We've talked about the lucrative opportunities the government offers MSPs before, but now a new study is reinforcing this idea and the need for channel partners to differentiate based on verticals.
Research from Markets and Markets, called "Government Cloud Markets By Agency, By Delivery, By Deployment, Global Advancements, Market Forecasts and Analysis (2013 – 2018)," looks at how global governments and related organizations are adopting cloud services.
Higher and higher
The cloud market among global governments is expected to grow from $2.87 billion this year to a whopping $18.48 billion in 2018, coming to a 45.1 percent compound annual growth rate (CAGR) for this period. Most relevant for you, however, is that the majority of this growth is slated to take place in North America, increasing the chances for cloud providers to win valuable government contracts.
According to the report, the adoption and implementation of these technologies will help governments - especially those in the United States - to improve automation, break down department and information silos and construct more sustainable practices and infrastructures. Furthermore, the research identified several trends that channel firms will want to keep an eye on, including collaborative and content development tools.
"The public agencies and other departments work collaboratively to achieve mutual goals, including minimization of costs and improvements of services. There is a need to overcome the arising cultural issues that are becoming substantial factors in the cloud implementations," Markets and Markets reported. "There has to be reforms in the overall management structure of the government agencies."
With great power come great complications
However, in the U.S., this transition has not come easily, nor is it even close to completion. The U.S. federal government has been slow to implement technologies that could help with disaster recovery, and the recent shutdown only stalled matters further.
According to a recent article in InformationWeek, local governments and decision-makers understand the importance of the technology, opening up the possibility for new partnerships with MSPs and VARs. The federal government is not the only entity awarding contracts, and sometimes these local players can be more reliable and communicative clients.