
XaaS Will Emerge as New Area of Investments as Governments Scale Digital Transformation Initiatives
Worldwide government IT spending is forecast to total $565.7 billion in 2022, an increase of 5% from 2021, according to Gartner, Inc.
“The last few years of enduring pandemic challenges have mobilized a wave of digital transformation activities in government organisations across the world,” said Daniel Snyder, director analyst at Gartner. “Governments are executing innovative activities by harnessing technology to streamline digital services, advance automation processes and evolve citizen experiences.”
In 2022, government IT spending is forecast to increase across all segments except internal services and telecom services. Continuing the trend from 2021, software is forecast to record the strongest growth across all segments in 2022. As legacy modernisation continues to be a priority in government organisations, growth in the data centre systems segment will continue to slow though the forecast period (see Table 1).
Table 1. Worldwide Government IT Spending, 2021-2022 (Millions of US Dollars)
2021 Spending | 2021 Growth (%) | 2022 Spending | 2022 Growth (%) | 2023 Spending | 2023 Growth (%) | |
Data Centre Systems | 25,085 | 7.3 | 26,137 | 4.2 | 26,642 | 1.9 |
Devices | 37,484 | 13.0 | 37,823 | 0.9 | 37,389 | -1.1 |
Internal Services | 68,241 | -2.1 | 68,188 | -0.1 | 70,767 | 3.8 |
IT Services | 191,841 | 10.7 | 204,206 | 6.5 | 220,997 | 8.2 |
Software | 146,952 | 16.9 | 162,278 | 10.4 | 183,012 | 12.8 |
Telecom Services | 69,190 | 1.1 | 67,102 | -3.0 | 67,193 | 0.1 |
Total | 538,793 | 9.1 | 565,734 | 5.0 | 606,000 | 100.0 |
Source: Gartner (June 2022)
Table 2. Germany Government IT Spending, 2021-2022 (Millions of US Dollars)
2021 Spending | 2021 Growth (%) | 2022 Spending | 2022 Growth (%) | 2023 Spending | 2023 Growth (%) | |
Data Centre Systems | 1,233 | 4.1 | 1,244 | 0.8 | 1,218 | -2.1 |
Devices | 1,285 | 12.0 | 1,189 | -7.5 | 1,126 | -5.4 |
Internal Services | 3,604 | -1.6 | 3,471 | -3.7 | 3,601 | 3.7 |
IT Services | 10,130 | 12.1 | 10,373 | 2.4 | 11,284 | 8.8 |
Software | 7,883 | 18.9 | 8,410 | 6.7 | 9,484 | 12.8 |
Telecom Services | 3,813 | 3.3 | 3,614 | -5.2 | 3,748 | 0.4 |
Total | 27,948 | 10.3 | 28,300 | 1.3 | 30,339 | 7.2 |
Source: Gartner (June 2022)
Governments continue to invest in critical application software that directly support end user interfaces driving strong growth in this segment. Spending on telecom services is set to decrease in 2022 as governments reduce spending on expensive legacy systems in favour of digital service delivery models.
Anything-as-a-Service Model Emerges as Pay-As-You-Use Gains Momentum
Anything-as-a-Service (XaaS) is gaining popularity across government organisations as it provides better return on investment normalising IT spend over time making budgeting for IT more predictable, while avoiding the accrual of technical debt. Gartner predicts that by 2026, most government agencies’ new IT investments will be made in XaaS solutions.
“The pandemic sped up public-sector adoption of cloud solutions and the XaaS model for accelerated legacy modernisation and new service implementations,” said Snyder. “Fifty-four per cent of government CIOs responding to the 2022 Gartner CIO Survey indicated that they expect to allocate additional funding to cloud platforms in 2022, while 35% will decrease investments in legacy infrastructure and data centre technologies.”
With the ongoing talent challenges facing organisations, XaaS makes it easier for government organisations to find the right talent via XaaS operating models. XaaS delivery models require different internal IT skill sets and place less demand on the organisation to develop or acquire emerging IT skills, which are often hard to find and difficult for governments to afford.
Gartner clients can read more in “Forecast: Enterprise IT Spending for the Government and Education Markets, Worldwide, 2020-2026, 1Q22 Update.”
Learn more about key government technology trends in the complimentary Gartner ebook Top Technology Trends in Government for 2022.
Fachartikel
Studien

Studie Cloud-Strategien: Von kleinen Schäfchenwolken zum Cumulus

IDC-Studie: 82 Prozent der deutschen Unternehmen nutzen die Cloud – umfassende Automatisierung der Workloads ist aber noch Zukunftsmusik

Studie zeigt 193 Millionen Malware-Angriffe auf Mobilgeräte von Verbrauchern im EMEA-Raum

2023 State of the Cloud Report

Trotz angespannter Wirtschaftslage: die Security-Budgets steigen, doch der IT-Fachkräftemangel bleibt größte Hürde bei Erreichung von Security-Zielen
Whitepaper

WatchGuard Internet Security Report: Enormer Anstieg von Endpoint-Ransomware, dafür weniger Netzwerk-Malware

5 Tipps für die SAP- und OT-Sicherheit: So haben Hacker keine Chance

Neuer Forrester-Report: Varonis als führender Anbieter von Datensicherheits-Plattformen ausgezeichnet

Arctic Wolf Labs Threat Report: Deutlicher Anstieg der erfolgreichen Fälle von Business-E-Mail-Compromise

Aufkommende Trends in der externen Cyberabwehr
Unter4Ohren

Die aktuelle Bedrohungsentwicklung und warum XDR immer wichtiger wird

Optimierung der Cloud-Ressourcen und Kosteneinsparungen in AWS

DDoS – der stille Killer

Continuous Adaptive Trust – mehr Sicherheit und gleichzeitig weniger mühsame Interaktionen
