Cloud Economics: A Federal Perspective

Migration to the cloud ecosystem has had a profound impact on all aspects of business, as the cloud provides many benefits and gives an enterprise a strategic advantage. The application of cloud computing to mainstream technologies has changed business models dramatically, causing organizations to experiment as never before. Today, technology has become a vital part of every business’s strategy and cloud has become a fundamental launchpad for digital transformation.

From an industry perspective, cloud computing has led commercial businesses to innovate faster and for less money by lowering the entry barrier and decreasing time to market. Digital transformation has created a wave of disruption across the business enterprise, including even traditional back-office functions like operations and finance.

Cloud Economics

Federal agencies, on the other hand, have been more cautious in their cloud adoption, often through no fault of their own. Constraints such as procurement vehicles, budgeting methodologies and the overall structures of a highly regulated market dramatically change the dynamics. The federal market has a different budgeting cycle, often driven by policies and regulations. While constraints associated with regulatory changes have slowed federal cloud adoption, the economic benefits of cloud also must be viewed differently.

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