Cloud efficiencies will drive government's cost-cutting goals: IDC

By GovTechReview Staff
Thursday, 20 December, 2012

The 35 vendors on the federal government's data centre as a service (DCaaS) Multi-Use List will be pivotal in driving down costs as imperatives for cost cutting and productivity improvements drive government ICT spending through 2015, a new report from research firm IDC has predicted.

The IDC report – entitled Australia Government ICT Market 2011-2015 Forecast Analysis – pegged Australian government-sector ICT spending at $6.49 billion this year and predicted that amount would grow to $7.05 billion in 2015.

That's a modest 2.7% cumulative annual growth rate, reflecting caution on the government's part due to continuing uncertainty around its ability to deliver its forecast $1b surplus in the current financial year.

Government investment in new technologies – including mobility, social media, big data and cloud-based infrastructure services, which IDC refers to as the 'four pillars' of modern enterprise – will offer extensive opportunities for the 35 vendors on the DCaaS panel to help government bodies keep spending in check while meeting expanded productivity goals.

"The government is committed to spend on new ICT projects," IDC Australian vertical market analyst David So said in a statement, "with 30% of the ICT budget allocated to drive expansionary spending as opposed to maintenance spending from upgrades and renewals of existing products and services."

The most successful vendors will be those that prove capable of addressing governmental data security concerns around cloud, mobility and other key drivers, So added.

"These ICT growth pillars will not only significantly cut the costs of the government organisations, but also will increase productivity and efficiency of the public servants. These productivity improvements should align with its strategic priorities of delivering better service, engaging openly and improving government operations." –

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