State-run government cloud hubs to grow popular, report says

There is a new type of IT service becoming available for state and local agencies called a regional cloud hub that will change the way government organizations access computing technologies. These systems will have a trickle-down effect, in that one government agency will offer cloud computing services to other agencies within the same state, according to a new IDC report.

"We believe that cloud hubs will see rapid growth, since the first multiagency efforts have already shown a positive return on investment and solid service levels for cloud solutions subscribers," said IDC research analyst Shawn McCarthy.

Today, government agencies are consolidating their solutions and, as a result, often combining datacenters into one statewide operation. The remaining systems are converted into shared resource pools, allowing the cloud hubs to take shape, the report said.

It will most likely be the case that state-level agencies will manage the centers, as local organizations look to them for hosted solutions, giving smaller agencies the ability to cut costs, IDC noted.

According to Gartner, the global cloud computing market will generate more than $148 billion in revenue by 2014. As more state and local government agencies utilize these services, the market will likely continue expanding.

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