US IT Budget Cuts: Shutdowns and Movement to the Cloud

The U.S. government has closed 39 computer data centers and plans to shut down 98 more by the end of the year, the federal government’s top technology officer said today.

The Obama administration plans to consolidate 137 facilities in all, or 325,000 square feet (30,193 square meters) of space that is filled with servers, networks, routers and switches, U.S. Chief Information Officer Vivek Kundra said at a White House event. The meeting was held to promote administration efforts to better manage the government’s $80 billion information technology budget.

And, systems valued at $20 billion are on their way to the cloud. The hope is that startups will be able to provide some of that work alongside Google, Amazon and Microsoft. An open competition will launch May 10 for $2.5 billion in cloud contracts to serve federal agencies.

- Bloomberg

Published Friday, April 29th, 2011

Written by Adena Schutzberg

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