Spending on cybersecurity from federal contracts will grow to $11.4 billion in 2018, according to a Deltek report released Wednesday. The amount projected is up from $9 billion over the 2013 calendar year, for an increase of almost 27 percent over the five year span.
The report, entitled Federal Information Security Market, FY 2013-2018, cites multiple initiatives to improve the cybersecurity of federal agencies, in a context of persistent threats, changing technology, and evolving policy.
The report digs down to help contractors identify areas of budget growth. The growth in dependence on systems, volume of data, and the diversity of attacks will require federal agencies to make room in budgets for cybersecurity even while other areas are being squeezed.
“Agencies are grappling with handling the sheer variety and pace of cyber threats with their available resource mix of people, skillsets and tools,” Deltek analyst John Slye said. “Keeping core security policies and protocols current while finding ways to get ahead of the threats requires investment in people and technologies, even in lean fiscal times.”
Deltek says that advances in security technologies like continuous monitoring, and data analytics are being weel received by federal agencies. The report forecasts information security spending for twenty government agencies, and broken down by six market segments.
The US government released the draft of its executive order-mandated cybersecurity framework in October, as part of the process of setting information security standards for federal agencies. An element of the evolving security standard is the FedRAMP program, which approved IBM’s SmartCloud for Government in November.
A recent MarketsandMarkets report predicted that the global government cloud market will grow to nearly $18.5 billion in 2018, with North American governments leading in cloud spending.
Information security has become a higher priority for the US federal government after it was embarrassed by former NSA contractor Edward Snowden leaking a huge volume of top-secret documents.
Deltek’s report is available for purchase from its GovWin IQ site.