UK cloud computing strategy could save up to £3.2bn a year, says Cabinet Office.

   The government has unveiled a sweeping strategy to create
   its own internal "cloud computing" system – such as that
   used by Google, Microsoft and Amazon – as part of a radical
   plan that it claims could save up to £3.2bn a year from an
   annual bill of at least £16bn.

   The key part of the new strategy, outlined by the Cabinet
   Office minister Angela Smith, will be the concentration of
   government computing power into a series of about a dozen
   highly secure data centres, each costing up to £250m to
   build, which will replace more than 500 presently used by
   central government, police forces and local authorities.

   The government will also push for "open source" software to
   be used more widely among central and local government's 4m
   desktop computers. That poses an immediate threat to
   Microsoft, whose Windows operating system and Office
   applications suite is at present firmly embedded as the
   standard on PCs in government, such as the NHS, which is one
   of the largest users in Europe.

   But John Suffolk, the government's chief information
   officer, pointed out that cost savings of just £100 per
   machine would total £400m across government. Unlike Windows,
   open source operating systems such as Linux have no
   licensing costs and can be used on as many machines as
   required.

   By 2015, the strategy suggests, 80% of central government
   desktops could be supplied through a "shared utility
   service" – essentially a cloud service resembling Google
   Docs, which lets people create documents online for free.


http://www.guardian.co.uk/technology/2010/jan/27/cloud-computing-government-uk

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