The economics of cloud computing for the EU public sector

For some, the talk of cloud computing produces more haze than light, and there is no doubt: we all need to see the deeper analysis of the economics of the cloud in order to make decisions about information technology strategies.  I work with public administrations across Europe, and see that the interest level in cloud computing is high, but there is also widespread desire for better understanding of how this trend can benefit them and the European economy more generally.

To meet this need for better information, we have prepared an extensive paper on The Economics of Cloud Computing for the EU Public Sector, along with a two page summary.  I hope you find these helpful.  The paper provides a more complete, and concrete, analysis than I have seen elsewhere, and can help us all form a better vision of things to come.

The paper identifies specifically the nature of the economies of scale that cloud computing provides, from both the supply side and the demand side.  It discusses what the potential savings can mean for government leaders who must address their own priorities for fiscal responsibility, citizen service, and lower carbon emissions.

The numbers can be surprising, and they are certainly attractive. The underlying economics help us see how and why society will move in the direction of cloud computing.  At the same time, the cloud must meet all other objectives, like security, privacy, and other data governance issues.  For these and other reasons, the transition will be gradual, and certainly some organizations will utilize private cloud or hybrid solutions especially in the near to medium term.  We think public administrations will want to develop a 5 to 10 year vision and plan, balancing operational continuity, security, compliance, as well as fiscal realities, in order to exploit the trends of the future to their best advantage.

Your comments are welcome, and we hope this paper helps clear the haze to allow you to form a vision of the journey to the cloud for public administrations in the EU.


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