Government Cloud Spend To Overtake Private Sector

May 01, 2014

Government spend on cloud computing is set to overtake that spent by the private sector, according to a new study.

Research firm Kable claims that Whitehall cloud expenditure will increase 35% annually until 2018, while its annual cloud services budget will grow by 35.6% year-on year.

These figures, released exclusively to a UK IT publication, show that this is 4.5% more than the predicted on cloud for British pharmaceutical, financial, manufacturing and insurance industries combined.

Kable also took global numbers into account, claiming that the UK takes the lead ahead of the US, Denmark and Canada when it comes to public sector spending on cloud.

The US government predicted cloud spend is expected to grow 34.7% each year until 2018, while 30.5% and 30.1% are the figures for Denmark and Canada respectively.

Meanwhile, cloud spending rates are set to increase the least in Spain at 24.6%.

The news follows reports from last month that the global cloud industry is set to more than double its estimated worth from 2013 to 2017, from £28.72bn to £64.82bn.

UK Government Has Cloud First Policy

 The UK government adopted a cloud first policy in May 2013 to drive wider adoption of cloud services across the public sector with the aim of achieving savings and efficiencies.

To drive this policy, it launched the G-Cloud procurement framework with the aim of opening up government business to small-to-medium enterprises (SMEs).




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