As government agencies at all levels continue to face tremendous pressure to do more with less, the use of cloud computing tools to reduce the cost of information technology (IT) infrastructure is particularly enticing as an opportunity to save taxpayer dollars. Cloud computing products can be an effective tool to reduce the total cost of ownership for an IT system, but public officials should make certain that the cloud services they purchase will fully meet all of the requirements for which they are intended. If the cloud services do not meet these needs, further investments may be required at a later date, which could reduce the potential savings.

An April 13, 2012 article in The Washington Post listed three key components for businesses and governments to consider when deciding to use cloud computing tools. They include “a clean, seamless migration; proper security and control; and quality 24-7 support.” While these factors are important, they should not be the only drivers for businesses and government agencies who are considering moving their data and services to the cloud. Modernizing and consolidating IT systems requires careful consideration of several basic tenets of IT procurement. While the Post article cites potential cost savings of up to 50 percent for companies that invest in cloud computing, there are some risks in transitioning IT solutions to new tools and methods of operation.

As part of the Obama administration’s “cloud first” strategy for IT procurement, most federal agencies have already started moving archival services, legacy software, e-mail, public website hosting and infrastructure services to a cloud environment. However, some federal IT users are still reticent about this transition. A February 1, 2012 article in Federal Computer Week highlighted study results issued by the Poneman Institute on September 5, 2011 which showed that of the 39 percent of federal IT managers who indicated reluctance in moving services to the cloud, 10 percent were concerned about lack of suitable applications or services, 36 percent were concerned about safety and security, and 59 percent felt that the 18-month period required under “cloud first” to move three services to the cloud was too short a period of time. In addition, an April 24, 2012 article in Government Computer News referred to a survey conducted by Serena Software asking federal IT users about their IT priorities. Only 19 percent of those surveyed listed using cloud technologies as one of their priorities. The respondents felt “they first need to tackle issues of standardization, automation, etc., because failing to do so will lead to poor cloud deployments.”

Several state and local governments including California, Colorado, Michigan, Minnesota, Utah, Wisconsin, as well as New York City, Los Angeles, and the District of Columbia are delving into cloud computing at various levels of engagement in order to streamline their IT processes with the goal of greater efficiency at a lower cost to taxpayers. However, their experience demonstrates that migrations to new systems are not always successful.

In 2008, the District of Columbia decided to update its email and document processing systems and migrate to Gmail and Google Docs. However, according to an article in the March 15, 2012 CIO Magazine, nearly four years after the initial contract only 200 of the city’s 40,000 employees are currently using Gmail, and only 2,000 are using Google Docs. In 2010, the city conducted a pilot program in which 300 users were selected to use Google products for three months; however, according to the article, Gmail ultimately didn’t pass the “as good or better” test with users, who preferred the previous system. While not ruling out the completion of the existing planned migration, city officials are also exploring other cloud solutions.

A February 7, 2012 article in Computerworld highlighted other difficulties that some state and local governments have had in navigating the cloud computing waters. In November 2009, Los Angeles contracted with CSC for its Google Premier products. However, nearly one year later, the Los Angeles Police Department determined that the Google products could not meet Criminal Justice Investigative Services (CJIS) requirements to protect the security and privacy of the information maintained by law enforcement organizations.

In December 14, 2012, the LA city council amended the contract wherein Google agreed to pay for the additional Novell GroupWise licenses needed by the LAPD in order to maintain a secure email system that met CJIS requirements. The article in Computerworld cited the FBI’s insistence that its requirements for CJIS would not be modified to accommodate cloud computing services, and cited other vendors that do meet these requirements.

However, these instances should not discourage government agencies from pursuing cloud services. A February 2012 publication by TechAmerica cited the benefits of cloud computing for state and local governments, which include reduced operating expenses, improved information use, and increased government effectiveness. However, this report reiterated that certain information relating to public safety, education and healthcare need a high level of privacy protection. This higher level of security can be attained in the cloud environment through the use of private clouds, and intelligent contracting vehicles.

According to an April 3, 2012 article in Government Computer News, Michigan Governor Rick Snyder anticipates that the state will have a $457 million budget surplus by the end of the current fiscal year. A portion of this surplus can be attributed to the state’s efforts to modernize and consolidate its IT department that began in the 1990s and eventually led to the creation of a state-operated cloud platform called MiCloud. MiCloud uses the state’s fiber backbone to offer infrastructure as a service and virtual machine provisioning in less than 30 minutes. According to the GCN article, the IT department was able to save the state more than $45 million through using this service between 2008 and 2010.

In 2010, the city of New York decided to consolidate its 30,000 employees under one unified cloud-based system for email, instant messaging and other services. According to an October 20, 2010 article in Government Technology, Mayor Bloomberg anticipates that the city will save $50 million during the five-year period covered by the new contract. A January 30, 2011 Reuters article also showed that the city also planned to consolidate its IT services using cloud computing solutions in anticipation of further savings.

In 2009, the Wisconsin Department of Natural Resources (DNR) performed a review of its communications strategy, which used email, face-to-face meetings and conference calls. Following the review, DNR decided to migrate its staff to a cloud-based Microsoft Live Meeting. According to an article in Cloud Computing Vocabulary, the antiquated video conferencing applications cost the DNR $1,330 per month to maintain. Since its migration, the article states that DNR’s staff has participated in nearly 3,500 meetings using this cloud-based application, saving the department more than $320,000.

When purchasing cloud computing tools, the government’s procurement process remains the same as it should be for any other purchase. It requires a thorough knowledge of the agency’s mission, its current inventory of equipment and applications, possible interagency collaborations, and strategic technology and contract development. Data protection and portability; security and privacy; protective contracting vehicle clauses; backup solutions; effective program management; and user consultation and training must also be performed throughout the process.

To help government agencies navigate the pitfalls of cloud investments, Citizens Against Government Waste has published two issue briefs to encourage the use of best practices when modernizing Information Technology investments: Cloud Computing 101: A Brief Introduction, and Cloud Computing 201: Guidelines for Successful Cloud Investments.