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Civilian cloud spending tops $2.8B

Mar. 28, 2014 - 04:30PM   |  
By NICOLE BLAKE JOHNSON   |   Comments

Civilian agencies plan to spend more than $2.8 billion on cloud solutions this year, with the vast majority of funding slated for software services hosted in private clouds.

About $2.2 billion of those funds will be invested in private cloud models, where infrastructure is provisioned exclusively for an agency, according to data from the Office of Management and Budget.

Planned investments in community cloud total $381 million, or 13 percent of cloud spending this year. Public and hybrid clouds make up a small fraction of spending, 3 percent and 5 percent, respectively.

Defense Department data will be released this spring.

Since 2012, cloud investments have grown by nearly a billion dollars across civilian agencies, according to OMB data. The combination of declining IT budgets and the administrationís push to adopt cloud computing are among the driving factors.

Under the presidentís fiscal 2015 budget, cloud spending is projected to decrease slightly to about $2.7 billion as overall IT budgets also decline. Software-as-a-Service, which includes applications such as email and collaboration tools, continues to be the preferred delivery or service model for agency cloud adopters.

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