Cloud Could Save the US Government $12 Billion Annually

A new study released by the MeriTalk Cloud Computing Exchange reported on by Forbes.com reveals how cloud computing can lead to big savings for the US government. The report states that federal agencies are currently saving $5.5 billion annually through cloud services. This number is projected to rise to $12 billion in IT savings if agencies get more aggressive in their adoption of cloud.

As more Canadian organizations are looking to justify an investment in cloud, this data from the US can help build their case. “This study — even if the savings numbers are too optimistic — is a significant endorsement of cloud computing by the world’s largest organization. If the US government — not known for its cost-cutting acumen — is shaving 10% or more of its IT budget directly because of cloud, imagine what cloud can do for business,” says Forbes.

The survey of 108 federal IT managers also revealed that:

• Federal agencies are currently spending 11% of their IT budgets, or $8.7 billion annually, on cloud.
• The most popular applications that they are moving to the cloud include collaboration tools, email, administrative applications and conferencing software.
• 85% of respondents are concerned about cloud security.

The Forbes article also provides more details about the MeriTalk Cloud Computing Exchange survey.