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The State of Federal Cloud: Market Briefing

This downloadable market briefing, created by our BGOV industry experts, covers the fiscal 2020 federal cloud market.

In fiscal 2019, the White House-issued Cloud Smart strategy gave agencies a mandate to expedite their journeys to the cloud Federal agencies spent a combined $5.9 billion in contract obligations on cloud infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS), and other cloud support and migration services. They’re on track to spend $7.1 billion in fiscal 2020.

In our recent The State of Federal Cloud webinar, Bloomberg Government Federal Market Analyst Chris Cornillie and Senior Defense Analyst Robert Levinson discussed the state of federal cloud computing.

Key takeaways from the presentation:

  • BGOV projects that civilian agencies will obligate $4.3 billion on cloud services in FY 2020, while defense agencies are projected to obligate $1.7 billion.
  • Agencies will invest a combined $3.2 billion in IaaS/PaaS and $3.3 billion in SaaS in fiscal 2020.
  • Since fiscal 2015, the Centers for Medicare and Medicaid Services, the Department of Veterans Affairs, and the U.S. Air Force have been the top spenders on cloud computing.
  • Perspecta Inc. has been the top recipient of IaaS/PaaS contract spending since fiscal 2015, while Carahsoft Technology Corp. has generated the most SaaS obligations.
  • Federal cloud-adjacent spending on digital services will reach $5.2 billion in fiscal 2020, while contracting spending on artificial intelligence and machine learning will reach $1.6 billion.

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