The Obama administration recently showed interest in using cloud computing to control IT costs as said in a public announcement.

The declaration was made in a federal budget proposal by Obama where he made clear that cloud stands as a remarkable platform for cutting IT costs. Obama already has reserved a big budget of $79.5 million for IT expenditure. However, even with such an inviting budget, spending will be monitored by making sure that costs are controlled through cloud computing and data center services. This is expected to reduce IT expenditure by $3 million.

In a recent announcement federal CIO Vivek Kundra said that the government

will be able to reduce our data center infrastructure expenditure by approximately 30 percent. The adoption of cloud computing will play a pivotal role in helping the government close the productivity gap between the public and private sectors.

Kundra brought up the strategies for cloud technologies by the government. Kundra is of the view that the new strategy

will revolve around commercial cloud technologies where feasible, launching private government clouds, and utilizing regional clouds with state and local governments where appropriate.

According to estimates made in the reports submitted by Kundra if the government reallocates an IT budget of $20 billion to cloud computing, the cost for data infrastructure will be reduced by around 30 percent.