More growth expected as cloud opportunities expand

Spending on cloud computing tripled between fiscal 2013 and 2014, and fiscal 2015 will likely see another increase, according to a new analysis by the market research firm Govini.

The research looks at cloud spending in four software-as-a-service segments: office productivity, customer relationship management, financial and software-defined data services. Software-as-a-service is one of seven cloud areas that Govini uses to define cloud spending.

In the office productivity segment, Govini found that Lockheed Martin and AT&T experienced some of the strongest growth. Lockheed Martin won an office automation contract with the FAA and has been driving business through its GSA Email-as-a-Service contract.

AT&T’s growth has come primarily from work it is doing with the Navy on the Next Generation Enterprise Network contract, primed by Hewlett-Packard.

Overall, office productivity spending grew from $577 million in 2011 to $1 billion in fiscal 2014, according to Govini.

In the financial segment, growth was a modest 4 percent from fiscal 2011 to 2014, but it is one of the largest segments with $2.1 billion in spending and 3,100 contracts. Major contractors include resellers such as MicroTech, the segment leader, CDW, Carahsoft, immixGroup and Insight as well as manufacturers such as Dell, SAP and Oracle.

In the software-defined data services segment, four agencies – Education, HHS, VA and HUD – account for 45 percent of the spending, which reached $2.5 billion and 2,200 contracts, according to Govini. Leaders in this segment include HP and Dell.

Click here to download the entire report.