Industry Updates

July 1, 2010

Cloud to throw public sector cost-cutting lifeline?

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The 25 per cent public sector spending cuts will spur IT managers to evaluate cloud computing as a money saving solution according to analyst Ovum.

Ovum’s research says the public sector prefers on-site storage and deployment for IT functions. However, faced with such dramatic cuts, the cost benefits already recognised by private business will cause many to reinvestigate cloud.  Security is one of the major concerns within the public sector, but the idea has been put forward to create a dedicated government-only cloud service, reducing the risk of sensitive data getting into the public domain.

“The quest for cost-effective solutions has already led many public sector bodies to go for outsourcing and shared services, but these latest cuts call for a fresh look at cloud computing,” said Ovum senior analyst Sarah Burnett.





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