Cloud could squeeze even more savings, says survey

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.

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 cloud. That number represents $5.5 billion in savings based on the FY2013 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.. 

Asked where the most resistance to cloud comes from, respondents pointed to IT leadership (20 percent), program management (18 percent) and legal (17 percent).

Defense Department and civilian respondents had opposing views on the direction of the FY2016 IT budget as well as cloud applications. DOD respondents believe the FY2016 IT budget will decline to $72.4 billion, while civilians think the budget will grow to $80.1 billion.

Seventy percent of all respondents expect an increase of cloud-based applications within the next couple of years. However, they ranked data center consolidation as a biggest driver for savings in the federal government. Cloud placed second, followed by big data and the “bring your own device” – BYOD -- concept. 

The findings of the survey, which polled 108 federal CIOs and IT managers, were presented April 25 at MeriTalk’s Cloud Computing Brainstorm event on Capitol Hill. 

About the Author

Camille Tuutti is a former FCW staff writer who covered federal oversight and the workforce.

Rising Stars

Meet 21 early-career leaders who are doing great things in federal IT.

Featured

  • SEC Chairman Jay Clayton

    SEC owns up to 2016 breach

    A key database of financial information was breached in 2016, possibly in support of insider trading, said the Securities and Exchange Commission.

  • Image from Shutterstock.com

    DOD looks to get aggressive about cloud adoption

    Defense leaders and Congress are looking to encourage more aggressive cloud policies and prod reluctant agencies to embrace experimentation and risk-taking.

  • Shutterstock / Pictofigo

    The next big thing in IT procurement

    Steve Kelman talks to the agencies that have embraced tech demos in their acquisition efforts -- and urges others in government to give it a try.

  • broken lock

    DHS bans Kaspersky from federal systems

    The Department of Homeland Security banned the Russian cybersecurity company Kaspersky Lab’s products from federal agencies in a new binding operational directive.

  • man planning layoffs

    USDA looks to cut CIOs as part of reorg

    The Department of Agriculture is looking to cut down on the number of agency CIOs in the name of efficiency and better communication across mission areas.

  • What's next for agency cyber efforts?

    Ninety days after the Trump administration's executive order, FCW sat down with agency cyber leaders to discuss what’s changing.

Reader comments

Tue, May 1, 2012

Good point. We could probably save money if we could get agencies to share resources among themselves. We would also have confidence in the IT security level of those agency "clouds."

Mon, Apr 30, 2012

I wonder what results they'd get if they interviewed system administrators, etc instead of CIOs!

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group