Guest Blog: Sequestration and the Cloud

May 30, 2013 / G C Network /

Cloud Computing as a Strategic Asset

By G C Network | April 30, 2009

For some reason, this week seems to have more in it than most. While the steady stream of briefing request seem to be increasing, the post briefing discussions also seem…

Vivek Kundra: “Engage the American People in their Daily Digital Lives”

By G C Network | April 25, 2009

Today I attended a very impressive talk by the Federal CIO, Mr. Vivek Kundra at a Northern Virginia Technology Council Public Policy event. His open and “matter of fact” approach…

McKinsey vs. Booz Allen Hamilton !

By G C Network | April 21, 2009

A community skirmish reminiscent of the recent “manifestogate” has apparently erupted around the McKinsey & Co. report “Clearing the air on cloud computing“. Booz Allen Hamilton Principals Mike Cameron and…

Oracle Buys Sun!!

By G C Network | April 20, 2009

Swooping in from nowhere, Oracle buys Sun for $7.4B!! “This morning, the companies announced that they’d struck a deal worth $7.4 billion or $5.6 billion net of Sun’s cash and…

Aneesh Chopra Nominated For Federal CTO

By G C Network | April 20, 2009

Although Aneesh Chopra is a new name for most, he is well know in Virginia as Governor Tim Kaine’s Secretary of Technology. For the Commonwealth, he was charged with leading…

Could Cloud Computing Cost More?

By G C Network | April 16, 2009

In a recent conference, analyst William Forrest says that large companies could end up paying more than twice as much by using cloud based services. According to a Forbes.com report,…

Cisco’s Cloud Computing Strategy

By G C Network | April 10, 2009

A couple of weeks ago, Krishna Sankar provided a glimpse into Cisco’s cloud computing strategy in a presentation titled “A Hitchhiker’s Guide to the Inter-Cloud” . The presentation outlined the…

NCOIC and Cloud Computing: An Update

By G C Network | April 8, 2009

As the NCOIC gets it’s arms around this new paradigm, the Cloud Computing Working Group has focused on establishing a roadmap for providing value to the industry. Using the established…

SUN-IBM Talks Breakdown

By G C Network | April 6, 2009

As reported in multiple sources today, including Reuters, Sun has apparently rejected a purchase offer by IBM. “Shares of Sun Microsystems Inc tumbled 22.5 percent after it rejected a $7…

Former DoT CIO on Cloud Computing

By G C Network | April 3, 2009

Last month, former Transportation Department CIO Dan Mintz offered his views on cloud computing to Eric Chabrow, Managing Editor of Government Information Security. According to Mr. Mintz, there is currently…

(This post was provided by Praveen Asthana, Chief Marketing Office of Gravitant, a cloud service brokerage and management company)

Sequestration burst out of obscurity and entered our household vocabulary in 2013.  It got our attention because the impact of it is $1.2 trillion in automatic spending cuts from the Federal budget over the next ten years.  About $85B of these cuts will occur by September of 2013 – and these cuts are being disproportionately applied:  Once you exempt the sacred programs, what’s less sacred (like Federal I.T. spending) is going to get hit hard.  Forrester Research analyst Andrew Bartels expects that the Federal budget cuts will shave at least $12B out of 2013 U.S. tech spending (https://www.computerworld.com/s/article/9237240/The_sequester_will_hurt_tech_nationally).
So what’s to be done? Computerworld points out that “Dale Luddeke, chair of the Industry Advisory Council (IAC), an IT industry group expects to see a shift in government to things with cost savings attributes, such as open source, and agile development and cloud technology.”
Federal agency CIOs are already there:  At this year’s Cloud Computing for DoD and Government Summit held in Washington D.C. on Feb 26, Richard Spires, then CIO of the Dept of Homeland Security, said in a keynote that he was looking to take out $500M of IT spend from his $5B IT budget and was looking to cloud computing as a primary vehicle to accomplish this.
There you have it:  Cloud to the rescue.
This is not surprising, given that public cloud computing has been shown to reduce IT infrastructure spending by 37% (https://arxiv.org/pdf/1002.3492.pdf) or more.  And Cloud spending has the additional benefit of converting the capex model (“pay up-front”) to an opex model (“pay-as-you-go”) which gives much more flexibility.
This is not new news.  Cloud computing’s promise has been well known to the government which has had a ‘Cloud First’ mandate for two years now.  But implementation progress towards this goal has been tepid according to the GAO (https://www.gao.gov/assets/600/592249.pdf), due in part to lack of skills, guidance, tools, security and the need for new processes (such as cloud procurement).
However, there is one stand out government entity that has overcome these barriers and seen great success using cloud computing to reduce costs and improve agility:  this is the Dept of Information Resources of the State of Texas.
Nearly two years ago, the State of Texas implemented the Texas Cloud Self-Service Portal (https://www.dir.texas.gov/SiteCollectionDocuments/Texas.gov/ptco.pdf).
State Agencies who used the portal were able to reduce IT infrastructure costs by up to 30% and, more importantly, were able to significantly reduce deployment times for new IT resources from months to days.  This portal was so successful that it is now being extended to all 200 agencies in the State.
The key technology behind the Texas Cloud Self-service Portal was a Cloud Brokerage and Management platform that allowed for the easy onboarding and management of cloud computing resources.  The platform streamlined the assessment, design, procurement, provisioning, and real-time governance of solutions across hybrid cloud environments.
Sequestration is driving a new sense of urgency towards using cloud computing to save costs.  Fortunately, Government agencies now have a roadmap and a tool set to enable them to easier onboard to and use cloud computing using the State of Texas example.  Seeing this, Agency CIOs have now recognized the power of a Cloud Brokerage platform and it is no wonder that every agency CIO that presented at the DoD and Government Cloud Computing summit this year stood up and said they would be implementing a Cloud Brokerage platform.
This leads us to believe that 2013 will be the year Cloud First gets real.

Praveen Asthana is Chief Marketing Officer of Gravitant, a cloud services brokerage and management company. Prior to joining Gravitant, Praveen was Vice President of Marketing and Strategy for Dell’s $13B Enterprise Solutions Division.


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