And what part of 17 trillion is 17 billion?

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And what part of 17 trillion is 17 billion?

Those numbers are too high for me to contemplate or even figure out the answer – sorry I’m mathematically challenged.

In a recent article, with the very enticing title of ‘Feds Predict $1.6 Billion in Cloud Savings, Triple OMB’s Estimate’, I’m not really sure what that means. Does that mean that the 17 billion in savings goes back to reduce the federal deficit, or does it mean agencies can now use that money for other IT expenditures? I guess we need a clarification of the word savings. But we digress, I can’t solve the federal deficit today.

But we can talk about cloud computing. According to the survey, federal managers who have moved at least one mission critical process to the cloud, 91% reported success. The June 2012 survey by MeriTalk, a government IT network, included 151 federal technology managers and had a margin of error of about 8%. Despite the cloud being the holy grail of savings, the move to the cloud in reality has not been embraced across the board. Less than 35% said they had moved an application to a public cloud that included government and non-government customers. About 75% of the respondents said security is the greatest barrier to cloud adoption in government.

Not surprisingly in today’s economic climate, the desire to save money is part of many discussions. However, cloud computing does not always save money — in fact it can drive costs up if it is used simply to replace on-premises work with an exact duplicate of that work in the cloud. Knowing when to redesign or when to avoid using cost savings as a justification for cloud computing is critical.