|[December 11, 2013]
IDC Government Insights Predicts Total IT Security Spending for US Federal Government to Top $6.1 Billion in 2014
FRAMINGHAM, Mass. --(Business Wire)--
Government Insights today announced two new reports. The first
Strategy: U.S. Federal Government IT Security Spending Forecast and
Market Outlook (Doc #GI244554), offers a U.S. federal IT
security forecast through 2017 including breakouts, by agency, of the
major IT security initiatives currently underway. It also looks at how
IT security elements within government offices can be significantly
different than what is seen in other industries because of the need for
physical and national security. According to the new report, overall IT
security spending will rise from $5.9 billion in 2012 to over $7.3
billion in 2017. Overall security spending has been trickling upward at
an average rate of about 4% per year, and based on the new report, this
slow steady increase shows no signs of abating.
While federal IT security spending continues to climb, the expansion is
not universal. Different agencies are investing in IT security at
different rates, and most have distinct focuses depending on their
existing legacy systems and what they need to improve. According to Shawn
P. McCarthy, Research Director, IDC (News - Alert) Government Insights, "At this
time, many agencies are reviewing how their move to cloud-based
solutions might affect their overall IT security posture and many are
finding that unified threat management (UTM) solutions are becoming
increasingly popular. In fact, we anticipate that federal UTM spending
will rise from $213.8 million in 2012 to over $541.4 million in 2017."
Additional key findings include:
Most IT security spending goes toward staff salaries. This is because
security scanning and proactive mitigation efforts still have a heavy
manual component, with people needed to set configuration and to make
decisions when threats are detected. Most years staff salaries account
for between 85% and 91% of total spending.
The Office of Management and Budget (OMB) tracks two broad categories
of IT security spending - money spent strictly on IT security versus
money spent on the IT elements of larger physical and nation security
efforts. The government needs both types of IT spending to maintain an
effective security posture. While the latter group is not traditional
information security spending as IDC defines it in taxonomy documents,
it is often listed as security related when it is mentioned in
government IT budgets. For that reason, IDC Government Insights has
included details on both types of security budgets, including a
five-year forecast forboth types of security spending.
IDC Government Insights expects to see steady long-term growth for
security spending between now and 2017, with staffing growing to $6.2
billion by 2017, firewall spending growing to $249.6 million, unified
threat management growing to $541.4 million, intrusion detection and
prevention growing to $226.3 million, and virtual private network
spending growing to $80.9 million. Right now, about 40% of IT staffing
for security management goes to contractors. IDC Government Insights
expects to see that grow to about 60% by 2017, as more government IT
services move into the cloud.
U.S Intelligence Budget Landscape
The second IDC Government Insights report announced today is Perspective:
The U.S. Intelligence Budget Landscape - With IT Segmentation and Budget
Forecast (Doc #GI244777). According to published sources, the
U.S. intelligence budget for FY13 was set at $52.3 billion, with an
additional $400 million in spending across other government agencies,
which require some level of interaction of data sharing with the
intelligence community. While a total of $52.6 billion often is quoted
as the total black intelligence budget, this new report mainly addresses
the $52.3 billion that was outlined in available documents.
According to the report, many government agencies spend an average of
4.5% to 6.7% of their total annual budget on IT solutions. Intelligence
agencies tend to have a higher need for computing solutions, which
prompts many of them to spend more than 15% of their annual budgets on
different types of information technology or data gathering
technologies. For an organization such as the National Security Agency (News - Alert),
which is focused heavily on signal intelligence, communications, and
data analysis, that percentage can climb to more than 30%.
Key highlights include:
On average, IDC Government Insights calculates that about 22.5% of the
black intelligence budget is targeted at various types of IT solutions.
Overall intelligence spending is expected to rise to about $9.5
billion (18.8%) between 2013 and 2017.
The IT portion of the overall intelligence spending is expected to
grow by up to 33.6%. Much of this will go toward additional data
collection technologies and flexible large-scale computing platforms.
Spending by the CIA is the largest of any spy agency, with $14.8
billion requested for 2013. That's nearly 70% higher than the next
largest intelligence agency, the National Security Agency.
Counterterrorism programs account for about 25% of the members of the
intelligence workforce. These programs also represent about 33% of all
IDC Government Insights' Shawn McCarthy asserts, "U.S. intelligence
agencies face the same pressures as other federal agencies - to
consolidate systems, to take advantage of cloud-based solutions or
shared services when possible, and to use new technologies to improve
and accelerate data processing. And while many intelligence agencies
have long been chief consumers of supercomputing power, the newer styles
of flexible multiprocessing are driving new rapidly scaling IT operating
at a variety of facilities. With their evolving focus on global data
collection for international operations, intelligence agencies will be
dealing with more data than ever before while integrating new solutions
capable of handling that data. For this reason, we expect IT spending to
continue growing at these agencies."
To arrange a one-on-one briefing with Shawn
McCarthy, please contact Sarah Murray at 781-378-2674 or firstname.lastname@example.org.
Reports are available to qualified members of the media. For information
on purchasing reports, contact email@example.com;
reporters should email firstname.lastname@example.org.
About IDC Government Insights
IDC Government Insights assists government policy, program, and IT
leaders, as well as the suppliers who serve them, in making more
effective technology decisions by providing accurate, timely, and
insightful fact-based research and consulting services. Staffed by
senior analysts with decades of government and IT industry experience,
our global research analyzes and advises on business and technology
issues facing the Federal/Central and local/provincial Governments.
International Data Corporation (IDC)
is the premier global provider of market intelligence, advisory
services, and events for the information technology market. IDC is a
subsidiary of IDG,
the world's leading technology, media, research, and events company. For
more information, please visit www.idc-gi.com,
email email@example.com, or call
703-485-8300. Visit the IDC Government Insights Community at http://idc-insights-community.com/government.
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