Michael Koploy, e-Procurement Software Analyst for Software Advice, writes a solid article on cloud computing in the public sector in his State of the Union: Public Sector and the Cloud. He makes a good case that the key to government movement toward cloud services is, and will continue to be, cost reduction. With huge debt and significant budget cuts, government IT managers will no doubt be drawn to cloud services as a lower cost approach to on-site management.
So why aren’t government IT managers flying full speed into the cloud? Michael says threats to security, and a loss of ownership are key barriers. It only takes a couple of well-publicized security breaches to make IT decision makers in the government squeamish. Recent hacking incidents raise questions about just how safe the data is when it’s “outside the walls.”
From our perspective, we continue to be bullish on contractor cloud opportunities. The commercial world is embracing it dramatically, and, like other trends, government will lag behind, but follow.
It goes back to one of our key principles related to selling to government buyers: they don’t like risk. IT contractors will need to double efforts at securing networks, data, etc. (and double efforts at convincing buyers).