States and local agencies take to clouds, report finds

State and local governments will adopt cloud computing, virtualization, service-oriented architecture, open-source software and geospatial technologies at an accelerating rate over the next five years, according to a new report from Input.

The survey of technology decision makers across the 50 states and the District of Columbia foresees a bullish purchasing outlook for state and local governments as budget crises on all levels drive those entities to streamline their operations and gain efficiencies wherever possible.

According to projections by the government business analysis firm, the total state and local cloud computing market is expected to grow from $230 million in 2009 to $620 million by 2014, for a compound annual growth rate (CAGR) of 22 percent.

The largest growth is predicted for platform-as-a-service and software-as-a-service offerings, the report finds.

Over the same period, the virtualization market is poised to grow from approximately $360 million to $580 million for a CAGR of 10 percent, the report says.

In addition, the market for open-source software is expected to increase from $160 million to $280 million (11 percent CAGR), and the geospatial technology market is projected to grow from $520 million to $720 million (7 percent CAGR) over the next five years.

Among the key factors affecting the projected adoption of these technologies by state and local agencies are cost-cutting initiatives and “a pressing need for additional education as to the benefits of these transformative technologies,” according to the report, titled, “Emerging Technology Markets in U.S. State and Local Governments, 2009-2014.”

The report examines the outlook for specific emerging technology markets and provides recommendations for businesses seeking opportunities in the state and local arena.