The good and bad of government in the cloud

Cloud computing could help to modernise IT for many agencies

Earlier this week US chief information officer Vivek Kundra rolled out a new programme for the American government known as Apps.gov.

The portal site will allow those working in federal agencies to browse various web-based services and ultimately purchase and implement cloud computing systems for use in federal agencies.

Kundra and others within the Obama administration hope that the programme will pay big dividends by not only modernising IT for many agencies, but cutting down on the operational costs associated with installing and maintaining on-site hardware and software.

If successful in the US, such a programme is likely to be adopted in the UK and throughout Europe. Such programmes could create new opportunities within the IT sector, but could also raise new dangers and potential headaches.

Among the most excited parties over the Apps.gov launch are cloud computing developers. Companies such as Google and Salesforce.com are hopeful that the programme could bring a windfall of lucrative government contracts. Given the economic crisis that has been devastating the industry over the past year, such deals could bring a welcome injection of cash into the sector.

Additionally, the move to cloud computing could open the door to smaller developers. One of the lesser-known advantages to cloud computing is the low barrier of entry for start-ups.

As cloud platforms by nature require little hardware investment for developers, start-up costs can be kept to a minimum and in some cases new companies can be funded with 'boot-strap' cash rather than large amounts of upfront investment. Given the highly specialised nature of many government systems, a market for niche developers and smaller start-ups could quickly em erge.

Software developers are not the only ones excited by the move. As more agencies go to the cloud, more hardware to support that cloud is needed, and the companies that provide that hardware could see major benefits. Remote database hosting firms that already work with government agencies, such as Terremark, are salivating at the possibility of hosting cloud computing services for federal agencies.

Additionally, the builders of the hardware have to be pleased with the idea of selling more high-margin server systems to host the growing demand for cloud computing systems.

Even IT consultants and service providers could see benefits from the programme. Migrating from in-house systems to a hosted platform is no small task, and the process is likely to mean more work for service and support providers.