To give a peek into how agencies are looking at cloud computing,we talked to federal IT decision-makers about the primary drivers and obstacles, potential impact, and current state of cloud computing adoption. What we see is that: Cloud is still very much in the early stages but is gaining momentum Most realize that it will have a major impact on how they meet IT needs in the short and long-term The potential cost savings is a major motivation, but Security concerns must be resolved before they will consider broader adoption. It seems that the Obama administration and industry has heard this message loud and clear, and there are 5 indicators that tell us that cloud computing does indeed have staying power. I’m going to count them down David Letterman style, starting with number 5. 02/18/11 Confidential & Proprietary For Internal Use Only
Software: with pressure to consider cloud computing alternatives first, agencies will consider functional need before the delivery mechanism. Traditional licensing models will need to give way to more flexible arrangements. Hardware: while agencies will need to spend on updated hardware for data center consolidation (especially since the preference seems to remain with private clouds), over time some of that demand will be filled by IaaS. IT services: SaaS and IaaS could impact the demand for application and infrastructure-type services. SaaS seems to be an area where agencies feel more comfortable going with a public option where the 3 rd party provides those services. For infrastructure, the impact is primarily due to the reduced infrastructure sprawl that will reduce the need for the same level of services. However, that demand will switch over to services to manage private clouds. Comm/NS: This is where cloud computing lives in the INPUT forecast (processing services), so this is where the dollars will flow. However, the big opportunity here is for Communications-as-a-Service Unified Communication (UC) is the integration of voice, video, messaging, and data services into a unified architecture that enhances communication and improves business processes by eliminating silos by information type. By deploying a UC Architecture (UCA) in the cloud, agencies could eliminate interoperability problems. integration of enterprise applications with an IP-based communications backbone enables the sharing of mission-critical information in real-time with the relevant actors, facilitating collaboration and better decision-making. Architecting for UC within the Fed Data Center Consolidation Initiative would increase the cost advantages, but it also would’ve increased cost and complexity. Minimal adoption but potential there for Networx vendors (many of which have already expanded into cloud computing) to shape this emerging market.
While the cloud computing market represents a fraction of total IT spending, the high CAGR (nearly 6 times that for the total IT market) is the story. We anticipate high growth in this area – in fact this forecast is likely conservative. INPUT will analyze FY12 budget data to determine if the potential market will be greater due to increased focus by OMB, GSA and other agencies.
Outlook for Federal Cloud Computing February 17, 2011 Presented by Kevin Plexico Sr. Vice President, Research and Analysis Services
The Mindset of Federal IT Executives 19% 54% Have cloud computing solution(s ) in place Anticipate cloud computing having a major impact on agency IT objectives 55% See cost savings as the primary driver of cloud computing adoption 70% Believe security is the primary obstacle to broader adoption n=37 Margin of Error: +/-3%
Cloud Computing FEDRAMP Centralized security certifications service SAJACC Use case validation of cloud offerings as an interim “standard” BUDGET REQUIREMENTS Cloud computing alternatives analysis within the budget process Cloud Computing Evolution
Federal Agencies in the Cloud DISA Software Development, Testing, and Deployment Air Force Human Resources Tools Army Recruitment Management Energy Email, Documentation, and Collaboration (Lawrence Berkeley Labs) Interior Hosting (IaaS) and development (PaaS) (National Business Ctr) Commerce CRM for its Integrated Partner Contact Database HHS CRM and Project Mgmt. for Electronic Health Records System GSA USA.gov and internal email and messaging NASA Nebula platform for computing, storage, and networking