Governments world over are adopting cloud in a big way to leverage the many benefits that come from it. This foray into cloud, popularly known as government cloud market, is expected to explode over the next few years.
A report titled “Government cloud market by solution” has been released by the research firm MarketsandMarkets. According to this report, the market size of this industry is likely to grow from $15.4 billion in 2017 to a whopping $28.85 billion by 2022. That’s almost double the growth within just the next five years, accounting for a compound annual growth rate (CAGR) of 13.4 percent.
These numbers clearly show that government cloud is growing by the day. But why, you may wonder.
Much of this growth is driven by factors such as
- Low IT costs
- Availability of a ton of solutions, so governments can choose the one that is best compliant with their standards.
- Little to no dependence on humans for operations and maintenance. This means the employee costs is negligible for governments
- Hassle-free maintenance and obviously there is no need for a large IT department to monitor operations.
- Compliance with most standards
- Instant access from anywhere and the associated flexibility with respect to working hours and locations for employees
- Easy deployment of cloud storage solutions. A lot of it can be deployed within just a few ours, thereby saving time and effort for governments.
Due to these benefits, government cloud is all set to boom over the next few years.
The report further states that out of all the different segments, the cloud storage segment is likely to see the highest growth. This is not really a surprise considering the vast amounts of data that local, state and national governments have to collect and maintain to provide the right benefits to the right people.
The next sector that is likely to see major growth is the integration and migration segment. Already, many government agencies have started making the move to cloud solutions, so migrating their existing data to the new platform will require help. Also, there are many legacy systems that need to be integrated with cloud, so solutions that bridge this gap will be in great demand.
Region wise, North America is expected to have the highest contribution to government cloud market while the Asia Pacific region is likely to have the highest growth during this period.
Overall, this is likely to be a period of high growth for government cloud and companies of all sizes, ranging from the mighty AWS and Microsoft to small startups are looking to cash in on this boom.
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