The government cloud market size is expected to grow from USD 15.40 Billion in 2017 to USD 28.85 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 13.4% during the forecast period, owing to the rapid, easy, and cost-effective deployable market offerings and increasing market reach for the government cloud solution providers.
The major players in the government cloud market include Amazon Web Services (Washington, US), Microsoft (Washington, US), IBM (New York, US), Google (California, US), HPE (California, US), Oracle (California, US), Salesforce (California, US), Cisco Systems (California, US), Dell Technologies (Texas, US), VMware (California, US), Verizon (New York, US), CGI Group (Montreal, Canada), AT&T (Texas, US), SAP (Wall Dorf, Germany), NetApp (California, US), Informatica (California, US), Huddle (London, UK), Capgemini (Paris, France), CenturyLink (Louisiana, US), Citrix (Florida, US), Equinix (California, US), Fujitsu (Tokyo, Japan), NTT DATA (Tokyo, Japan), Red Hat (North Carolina, US), and NEC (Tokyo, Japan). These players have adopted various growth strategies, such as new product launches, partnerships, agreements, mergers and acquisitions, and expansions. Product launches and acquisitions were the 2 major strategies adopted by these players to achieve a strong foothold in the government cloud market.
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Amazon Web Services is one of the prominent players in the government cloud market. Amazon Web Services’ government cloud offerings include products, such as AWS GovCloud (US) and G-Cloud UK. AWS GovCloud (US) is designed to meet the stringent US government security and compliance requirements, and host sensitive data and regulated workloads. The product provides government customers and their partners the flexibility to architect secure cloud solutions that comply with regulations, such as Federal Risk and Authorization Management Program (FedRAMP) High Baseline, DOJ’s Criminal Justice Information Services (CJIS) Security Policy, US International Traffic in Arms Regulations (ITAR), and Department of Defense (DoD). The company is strongly focused on expanding its global footprint and therefore opened data centers in the UK and Canada. The company is expected to launch Amazon Web Services data centers in Sweden, Middle East, France, and China soon. In July 2017, Amazon Web Services announced G3 instances, the next generation of Graphics Processing Unit(GPU) powered Amazon Elastic Compute Cloud (Amazon EC2) instances, designed with the powerful combination of the Central Processing Unit (CPU) and Random-Access Memory (RAM) for workloads, such as 3D rendering, 3D visualizations, graphics-intensive remote workstations, video encoding, and virtual reality applications for AWS GovCloud (US).
Microsoft is another top market player catering to the government cloud market. Azure Government is Microsoft’s government cloud platform for the US state, local, and federal government agencies. The product offers a cloud platform that provides functionalities, such as security, privacy and control, compliance, and transparency. Azure Government provides security and compliance services to the US government for all systems and applications deployed on its architecture. The company has developed intelligent cloud innovations, strengthened its government cybersecurity solutions, improved the government services, and reinvented productivity and business processes. Microsoft is well supported by an ecosystem of expert government service partners that enabled governments to expand their services through the government cloud. In August 2017, Microsoft announced the availability of Azure Monitor in the Azure Government, which monitors metrics and logs, within the portal and through Application Programming Interfaces (APIs) in real time, and helps in gaining more visibility into the state and performance of resources.
Related Reports:
Government Cloud Market by Solution (Cloud Storage, Disaster Recovery, Identity and Access Management, Risk and Compliance Management), Service, Service Model (IaaS, PaaS, SaaS), Deployment Model, and Region - Global Forecast to 2022


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