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Cloud overtaking IT shared services

Cloud services are changing how federal agencies buy and use their IT, according to the Professional Services Council's annual report on how federal agencies spend their budgets.

PSC's 2019 Vision Forecast, which queries hundreds of federal technology and acquisition officials about how their technology spending, revealed that agencies are moving away from traditional shared services toward provisioned cloud-enabled IT services.

The research indicated traditional shared services, such as those provided under the General Services Administration's Unified Shared Services Management operations, declined 17% in fiscal 2019, according to Steve Vetter, one of PSC's program leads for IT budget and management research for the Vision report

Agencies are supplanting those services, with "provisioned IT" services such as software-, infrastructure- and platform-as-a-service offerings, Vetter and co-lead Greg Lobbin said.

That growth could be accounted for by the increasing detail in categorization driven by the President's Management Agenda.

However, spending on cloud services, which increased 58% among agencies in 2019, shows that move is also driven by the federal government's "cloud first" and "cloud smart" initiatives that emphasize the technology.

"Cloud is a form of shared services," said Vetter, "but provisioned IT goes beyond shared services." Provisioned IT, he said, now makes up 18% of federal services.

A longer version of this article was first posted to FCW, a sibling site to GCN.

About the Author

Mark Rockwell is a senior staff writer at FCW, whose beat focuses on acquisition, the Department of Homeland Security and the Department of Energy.

Before joining FCW, Rockwell was Washington correspondent for Government Security News, where he covered all aspects of homeland security from IT to detection dogs and border security. Over the last 25 years in Washington as a reporter, editor and correspondent, he has covered an increasingly wide array of high-tech issues for publications like Communications Week, Internet Week, Fiber Optics News, magazine and Wireless Week.

Rockwell received a Jesse H. Neal Award for his work covering telecommunications issues, and is a graduate of James Madison University.

Click here for previous articles by Rockwell. Contact him at [email protected] or follow him on Twitter at @MRockwell4.


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