Is The Federal Government Moving Fast Enough On Cloud Computing?
At a time when the Federal Government is being congratulated for saving billions by moving to the cloud (See: Research Report: Feds Rejoice the Cloud Way, with $5 bn In Annual Savings), the title of this article may seem somewhat incongruous.
Before I delve into the reasons, let me bring up the topic of variance analysis. According to Wikipedia, “In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard amount and the actual amount incurred/sold….. The concept of variance is intrinsically connected with planned and actual results and effects of the difference between those two on the performance of the entity or company.” In other words, variance is the difference between expected and actual results.
Now, the million-dollar question (or is it a billion?) is what was expected from the Federal government in terms of cloud-related cost savings. Let me draw your attention to yet another report, compiled a year back by the same agency which came up with the $5 billion figure recently. As you can see, the government has fallen woefully short of the projected $14 billion in cost savings mentioned.
Another noteworthy point, is that by May last year, around $3 billion of savings had already been realized. Therefore, an additional $2 billion in 12 months does not seem to be that impressive a figure considering the overall federal IT budget of $80 billion. In light of these observations, it is not unreasonable to ask, “Is the Federal Government moving fast enough on cloud computing?”
Now, we again return to the question of what our expectations from the government are. I had earlier written about the conservativeness of government in adopting new technology, and how the Federal government’s interest is noteworthy in itself – “Since cloud computing is a new technology that still has a lot of doubters, acceptance by the government which has the reputation of being staid, conservative, old-fashioned and resistant to change will definitely make the technology more acceptable to businesses and the public alike”. In this light, $5 billion in cost savings is extremely impressive.
Also, one cannot discount the impact of Vivek Kundra’s departure from the administration. Having been the poster boy for cloud computing in government and the architect of the Cloud First policy, his departure to academia may have slowed down the pace of cloud computing adoption (See: Will Vivek Kundra’s Departure Affect Government’s Flight to the Clouds?).
Taking everything into account, I believe that the Federal Government has done a commendable job, but more remains to be done.
By Sourya Biswas
- Oracle opens start-up accelerator in Israel for cloud innovation - January 16, 2017
- BCG Survey Names 50 Most Innovative Companies - January 12, 2017
- SAP Introduces Jump-Start Enablement Program For SAP Leonardo IoT Portfolio - January 10, 2017
- FinancialForce Selects Former Salesforce And Heroku Exec To Be New CEO - January 6, 2017
- Faraday Future unveils electric vehicle in Las Vegas to kick off CES - January 4, 2017