Chart how fast cloud usage has grown in government

Since 2013, the number of government funding opportunities for cloud computing has increased dramatically, according to a Government Technology data analytics – the cloud now accounts for about one-sixth of all government technology funding opportunities.
At their peak in 2018, funding opportunities such as requests for proposals (RFPs) for cloud computing services accounted for about 18.5% of all government technology funding opportunities, according to an analysis of more than 400 000 requests for proposals collected by the Government Technology Industry Navigator. .*

Growth in government technology funding opportunities has slowed slightly, with just 15% in the last 12 months for cloud-related projects.

Still, US governments hope that the ubiquity of cloud computing will help them better fulfill their mission and save money.

The Texas Alcoholic Beverage Commission (TABC) is one of the government agencies currently looking to the cloud for its next generation of services.

“Over the past few years, TABC has taken a really top-down digital strategy,” said commission spokesman Chris Porter.

Last year, TABC moved from a paper-based license application system to a fully online platform. Prior to the transition, it was using a system that was more than 14 years old, according to Porter.

“The ultimate goal is to have a one-stop shop,” he said. “Everything we do, we want to be on this cloud-based system.”

Porter said the transition was driven by a desire to cut costs and make it easier for businesses to interact with the commission.

And the cloud journey at TABC continues beyond the new application system. Currently, it has tendered for a new system to affix tax identification stamps to liquor bottles, making taxation easier. The goal is to have a cloud-based system that will allow beverage vendors and distributors to manage the process with less involvement from TABC staff.

“What you do now is you go to the TABC website and order [tax ID stamps]”, Porter said. “Instead of TABC staff doing this, it will be handled by the supplier.”

There has also been a growing number of companies and organizations offering cloud services specifically to local governments. The federal government operates as a “platform as a service” for federal, state, and local governments to help with compliance, while Amazon’s AWS, Google Cloud, and Microsoft’s Azure all offer services. specifically tailored for government users.

These groups providing services to the government have good reason to do so. The industry can be lucrative – depending Government Technology analysis, the median contract value for cloud computing tenders that listed an estimated value is $137,000.

But the high end of these contracts can come with premium price tags. The City University of New York’s 2023 system budget lists $175 million for updating its university systems, including its planned transition to the cloud. Working with OMNIA Partners, a buying consortium, a regional education office in Texas solicited proposals for a $100 million contract for a new cloud service provider and legacy application migration.

According to an analysis by Deloitte Insights, the increase in demand for cloud services has been accelerated by the pandemic, which has forced “fence sitters” to turn to more online services, develop more applications within government industry and making the cloud accessible.

The expansion of cloud computing leads to an increased reliance on data centers. By 2025, the world will create, capture or replicate 175 zettabytes of data annually, according to a 2018 report by the International Data Corporation. That equates to roughly 22 terabytes of data for every person alive today.

The long-term consequences of this change are not fully understood. A 2013 study from Lawrence Berkeley National Laboratory, funded in part by Google, found that if all American companies moved messaging, software, and customer relationship management services to the cloud, the energy footprint of these applications could be reduced by up to 87%. percent.

In 2020, a team of researchers led by Eric Masanet of Northwestern University found that hyperscale and cloud data centers likely have the greatest energy efficiency, but more research is needed to fully understand the centers’ energy consumption. of data.

*Industry Navigator is a division of e.Republic, Government Technology head quarter.

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