The fight between IBM and Amazon Web Services (AWS) over a CIA cloud computing contract is just a preview of what’s ahead. Federal investment in cloud computing is showing remarkable growth.
AWS and IBM, as well as many others in the cloud space, are fighting for mindshare among federal IT managers, who now ordering cloud services by the truckload.
Market research firm Deltek said federal cloud computing growth has become “explosive” in just a few years.
In 2009, the total value of awarded contracts (TCV) for cloud services was just $27 million. In the 2013 fiscal year, which ended Sept. 30, the total value of cloud contracts had risen to $17 billion — up sharply from $4 billion in 2012. The TCV is the total value of the contract over its term, otherwise known as the contract’s ceiling value, whether it’s, for instance, a three-year, five-year or longer pact, according to Deltek.