For the second year in a row, the US federal government has spent more than it was predicted to spend on cloud computing. The US government has found that as they learn more about cloud computing, it only makes sense to go ahead and bundle, condense and find solutions for problems they are having now.
Shawn McCarthy is the research director at IDC Government Insights. Forbes quoted McCarthy as saying, “The government’s IT planners are realizing that they can do things more cheaply in the cloud, and are redirecting their spending accordingly to create long-term savings.” The government doesn’t seem to be going over budget. McCarthy went on to say, “Although this is the second year in a row that federal cloud spending has outpaced budget projections, the government is not necessarily over budget.”
Analysts go on to predict that the US government will likely exceed the $3 billion figure it has projected for itself in the upcoming fiscal year. McCarthy notes that the government will spend about 1/6th of that $3 billion dollar budget on building out a datacenter for the Social Security Administration. The new facility will come with a price tag of $547.8 million although it’s possible for that cost to rise.
The appetite for private cloud in the US government is insatiable. McCarthy continues by mentioning, “Private cloud spending is by far the highest right now by a very large percentage.” When you take into the CIA’s private cloud data facility they are building with Amazon combined with other projects such as the GSA’s cloud endeavors, these large scale projects take up the majority of the federal IT budgets.
There are millions of government employees and each of them has the same HR needs as corporate America. Cloud based HR systems are helping the federal government stay lean while accurately accounting for hours worked while securely storing personal information concerning the employees of the government.