Government CIOs to spend on cloud, cybersecurity and analytics: Gartner

CIO agenda survey

Rick Howard, Gartner

In 2018 public sector CIOs will target new and additional spending towards cloud solutions, cybersecurity and analytics, according to Gartner’s latest CIO Agenda Survey, while data centre infrastructure spending is most likely to be chopped.

Sixteen per cent of government CIOs said they plan to increase spending on business intelligence and analytics, and six per cent will increase data management spend.

Unsurprisingly, digital transformation is the top-ranked business priority among government CIOs overall, followed by security and governance.

“Government CIOs have conflicting priorities – to bring transformative change to their organisations, while pursuing compliance-oriented priorities,” said Rick Howard, research vice president, Gartner. “They will need to work constructively with other business leaders to agree how to balance risk and innovation to support digital transformation.”

When it comes to technology investments crucial to achieving their organisation’s mission, cloud and BI/analytics were top-ranked, followed by infrastructure/data centre.

Table 1. Top Tech to Win

Rank Government Priorities {db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09} Respondents
1 Cloud services/solutions 19{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
2 BI/analytics 18{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
3 Infrastructure/data centre 11{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
4 Digitalization/digital marketing 6{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
5 Customer relationship management 5{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
6 Security and risk 5{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
7 Networking, voice and data communications 4{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
8 Legacy modernization 4{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
9 Enterprise resource planning 4{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
10 Mobility/mobile applications 3{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}

Source: Gartner (October 2017)

“Digital transformation revolves around data. To be successful, public sector CIOs need to focus on expanding their data and analytics capabilities and creating a data-centric culture, by increasing the availability of open data and APIs for internal use and public consumption,” said Rick Howard, research vice president at Gartner. “Building out data analytics infrastructure is fundamental to improving government program outcomes and services to citizens.”

“Many government CIOs are rebalancing capital expenditure (capex) and operating expenditure (opex) spending patterns to reduce technical debt, while making the strategic shift to cloud,” Howard said. “They should consider cloud as the means to accelerate the digitalization of their organizations and enable the business optimization that results.”

Also revealing were some of the technologies that were ranked highly by CIOs across a wide range of private sector industries, but not by government CIOs. These included artificial intelligence (with the exception of defence and intelligence CIOs), digitalisation/digital marketing, and the Internet of Things (with the exception of local government and defence and intelligence organisations). Application programming interfaces (APIs) were also considered important by a greater percentage of federal or national CIOs, compared with other tiers of government or the private sector.

Consistent with ranking cloud, analytics and infrastructure/data centre as crucial to achieving the organisation’s mission, government CIOs also anticipate increased spending in these areas.

Table 2. Top New Tech Spending

Rank Government Priorities {db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09} Respondents
1 Cloud services/solutions 19{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
2 Cyber/information security 17{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
3 BI/analytics 16{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
4 Infrastructure/data centre 14{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
5 Digitalization/digital marketing 7{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
6 Data management 6{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
7 Communications/connectivity 6{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
8 Networking, voice/data communications 6{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
9 Application development 5{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}
10 Software – development or upgrades 5{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}

Source: Gartner (October 2017)

While only 5 per cent of government CIOs considered security and risk as mission-critical, 17 per cent expect to boost spending in cyber/information security.

“The lessons of reputational damage and individual harm that can result from a data breach or compromised security have not been lost on business leaders,” Howard said. “Consequently, they’re willing to allocate more resources and attention to lower risk exposure from cyberattacks.”

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