How Are Technological Advancements Fueling Government Cloud Market Growth?
Growth factors like the rapid digitalization of government organizations and need to reduce the total cost of ownership (TCO) will drive the government cloud market at a CAGR of 15.4% during the forecast period (2017–2023), since generating revenue of $20.8 billion in 2017. Moreover, the constant improvements in cloud computing technologies and rapid advancements in public-sector technology solutions will facilitate the market growth. Additionally, the innovations in the internet of things (IoT) technology will encourage governments to adopt cloud solutions.
Government bodies are increasingly deploying cloud-based solutions to reduce their capital expenditure (CAPEX) without compromising the important public services. The utilization of the cloud is allowing such agencies to decrease the TCO of services, directly and indirectly. Moreover, the increasing need for facility consolidation, labor optimization, asset utilization, and measured services has propelled the adoption of the cloud technology in government organizations. Additionally, government stakeholders are switching to the cloud platform due to the integration of advanced technologies in their daily operations.
Currently, technological innovations have become a key trend in the government cloud market. Moreover, the rising number of e-government initiatives are amplifying the adoption of cloud computing. This is allowing governments to enhance their business flexibility in spite of their back-end silo systems. Departments such as education, defense, and insurance are some of the early users of cloud computing in the public sector. Further, technological developments and the high penetration of the internet will raise the demand for cloud computing in other government departments and ministries as well.
Besides, a surge in the IoT usage is fueling the adoption of cloud solutions, thereby creating lucrative opportunities for the players in the government cloud market. The Deployment of IoT needs cloud-based technologies to improve the connectivity between several devices, which is provided through private, public, and hybrid models. Additionally, technological transformation on account of the hefty investments in the IoT and cloud solutions will boost the application of the cloud in the public sector. Furthermore, the government sector is comprehending the importance of IoT for obtaining in-depth analysis and deriving vital information for the same.
The categories under the model segment of the government cloud market include platform as a service (PaaS), software as a service (SaaS), and infrastructure as a service (IaaS). Among these, the SaaS category generated the highest revenue in 2017. This can be ascribed to the wide-scale deployment of the SaaS model in government organizations due to the low-cost and pay-as-you-go capability offered by them. Moreover, government organizations are adopting the SaaS model to rent software applications from cloud service providers (CSP).
North America held the largest share in the government cloud market in 2017, and it will continue its dominance in the forecast years due to the huge investments by government organizations in cloud-based solutions. The Asia-Pacific (APAC) market will witness the fastest growth during the forecast period owing to the growing investments in the information and communication technology (ICT) sector, amplifying promotional campaigns, and rising focus of governments on improving citizen services. Besides, the increasing requirement for cloud-based security services, to enhance accessibility and strengthen decision making, will drive the market.
Thus, the rising integration of the IoT and cloud computing in government agencies will fuel the market growth in the future.
Read More:
https://www.psmarketresearch.com/market-analysis/government-cloud-marketHow Are Technological Advancements Fueling Government Cloud Market Growth?
Growth factors like the rapid digitalization of government organizations and need to reduce the total cost of ownership (TCO) will drive the government cloud market at a CAGR of 15.4% during the forecast period (2017–2023), since generating revenue of $20.8 billion in 2017. Moreover, the constant improvements in cloud computing technologies and rapid advancements in public-sector technology solutions will facilitate the market growth. Additionally, the innovations in the internet of things (IoT) technology will encourage governments to adopt cloud solutions.
Government bodies are increasingly deploying cloud-based solutions to reduce their capital expenditure (CAPEX) without compromising the important public services. The utilization of the cloud is allowing such agencies to decrease the TCO of services, directly and indirectly. Moreover, the increasing need for facility consolidation, labor optimization, asset utilization, and measured services has propelled the adoption of the cloud technology in government organizations. Additionally, government stakeholders are switching to the cloud platform due to the integration of advanced technologies in their daily operations.
Currently, technological innovations have become a key trend in the government cloud market. Moreover, the rising number of e-government initiatives are amplifying the adoption of cloud computing. This is allowing governments to enhance their business flexibility in spite of their back-end silo systems. Departments such as education, defense, and insurance are some of the early users of cloud computing in the public sector. Further, technological developments and the high penetration of the internet will raise the demand for cloud computing in other government departments and ministries as well.
Besides, a surge in the IoT usage is fueling the adoption of cloud solutions, thereby creating lucrative opportunities for the players in the government cloud market. The Deployment of IoT needs cloud-based technologies to improve the connectivity between several devices, which is provided through private, public, and hybrid models. Additionally, technological transformation on account of the hefty investments in the IoT and cloud solutions will boost the application of the cloud in the public sector. Furthermore, the government sector is comprehending the importance of IoT for obtaining in-depth analysis and deriving vital information for the same.
The categories under the model segment of the government cloud market include platform as a service (PaaS), software as a service (SaaS), and infrastructure as a service (IaaS). Among these, the SaaS category generated the highest revenue in 2017. This can be ascribed to the wide-scale deployment of the SaaS model in government organizations due to the low-cost and pay-as-you-go capability offered by them. Moreover, government organizations are adopting the SaaS model to rent software applications from cloud service providers (CSP).
North America held the largest share in the government cloud market in 2017, and it will continue its dominance in the forecast years due to the huge investments by government organizations in cloud-based solutions. The Asia-Pacific (APAC) market will witness the fastest growth during the forecast period owing to the growing investments in the information and communication technology (ICT) sector, amplifying promotional campaigns, and rising focus of governments on improving citizen services. Besides, the increasing requirement for cloud-based security services, to enhance accessibility and strengthen decision making, will drive the market.
Thus, the rising integration of the IoT and cloud computing in government agencies will fuel the market growth in the future.
Read More: https://www.psmarketresearch.com/market-analysis/government-cloud-market
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