Five Technology Trends That Will Transform The Federal Government

December 21, 2009

Cloud Computing, Virtualization, Service Oriented Architecture (SOA), Open Source Software (OSS) and Geospatial technologies are poised for increased federal government adoption over the next five years as cost saving initiatives drive investment in these solutions, according to market research from INPUT. Nearly half of federal and IT industry professionals surveyed by INPUT believe these technologies will have a major impact on their technology environment despite concerns over security and up-front costs.

INPUT projects the federal cloud computing market to grow from $370 million in 2009 to $1.2 billion by 2014 at a 27 percent compound annual growth rate (CAGR). The virtualization market is poised to increase from $800 million to $1.4 billion over the next five years (12 percent CAGR) while OSS will grow from $290 million to $430 million (8 percent). The SOA market will increase from $330 million to $660 million (17 percent) and Geospatial technology from $860 million to $1.4 billion (8 percent).

INPUT’s Emerging Technology Markets in the U.S. Federal Government, 2009-2014 Report profiles trends and drivers, potential growth, and current implementation status for five technology solutions:

- Cloud Computing
- Virtualization
- Service Oriented Architecture (SOA)
- Open Source Software (OSS)
- Geospatial Technology

INPUT states that although some of these technologies have been in use in the federal sector for several years, there are a number of current factors that are set to increase demand and spending in these areas. The report provides market sizing and five year forecasts for each of the technology segments. Combined demand for these technologies by federal government agencies will increase from $2.6 billion in 2009 to $5.1 billion in 2014, at a compound annual growth rate (CAGR) of 14% during the forecast period.

As a key component of the report, INPUT surveyed federal IT organizations regarding current implementation status, key drivers and obstacles, and organizational willingness and readiness to adopt each of the technologies profiled.

Key Findings

INPUT draws upon its extensive expertise on the government IT industry to analyze and forecast federal spending across the five technology areas. Key market drivers currently shaping the adoption and implementation of the profiled technology areas include:

- Cost Savings
- Operational/Process Efficiency
- Energy Efficiency
- Information Sharing/Interoperability
- Agility/Flexibility
- Focus from the Administration