Federal agencies are increasing spending on moving services to the cloud and consolidating data centers despite tight budgets, according to research firm Deltek in a report released Thursday.
Agency spending on cloud computing will grow from $2.3 billion in fiscal 2013 to $6.1 billion by fiscal 2018, while spending on big data solutions will grow from $5.2 billion to $5.8 billion over the same time, according to Deltek.
“Agencies’ need for lower cost and flexible infrastructure, as well as better use of increasing volumes of data, will drive targeted investments,” the report said.
Contractors need to be prepared to offer a variety of services through a wide array of contracting vehicles as agencies deal with tight budgets and look for innovative solutions, Angie Petty, senior principle research analyst at Deltek, said in a news release.
“Agencies will continue to approach investments with caution and look for creative ways to fund and implement these programs,” Petty said.