UK cloud adoption leads to substantial savings

The UK government is amidst a massive cloud computing implementation, a move that it anticipates will save between 15 and 20 percent of IT spending in the public sector.

Currently, the government spends nearly $27 billion on public sector IT, with the central government accounting for $9.6 billion. Several Indian IT companies are talking with the UK government about their managed IT solutions.

The upcoming Nasscom Leadership Summit will offer more insight for the project, as well as the ability to discuss more initiatives with other key IT players, according to Deputy Government CIO and director of ICT strategy Bill McCluggage.

McCluggage believes six current departments are prepared to immediately incorporate cloud computing - the Department for Work and Pensions, Her Majesty's Revenue and Customs, the Ministry of Justice, Health and Department of National Health Services and the Ministry of Defence.

"The reason why I have said these departments is because they are power houses in terms of the work that comes out of these departments," said McCluggage. "Her Majesty’s Revenue and Customs has already adopted cloud computing to some of their services. If you look at some of the spend by these departments, it makes sense for them to adopt cloud. For instance, the Department for Work and Pensions has close to £1 billion as spend. Similarly, Her Majesty’s Revenue and Customs has a spend of about [$1.28 billion]."

The UK adoption of cloud computing is further proof of the technology's increase appeal worldwide. In the U.S., cloud investment is expected to rise by 10 percent, according to a recent report from Osterman Research.