This year's budget shows some signs of these trends reversing, which may point to new opportunities for new technologies and solutions
Arlington, VA (PRWEB) April 01, 2015
The Soter Group, LLC, a management and technology consulting firm, released a new report that analyzes several critical Federal government markets, including homeland security, information technology, and cloud computing. “Every February, we look to the new Federal budget request for guidance about where particular markets are headed and where new, upcoming opportunities may be,” The Soter Group President and CEO, Justin Taft explained. “While these markets may be broad at one level, they are at the top of everyone’s minds and at the forefront of government innovation.”
“Industry is always looking for new opportunities, regardless of what market. For the past several years, we have stressed that certain trends within these particular markets would be unsustainable,” said The Soter Group Director of Market Research, Peter Wong added. “These trends were stifling innovation and hindering the ability to meet mission requirements. This year’s budget shows some signs of these trends reversing, which may point to new opportunities for new technologies and solutions to be engineered, developed, and implemented.”
The report provides the following key observations:
- Anticipate modest growth in homeland security mission funding – Federal civilian homeland security mission funding is projected to grow to $60.9 billion in FY20. This is an increase of $6.5 billion, or 11.9%, from the past full fiscal year (FY14).
- Private sector addressable spending expected to increase in FY16 in the Federal civilian homeland security market – The current budget request suggests in increase of over $4 billion in contractual services and supplies and acquisition of capital assets from the private sector in FY16 versus FY15. This reverses the long-standing trend of crowding-out private sector addressable spending.
- Federal civilian spending on IT development, modernization, and enhancements activities stabilizing – Spending on operating and maintaining IT systems has been stymieing investment in new capabilities and technologies within the Federal civilian market for numerous years. This trend reversed in FY14, providing some indication that the pendulum may soon begin to swing the other direction.
- Federal civilian cloud computing market remains small with pockets of opportunity – The Federal cloud computing market has not lived up to all its hype. However, there is still a sizeable amount of money being spent in this sector and many new, innovative systems and programs will be dependent on cloud computing technologies. The FY16 budget request includes $1.3 billion for cloud computing across the Federal civilian government, and over 50% is concentrated within four departments: Commerce, Homeland Security, Housing and Urban Development, and the Social Security Administration.
Access the full report, Observations from the 2016 President’s Budget Request, here:
Follow The Soter Group on LinkedIn to access other and future reports on the following topics:
- Federal Cyber Security
- Federal Homeland Security Mission Spending
- Department of Homeland Security Contracting and Procurement
- Federal Health IT
- Federal Cloud Computing
- Intelligence, Surveillance, and Reconnaissance (ISR)
About The Soter Group
The Soter Group provides services to both the Federal government and the commercial entities that support it. Our Commercial Services Division provides market research and assessments, competitive assessments, and strategic advisory services to commercial clients seeking to enter or grow in the Federal government security market. To learn more, please visit http://www.TheSoterGroup.com.