Cloud Economic Models

NPR on Cloud Computing

By G C Network | August 29, 2008

You know it’s important when NPR covers it !! On the “All Things Consider” radio show, NPR took a look into cloud computing. I’m not sure if Computing In The…

Sun Federal Cloud Computing eBook

By G C Network | August 28, 2008

Sun Federal now has it’s ebook on cloud computing available for all. The website doesn’t really offer any new information, but it does highlight how Sun Federal is targeting the…

Amazon Elastic Block Store

By G C Network | August 27, 2008

Last week, with their announcement of Elastic Block Store, Amazon has made enterprise class storage in the cloud a reality. According to Dion Hinchcliffe of Ziff Davis,”Elastic Block Store finally…

HP CTO On the Future

By G C Network | August 26, 2008

In a recent Web Guild article, Shane Robinson, Chief Strategy & Technology Office for HP outilined his belief that we are in the early stages of a major shift. As…

Google serves as first line of defense during Russia’s invasion of Georgia (A plug for the cloud)

By G C Network | August 25, 2008

As reported by the Christian Science Monitor, “As Georgian troops retreated to defend their capital from Russian attack, the websites of their government, also under fire, retreated to Google. In…

Apptis and Servervault announce Fedcloud

By G C Network | August 22, 2008

On August 18th, Apptis announced a partnership with ServerVault to offer a trusted cloud computing environment to federal agencies. Called Fedcloud they are offering a federally compliant, on-demand infrastructure that…

SOA-R Educational Series Schedule Changes

By G C Network | August 21, 2008

Since launching the SOA-R series back in July, cloud computing has become a hot topic among national security professionals. Evidence of this high level of interest is obvious from the…

Comments from Mr. Robert Carey, DON CIO and Army COS General George W. Casey, Jr

By G C Network | August 20, 2008

Over the last couple of weeks, I’ve had the distinct pleasure to listen to both Mr. Robert Carey, CIO, Department of the Navy, and General George W. Casey, Jr., Chief…

Akamai at SOA-R Session

By G C Network | August 19, 2008

Had another very enlightening SOA-R session last week. Of particular note to me was Akamai’s vision of cloud computing. As presented by Fran Trently, Sr. Director Public Sector, Akamai is…

Six Benefits of Cloud Computing

By G C Network | August 18, 2008

A Public CIO magazine article, to be published later this fall, will highlight six main benefits of cloud computing. Reduced Cost Increased Storage Highly Automated Flexibility More Mobility Allows IT…

One of the most important drivers of cloud computing in the Federal space is its perceived “compelling” economic value. Some initial insight on the economic argument is now available on the Government Cloud Computing Community website. According to Booz Allen Hamilton, cloud computing changes much of what is now understood about estimating IT costs and the current process for deriving economic benefits. Calling cloud computing “a game changer”, the noted management consulting firm says that virtualization, elasticity, and massive scale in the cloud break linear cost relationships and enable infrastructure compression factors from
4:1 to 10:1. This compression of infrastructure results in a reduction in operations and maintenance costs.

This new approach to IT also changes the way capital planning and budgeting are conducted.

” Depending on how cloud computing is adopted, funds can migrate out of capital budgets into O&M budgets, away from the cost of bandwidth in the LAN to the (often higher) cost of bandwidth in the WAN. Funds budgeted for software and desktop support become service fees.”
For free access to this report and other resources in the Government Cloud Computing Community wiki, send an email to [email protected].

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