Research Report: Feds Rejoice The Cloud Way, With $5 bn In Annual Savings

Research Report: Feds Rejoice The Cloud Way, With $5 bn In Annual Savings

Statistics have it that the federal government is enjoying a definite cutback in expenditure, estimated to be $5.5 billion per annum as an outcome of their thoughtful shift towards cloud-based services. The numbers have been accumulated by interviewing 108 federal CIOs and IT managers. On top of that, an increased aggression in the pro-cloud stir is expected to result in annual savings mounting to a mammoth $12 billion.

Entitled “Cloudy with a Chance of Savings”, the research report was published by MeriTalk Cloud Computing Exchange, and the findings were made public at the first-of-its-kind Cloud Computing Brainstorm held last week.

The study sheds light upon the fact that the core factor holding back supplementary savings unequivocally happens to be the security concerns associated with the transition from on-site to cloud-based resources. Service levels (standing at 32%) and culture (38%) are classified as the other significant fear factors. Federal government representatives have further observed that a greater level of hesitance in cloud endorsement has been exhibited by the “higher ups”. Up front in the reluctance run are IT decision makers (20%), program managers (18%) and legal advisors (17%).

A statement from Senator Carper clearly indicated that the prevalent budget shortfall requires the Federal government to prevent the taxpayers’ money from being spent extravagantly. The need of the hour is to curtail profligate expenses on resources that do not deserve it. Senator Carper believes that a text-book example of such financial mismanagement is the hefty $80 billion spent each year on IT. The Obama Administration is aware of this situation and has made notable progress in its attempt to diminish superfluous IT expenditure. However, he believes there still is clear-cut room for improvement.

Senator Carper considers himself a strong advocate of cloud technology and its potential as a game-changer. He is of the view that the cloud endorsement momentum needs to be built up, and that the Federal government’s cloud computing initiative requires a steady push forward.

According to Senator Carper, the cost-cutting plan is essentially two dimensional. Firstly, the federal data centres need to be fused, leading to a reduction in their number. Moreover, the IT operational dynamics crucially need to shed both weight and cost—a perk inherent in the cloud-shift. Cheaper technologies such as the cloud, he believes, can lead to improved value against less public money.

Senator Scott Brown added that transparent and truthful discussions such as the Brainstorm promote mutual collaboration and lead to better decision making. The Federal government should lead such debates up-front, and by example.

Senator Carper’s stand point was augmented by Senator Brown’s statement, “What this survey shows us is that cloud computing is on track to enable a faster, smarter government.”

By Humayun Shahid

Humayun

With degrees in Communication Systems Engineering and Signal Processing, Humayun currently works as a lecturer at Pakistan's leading engineering university. The author has an inclination towards incorporating quality user experience design in smartphone and web applications.

7 Responses to Research Report: Feds Rejoice The Cloud Way, With $5 bn In Annual Savings

  1. This is more than a federal IT story … this is validation and inspiration for business. Rationale: If the government can do it, so can we … and better. This only adds to the best practices that Cloud First has brought to the private sector. As HP’s Judy Redman <a href=”http://bit.ly/KoFZIE”>pointed out over a year ago</a>, “Cloud First’s’ real lasting value might be in its greater objective to implement a massive mind shift in how the Federal government views IT.  It’s very similar to our philosophy that says today’s CIO’s must shift from being service providers to becoming service brokers.” –<a href=”http://bit.ly/paul_calento”>Paul Calento</a>

  2. This is more than a federal IT story … this is validation and inspiration for business. Rationale: If the government can do it, so can we … and better. This only adds to the best practices that Cloud First has brought to the private sector. As HP’s Judy Redman (http://bit.ly/KoFZIE), “Cloud First’s’ real lasting value might be in its greater objective to implement a massive mind shift in how the Federal government views IT.  It’s very similar to our philosophy that says today’s CIO’s must shift from being service providers to becoming service brokers.”
     
    –Paul Calento (http://bit.ly/paul_calento)

  3.  @pcalento I double the presented rationale. Cloud technology is equal of a game-changer for enterprises of all sizes.  

  4.  @HumayunShahid Game-changer? Yes. What seems lacking in the move to cloud is the equivalent of the children’s “Choose Your Own Adventure” books for cloud services and deployment or as Chris Purcell (HP) suggests a recipe book http://bit.ly/JjAFau. For many, government and business alike, they’re running blind and lack of skills inhibits. Perhaps it will even erase some of the $5.5B in gains.

  5.  @pcalento A decline in savings or revenue (and that too as a consequence of cloud mismanagement) would never be acceptable to ventures. The need of both pre-cloud deployment road map and post-cloud operations/skill management is crucial to make the most out of cloud technology. Rightly said.   

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