An article in Federal Times (16 April 2011) states that “Experts See Little Return For Agencies’ Cloud Investments.”
The question is were the savings really achievable to begin and how do you know whether we are getting to the target if we don’t have an accurate baseline to being with.
From an enterprise architecture perspective, we need to have a common criteria for where we are and where we are going.
The notion that cloud was going to save $5 billion a year as the former federal CIO stated seems to now be in doubt as the article states that “last year agencies reported their projected saving would be far less…”
Again in yet another article in the same issue of Federal Times, it states that the Army’s “original estimate of $100 million per year [savings in moving email to the DISA private cloud] was [also] ‘overstated.'”
If we don’t know where we are really trying to go, then as they say any road will get us there.
So are we moving to cloud computing today only to be moving back tomorrow because of potentially soft assumptions and the desire to believe so badly.
For example, what are our assumptions in determining our current in-house costs for email–are these costs distinctly broken out from other enterprise IT costs to begin? Is it too easy to claim savings when we are coming up with your own cost figures for the as-is?
If we do not mandate that proclaimed cost-savings are to be returned to the Treasury, how can we ensure that we are not just caught up in the prevailing groupthink and rush to action.
This situation is reminiscent of the pendulum swinging between outsourcing and in-sourcing and the savings that each is claimed to yield depending on the policy at the time.
I think it is great that there is momentum for improved technology and cost-savings. However, if we don’t match that enthusiasm with the transparency and accuracy in reporting numbers, then we have exactly what happens with what the papers are reporting now and we undermine our own credibility.
While cloud computing or other such initiatives may indeed be the way go, we’ve got to keep sight of the process by which we make decisions and not get caught up in hype or speculation.
(Source Photo: herewith attribution to Opensourceway)