A typical data center costs $18.5 million per year to operate, estimates the U.S. Chamber of Commerce Technology Engagement Center. The U.S. government operates more than 12,000 data centers, according to the most recent reports from government agencies to the Office of Management and Budget (OMB).
Not surprisingly, cost savings and efficiency are the top reasons federal CIOs drive their agencies to adopt the cloud. Agencies are under pressure to digitally transform and curb IT spending, making flexibility, scalability and lower operational costs a necessity. The cloud, then, is a critical next step in IT modernization for the U.S. public sector.