What is keeping your agency from moving to the cloud?
I ask this of our customers all the time and there’s a trend in the responses. Restrained capital budgets. Though the constraints are less severe for some, there is still pressure to limit spending while leveraging efficiencies. All while the demands on IT to do more, continue to grow.
One solution to help in this endeavor is moving the funding of cloud computing from CapEx to OpEx. It can make the lives of IT managers a whole lot easier and help them achieve the goals they’ve set; or at least been wanting to set. We all want efficiency, the best we can manage, without digging deeper into our CapEx pockets.
The president’s budget for 2012- 2013 actually encourages Federal agencies to shift IT budgets from CapEx to a “more agile, operational focus.” This is a great opportunity to really evaluate alternative acquisition models.
Ready for some statistics? In a new study* (details below) 66% of Federal IT managers report the same or increased operational budgets for 2012 and 82% report that approved funding for IT capital investment are the same or lower. Of Federal IT managers who have shifted funds from CapEx to OpEx, 33% did so to advance a project that would otherwise have been unable to proceed. 72% of respondents state that conversion from CapEx to OpEx is necessary to implement public or community cloud computing, primarily to align the cost of supporting infrastructure to the recurring cloud service cost.
Unbelievably, 21% of Federal IT managers are still unaware that a move from CapEx to OpEx funding is possible, let alone encouraged in the President’s FY2013 budget. This is a real solution to the challenges agencies are facing, and the answer to my question: “What is keeping your agency from moving to the cloud?”
should be “nothing”.
What can I do to help?
*“The Color of Money”, sponsored by Brocade, is based on an online survey taken April 2012. To view the full study, please visithere. For more information on Brocade’s answer on how to take advantage of OpEx budgets, please visit www.NoNetworkCapEx.com or Brocade Capital Solutions.