Vendors benefit from government cloud adoption

Friday, January 28, 2011

The government's new-found interest in cloud computing is helping fuel growth among cloud vendors, according to a recent Ecommerce Times report.

Like many enterprises, federal agencies are turning to the cloud in an effort to cut costs while increasing their overall IT capabilities. This, backed by a mandate by President Obama for agencies to increase their use of the technology, has the potential to create a boon for cloud computing vendors.

Two agencies already hopping on board with cloud computing are the U.S Treasury and the U.S. Department of Agriculture, the report points out. Both agencies have or plan to use the cloud to meet a variety of IT needs, including website-hosting services and Software-as-a-Service solutions.

"Cloud computing offers the federal government several potential benefits, including savings related to economies of scale, reduced capital investments and fewer service disruptions due to resiliency of the cloud compared to a single server or data center," wrote Representative Gerry Connolly in a memo to the House Oversight Committee.

Cloud computing has been one of the many IT focuses of the Obama administration. In December, the Office of Management and Budget issued a memo to federal agencies, encouraging them to adopt a "cloud first" approach to new technology.