Research Suggests Local Governments Will Turn to the Cloud to Help Economic Growth

Cloud services and uptake of other new platforms for communication, data sharing and application development will play a key role in enabling budget-strained city and municipal government leaders to deliver economic growth while meeting sustainable development goals, according to a new report from Navigant Energy Practice's Pike Research.

The Boulder, Colorado-based market research and consultancy forecasts cumulative investment in "smart" government technology will total nearly $4.8 billion between 2011 and 2017. That in North America alone will exceed $1 billion per year in 2017, while annual investment in cloud services for smart cities will reach nearly $1.4 billion worldwide in five years' time.
"Cloud-based computing, in particular, offers new options for cities that reduces capital expenditure, provides access to new skills, and reduces time-to-deployment of new solutions," research director Eric Woods stated in a press release. "Cloud-based systems also enable cities to take advantage of the huge amounts of operational data they collect to improve efficiency and develop new services."
Pike researchers cite "smart city" cloud and information communications technology (ICT) investments being made around the world as indicative of the trend, as well as the range of sustainable development strategies city leaders are considering and carrying out to spur economic growth.
In its "Smart Government Technologies" report, Pike assesses the business drivers, market forces and technology trends "that are transforming the use of information and communications technology and related technologies in smart cities and communities." A free copy of the report's Executive Summary is available on Pike's website.

CHR Solutions agrees with Pike's assessment. We view the local government market as a prime opportunity for cloud and managed service offerings. We can assist service providers in assessing this opportunity and developing strategies to pursue it.

Written by Kevin Kutcher at 10:45