The Economics of Cloud Computing Analyzed

The Economics of Cloud Computing Analyzed
The President’s budget for fiscal year 2010 (FY10) includes $75.8B in information technology (IT) spending, which is a 7-percent increase from FY09. Of this, at least $20B will be spent on IT infrastructure investments. [1] The FY11 budget for IT is projected to be nearly $88B. The government is actively seeking ways to reduce IT costs, and the FY10 budget request highlights opportunities for the federal government to achieve significant long-term cost savings through the adoption of cloud computing technologies:
“Of the investments that will involve up-front costs to be recouped in outyear savings, cloud-computing is a prime case in point. The Federal Government will transform its Information Technology Infrastructure by virtualizing data centers, consolidating data centers and operations, and ultimately adopting a cloud-computing business model. Initial pilots conducted in collaboration with Federal agencies will serve as test beds to demonstrate capabilities, including appropriate security and privacy protection at or exceeding current best practices, developing standards, gathering data, and benchmarking costs and performance. The pilots will evolve into migrations of major agency capabilities from agency computing platforms to base agency IT processes and data in the cloud. Expected savings in the outyears, as more agencies reduce their costs of hosting systems in their own data centers, should be many times the original investment in this area.”
http://tv.sys-con.com/node/1147473
Addressing the Benefits of Infrastructure in the Cloud

The President’s budget for fiscal year 2010 (FY10) includes $75.8B in information technology (IT) spending, which is a 7-percent increase from FY09. Of this, at least $20B will be spent on IT infrastructure investments. [1] The FY11 budget for IT is projected to be nearly $88B. The government is actively seeking ways to reduce IT costs, and the FY10 budget request highlights opportunities for the federal government to achieve significant long-term cost savings through the adoption of cloud computing technologies:

“Of the investments that will involve up-front costs to be recouped in outyear savings, cloud-computing is a prime case in point. The Federal Government will transform its Information Technology Infrastructure by virtualizing data centers, consolidating data centers and operations, and ultimately adopting a cloud-computing business model. Initial pilots conducted in collaboration with Federal agencies will serve as test beds to demonstrate capabilities, including appropriate security and privacy protection at or exceeding current best practices, developing standards, gathering data, and benchmarking costs and performance. The pilots will evolve into migrations of major agency capabilities from agency computing platforms to base agency IT processes and data in the cloud. Expected savings in the outyears, as more agencies reduce their costs of hosting systems in their own data centers, should be many times the original investment in this area.”

http://tv.sys-con.com/node/1147473

Addressing the Benefits of Infrastructure in the Cloud

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