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What Would Happen If Every Federal Agency Moved At Least 3 Applications to the Cloud?

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How much? How much?

A new study suggests that if all US federal agencies joined together and moved just three of their mission-critical applications to the cloud, the taxpayers could save close to $17 billion a year. Not clear, however, are the up-front costs of lifting and shifting core applications that may have been running for years.

The report, released by MeriTalk, a social network for federal agency managers, estimates that half of all federal IT spending is on core applications, and 80% goes to maintaining on-premises legacy applications. The federal government could shave approximately 21% of it’s annual $80-billion IT budget — or about $16.6 billion — if every agency agreed to move at least three mission-critical applications to the cloud.

The study’s authors define “mission-critical applications” as “systems (equipment, processes, procedures, software, etc.) whose failure will result in the compromise of an agency’s mission. This does not include email.” Applications would include financial management, procurement, logistics, CRM, and project management.

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