US INPUT FORECASTS FEDERAL INFORMATION SECURITY SPENDING TO EXCEED $7BILLION BY FY10
May 24, 2005 Tuesday 09:25 PM GMT

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INPUT Forecasts Federal Information Security Spending to Exceed $7 Billion by FY10;
Information Security Ranks Among Principal IT Concerns for Federal Agencies

RESTON, Va. May 24


RESTON, Va., May 24 /PRNewswire/ -- Federal information security spending will grow 20 percent over the next five years from $6.1 billion in fiscal year 2005 to $7.3 billion in fiscal year 2010 (FY10), according to a report released today by INPUT, the quantifiable leader in government market intelligence. Following the attacks of September 11, 2001, information security has become the single most critical component of information systems investments across all federal agencies and programs, causing a steady increase in IT expenditures.

"We're seeing the focus on information security gain momentum as homeland security initiatives have begun to normalize," said Chris Campbell, senior analyst, federal market analysis at INPUT. "Over the past few years we have seen a rise in crippling network viruses and federal agencies are realizing their current systems are not enough to fend off attacks and breaches."

Since 2001, increased monitoring by the Office of Management and Budget (OMB) has prompted agencies to make significant progress toward securing all existing information systems. The most recent Federal Information Security Modernization Act (FISMA) report to Congress showed that federal agencies have made moderate headway in reviewing information systems and implementing security plans. In FY 2004, 76 percent of federal IT systems reported having an up-to-date security plan, a 12 percent increase over the previous year. However, despite considerable progress, federal agencies are still falling short of the 90 percent goal OMB set for the end of FY 2005. "Federal agencies are feeling the pressure from OMB to get their systems certified and accredited by the end of the year, which accounts for the majority of the spending increase. Without a detailed security plan, agencies will have little chance of receiving program funding," added Campbell.

"During the current growth stage, there are many new opportunities for vendors to provide security products and services to federal agencies in the near term," continued Campbell. "As a part of its cost-saving efforts, OMB has added IT security as a sixth line of business. Although the effects of this effort will not be seen for many years, we will likely see federal agencies consolidate programs in an effort to reduce redundant systems. Therefore, teaming partnerships will become even more important to security vendors in the long term."

To meet the growing demand for research on the federal information security market, INPUT today announced the launch of a new Federal Information Security Analysis program to further look at the issues shaping this market. INPUT's new program provides security vendors and government officials with a detailed look at the legislative, regulatory, and technological developments impacting the federal information security market. The program provides a market forecast, three detailed issue analyst reports and 20 short, focused analysis reports annually. For more information on INPUT's Federal Information Security Analysis program, visit http://security.input.com/ or call 703-707-3500.

About INPUT:

INPUT is the quantifiable leader in government market intelligence. Established in 1974 and based in Reston, Virginia, INPUT provides information services, market analysis, consulting, software solutions, and events to help technology vendors win more government business, and to help government organizations further advance their IT initiatives. INPUT tracks more than a half trillion dollars in contract and grant opportunities within the US federal, state & local government markets, as well as tender opportunities throughout the European Union. INPUT has built a solid reputation for high quality and in-depth government industry insight and analysis with over 1,000 clients, including hundreds of small to medium size IT contractors and 70% of the top 150. Leading defense, hardware, software, telecommunications and IT services contractors, plus 4 of the top 5 8(a)s, rely on INPUT to help them win more than $45 billion in government business each year. For more information about INPUT, visit http://www.input.com/ or call 703-707-3500.

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