Federal Agencies Making Gains in Cloud and Data Center Consolidation Despite Budget Constraints, According to Deltek

New Deltek GovWin IQ report provides insight into federal progress in cloud computing, data center consolidation, big data and mobility.

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Herndon, VA (PRWEB) November 07, 2013

According to Deltek’s new report, Federal Update: Cloud Computing, Data Center Consolidation, Big Data and Mobility, federal agencies are continuing to invest in key “transformative” IT solutions in cloud computing, data center consolidation, big data and mobility, despite the uncertainty shaping agency budgets. Although the pace of investment has been slower than planned, Deltek anticipates agency spending on cloud computing to grow from $2.3 billion in FY 2013 to $6.1 billion in FY 2018. Spending on core big data solutions will also experience growth from $5.2 billion to $5.8 billion from FY 2013 to FY 2018. Agencies’ need for lower cost and flexible infrastructure, as well as better use of increasing volumes of data, will drive targeted investments.

In the current market environment, solutions that directly impact agencies’ ability to streamline operations, pull costs out of infrastructure maintenance, and increase efficiency have the greatest potential for investment. Cloud computing, data center consolidation, big data and mobility solutions facilitate better financial and operational performance, so these investments represent attractive opportunities within a constrained market.

Budget Challenges Force Agencies to Prioritize

Funding will continue to be a challenge so agencies must identify priority needs, often enterprise-wide, when making investments. Data center services tops the list of cloud investments, illustrating the trend of agencies using cloud as a computing infrastructure. The integration of the Federal Data Center Consolidation Initiative into the PortfolioStat 2.0 program has turned the focus of the initiative to data center optimization solutions. High Performance Computing (HPC), advanced analytics and analysis support services are top areas of interest for big data solutions. In mobility, agencies are concerned about Mobile Device Management (MDM), security and mobile applications. “These solution areas are priorities for agencies individually,” says Alex Rossino, Principal Research Analyst at Deltek. “But in tandem, these solutions work together to facilitate the cost savings and improved performance that every agency seeks.”

Contract Positioning is Key for Finding Opportunities

Agencies are using a variety of contracting strategies and vehicles for investments in cloud computing, data center consolidation and optimization, big data and mobility. Most agencies are turning to Multiple Award/Indefinite Delivery Indefinite Quantity (MA/IDIQ) contract vehicles and GSA IT Schedule 70 for solutions. However, they are streamlining and consolidating IT contracts for cost-effectiveness and better management, so contractors must identify and gain access to agencies’ preferred contract vehicles.

“Agencies will continue to approach investments with caution and look for creative ways to fund and implement these programs,” says Angie Petty, Senior Principal Research Analyst at Deltek. She advises that, “contractors be prepared to offer a variety of approaches and best practices to agencies adjusting to new budget realities.”

For more information on the Federal Update: Cloud Computing, Data Center Consolidation, Big Data and Mobility report, visit GovWin.com. The report is free to subscribers of GovWin’s Federal Industry Analysis program. Press interviews can be arranged by contacting Lauran Cacciatori.

About Deltek
Deltek is the leading global provider of enterprise software and information solutions for professional services firms and government contractors. For decades, we have delivered actionable insight that empowers our customers to unlock their business potential. 16,000 organizations and 2 million users in over 80 countries around the world rely on Deltek to research and identify opportunities, win new business, optimize resources, streamline operations, and deliver more profitable projects. Deltek – Know more. Do more.® http://www.deltek.com

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About GovWin IQ
Deltek’s GovWin IQ provides the market intelligence tools and analysis government contractors need to gain a competitive advantage and be a formidable player in the federal market. Backed by a team of government research and analysis experts, GovWin IQ provides the most powerful, comprehensive, and timely lead generation and business intelligence solutions available. More than $1.8 trillion opportunities are tracked every year. http://www.govwin.com

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