The Economic Impact of GovCloud on IT

Federal Marketplace

•Cumulative market value $530 billion (2011 – 2015), •U.S. Federal IT market growth 4.7% CAGR over the next five years. •Administration Strategy Deploy technologies that have proven their worth in the private sector. •Key technology segments Business intelligence, cloud computing, eDiscovery, GIS and geospatial, Health Information Technology, non-relational database management systems, Smart Grid, SOA, unified communications and virtualization • Key segments will see double digit growth in the period 2011 – 2015. •2015 annual U.S. Federal IT market $116 billion

– Market Research Media

Federal Information Technology Reform

Federal Cloud Computing Strategy

U.S. Federal Cloud Computing Market Forecast 2010-2015

Market Media Research

Dell to acquire InSite OneDell began this transformation process a few years ago by acquiring a series of software-as-a-service (SaaS) companies, including Everdream, SilverBack, and MessageOne. It purchased Perot Systems over a year ago to give it enterprise outsourcing and systems integration skills, and acquired the SaaS-based integration tools vendor Boomi in 2010 -- again following the example set by IBM, which purchased cloud-based integration solution provider Cast Iron Systems last May.

InSite One is a cloud-based medical archiving provider that helps healthcare organizations better manage sensitive patient diagnostic imaging data.

Teradata to acquire AprimoTeradata (NYSE: TDC)’s purchase of Aprimo, a cloud-based integrated marketing software provider, mirrors another acquisition made by IBM in 2010 of marketing software vendor Unica.

Lawson Software to acquire EnwisenThis acquisition is probably the easiest one to comprehend, because it is a perfect example of an established on-premises software vendor, Lawson Software Inc. , acquiring a proven SaaS provider to accelerate its leap across the cloud chasm to satisfy its customers’ changing requirements and expectations.

Cloud M&A

Cloud Spending

9/3

0/2

009

11/3

/2009

12/7

/2009

1/1

0/2

010

2/1

3/2

010

3/1

9/2

010

4/2

2/2

010

5/2

6/2

010

6/2

9/2

010

8/2

/2010

9/5

/2010

10/9

/2010

11/1

2/2

010

12/1

6/2

010

1/1

9/2

011

2/2

2/2

011

3/2

8/2

011

5/1

/2011

6/4

/2011

7/8

/2011

8/1

1/2

011

9/1

4/2

011

10/1

8/2

011

11/2

1/2

011

12/2

5/2

011

1/2

8/2

012

3/2

/2012

4/5

/2012

5/9

/2012

6/1

2/2

012

7/1

6/2

012

8/1

9/2

012

9/2

2/2

012

10/2

6/2

012

0

5

10

15

20

25

30

35

40

Cloud Computing RFPsInput May 2011

SolicitionsAwards

Date

Op

po

rtu

nit

ies

~$1.7B

Conclusions

Cloud computing is accelerating in the global marketplace

Government cloud computing is also accelerating

US Federal Agencies are responding quickly to the “Cloud First” policy

GovCloud is currently in a rapid growth phase

Budget battles and continuing resolution has squeezed cloud awards into 3rd and 4th quarter

If you don’t have a cloud computing strategy in place now, you’re behind the curve