recommended reading

Agencies Spend Big to Transform Internal Processes, Report Finds


On the cusp of the election, federal agencies are poised to spend more on digital transformation, a report shows.

Federal agencies are investing in cloud, software and endpoint security as they consider how to update internal operations, but they're less focused on using technology to change customer experience, according to analysis from market research firm Govini.

In fiscal 2016, annual cloud contract obligations reached $2.8 million, compared to $1.8 billion in fiscal 2011. Infrastructure-as-a-service offerings accounted for 36 percent of that. Software spending grew about 44 percent between fiscal 2011 and 2016, with end-user productivity programs accounting for almost half.

» Get the best federal technology news and ideas delivered right to your inbox. Sign up here.

Those programs "are designed to make tasks such as creating graphics, documents and data sets easier," the report said.

Spending on endpoint security reached $2.1 billion in fiscal 2016, about 22.4 percent more than the average over the last five years. Endpoint security software spending grew 61.4 percent in fiscal 2016 compared to the average of the last five years, topping $451 million.

Mobility spending, however, has slowed. The report found the mobility sector "experienced two years of decline after rebounding from sequestration in FY14, seemingly the opposite of what has taken place in the private sector."

"Citizen engagement agencies like [Health and Human Services Department] and Veterans Affairs Department] and [Homeland Security Department] have done a pretty good job of thinking about how they want to digitally transform their engagement" with citizens, author Matt Hummer told Nextgov. But across the board, tech spending was "limited to internal efforts for transforming internal processes within the agencies," he said.

Threatwatch Alert

Network intrusion / Software vulnerability

Hundreds of Thousands of Job Seekers' Information May Have Been Compromised by Hackers

See threatwatch report


Close [ x ] More from Nextgov

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • It’s Time for the Federal Government to Embrace Wireless and Mobility

    The United States has turned a corner on the adoption of mobile phones, tablets and other smart devices, outpacing traditional desktop and laptop sales by a wide margin. This issue brief discusses the state of wireless and mobility in federal government and outlines why now is the time to embrace these technologies in government.

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

  • A New Security Architecture for Federal Networks

    Federal government networks are under constant attack, and the number of those attacks is increasing. This issue brief discusses today's threats and a new model for the future.

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

  • Software-Defined Networking

    So many demands are being placed on federal information technology networks, which must handle vast amounts of data, accommodate voice and video, and cope with a multitude of highly connected devices while keeping government information secure from cyber threats. This issue brief discusses the state of SDN in the federal government and the path forward.

  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.


When you download a report, your information may be shared with the underwriters of that document.