Seven Years In, Gov Tech Is Having Its "App Store Moment"
Source: GovTech | Dustin Haisler
As the market for technology companies serving government has exploded, state and local agencies have never had more options for solutions that fit their specific needs.
On June 29, 2007, the iPhone was released and quickly went on to revolutionize the mobile phone market and create an altogether new category for revenue. What is important to remember is that when the iPhone was originally released, it did not include a store, as the device came with all the applications you needed — a web browser, calendar, mail and so on. It was an experience that was completely defined and controlled by Apple.
This all changed on July 10, 2008, when Apple launched the App Store as a way for third parties to bring new applications to your iPhone. Users no longer had to settle for the capabilities their phone came with out of the box, but were able to add new functions quickly and easily. Apple’s endeavor catalyzed a wave of market activity and established a new source of annual revenue that reached $64 billion in 2020.
This business enterprise is a fitting analogy to illustrate what is taking place in the government technology market today. The government-industrial complex of the past has given way to an open market where agencies can pick the best solution for each problem … even if they are not all from the same vendor. This is the gov tech “App Store moment.”
THE INGREDIENTS FOR A MOVEMENT
The gov tech App Store moment is being fueled by a collision of disparate forces that were already accelerating independently, which together have created the perfect storm for market innovation and progress. These include:
Democratized cloud infrastructure:The rise of cloud as infrastructure and new as-a-service delivery models have enabled every city, county and state government agency across the country to access world-class infrastructure at a price point based on their needs. In addition, this same technology has made it possible for eager entrepreneurs to securely provide new capabilities in government-optimized and pre-certified services, avoiding the costly path of building it themselves. Some of these cloud providers have also leaned in on the App Store dynamic by launching their own dedicated government marketplaces and incubators. Notable examples include those from AWS, Azure, Oracle Cloud, Salesforce, Google Cloud and more.
Loosening procurement rules and regulations:Many legacy rules and regulations have begun to evolve — a process accelerated by COVID-19 — enabling technology to be applied in new use cases that were not possible before. Software subscriptions and new startup-friendly procurement models have made even the most complex layers of government accessible to new innovations (and gave us Lawyer Cat as a byproduct!).
New wave of government leaders and thinking: New government leaders in both business and policy have made technology a priority for their administrations and have embraced new external thinking regarding the ways tech can be used to solve problems. Government employees, as consumers in our everything-as-a-service culture, have also continued to reimagine and innovate their existing operations into more effective government delivery models. We recognize that technologies like broadband and connectivity have also become important policy priorities for public officials across the country — and there’s no sign of this slowing down.
Changing citizen and stakeholder expectations: Citizen and stakeholder expectations for the public sector are conditioned by their interactions with private-sector companies. As consumers interact with frictionless and anticipatory digital experiences, they increasingly expect