Government CIOs to increase spending on Cloud, security, analytics

IT spendingResearch firm Gartner said Government CIOs will increase spending on Cloud, cyber security and analytics in 2018.

Public sector CIOs are targeting data center infrastructure for cost savings, according to a survey from Gartner.

According to Navigant Research, service provider data centers are expected to add 7,000 MW of capacity in 2018.

The Gartner survey did not mention about the specific increase or spending on Cloud, cyber security and analytics in 2018.

IDC has released two reports on cloud.

Spending on public cloud services and infrastructure is forecast to reach $160 billion in 2018, an increase of 23.2 percent over 2017. The public cloud market is forecast to achieve a five-year compound annual growth rate (CAGR) of 21.9 percent with public cloud services spending totaling $277 billion in 2021.

IDC also said spending on IT infrastructure products such as server, enterprise storage, and Ethernet switches for deployment in cloud environments is expected to total $46.5 billion in 2017 with year-over-year growth of 20.9 percent.

Public cloud datacenters will account for 65.3 percent, growing at 26.2 percent. Off-premises private cloud environments will represent 13 percent of cloud IT infrastructure spending, growing at 12.7 percent. On-premises private clouds will account for 62.6 percent of spending on private cloud IT infrastructure and will grow 11.5 percent in 2017, IDC said.

Gartner report

Sixteen percent of government CIOs plan to increase spending on business intelligence (BI). and analytics (16 percent) and data management (six percent) in 2018.

Gartner said the 2018 CIO Agenda Survey gathered data from 3,160 CIO respondents in 98 countries and across major industries, including 461 government CIOs.

Digital transformation is the top business priority among government CIOs overall, followed by security and governance.

The next three business priorities for government CIOs are security, safety and risk (13 percent); governance, compliance and regulations (12 percent); and technology initiatives/improvements (11 percent).

The report found that Government CIOs have conflicting priorities — to bring transformative change to their organizations, while pursuing compliance-oriented priorities. Gartner said CIOs need to work constructively with other business leaders to agree how to balance risk and innovation to support digital transformation.

“Public sector CIOs need to focus on expanding their data and analytics capabilities and creating a data-centric culture, by increasing the availability of open data and APIs for internal use and public consumption,” said Rick Howard, research vice president at Gartner.

Building out data analytics infrastructure is fundamental to improving government program outcomes and services to citizens.

Rick Howard said many government CIOs are rebalancing capital expenditure (Capex) and operating expenditure (Opex) spending patterns to reduce technical debt, while making the strategic shift to cloud.

Gartner suggest that government CIOs should consider cloud as the means to accelerate the digitalization of their organizations and enable the business optimization that results.

Government CIOs anticipate increased spending in areas such as cloud, analytics and infrastructure / data center to achieve the organization’s mission.

While five percent of government CIOs considered security and risk as crucial to achieving the organization’s mission, 17 percent expect to boost spending in cyber/information security. This indicates that security is not a competitive differentiator for government, but additional spending over historical levels in this area is warranted as a response to relentless attempts to exploit system vulnerabilities.

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