What is Next for US Federal Cloud Implementation?

By Andras Szakal, vice president and chief technology officer for IBM U.S. Federal

The government is making steady progress in executing the reforms outlined in its 25-Point Plan, delivering many ahead of schedule. At the core of this is the shift to cloud-oriented shared services, which hold great promise for government. Avoiding the redundancy of having each department’s IT shop develop its own software for managing personnel or dealing with public-information requests accounts for nearly half the $932 million in IT savings it has identified through its TechStat program for reviewing IT.

New Federal Risk and Authorization Management Program (FedRAMP) security standards are an important step to make it easy for agencies to purchase cloud and other services from approved vendors. They outline ways to standardize security requirements and contract language for implementing cloud-based IT applications. But they are just that — an outline — rather than a detailed roadmap to cloud implementation.

To be sure, cloud won’t be a one size fits all approach when it comes to government implementation. In most cases, a combination of different approaches — private clouds, hybrid clouds and public clouds — should all be examined to determine which approach makes the most sense for the specific need that is being met.

Applications like e-mail, content management, and back-up have been relatively easy to move to the cloud. But using cloud architectures to improve core functions and make development of processes quicker, while reducing duplication of effort will require careful analysis of each application to determine the best migration path.

Functions that are common to many agencies are natural fits for a traditional cloud model, while unique, dedicated functions are often better managed in dedicated systems that allow the flexibility to adapt to underlying business flows. Law enforcement case management and intelligence analysis systems, for example, require unique capabilities and security needs, which require greater agency control and dedicated systems support.

In cases like these, it often makes sense to use virtualization technologies inside government data centers. Many government programs have security needs that are easier to secure internally. Agencies can achieve some of the cost-cutting benefits of cloud technology by adopting “private clouds,” which are easier to secure because information never moves outside of a dedicated data center.

The coming year is an exciting time for Federal IT, as FedRAMP and the move to shared services — whether in the form of public or private clouds — provide the structure that will help new projects for cost cutting take root, ultimately saving taxpayers money by helping government become more efficient.

Andras Szakal is participating in a panel on the U.S. Government’s efforts to reform and improve the operational efficiency of its massive IT infrastructure tomorrow at CloudGov.


Andras Szakal is responsible for IBM’s industry solution technology strategy in support of the U.S. Federal customer.

Leaders from NIST & GSA will Discuss Efforts to Move Apps & Services to the Cloud at Cloud/GOV Conference

As the cloud continues to revolutionize the way government operates, Cloud/GOV is assembling some of the nation’s top tech leaders to discuss how cloud adoption is moving forward—and to identify the services and requirements that are shaping the future of cloud computing in the public sector.

Cloud/GOV, the nation’s leading annual forum on cloud computing in the public sector, will take place February 16 at the Westin Washington, D.C. City Center Hotel.

Keynote speakers include:
Dawn Leaf, Senior Executive for Cloud Computing, NIST
David L. McClure, Associate Administrator, U.S. General Services Administration’s Office of Citizen Services and Innovative Technologies

Cloud/GOV is a key resource for government executives, integrators, and independent software vendors involved in shifting applications and services to the cloud in compliance with FedRAMP. As the leading association actively focused on cloud development and implementation, SIIA has worked with Deltek—the authority on government business—to bring together a diverse group of federal, state and local government IT leaders, as well as software vendors who provide cloud-based services.

Learn more about the conference or check out SIIA’s recent policy work on cloud computing.


Laura Greenback is Communications Director at SIIA.

The Top 10 SIIA Developments of 2011

SIIA had a groundbreaking 2011. We built influence in Washington, released incisive reports, welcomed new members, and hosted dozens of events around the world. Check out photos from our events and read about our 10 most exciting developments of 2011:

1. Patent reform (finally!) passes – The first comprehensive patent reform in half a century was signed into law Sept. 16. SIIA and its members worked diligently toward this goal for over six years, over the course of three Congresses and two administrations. The bill’s passage represents a significant victory for the software and content industries. It will improve patent quality and reduce–though certainly not eliminate–wasteful litigation over bad patents.

2. Software CEOS predict the future – SIIA took the pulse of chief executive officers to unveil growth and innovation drivers across the software industry. The result was a groundbreaking publication, Vision from the Top, which offers the collective wisdom of 45 SIIA member CEOs. Many of the predictions converged around the future of mobile, cloud and social media.

3. Two markets defined – SIIA’s membership divisions released two market reports in 2011 that shed light on the size and scope of its industries. The Education Division unveiled the 2010 U.S. Educational Technology Industry Market: PreK-12 Report at the Ed Tech Business Forum in November. First in a series, it values the overall market for PreK-12 non-hardware educational technology at $7.5 billion dollars—with content-related products accounting for 42 percent of that revenue. The Software Division released its annual Software Benchmarking Industry Report, which found that small and mid-sized software companies saw significant revenue growth rates of 26-50 percent in 2010.

4. Major cloud policy agenda established – SIIA has long been a supporter of cloud computing as a driver for innovation and economic growth.  In 2011, we took major steps to encourage an effective policy environment to help make this a reality.  To that end, SIIA published a whitepaper for policymakers to explain how cloud computing works and identify its transformative benefits. The policy team also gave input for the EU Cloud Consultation, promoted federal legislation to reform the Electronic Communications Privacy Act and worked closely with Obama Administration officials to advance their Cloud First Policies.

5. New members welcomed – SIIA welcomed dozens of new members in 2011, bringing its total membership to 512. One key area of growth was the Financial Information Services Division’s launch of a new constituency group for credit rating agencies. The group, formed initially by Moody’s Investors Services, Fitch Ratings, and Standard & Poor’s Rating Services, welcomed participation of other SEC-registered credit rating agencies around the world.

6. Digital education gets a boost – States from West Virginia to Florida led the K-12 education shift from print to digital instructional content, passing new laws long advocated by SIIA, which modernize outdated state textbook adoption programs. Texas SB6 provides full local flexibility to purchase digital content and technology, while Florida HB2120 will require schools to spend more than half of their textbook budget on digital materials by 2015-16.

7. Big rewards for piracy whistleblowers – SIIA paid $35,000 in rewards during the month of December alone to five people who reported cases of corporate end-user software or content piracy. The SIIA Corporate Anti-Piracy program uses verifiable tips to launch piracy investigations of cases of piracy that take place within an organization.

8. The higher ed market, demystified – 10 doctors, 5 college professors, 4 MBAs, 3 attorneys, 2 Harvard physicists: they all came together, along with dozens of others including CTOs, CEOs and VPs to create SIIA’s newest publication, The Experts’ Guide to the Postsecondary Market.  The resource offers expert guidance on everything from product development to selling in the postsecondary marketplace. Several authors discussed their key takeaways in a video series.

9. Visionary leaders present – Some of the leading voices in the software and digital content industries spoke at SIIA events in 2011. ProQuest CEO Marty Kahn turned heads with his frank discussion of challenges in the digital content landscape at the Information Industry Summit. Dr. Richard Sims, Chief Economist for the National Education Association, was back by popular demand at the 2011 Ed Tech Business Forum, where he followed up on the bleak economic predictions he made in 2009. Other standout speakers in 2011 were Robert Reich, Chancellor’s Professor of Public Policy for the Goldman School of Public Policy at the University of California at Berkeley at the World Financial Information Conference, Jim Whitehurst, President & CEO at RedHat at All About the Cloud, and Chris C. Kemp, CTO for IT at NASA, at Cloud/Gov.

10. Excellence recognized – SIIA recognized achievements in the software and digital content industries through a series of awards programs in 2011. Some highlights:

  • The 26th annual CODiE Awards presented 66 awards in digital content, education technology and business software.
  • The Content Division recognized RapidBuyr as the SIIA Previews Program’s “Most Likely to Succeed” at the 2011 Information Industry Summit.
  • The Education Division’s Innovation Incubator Award winners for 2011 were Fluidity Software, Footsteps2Brilliance, GiftedSpeech, and Capstone Digital.
  • On a personal level, FISD presented the Market Data Lifetime Achievement Award to Dr. Joseph Kasputys, founder and former chairman, president and CEO of global information company IHS Global Insight.
  • The Education Division honored Kathy Hurley, senior vice president of strategic partnerships for Pearson and the Pearson Foundation, with its prestigious Ed Tech Impact Award.



Laura Greenback is Communications Director at SIIA.

Cloud Computing: Job Creator

At SIIA we aren’t shy about touting cloud computing’s economic potential. We’ve highlighted it in a whitepaper for policy makers, showcased it in a collection of interviews from 45 member CEOs, and we plug it in the media every chance we get.

David LeDuc, our senior director of public policy, was happy to broach one of his favorite topics in a National Journal article by Sara Jerome called “Silver Lining” (print or online subscription only). The story explores the cloud’s effect on the job market: Will it help fuel a cross-sector entrepreneurial boom, or will it just lead to the end of the in-house IT manager?

Jerome’s article cites a British think tank’s study that predicts cloud computing will create 2.4 million jobs over the next four years in Europe, the Middle East, and Asia. Though no similar research has been done in the United States, LeDuc says the gains should be even greater for the United States.

“The massive computing infrastructure in the United States gives us an edge,” LeDuc says.

The article goes on to say that “unemployment for IT professions was just 5 percent in September, far less than the national average,” and cites a Microsoft study that says 54 percent of IT decision makers are “hiring as a result of the cloud.”

With the national unemployment rate stagnant at 9.1%, areas of growth like cloud computing should be given the tools they need to thrive. Read our whitepaper or check out some of the research we’ve compiled to learn more.


Laura Greenback is Communications Director at SIIA.

Do Computing Clouds Have a Green Lining?

You’re probably already aware of the myriad of benefits that flexible cloud computing is contributing to businesses across the country. The cloud can save you money; the cloud can save you space… but can the cloud save the Earth?

Recent research suggests that as cloud computing is adopted globally and data centers become more efficient, carbon emissions and energy usage can be dramatically reduced. Pike Research recently published a report demonstrating that cloud computing could cut almost a third of data center energy consumption by 2020. As companies adopt cloud computing, they’ll be able to outsource their IT needs and discard some of the costly, energy-chomping servers that have long been an essential part of the computerized office. The numbers will only improve as manufacturers design consumer equipment to optimize with cloud computing networks.

Another research firm, Verdantix, predicts that cloud computing will save 85.7 million metric tons of CO2 emissions by 2020, saving up to $12.3 billion in energy expenses. That’s the equivalent of 200 million barrels of oil not being burned off into the atmosphere.

With that said, there are caveats. An IEEE paper suggests that some intensive or repetitive tasks consume extra energy in switching and transmission. But data centers are constantly working to minimize their energy usage. Like any other business, they want to manage the costs, which may be the greatest benefit for companies looking to reduce their carbon emissions.

CEOs can choose to completely overhaul on-site data and energy usage – a hugely complex and expensive project that can become outmoded quickly with advances in technology — or they can connect to the cloud, and reap the benefits of reduced energy use.

Other Handy Links:
Four Reasons Why Cloud Computing is Energy Efficient
Cloud Computing Meets Energy Management


Tracy Carlin is a Communications and Public Policy Intern at SIIA. She is also a first year graduate student at Georgetown University’s Communication, Culture and Technology program where she focuses on intersections in education, video games and gender.

SIIA Commends EU for Looking to Maximize Cloud Computing, Urges Caution and Focus on Trans-border Data Flow

On Wednesday, SIIA submitted comments to the European Commission’s (EC) cloud computing consultation, a public inquiry launched in May to develop a European cloud computing strategy that the Commission will present in 2012, which will “aim to clarify the legal conditions for the take-up of cloud computing in Europe, stimulate the development of a competitive European cloud industry and market, and facilitate the roll-out of innovative cloud computing services for citizens and businesses.” This is a laudable objective, and the EU should be commended for several aspects.

First, the EU is on track in recognizing the ability of cloud computing to spur growth by helping businesses, reduce IT costs and level the playing, especially for SMEs. Second, they’re looking to the public sector to utilize cloud computing to provide better services at lower cost. And, they’ve rightly identified the need for open standards and interoperability to spur competition and choice.

However, as part of this initiative the EU is also looking to potentially make significant changes to current laws, and possibly create some new ones. It’s this area where SIIA urges caution. Consistent with the guidance we provided in our recent cloud computing white paper for policymakers, our comments urge caution in this area, with a particular emphasis on maintaining a level playing field for software and IT services, whether offered locally, via traditional externally-hosted services, or by utilizing “cloud computing.”

In our comments, we also highlighted the greatest current barrier to cloud adoption: the considerable challenges posed by issues surrounding transnational data flows, particularly the challenges associated with conflicts of law and jurisdiction within the EU and beyond. This is not an issue that is specific to cloud computing, but it has been exacerbated by it.

While we won’t know for some time which way the EU goes on this one, there was some more good news announced by EU VP Neelie Kroes earlier this week when she announced at Dreamforce 2011, that former United States CIO Vivek Kundra–a strong advocate for government use of cloud computing—will serve as an advisor in helping develop Europe’s cloud computing strategy.

Cloud Computing Promotes Economic Growth and Job Creation

Can cloud computing spur economic growth and job creation? In SIIA’s recent report, Guide to Cloud Computing for Policymakers, we say that the biggest benefit of cloud is “the boost it can give to other economic activity through the provision of more effective and less expensive computing capabilities.” It’s worth emphasizing this point and reviewing some recent economic studies that back it up.

A recent study by Federico Etro finds that cloud computing tends to increase business formation in European economies. Cloud computing reduces the costs of entry into a market by shifting fixed capital expenditures on information technology into operating expenses that depend on the size of a company’s output, spurring the formation of new firms. It’s easier for companies to get started when they can buy the computing services they need rather than invest in expensive large-scale computer hardware and software.

Etro considers the effects of two possible routes for cloud computing’s diffusion in Europe: a slow dispersal that reduces the fixed costs of entry by 1% and a rapid one that reduces these costs by 5%. In either case, the contribution to economic growth is significant. After one year, even a slow diffusion of cloud computing increases annual economic growth by five basis points (0.05%). After five years of rapid diffusion, annual economic growth is four-tenths of one percent (0.4%) higher than it otherwise would be.

A rapid diffusion of cloud computing would create almost 400,000 additional small and medium sized business in Europe after five years, Etro estimates. The bulk of these new firms are concentrated in wholesale and retail trade and real estate and other business activities. It would create a short-term increase of one million jobs in Europe, and reduce the European unemployment rate by one-half of one percent (0.5%). Though it’s true that the efficiencies of cloud computing could reduce the number of people performing IT-related tasks, the overall effect would increase jobs. He estimates that 8 jobs would be created for every job lost.

These are impressive results. But they derive from examining only one benefit of cloud computing – the reduction in capital costs that allow new firms to enter the market. Another European study by the Centre for Economic and Business Research takes into account the economy-wide costs savings and new revenue opportunities made possible by cloud computing in five European countries.

Cloud computing reduces costs for existing firms by reducing their capital expenditures, their labor costs, and their power costs (since they no longer need to service large in-house computers). Cloud computing also allows existing companies to scale to bring products and services to new markets and meet unpredictable short‐term demand peaks. Companies can leverage cloud computing to earn extra revenue that they might otherwise have missed if they had to invest in new computing equipment or software in order to expand output. CEBR takes these effects into account, along with the new business formation effect, and estimates that adoption of cloud computing will generate a cumulative increase in output of 763 billion euro in these countries, and an increase in employment of 2.3 million between 2010 and 2015. By 2015, annual economic benefits are predicted to be in excess of 177 billion euro and the annual increase in jobs expected to be 446,000.

Which sectors stand to gain most from the cloud? A follow-up study by CEBR breaks it down. Distribution, retail & hotels accounts for 233 billion euro of the cumulative economic gain through 2015, and government, education and health will gain the largest number of jobs – 801,000 – over this period. Banking has the second highest economic gain with 183 million euro and manufacturing is the second biggest beneficiary of job gains at 501,000 jobs. So the economic benefits are wide-spread.

These results are no doubt promising, but all studies of the impact of a new technology should be subject to some degree of uncertainty. We can never make perfect predictions of what lies ahead. But these reports suggest that cloud computing can have substantial benefits for economies struggling with issues of growth and unemployment.

The policy implications of these studies need to be made explicit. The message to policy makers is to be alert for policies that can inhibit the growth of cloud computing. As our earlier study noted, dissipating the economic advantages of cloud computing by imposing inefficient localization requirements or limits on cross-border data flows will hurt those who depend on enhanced computer services to flourish and provide jobs. Policy makers seeking to maximize economic gains in hard times should avoid these counterproductive requirements.

For SIIA policy updates including upcoming events, news and analysis, subscribe to SIIA’s weekly policy email newsletter, Digital Policy Roundup.

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