Public Sector Wants Cloud – Are You Ready?
The numbers don't lie. The U.S. public sector is rapidly adopting cloud technologies across the spectrum. According to the NASCIO 2020 State CIO Survey, only 14% of state chief information officer (CIO) organizations do not have a cloud migration strategy, whereas 41% of respondents indicated that they had implemented a cloud first strategy for all new applications.
On the federal government side, we're seeing broad adoption of cloud computing technologies across civilian, defense, and even the intelligence community (IC). It's hard to miss cloud contract awards like the DISA DEOS contract ($7.6 Billion), the Department of Defense's JEDI award ($10 Billion), the Veterans Affairs' VA Cloud award ($497 Million) and the IC’s C2E award (amount is undisclosed, but it's precursor, C2S was valued at $600M).
These contracts are just the beginning. The federal cloud business — aside from the above-mentioned contracts — has doubled in the past five years and is expected to grow to $10 Billion by FY’23. This year alone, we are seeing strong growth across all three cloud types:
- Infrastructure-as-a-Service (IaaS) is set to realize a compound annual growth rate (CAGR) of greater than 8%.
- Software-as-a-Service (SaaS) is expecting a 6% CAGR.
- Reflecting the government’s recent accelerated adoption of DevSecOps tools and disciplines, Platform-as-a-Service (PaaS) is set to realize a greater than 22% CAGR.
The market is real; it’s growing; and it’s far from saturated.
Unfortunately for solutions providers, developing a successful cloud practice requires a bit more than just adding a couple of Cloud Service Providers (CSP) to the line card. There are some distinct differences between traditional hardware/software businesses and a cloud business.
About 11 years ago, I started the cloud practice here at TD SYNNEX Public Sector, and there wasn’t any real roadmap or template to follow at the time. We learned through trial and error what it meant to be a cloud partner and being a successful cloud partner meant that we needed to make changes throughout the company. Initially, the cloud sales motion is like any other product because most public sector customers want to budget and order for 12 months. With hardware and software, you place the order with your supplier (hopefully, that supplier is TD SYNNEX Public Sector), the product ships, the customer receives the order and you get to invoice the full amount. This means that you get a nice order up front, but this is where the similarities to hardware and software ends because, cloud doesn’t work this way.
You see, cloud is billed monthly in arrears based on actual utilization. The order is really just a spending limit, and revenue isn’t realized (or invoiceable) until the customer actually uses the service. When the customer uses the service, you are then able to invoice for the month. The downside with this approach is that you don’t see those big, lumpy hardware and software payments. The incredible upside is that you have entered the realm of Monthly Recurring Revenue (MRR) wherein as you grow your cloud business, you begin to realize a nice steady monthly recurring revenue stream (CFO’s love this, by the way).
Other challenges we faced early in our cloud journey included how to compensate sales reps (again, the money doesn’t come in until the service is used over the duration of the contract), how to properly structure contracts and how to upgrade our quoting software to support 100,000ths of a cent (or $0.00001) to accommodate some cloud services that are priced to the 10,000ths of a cent.
On the technical side we had to learn the nuances of cloud architecture. These public cloud — and private cloud — platforms had their own design patterns, and they changed the rules for architecting, deploying and operating our solutions. These challenges were only exacerbated by the need to integrate our cloud solutions with the customer’s existing on-premise environments.
Finally, there were the overall business decisions that had to be made. Who did we want to be in the cloud? For what did we want to be known? In what part of the market did we want to excel? Did we want to be the migration specialists? Did we want to solve the operational challenges? Did we want to secure the cloud? Did we want to aid the government in its adoption of DevSecOps? Did we want to specialize in a specific kind of workload like artificial intelligence/machine learning or high-performance computing or a specific set of business applications? Do we provide managed services? How can we use cloud computing to accelerate other parts of our business? Having a clear vision and goal keeps your investments focused and impactful.
TD SYNNEX Public Sector started this journey 11 years ago, and through TD SYNNEX Public Sector's Cloud Navigator Program, we are making these learnings and cloud business insights available to solutions providers.
The first step is to take a brief online Cloud Navigator Assessment at www.cloudnavigator.com. To chart a path, you need a starting point and a destination. This assessment will help us determine your starting point. And we’re going to make the bold assumption that if you take the time to fill out the assessment, then the destination is to create or evolve your public sector cloud practice. With your input, we can provide you with a Flight Plan that helps you grow your public sector cloud business step-by-step.
For 30 years TD SYNNEX Public Sector has helped technology companies accelerate their public sector growth, so come see how TD SYNNEX Public Sector’s Cloud Navigator Program can take the guesswork and frustration out of growing your cloud business.
Related Blog Posts
Cybersecurity, IT Infrastructure, Market Intelligence
The final CMMC rule went into effect December 16, 2024.
Toan Le
Cybersecurity, Education, Market Intelligence
This year’s annual EDUCAUSE Conference took place in San Antonio, Texas, where higher education leaders shared key insights into top edtech trends, priorities and challenges shaping the higher education landscape. The 2025 Educause Top 10 priorities list addresses how higher education technology and data leaders can work together to restore trust within the education sector by building competent and caring institutions through collaboration, consistent results and shifting from monolithic systems and processes to more flexible and unified solutions.
Yvonne Maffia
Big Data, Cybersecurity, Market Intelligence, Technology
Hello from DoDIIS in Omaha, Nebraska! TDSYNNEX Public Sector is once again attending, so if you didn’t make it out to the city that invented the Reuben sandwich, we’ve got you covered. The conference kicked off with a heavy focus on several prevailing themes, notably: cybersecurity, deterrence, interoperability, and data centricity. If you read that list and thought AI was missing – fear not – it was included in discussions, but primarily as a vehicle for aiding in the intelligence community’s (IC) top priorities.
Susanna Patten
Cybersecurity, Market Intelligence, State & Local Government, Technology
The 2024 National Association of State Chief Information Officers (NASCIO) Annual Conference took place in New Orleans, Louisiana earlier this month, where state leaders shared key insights into FY25 top technology priorities, challenges and lessons learned. Some of the key focus areas included AI, with emphasis on generative AI (Gen AI) tech, data management, governance, privacy and accessibility, cybersecurity and risk management and digital services and modern government.
Yvonne Maffia
AI, Cybersecurity, Market Intelligence
This month marks the 20th anniversary of the declaration of “Cybersecurity Awareness Month,” originally created by the Department of Homeland Security and the National Cyber Security Alliance in 2004. Since then, we’ve seen vast amounts of change and innovation in the sector. We’ve also seen continually updated legislation, new technology and opportunities for IT companies to penetrate the market as federal agencies continue to watch threats evolve.
Susanna Patten
Federal Fiscal Year End, Federal Government, Market Intelligence, Technology
At this point, anyone keenly watching the budget process every year can tell you the likelihood of a continuing resolution (CR) being passed as opposed to a new budget by Oct 1st is all but guaranteed. CRs act as a temporary stopgap designed to avoid a government shutdown. However, it also locks funding to the previous fiscal year’s level and prevents new projects from getting started. Projects then remain under operations and maintenance until a new budget, with new requirements, is passed.
Susanna Patten
Cybersecurity, Federal Government, Market Intelligence, Technology
The US military information network comprises over 15,000 classified and unclassified networks facilitating information exchange for service members worldwide. Known as the Department of Defense Network (DoDIN), it includes devices such as computers, mobile phones, weapons, servers, and data systems consistently serving military personnel at all levels. Data sharing across these devices has been under frequent threats of cyberattacks by adversaries and necessitates keen vigilance by the Defense Information System Agency (DISA) to manage risks and vulnerabilities.
Toan Le
AI, Education, Market Intelligence, State & Local Government
With the increasing prominence of artificial intelligence and machine learning (AI/ML), numerous state governments are creating taskforces on AI to help determine their state’s AI strategy.
Gabriel Zighelboim
Cybersecurity, Federal Government, Market Intelligence
Defending against cyberattacks is an ongoing battle for the Air Force, Army, and Navy, and requires strategic maneuvering and intelligent solutions. An integral part of these solutions has been the collaboration and technical support from the defense industrial base (DIB). Recently, the principal cyber advisors from each branch announced their challenges and priorities geared toward addressing cyber needs.
Toan Le
FAA, Federal Government, Market Intelligence
Given the numerous commercial airline safety incidents in the news within the past few months, it should be no surprise that the Federal Aviation Administration (FAA) and government legislators have taken an interest in improving the safety of US airspace. The FAA is looking into and implementing new solutions to improve airspace safety, and government legislators are funding airspace safety initiatives.
Gabriel Zighelboim
Federal Fiscal Year End, Federal Government, Market Intelligence
You read that title correctly; here we are near the end of another federal fiscal year. If you’re thinking it feels like Congress just passed the fiscal year 2024 (FY24) budget, you’re correct. Half of FY24 was spent in a state of continuing resolutions, with the passage of a final budget a whopping six months into the year, in March 2024. Federal agencies have had effectively half the time they would be allotted in an ideal fiscal year timeframe to spend less, the same, or in some cases more money.
Susanna Patten
Federal Government, Market Intelligence, Technology
In a contest this year of “Most Popular IT Market Trends” it’s highly likely artificial intelligence (AI) would win first place. Federal agencies have released troves of related guidance in the past year, including an executive order, Office of Management and Budget (OMB) memos, National Institute of Standards and Technology (NIST) protocols, and the Department of Defense’ (DoD) AI Strategy. So much of the discussion around AI up until very recently though has been just that: discussion.
Susanna Patten
Cybersecurity, Market Intelligence, State & Local Government
The 2024 fiscal year-end is coming to a close for 46 states, which means that it’s time to put on those running shoes and take advantage of any last minute, end-of-year opportunities. State, local and education (SLED) organizations are already game planning where to funnel resources and dollars in next year’s budget, highlighting the top priorities and challenges that will shape future downstream requirements.Key points to keep in mind:
Yvonne Maffia
Cybersecurity, Federal Government, Infrastructure, Market Intelligence
Recently the Office of the Director of National Intelligence (ODNI) released a roadmap entitled Vision for the IC Information Environment to outline a vision to protect the nation from adversaries and maintain a “strategic advantage" over those intending to harm its information infrastructure. The roadmap contains recommendations from a collaboration of more than one hundred technical leaders from the intelligence community (IC).
Toan Le
Market Intelligence, State & Local Government, Technology
The Department of Justice (DOJ) recently released its Final Rule on Title II of the Americans with Disabilities Act (ADA). In doing so, they created numerous new requirements state and local governments need to adhere to in designing their digital offerings including adding video narration options, making websites compatible with assistive technologies and making web page labels descriptive.
Gabriel Zighelboim
Market Intelligence, State & Local Government, Technology, Transportation
Emerging technologies such as artificial intelligence (AI) and machine learning (ML) are all the rage as of late, and one sector where they can provide innumerable benefits deserves special attention – transportation.
Yvonne Maffia
Big Data & Analytics, Healthcare, Market Intelligence, State & Local Government
Maternal and child health (MCH) has become a top concern nationwide, particularly in disadvantaged, underserved and rural communities. According to the U.S. Department of Health and Human Services (HHS), the United States is experiencing a maternal health crisis nationwide, as it has one of the highest maternal mortality rates among high-income nations; increasing rates of complications from pregnancy or childbirth; and persistent disparities in such outcomes.
Yvonne Maffia
Application Lifecycle, Market Intelligence, Technology
Federal officials have released a first of its kind Strategy focused on the security of the government’s space-based platforms and infrastructure, and the impact commercial solutions may have on supporting the continued need in this space; pun intended. According to the document, the 2024 Department of Defense (DoD) Commercial Space Integration Strategy is a first for the Department of Defense, and “provides a vision for prioritizing and aligning efforts to integrate commercial solutions into our national security space architecture.”What’s this for?
Susanna Patten
Cybersecurity, Market Intelligence, State & Local Government
The 2024 National Association of State Chief Information Officers (NASCIO) Midyear Conference took place in National Harbor, Maryland last week where state leaders shared insights into their top technology priorities, challenges, and lessons learned. Some of the key focus areas included artificial intelligence (AI) with emphasis on generative AI, data management, accessibility, and governance, cybersecurity and risk management, and modernization and the digital customer experience.Artificial Intelligence
Yvonne Maffia
Big Data, Market Intelligence
For the United States Navy, data has become a cornerstone of its operations, guiding the course of missions, and ensuring the safety of personnel. Every facet of maritime endeavors, from intelligence gathering, to navigation and logistics, relies on a steady stream of accurate and timely data. Harnessing and making the best use of that data, though, comes with its own challenges. These can include limited bandwidth, stringent security protocols, and the sheer volume of information generated across a host of platforms.
Toan Le
Application Lifecycle, Education, Market Intelligence, State & Local Government
According to data contained in a recent study from Pediatrics, the official scientific journal of the American Academy of Pediatrics, the number of school shootings in the United States has increased dramatically every year since the 2017-2018 school year. At the same time, school mass shootings have become increasingly deadly. Given this trend and the risk posed by security threats to students and faculty, school districts are desperate to find solutions to improve school security.
Gabriel Zighelboim
Big Data & Analytics, Market Intelligence, State & Local Government
Since 2023, we have seen an explosion in the number of state data privacy laws, demonstrating a clear focus amongst state governments in data privacy. In fact, according to the National Conference of State Legislatures, “at least 40 states and Puerto Rico introduced or considered at least 350 consumer privacy bills in 2023.” These data privacy laws create protections for a range of several types of data, from general consumer data protections to specific protections for health data and minor data.
Gabriel Zighelboim
Federal Fiscal Year End, Federal Government, Market Intelligence, Technology
If you have been confused lately seeing multiple March dates with some mention of the federal budget tied to them, you are not crazy. There are in fact multiple budgets floating out there in the ether: some finalized versions for certain agencies, others still awaiting that vote and presidential approval for fiscal year 2024 (FY24), as well as a wholly new request for funding from the President for FY25 priorities. We will catch you up as succinctly as possible, and if FY24 sounds too confusing, read on to hear what’s catching attention across IT for FY25.
Susanna Patten
Cybersecurity, Federal Government, Market Intelligence, State & Local Government
The 2024 United States presidential election is rapidly approaching, and state and local governments are focusing their efforts on bolstering election security and ensuring the proper safeguards are in place.
Yvonne Maffia
Cloud Computing, Cybersecurity, Market Intelligence
Originally passed in 2014, the Federal Information Technology Acquisition Reform Act (FITARA) was designed to improve the management of all-things-IT across federal agencies. It essentially realigned how the government purchases and updates its technology, with an aim at grading agencies based on their ability to adhere to and improve on the following categories:
Susanna Patten
Cloud Computing, Cybersecurity, Market Intelligence
Originally passed in 2014, the Federal Information Technology Acquisition Reform Act (FITARA) was designed to improve the management of all-things-IT across federal agencies. It essentially realigned how the government purchases and updates its technology, with an aim at grading agencies based on their ability to adhere to and improve on the following categories:
Susanna Patten
Market Intelligence, State & Local Government, Technology
The start of a new year often brings uncertainties; but in 2024 one thing is for certain—artificial intelligence (AI) is top of mind nationwide and is expected to have a transformational impact on our society both now and in the future.
Yvonne Maffia
Big Data & Analytics, Market Intelligence, State & Local Government
The year 2024 is just around the corner, and with a new year typically comes new priorities. However, some things, like digital government, are here to stay. Improving the Citizen Experience will continue to be a top priority both now and, in the future, as the modern world emphasizes the importance of personalized services that provide agility, accountability, transparency, equity, efficiency, adaptability.
Prioritizing Citizen Experience
Yvonne Maffia
Federal Government, Market Intelligence, News, Technology
We’re still in the first quarter of the fiscal year and headed toward the holiday season. Historically, that predicates a slower pace across the federal sector, but not this year. This year, artificial intelligence (AI) is having a moment, and nearly everyone across the public sector, including the White House and The Office of Management and Budget (OMB), has something to say about it.
Susanna Patten
Federal Government, Market Intelligence, Technology
The era of heightened environmental awareness calls for decisive action, and the federal government has stepped up to lead this transformative journey. Three federal agencies have carved out significant roles in funding and facilitating environmental remediation technologies: the Department of Energy (DOE), the Environmental Protection Agency (EPA), and the Department of Defense (DoD).
Dawit Blackwell
Federal Government, Healthcare, Market Intelligence, Technology
Modernizing the defense healthcare system has never been more front and center for Defense Health Agency (DHA), the Department of Defense's (DOD) primary arm that manages all things healthcare for military service members and their beneficiaries. With acts of war and terrorism arising from overseas and the possibility of having our troops involved in future conflicts, patient healthcare and service preparedness are top priorities for the agency. So, the DHA is looking to work across federal agencies and industry to strengthen its healthcare systems.
Toan Le
Market Intelligence, State & Local Government, Technology
Numerous reports by various organizations, including the Government Accountability Office, have consistently found insufficiencies in state unemployment insurance programs. These insufficiencies were laid bare during the COVID-19 pandemic when increased need for such services, combined with an increase in fraudulent activity targeting unemployment insurance programs, overtaxed states’ unemployment insurance systems.
Gabriel Zighelboim
Cloud Computing, Cybersecurity, Education, Market Intelligence, State & Local Government, Technology
The annual EDUCAUSE conference highlighted higher education technology trends, goals, challenges, and how to identify a way ahead for higher education institutions to be successful in today’s modern world.
Yvonne Maffia
Cloud Computing, Cybersecurity, Education, Market Intelligence, State & Local Government, Technology
The annual EDUCAUSE conference highlighted higher education technology trends, goals, challenges, and how to identify a way ahead for higher education institutions to be successful in today’s modern world.
Yvonne Maffia
Cybersecurity, Education, Federal Government, Market Intelligence, Technology
Over the last few months, there have been several recent cybersecurity initiatives at the federal level, aimed at bridging gaps in K-12 cybersecurity policy and strategy.
Yvonne Maffia
Federal Government, Market Intelligence
Ah yes, we meet again. The last week of the fiscal year: the air is cooler, pumpkin spice is in everything and the government might shut down. That is, if a deal isn’t reached by midnight on September 30th. This feels even more common, mostly because it is. And I don’t know about you, but the word “shutdown” might sound scary, apropos leading up to Halloween I suppose, but it doesn’t have to be. We’ll talk about what exactly a shutdown is, and more importantly, what it is not.
Susanna Patten
Cloud Computing, Cybersecurity, Market Intelligence
The Air Force hosts an annual summit known as Department of the Air Force Information Technology and Cyberpower (DAFITC) in Montgomery, Alabama, right next to Maxwell Air Force Base. It’s an opportunity for Guardians, Airmen, academics, and IT industry to come together to discuss pain point remedies and high-level plans and strategies. It is also an opportunity for branch heads to strike deals that lead to the adoption of modern and effective systems, meant to enable air superiority. Ms.
Kevin Shaker
Cloud Computing, Cybersecurity, Market Intelligence
The Air Force hosts an annual summit known as Department of the Air Force Information Technology and Cyberpower (DAFITC) in Montgomery, Alabama, right next to Maxwell Air Force Base. It’s an opportunity for Guardians, Airmen, academics, and IT industry to come together to discuss pain point remedies and high-level plans and strategies. It is also an opportunity for branch heads to strike deals that lead to the adoption of modern and effective systems, meant to enable air superiority. Ms.
Kevin Shaker
Cybersecurity, Internet of Things, IT Infrastructure, Market Intelligence
IoT and Its Impact on Infrastructure and Governance
The Internet of Things (IoT) revolutionizes how governments, organizations, and citizens interact with the physical world. This wave of interconnected devices promises a transformative infrastructure and governmental operations shift. However as the reach of IoT grows, the implications — especially related to security — become even more profound.
Dawit Blackwell
Big Data & Analytics, Market Intelligence, State & Local Government
Data analytics played a pivotal role in state, local, and education (SLED) governments’ response to the COVID-19 pandemic, and the emphasis on the importance of data has only continued to magnify over the last couple of years. Data analytics and related technology tools provide a host of benefits ranging from real-time data analysis, increased transparency and accountability, streamlined citizen facing services, better decision making and savings in both costs and time.
Yvonne Maffia
Big Data & Analytics, Data and Analytics, Federal Government, Geospatial, Market Intelligence
As the demand for trustworthy visual data collection and advanced technologies to support strategic decision-making continues to rise, geospatial intelligence plays a vital role in delivering essential military and environmental insights to the intelligence community. Recently at the GEOINT Conference in St. Louis, leaders from several intelligence agencies shed light on the future of geospatial intelligence (GEOINT) and its relationship with emerging technologies.
Toan Le
Market Intelligence, Technology
The Market Insights team is closely monitoring the immediate and long-term effects of the debt ceiling agreement, and we'll keep you informed of any updates. Here are our initial observations:
Immediate Impact:
Lloyd McCoy
Federal Government, Market Intelligence, Technology
Edge computing is transforming the public sector, providing increased efficiency, better decision-making, and improved services. The use of AI and machine learning is driving the adoption of edge computing in both federal and state/local government sectors. We will be examining what edge computing means for the public sector, explore recent developments and specific federal contracts, and discuss opportunities for information technology (IT) vendors and partners in this growing field.
Dawit Blackwell
Federal Government, Market Intelligence, Technology
This is part of a podcast series where the TD SYNNEX Public Sector Market Insights team provides insights and analysis on IT opportunities across the public sector. This episode features Kevin Shaker, Senior Manager of Lead Gen & Market Intelligence where he discusses the opportunities around, and how to navigate, the federal government’s fiscal year-end. Listen to the full podcast here.
Kevin Shaker
Market Intelligence, State & Local Government, Technology
This is part of a podcast series where the Market Insights team provides insights and analysis on IT opportunities across the public sector. This episode features Yvonne Maffia, Senior Market Insights Analyst at TD SYNNEX Public Sector where she discusses how to leverage SLED Fiscal Year End Sales Opportunities. Listen to this podcast episode now.
Yvonne Maffia
Infrastructure, Market Intelligence, State & Local Government, Technology
Welcome to 2023 — an era of modernization where public sector information technology (IT) market growth is dominated by technologies that can create operational efficiencies and enhance the delivery of citizen-facing services. IT leaders are approaching municipality and jurisdictional operations from the lens of optimization, and there is only room for "smart" solutions.
Yvonne Maffia
Market Intelligence, State & Local Government, Technology
Cloud services continue to be a top priority for state chief information officers (CIOs), but the focus has accelerated due to the emergence of digital government and disruptions brought on by the Covid-19 pandemic. Over the last few years, we’ve seen cloud services quickly become a “must-have” for state, local and education (SLED) customers, emphasizing cost savings, scalability, agility, and flexibility.
Yvonne Maffia
Federal Government, Market Intelligence, Technology
Recently, we covered the top highlights and technology pinpoints to hone in on for the DoD’s share of the FY24 federal budget request. We’ll take a look at the civilian side of things as well, spotlighting five agencies in particular that will likely have among the biggest IT projects and initiatives across the federal civilian landscape in the next fiscal year. Spoiler alert – there’s a lot of funding to go around.
Susanna Patten
Federal Government, Market Intelligence, Technology
It’s March again, and that means the madness of the tournament, or rather the federal budget process, has begun. It’s the time of year when the federal government places its bets on priorities and initiatives that will require funding in the coming year(s). We’ll take a look at the Department of Defense’s (DoD’s) specific call-outs, what to watch for, and where you might place your own technologies across the complex landscape of agencies.
Readiness, R&D, and Dominance
Susanna Patten
Cybersecurity, Federal Government, Market Intelligence, Technology
The Department of Navy (DON) recently held its annual WEST Conference, this year with a strong emphasis on cybersecurity. The conference brought together key decision-makers from the Navy, Marine Corps, and Coast Guard, along with experts from various industries and government officials. The discussions were broad-ranging, covering topics related to naval warfare, technology, innovation, and cybersecurity.
Toan Le