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Feds to Spend $7.2B on Big Data by 2017

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Posted December 13, 2012 By Pedro Hernandez     Feedback

Affordable analytics solutions and growing cloud adoption are sparking increased federal government demand for Big Data solutions.

A new forecast from Deltek indicates that Big Data software and IT systems vendors will find a big customer in the U.S. federal government.

Deltek, an enterprise resource planning (ERP) and IT solutions company that serves government contractors, expects federal spending on Big Data solutions to reach $7.2 billion by 2017 despite some belt-tightening by several government agencies. This year, the federal government is spending a little less than $5 billion on Big Data, by Deltek's estimates.

Deltek analyst Angie Petty hints that vendors that think beyond business objectives, particularly those specializing in analytics, will benefit from the government's growing appetite for Big Data solutions.

"ROI for these initiatives will not always be measured in costs savings or cost avoidance, but rather in the price to the nation if smart decisions are not made quickly, such as detecting terrorist threats or avoiding massive disease outbreaks," says Petty in a statement.

Big Data's profile will grow among government IT circles due to an influx of devices that will flood networks with data in the coming years.

Fortunately, falling prices will help agencies better manage and analyze these stores of data even as their budgets get trimmed back. Alex Rossino, an analyst for Deltek, informs, "The good news is Big Data solutions are becoming more affordable."

It also helps that the U.S. government has a long history of not only generating but also managing Big Data, says Rossino. "Plus, many federal agencies already have several years of experience handling massive data sets, so they aren't starting from scratch when it comes to using advanced analytics."

The market's also looking bright for IT companies that specialize in Big Data on the cloud. "As these solutions evolve, agencies also will be able to leverage Big Data analytics in the cloud, making greater computing power and analytical capabilities available on a wider basis than ever before," adds Rossino.

According to Deltek, traditional computing and analytical tools are falling short in the face of ever-growing data sets, leading to an increase in federal demand for Big Data solutions.

Other drivers include a "desire to use data to increase efficiency, reduce costs and fulfill agency missions," says the company. Also fueling demand are increased cloud adoption and the rise of the affordable analytics solutions market.

Pedro Hernandez is a contributing editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals. Follow him on Twitter @ecoINSITE.

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