Economic benefits of Government Cloud Computing

There are many reasons for government agencies to move from traditional IT infrastructure to Cloud Computing platforms. One of the most cited benefit is the economic model of Cloud Computing.

Four distinct mechanisms can generate cost savings for govenment agency and organization:

Lowering the opportunity cost of running technology
The aibility to shift from capital expenditure to operating expenditure
Lowering the total cost of ownership (TCO) of technology
Giving organizations the ability to add business value by renewed focus on core activities

Cost saving is the hot topic for most government since the global economic situation around the world.

Historically, there were two discssions that focused on cloud computing cost saving.

The first was focused on server virtualization and application consolidation on under-utilized resources. Reducing spend on rackspace,network,infrastructure,pooling, powera and datacenter can immediatly generates cost saving.This type of cost saving impact internal investissement which evolved to be called "Private Cloud".Of course, if each government agenciy defines its private cloud computing startegy, they will be a big cost saving for the hall government.

The second looked at on-demand platforms, purchased over the internet, allowing on-demand services and Pay As You Go model. Developers and internal productions teams didn't have to wait for new infrastructure to be provisioned before their public clouds create new applications.Cost savings for this use-case come from the elimination of capital expenditure CAPEX for internal process and data center resources.

Follow changes that could be made to an agency's cost model :

Services and storage become available on demand without the need to financial commitements to purchase infrastructure and maintain it.
The cost is transfered from CAPEX to OPEX and so no need to invest in high-cost IT platforms and equipements.
Reduction of operating cost by:

reducing energy consumption
less expense in managing IT services
less cost in doing maintenace tasks related to IT equipements and platforms
reduse support and maintence contract by transfering legacy systems to new systems
reduce the demand for data center resources
and finally reducing the Government's carbon footprint.

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