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Federal IT Budget Backs Growth in Cloud Plays

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February 17, 2011
Cyber Security, FedCyber Wire, Spending, Technology
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via International Business Times

U.S. President Barack Obama’s proposed 2012 Federal budget included proposals to improve the inefficiencies in government data centers. The budget outlines the adoption of cloud-computing and virtualization technologies to lower IT spending costs and increase agility.

“In the proposed budget, planned spending on IT is expected to reach $79.5 billion, up 2 percent from 2010 enacted levels of $78.0 billion. This modest increase is actually better than we had expected — we expected a cut,” Barclays Capital said in a note to clients.

The Federal Government had only 432 data centers in 1998 but this figure has increased 385 percent over the 12-year period since to 2,094 data centers as of 2010. Through the proposed program of deploying cloud-based architectures and virtualization technologies, the Office of Management and Budget (OMB) expects to reduce the number of data centers to 1,284 by 2015.

The OMB believes that it will be able to reduce costs and reduce its IT foot-print by implementing a cloud-based strategy that promotes the overall reduction in data center space used by the Federal Government.

The group cited its previous reliance on proprietary, custom IT solutions that drove costs significantly higher than projections as the ultimate factor in its decision to shift its IT strategy toward a cloud-based approach.

Story here.