According to Nextgov, “A slate of contracts to provide cloud computing services to the Interior Department could add up to $10 billion and help the department save $100 million in information technology costs annually, officials have said.”
The Department of the Interior initially awarded the contracts for cloud storage, secure file transferring, virtual machine operations and Web and database hosting in May of this year. 10 companies are sharing the contract, including Verizon, AT&T, and IBM.
This is one of many cloud-related IT contracts that we’ll see awarded by the US government over the next several years. Indeed, solicitations are on the streets from most major government agencies, as well as the DOD. The intelligence community is already in for $600 million with the AWS award, which IBM is protesting.
In 5 years, the government could end up being the largest single consumer of cloud services. After a rather well published push to cloud computing in 2008, the government has stayed on the sidelines, when it comes to large cloud migrations. Now this seems to be changing, and I suspect that 2014 will be the year the government does some more major cloud buys.