US Federal private cloud services spending is expected to reach $1.7bn (£1.1bn) in 2014 and increase by more than three-fold to $7.7bn by 2017, according to a new report from International Data Corporation (IDC).
IDC said despite the US Federal CIO Council’s efforts to urge agencies to adopt cloud-based ICT services, the government has been lagging behind the private sector when it comes to cloud investment.
Despite software as a service (SaaS) being the most popular segment of cloud services, the report revealed that infrastructure as a service (IaaS) will be the leading cloud segment used by the federal public service, which is anticipated to account for $1bn of the projected $1.7bn to be spent in 2014.
Between now and 2017, IaaS is expected to grow to $5.4bn and SaaS will rise to $2.4bn while Platform as a Service (PaaS) will increase to $1.1bn.
Federal public cloud spending is expected increase from $110.4m last year to more than $118.3m in 2014 while federal community cloud spending will decrease to $313.5m in 2014 from $379.7m in 2012.
IDC said hybrid cloud spending will be flat across the federal government, with spending of $77.4m in 2012, just slightly downward to $77.3m in 2014.
IDC Government Insights research director Shawn McCarthy said there are clear indications that fiscal year 2014 will continue to be a flat year for cloud computing investments.
"Yet beyond that, growth potential looks bright. Investments should reach a critical mass around 2015 and beyond. A new emphasis on cloud solutions is expected to return within the next 18 months, and private cloud investments should approach $7.7 billion by FY2017," McCarthy said.