A five-year-old effort by the U.S. government to cut IT costs through data center consolidations, cloud computing and other technology changes is expected to pay off now. This has been revealed by a report by a government watchdog agency.
In 2010, the federal government embarked on a plan to reduce IT spending by consolidating data centers, moving to cloud computing and sharing more services among agencies. The US government budgets about $80 billion annually on IT which is a huge spend annually. No other government in the world spends so big an amount on IT.
The report reveals that over the past four years, the efforts have saved the U.S. about $3.6 billion in IT costs. This has been possible through direct reductions and by avoiding new costs.
The contributions were made by also the federal agencies with their biggest cost savings. Data center and cloud computing do save costs. The US government has proved it. Taking lessons from the government's efforts, enterprises might also look at the cost savings and benefits over a period of time. CIOs in many enterprises are struggling to modernize their infrastructure. Many of them are apprehensive about the cost advantage. However, this is expected to be a benchmark for all of them.