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Cloud computing is transforming businesses across different industries by delivering hosted services through the internet with significant cost benefits. The private sector is already benefiting from cloud computing, and government organizations have started to exploit the technology.

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Cloud computing offers diverse advantages for governments. Government budget on ICT expenditure is significantly reduced with cloud computing, as the computing resources are outsourced to cloud providers. Also, calculation of expenses on ICT resources has become easy as the pay-per-use pricing model is used in cloud computing to charge the utilization of resources.

Government organizations are recognizing the advantages of information technology to increase operational efficiencies. They are also focusing on reducing the cost of IT ownership through cloud computing. Thus, efficient service delivery capability and cost saving are the major drivers of cloud computing adoption in government.

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Asset management, monitoring, and threat detection and prevention are some of the key Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) solutions adopted by governments. Governments are also adopting cloud for storage, risk compliance management, disaster recovery, and identity access management applications.

The global cloud computing market in government can be segmented based on cloud type, component, service model, and region. On the basis of cloud type, the cloud computing market in government can be categorized into public cloud, private cloud, and hybrid cloud. Based on component, the cloud computing market in government can be categorized into software and services.