Agency Cloud Spending in FY 2017 Using the GSA Cloud Special Item Number

Posted by Alexander Rossino on February 6, 2018

Cloud Storage Wars

In analysis posted on this blog last year Deltek documented the trend of agencies using the General Service Administration’s Schedule 70 Information Technology contracts to fulfill a growing volume of cloud computing requirements. One of the factors suggested for driving this growth was the creation of a new Special Item Number, or SIN, for cloud goods and services. This new SIN (132-40) simplifies the process of buying cloud goods and services by giving agencies an easy way to identify commercial cloud offerings.

Did Deltek’s analysis pan out? The data says it did and here’s why.

First since the announcement of the new SIN in spring 2016 roughly 78 companies have added it to their Schedule 70 contracts, according to the GSA. Several vendors hold multiple Schedule 70 contracts, so take the GSA total number with a grain of salt because there is some duplication. Nevertheless, at least 70 companies have added the SIN, creating a good number of potential industry partners for agencies to choose from. In addition, since spring 2017, the number of companies that have added the Cloud SIN to one or more of their Schedule 70 contracts grew from 58 to over 70.

Second, as the chart below illustrates, total spending under SIN 132-40 rose from $5.5M in fiscal 2016 to $37.7M in fiscal 2017. That’s growth of 585 percent, a good sign for a rapidly expanding market.

Third, a growing number of companies reported sales under SIN 132-40 in fiscal 2017 compared to the year before.

The chart above shows the top 10 earning cloud vendors under SIN 132-40. Of the 70 or so total companies that have added SIN 132-40 offerings, 18 reported earnings providing cloud goods and services in fiscal 2017. This translates into 23 percent of companies with the Cloud SIN added to their Schedule 70 contracts that actually earned revenue in fiscal 2017 on contracts awarded under 132-40.

Thirty-eight million dollars isn’t a lot of spending on cloud compared to some of the other massive IT efforts underway across the government, but it is a good start and growth looks rapid year over year. Deltek expects the new cloud SIN to continue smoothing the path for agencies to use GSA’s Schedule 70 for cloud acquisitions. After all, spending on cloud using Schedule 70 contracts (Cloud SIN spending is part of this, but not all) reached $86M in fiscal 2016. Fiscal 2017 totals should come in even higher.

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