How increased reduction in total cost of ownership driving government cloud market?


Posted March 31, 2020 by devanshuraizada

In 2017, the global government cloud market generated a revenue of $20.8 billion and is expected to register a 15.4% CAGR during the forecast period (2017–2023).
 
In 2017, the global government cloud market generated a revenue of $20.8 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 cloud.

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When 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.

On the basis of model, the government cloud market is categorized into infrastructure as a service (IaaS), software as a service (SaaS), and platform as a service (PaaS). Out of these, the SaaS category accounted for the major share of the market during the historical period. The reason for this is the high demand for SaaS from government agencies, which, in turn, is due to its low cost and availability of pay-as-you-go model. The IaaS category is expected to grow at the fastest pace during the forecast period.

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The increased reduction in TCO is a major driving factor of the government cloud market. The government sector is always under intense pressure to cut down capital expenditure without undercutting critical public services. Factors such as labor optimization, measured services, asset utilization, and facilities consolidation are the major aspects due to which different agencies are adopting government cloud. Government institutions are being attracted toward cloud computing by estimating the total savings that comes from consolidating their data centers.
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Issued By Devanshu Raizada
Country United States
Categories Blogging , Business , Technology
Tags government cloud market drivers , government cloud market share , government cloud market size , government cloud marketgovernment cloud market
Last Updated March 31, 2020