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In SaaS We TrustBy DeDe Stokely On December 23, 2013 ·

Your average American does not typically think of the US government as

being a technological innovator. On the contrary, the government has

come to be thought of as a bureaucratic behemoth whose wheels turn so

slowly that progress seems elusive. It might come as a surprise, then,

that the government is actually making great strides toward embracing

one of the greatest technological innovations taking the business world

by storm: cloud computing. Indeed, the cloud is taking off like wildfire

because its benefits are all but impossible to ignore, including cost

savings, quick and easy deployments, automatic updates, and the

empowerment of mobile workforces.

It’s no secret that private sector organizations across an array of

industries are aggressively taking advantage what the cloud has to offer.

Yet, this technological revolution isn’t just occurring in the private

sector. Government agencies have also recognized the gains to be had

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by adopting cloud-based solutions. One of the most attractive benefits

to government agencies, who have been under increasingly harsh

financial constraints, is the cost savings offered by cloud technologies.

According to a software client architect for government agencies,

Sujatha Perepa, “Agencies are pressed to seek optimized business

models while measuring their performance and service deliveries more

closely—hence their inclination towards shared services.”

Gartner also identified cost savings as an important motivating factor

for the government’s increased adoption of cloud technologies. They

report that over the next few years, “Governments will increasingly favor

cloud computing over long-running in-house IT deployments to contain

costs and increase predictability.” Based on its analysis, Gartner

predicts that “public cloud offerings will grow to account for more than

25 percent of government business services in domains other than

national defense and security.”

However, government organizations aren’t solely relying on public

clouds, which are models that provide services in a virtualized

environment that are accessible over a public network, and use the same

shared infrastructure and physical resources. Certain sectors, such as

defense and security, are considered to be “mission critical” and

therefore must be seen to be more reliable and secure. For this reason,

according to IDC, by FY 2014 the federal government will spend $1.7

billion on private clouds, versus just $118.3 million on public clouds.

Private cloud deployments appeal in this instance because they are built

by applying virtualization within an organization’s own datacenter. Since

only the specified client can operate within this environment,

organizations have a tendency to regard them as a more secure and

stable environment for the transmission of data—perfect for a mission

critical domain. Of course, there will also be a number of hybrid cloud

solutions that utilize a combination of public and private models,

depending upon the needs of the agency.

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Perhaps, recognizing that the pace of change can be slow in its sector,

the US government published the US Federal Cloud Computing Strategy,

wherein it outlined its plans to institute the CloudFirst policy to

accelerate the pace of cloud adoption. The government is not just

seeking to cut costs and increase operational efficiency. With increasing

talk of privatization, government agencies are also aiming to redefine

their business strategies by offering improved citizen services, a

phenomenon that is also outlined in the strategy document. They must

also keep compliance and security measures in mind, following a

number of recently instituted federal mandates, so that national security

is under no threat of being compromised.

In the words of Vivek Kundra, the US Chief Information Officer, “Cheaper

processors, faster networks, and the rise of mobile devices are driving

innovation faster than ever before. Cloud computing is a manifestation

and core enabler of this transformation. Just as the Internet has led to

the creation of new business models [that were] unfathomable 20 years

ago, cloud computing will disrupt and reshape entire industries in

unforeseen ways.” Cloud technology is driving innovation in every

industry. So, buckle your seatbelt, hang on tight, and enjoy the ride,

Uncle Sam.

Discover how a cloud marketplace can benefit your organization by

reading the white paper: Enterprise App Stores for Employees: 10 Things

Every IT Leader Needs to Know Before They Build an App Store.

About SaaS Markets

SaaS Markets (based in San Mateo, CA) is the cloud marketplace

company, powering the largest network of cloud marketplaces in the

world. Through relationships with major financial institutions,

technology companies, small business associations, and leading

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SHA RE →

brands, SaaS Markets is bringing SaaS applications to millions of small

and medium-sized businesses around the world. SaaS Markets offers

companies a user-friendly portal that makes it easy to choose the cloud-

based tool that is right for their business needs. Learn more

at: www.SaaSMarkets.com, or call 650.458.0748.

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