The global government cloud market is estimated to grow from $2.87 billion in 2013 to $18.48 billion in 2018, representing an average annual growth of 45.1 percent over this period, according to a report from Marketsandmarkets.
The 345-page report on the global government cloud market says North American governments will lead the movement towards the cloud, however Asia-Pacific is poised to grow and eventually become the biggest market for government cloud after 2018.
Marketsandmarkets said the government bodies at all levels are adopting private clouds and community clouds (multi-tenant services that store data in a segregated cloud) internally or across a group of departments. It says there is less traction for public and hybrid clouds, which presently lack the maturity for adoption by public agencies.
Cloud implementation will be driven by the need government agencies to achieve their mission demands, improve automation, develop core competency and adopt sustainability practices, as well as minimize costs and improve services.
The potential hardware and software capital and maintenance cost savings, in fact, was the largest factor for cloud adoption, according to a report on government IT cloud adoption and procurement practices released earlier this week. Based on a survey of 109 US state and local government IT professionals, the key finding was that 46 percent said they are planning or are currently engaged in cloud computing endeavors.
Authors of the Marketsandmarkets report, however, say there are still substantial cultural biases in government that need to be overcome in order to embrace cloud implementations, and it will also require reforms to the overall management structure of government agencies.