The Federal IT market represents the one of the largest opportunities in the IT marketplace for Tech Data’s reseller community. For those prepared to invest the necessary resources, the projected federal IT spend for 2021 is $88 billion. Cyber security, modernization, data center optimization and cloud services are all driving that growth. Resellers are acutely aware of the unique challenges that must be taken into account when serving these markets.
Changing sales cycles, budget restraints, rapidly changing regulatory requirements, and natural disasters are all factors that affect this market every day. While economic conditions and bureaucracy can slow the pace of change, government technology spending will continue, particularly on solutions that ease the challenges of resources and security.
Key Drivers and Technologies
Each market and agency has its own priorities and initiatives. The challenge for public sector resellers lies in crafting solutions that address those priorities and initiatives their end users are implementing.
- Federal IT Market Key Technology Trends
- Cybersecurity
- Virtualization
- Cloud Computing
- Disaster Recovery
- Big Data
- Mobile Apps/Mobility
- High Performance Computing
- Disaster Recovery
- Health Information Technology
Market Opportunity
It’s projected that the federal IT market will grow at 3% per year (CAGR). Governed by Federal Acquisition Regulations, this market is composed of key verticals, such as law enforcement, healthcare, defense and more.
Though federal purchasing occurs year-round, the buying season is Aug. 1-Oct. 31, peaking Sept. 30, when federal budgets expire. Federal purchase orders must be issued by Sept. 30 in order to be included in the current year's budget.
For 2021, the federal government is expected to spend $88 billion on their federal IT initiatives. The key drivers and technologies include cybersecurity, modernization, mobility, data center optimization, IoT and cloud services for the upcoming buying season. Tech Data recognizes the priority the federal government has given these areas and has developed services and technology-focused business units to help our customers navigate the federal market.
One new service Tech Data has to offer is partnering on our GSA schedule 70. We have several vendors participating today and anticipate more vendors in the future. Our Public Sector team can facilitate the onboarding process in order to leverage the opportunity a GSA schedule provides.
The industry saw contract awards in 2015 for two of the federal government’s largest GWAC vehicles, SEWP5 and CIO-CS. Tech Data supported numerous customers in the capture of these contracts and will continue to seek out new IDIQ contracts as the year moves in to 2021. The SEWP5 Contract has been extended to the year 2025 for all current contract holders.
Government Battlecard: Your Strategic Connection to Public Sector Opportunities