| Friday, September 23, 2011 | ||||||
| Cloud Computing: Why Governments Are Treading Slow | ||||||
| Smita Vasudevan , , | ||||||
| Cloud adoption for e-governance has been slow. Even as governments acknowledge that cloud is the way to go, there are many challenges that need to be addressed. Whats the way out? | ||||||
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The cloud is the biggest wave of change to hit the tech industry. When businesses world over are expecting huge benefits through cloud adoption, there are no reasons as to why the governments should lag behind. The broad picture is that experts suggest that the public sector is gradually becoming aware of the promises of the cloud and adoption rates are also going up. Strategies are being rolled out worldwide, investments are being planned for cloud computing, but most things are still on an evaluation stage. According to the AMD 2011 Global Cloud Computing Adoption, Attitudes and Approaches Study, around 37 per cent of global businesses have deployed the cloud models in some way, whereas only around one-fourth of the public enterprises are on the cloud. Interestingly, a very large percentage is evaluating and investigating its benefits and implications. As concerns and hype surrounds the cloud, there is a clear need to cut through the myths and encourage adoption. There have been talks on how the US government can help increase cloud adoption in a big way and when will other countries follow suit. Adoption Picks Up Taking a quick look across various geographies, US and UK seems to be reasonably ahead in their cloud adoption strategies. The US Federal Budget 2011 puts a strong focus on cloud as a strategy to drive down costs and bring efficiencies. According to the Federal Cloud Computing Strategy (2011), an estimated $ 20 B can be moved to the cloud out of the $ 80 B US IT spending.
By 2014, over $ 1Bn of the federal IT budget would be devoted to the cloud. By moving to a cloud service, General Services Administration (GSA) now pays an annual total of $650,000 for USA.gov and all associated costs which is a cost savings of 72 per cent. The migration to the cloud is estimated to help Washington D.C. city government save 48 per cent on mail expenditures and the City of Los Angeles 23.6 per cent. Source: KPMG report ‘The Cloud Changing the Business Ecosystem’ KPMG's The Cloud Changing the Business Ecosystem report, states that the United Kingdom is also not far behind in deploying a cloud adoption strategy. The British government is building a Government cloud application store which is expected to be the only channel for IT services procurement in the British government.
Hurdles to Cross Even as the cloud is gaining popularity in the government space and adoption plans are in the pipeline, real implementation remains slow. There are numerous factors responsible for this. Security concerns are more prominent in the case of governments and CIOs lack trust in the cloud models. Coupled with that is the fear of losing control over the IT infrastructure and data. The AMD report states that 36 percent of global public sector is still investigating cloud solutions. Lack of IT skills and expertise to handle cloud implementation is also a big hurdle that is coming in the way of adoption. Another important factor to consider is that cloud models work on pay-per-use, on-demand basis, while IT budgeting is done much in advance. So it becomes difficult to predict demand while using cloud models. What’s the way out? The Frost & Sullivan report suggests that there is a need for international legal and governance frameworks on cloud computing. It is also essential for policy makers to strike the right regulatory balance in ensuring flexibility, regulatory compliance and jurisdiction issues. To capitalize on the cloud opportunity, governments need to have increased awareness and trust on how it works in reality. Service providers need to bust the myths and communicate clearly what the cloud solutions can offer and ensure that security issues are handled effectively. Building confidence is likely to act as a major catalyst for government cloud adoption in the long run and wake this sector up to the promises of the cloud. |
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