new region of interconnected data centers specifically for the US government and its various contractors.  The new government cloud region comes seven years after Amazon’s first West Coast government cloud region debuted in 2011.

Major Players

  1. Amazon Web Services Inc.
  2. AT&T Inc.
  3. CGI Inc.
  4. Cisco Systems Inc.
  5. Dell Inc.

* Complete list of players covered available in the table of contents below

govt cloud comp

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Need for Greater Storage Capabilities is Driving the Market Demand

      2. 4.3.2 Need for Data Transparency are Expanding the Market

    4. 4.4 Market Restraints

      1. 4.4.1 Cloud Computing Skills Gap is Hindering the Market Growth

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Deployment Model

      1. 5.1.1 Public Cloud

      2. 5.1.2 Private Cloud

      3. 5.1.3 Hybrid Cloud

    2. 5.2 By Delivery Mode

      1. 5.2.1 Infrastructure-as-a-Service

      2. 5.2.2 Pltaform-as-a-Service

      3. 5.2.3 Software-as-a-Service

    3. 5.3 By Application

      1. 5.3.1 Server and Storage

      2. 5.3.2 Disaster Recovery/Data Backup

      3. 5.3.3 Security and Compliance

      4. 5.3.4 Analytics

      5. 5.3.5 Content Management

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 Latin America

      5. 5.4.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Amazon Web Services Inc.

      2. 6.1.2 AT&T Inc.

      3. 6.1.3 CGI Inc.

      4. 6.1.4 Cisco Systems Inc.

      5. 6.1.5 Dell Inc.

      6. 6.1.6 Google Inc.

      7. 6.1.7 IBM Corporation

      8. 6.1.8 Microsoft Corporation

      9. 6.1.9 NetApp Inc.

      10. 6.1.10 Oracle Corporation

      11. 6.1.11 Rackspace Inc.

      12. 6.1.12 Salesforce.com Inc.

      13. 6.1.13 Verizon Wireless

      14. 6.1.14 VMware Inc.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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