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Vivek  Kundra recently completed his analysis and released the US Federal Government's overall cloud strategy for 2011 and beyond. The ultimate goal is to increase ROI on all IT expenditures by wrestling the most efficiencies from existing federal systems and data centers. The following is an outline and overview of the implementation plan and the expected results to be delivered as part of the implementation. This framework will then be used by each of the US Federal Agencies to determine their best course of action to proceed. The Ultimate goal is to achieve $20 Billion in IT cost savings annually by leveraging the cloud.

The Federal Government’s current Information Technology (IT) environment is characterized by low asset utilization, a fragmented demand for resources, duplicate systems, environments which are difficult to manage, and long procurement lead times.

These inefficiencies negatively impact the Federal Government’s ability to serve the American public.


Cloud computing has the potential to play a major part in addressing these inefficiencies and improving government service delivery. The cloud computing model can significantly help agencies grappling with the need to provide highly reliable, innovative services quickly despite resource constraints.


Commercial service providers are expanding their available cloud offerings to include the entire traditional IT stack of hardware and software infrastructure, middleware platforms, application system components, software services, and turnkey applications. The private sector has taken advantage of these technologies to improve resource utilization, increase service responsiveness, and accrue meaningful benefits in efficiency, agility, and innovation. Similarly, for the Federal Government, cloud computing holds tremendous potential to deliver public value by increasing operational efficiency and responding faster to constituent needs.

An estimated $20 billion of the Federal Government’s $80 billion in IT spending is a potential target for migration to cloud computing solutions.

To harness the benefits of cloud computing, they have instituted a Cloud First policy. This policy is intended to accelerate the pace at which the government will realize the value of cloud computing by requiring agencies to evaluate safe, secure cloud computing options before making any new investments.


By leveraging shared infrastructure and economies of scale, cloud computing presents a compelling business model for Federal leadership. Organizations will be able to measure and pay for only the IT resources they consume, increase or decrease their usage to match requirements and budget constraints, and leverage the shared underlying capacity of IT resources via a network. Resources needed to support mission critical capabilities can be provisioned more rapidly and with minimal overhead and routine provider interaction.
Cloud computing can be implemented using a variety of deployment models – private, community, public, or a hybrid combination.


Cloud computing offers the government an opportunity to be more efficient, agile, and innovative through more effective use of IT investments, and by applying innovations developed in the private sector. If an agency wants to launch a new innovative program, it can quickly do so by leveraging cloud infrastructure without having to acquire significant hardware, lowering both time and cost barriers to deployment.

This Federal Cloud Computing Strategy is designed to:

1. Articulate the benefits, considerations, and trade-offs of cloud computing

2. Provide a decision framework and case examples to support agencies in migrating towards cloud computing

3. Highlight cloud computing implementation resources

4. Identify Federal Government activities and roles and responsibilities for catalyzing cloud adoption

 

Following the publication of this strategy, each agency will re-evaluate its technology sourcing strategy to include consideration and application of cloud computing solutions as part of the budget process. Consistent with the Cloud First policy, agencies will modify their IT portfolios to fully take advantage of the benefits of cloud computing in order to maximize capacity utilization, improve IT flexibility and responsiveness, and minimize cost.

Cloud benefits: Efficiency, Agility, Innovation

 

EFFICIENCY Cloud Benefits

Current Environment

• Improved asset utilization (server utilization > 60-70%)

• Aggregated demand and accelerated system con-solidation (e.g., Federal Data Center Consolidation Initiative)

• Improved productivity in application develop-ment, application management, network, and end-user

• Low asset utilization (server utilization < 30% typical)

• Fragmented demand and duplicative systems

• Difficult-to-manage systems


AGILITY Cloud Benefits

Current Environment

• Purchase “as-a-service” from trusted cloud providers

• Near-instantaneous increases and reductions in capacity

• More responsive to urgent agency needs

• Years required to build data centers for new services

• Months required to increase capacity of existing services

 

INNOVATION Cloud Benefits

Current Environment

• Shift focus from asset ownership to service management

• Tap into private sector innovation

• Encourages entrepreneurial culture

• Better linked to emerging technologies (e.g., devices)

• Burdened by asset management

• De-coupled from private sector innovation engines

• Risk-adverse culture

 

 

 

Published by myITview.com

 




Comments (1)
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1. 03-18-2011 01:20
 
While I certainly agree there are a number of inefficiencies that I am sure that exist in most governments I wonder mainly about the security implications of such a move. While I don't really care about low security, low impact systems then it comes to sensitive state business I still tend to lean towards in-house systems that are also managed as much as possible in house. This provides a more secure system, it does not however mean that the government can not bring in external security people to vet their networks and systems. -sean
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