Part 4 | The Public Sector Cloud Navigator Series
The public sector’s demand for modern, secure, and customized IT solutions is skyrocketing, with the federal IT market projected to reach $60.1 billion this year. Channel partners focused on this space have the opportunity to be key players in acquiring contracts, navigating regulations, and driving IT transformation.
In 2024 alone, channel partners will account for 73.2% of the total IT market business and last year, they were responsible for 62.8% of federal IT contracts. Engaging this group opens a path for technology providers to grow their own public sector footprint. Experienced partners can:
- Navigate complexity: The public sector operates differently from commercial markets. Experienced channel partners grasp the intricacies of grant proposal automation, RFP responses, and compliance processes
- Understand the regulation landscape: Federal contracts come with guardrails like the Federal Acquisition Regulation (FAR), the Federal Information Security Management Act (FISMA), and the Federal Risk and Authorization Management Program (FedRAMP®) for a standardized approach to securing cloud solutions
- Access decision makers: Seven services-focused companies account for half of all contract obligations from the top 50 federal partners, and aligning with these firms can enhance competitiveness in a crowded market
While many technology providers collaborate with federally focused channel partners, some need partners in the expanding state, local, and education (SLED) IT space. According to the 2024 Deltek SLED IT Market Forecast, “SLED demand for vendor-furnished IT systems and services will grow in 2024 to $145.1 billion and is expected to reach $166.3 billion in 2027.”
SLED agencies have unique technology needs and their own sets of regulatory guidelines. Channel partners who understand these distinctions can help providers by:
- Tailoring solutions to specific state or local regulations
- Navigating diverse procurement processes across different jurisdictions
- Building relationships with key decision makers
The Role Channel Partners Play Cybersecurity, AI, and Cloud Adoption
As public sector organizations race to modernize their operations, three key technologies have emerged as top priorities: cybersecurity, artificial intelligence (AI), and cloud computing. Let’s explore how channel partners play a crucial role in each of these areas:
Cybersecurity: The First Line of Defense
Digital protection remains a top concern for government organizations, and for good reason. With sensitive data and critical infrastructure at stake, government agencies need resilient solutions. Established partners help navigate complex requirements and compliance guidelines and understand government-specific security frameworks like the National Institute of Standards and Technology (NIST), Cybersecurity Maturity Model Certification (CMMC), and Defense Federal Acquisition Regulation Supplement (DFARS).
Artificial Intelligence: The Next Frontier
Governments and educational institutions are embracing AI with open arms. Executive Order 14110 allocates $3 billion across agencies for responsible AI development and integration. However, implementing AI solutions requires specialized knowledge that many public organizations lack. Channel partners help by:
- Providing training and development programs, bridging the AI skills gap in government agencies
- Ensuring AI implementations comply with ethical and regulatory standards
Cloud Computing: The Foundation for Innovation
Proper infrastructure and scalability are needed to run data-heavy applications, including AI. Gartner predicts global public cloud spending to reach $675 billion in 2024, a 20.4% increase compared to 2023. As public sector organizations embrace cloud computing, partners work to:
- Ensure seamless integration of AI applications in cloud environments
- Maintain compliance with stringent government security standards
- Optimize cloud spending and resource allocation
Forge Alliances That Drive Success in the Public Sector
The right channel partners bring the expertise, connections, and patience needed to navigate the government landscape. And when technology providers factor these partnerships into their business and marketing plans, they can drive public sector success.
