Report: Feds Could Save $14.4 Billion Moving to the Cloud

The federal government could save $14.4 billion in year one by migrating to cloud computing, according to a private industry report released this month. But those savings likely are far from being realized.

The “Federal Cloud Weather Report” commissioned by VMware revealed while 64 percent of the federal CIOs surveyed expect cloud computing will reduce costs and improve services, 79 percent of federal agency CIOs still aren't using the Office of Management and Budget’s (OMB) “Cloud First” policy. The policy, which was announced in Dec. 2010, requires agencies to choose an existing cloud solution, if applicable, before building a new IT program. Additional direction was given in February with OMB’s Federal Cloud Strategy, which mandates agencies moving one service to the cloud within a year and two more services to the cloud in 18 months.