April 19, 2011 – Cloud computing offers millions of dollars in federal government cost reductions from information migrations and data centers closures, according to recent testimony on measures to cut IT spending. However, analysts and industry leaders urged for flexibility and continued innovation to keep government actions relevant and fiscally responsible.

A handful of government CIOs and private analysts and technology officers recently stated those assessments in testimony before the Congressional Subcommittee on Federal Finance Management, Government Information, Federal Services and International Security. As part of that testimony, Vivek Kundra, CIO for the federal office of management and budget, offered a five-point plan that follows through on previous efforts, which he said have already cut $3 billion from lifecycle costs of major IT investments. That plan, broken into intervals over the next 18 months, involves: applying “light technologies” like cloud computing and shared services; strengthening program management; aligning budgeting processes within the technology cycle; streamlining governance and improving accountability; and increasing engagement with the industry.

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