Agencies could save twice as much on cloud, survey says

Federal agencies have saved an average of $5.5 billion yearly by implementing cloud computing, a modest number next to the $12 billion in potential savings estimated by new research, reports Camille Tuutti in Federal Computer Week.

The MeriTalk report, “Cloudy with a Chance of Savings,” found that government CIOs and IT managers had saved 7 percent of their annual IT budget by going to the cloud. That number represents $5.5 billion in savings based on the fiscal 2013 IT budget of $78.9 billion.

But according to input by federal IT executives, agencies could have saved even more. Estimates from MeriTalk indicated agencies could have slashed 15 percent of their IT budgets for the last three years with cloud, which could amount to nearly $12 billion per year.

Despite the promise of big savings, agencies are still cautious about migrating to the cloud and using cloud-based services. Eighty-five percent said security remains the largest obstacle to cloud implementation, while 38 percent cited the culture aspect as a roadblock. Nearly one-third said service levels are the most pressing challenges to cloud adoption..

To read Tuutti’s full report, click here.

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Reader Comments

Mon, Apr 30, 2012

Service under cloud computing is abysmal. Executives want the IT budget to fall - and it does - but at the cost of frustration and time lost to the desktop user. Executives have exchanged computing costs for employee morale and hours. One must aggregate the irritation, slow response and denial of service inherent in cloud computing and compare this to the IT cost savings to obtain a true picture of profit and loss. At Pep Boys, I all the time have to wait for the machine to respond to get my car serviced. Not a problem with a non-Corporate garage.

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