Federal spending on cloud services will reach $7.7 billion in fiscal 2017, more than four times the spending expected in 2014, according to a report released Monday by research and consulting company IDC Government Insights.
Because of the sequester and consolidation efforts, cloud spending stalled over the last year and will be limited to about $1.7 billion by the end of fiscal 2014 but will grow in later years, according to the report.
“There are clear indications that fiscal year 2014 will continue to be a flat year for cloud computing investments,” said Shawn McCarthy, research director at IDC Government Insights. “Yet beyond that, growth potential looks bright.”
Part of the growth is because of pressure from the chief information officers council and the development of rules and policies requiring a larger portion of agency operations be moved to the cloud, according to the report.