The Chicago Tribune is reporting that “Orlando became one of the first cities in America to switch all of its employees to Google e-mail.”  The savings are impressive:

“If Orlando were to keep its current system, city officials estimate it would cost $133 a year for each of its 3,000 employees — or $399,000 — including annual software licenses.

Google is charging $45.50 per user, or $136,500. In return, everyone from city planners to police officers will use a Web-based e-mail system similar to Google’s popular Gmail, but without the advertisements that support the free consumer version. Google servers will store all city e-mail and run the application, and Google technicians — not city employees — will make sure it runs smoothly.

"The costs and IT support are someone else’s nightmare, and that’s what we’re paying for," Chief Financial Officer Rebecca Sutton said.”

More interesting is the confidence, dare I say “trust”, in using a cloud-based solution:

“[Google’s] Lock said Google will archive Orlando records, which must be kept and accessible under state public-records law, in "super-secret data centers."

And Cross [Orlando’s Chief Information Officer] said he’s confident city records, including sensitive law-enforcement and legal documents, will be safe from loss or cyberattack. Google has greater security resources, from people to money, than Orlando could muster on its own.

Besides, Cross said, the city last year contacted other e-mail providers, including Microsoft and IBM, about moving to the cloud.

"They gave us pricing that couldn’t compete with Google," he said.”

While the Los Angeles Google deal is much better known, Orlando led the way:

“Los Angeles became Google’s crown jewel in October, when that city approved a $7.25 million e-mail contract with the Internet giant, but Los Angeles has not yet moved its 30,000 employees to the Google system.

Google cited its deal with Orlando, which had already been signed, in its pitch to Los Angeles.”

In a reversal of classic technology adoption patterns, government agencies are cutting the path to cloud computing.  Interesting times.

Posted by brenda michelson at 4:41 pm in adoption, business capability offering, Cloud Watch, SaaS, use cases | Permalink | Comments(0)
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Today’s Wall Street Journal had a short Dow Jones Newswire piece entitled "Microsoft Exec: Customers Embracing "Cloud Computing".  The lead-in:

“Corporate customers are switching to "cloud"-based technology more rapidly than Microsoft Corp. (MSFT) expected, a senior executive at the company said Monday.

"People are embracing cloud computing faster than we anticipated," Stephen Elop, who heads Microsoft’s business division – which includes the ubiquitous Office tools – said in an interview.”

The interesting thing though, was the article went on to suggest that Microsoft finds itself chasing Google, and that is what drove Microsoft’s recent price reductions:

“Redmond, Wash.-based Microsoft is ramping up competition, offering hosted versions of familiar services like email and Office for its corporate customers. Last week, it cut the price of its Exchange Online email services. The move was seen as in part a reaction to some accounts Google has won recently, such as a contract to run 30,000 email accounts for employees of the City of Los Angeles.”

This of course, Microsoft denied, and attributed the price reduction to economies of scale:

“Elop said wider take-up of services like hosted email had prompted Microsoft to introduce the price cuts, because Microsoft was increasingly able to offer such services at large scale without impacting profitability. He said Microsoft was confident it could offer such services profitably on an ongoing basis. Some analysts have expressed concern that the need to compete with rivals could lower margins.”

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Why is interesting?  The early leaders in cloud computing, both in innovation and offering adoption, are not traditional Enterprise and Agency IT Vendors.  Rather, they are a search company and a bookseller.  And neither is going away.

Posted by brenda michelson at 5:51 pm in Cloud Watch, SaaS | Permalink | Comments(0)
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Reports from the Trenches: What’s Working in Virtualization and Green IT, moderated by Larry Hale, Director, Office of Infrastructure Optimization, GSA

Panelists:

  • Jack Baxter, Manager, IT&S, Government Printing Office
  • Richard Fichera, Director, Blade Systems Strategy, HP
  • Bernard Golden, CEO, HyperStratus
  • Dale Wicklizer, US Public Sector CTO, NetApp

Larry Hale has some starter questions for the panel:

1. Biggest challenges in adopting virtualization?

Jack Baxter: Greatest challenges: application qualification, funding, hardware and how it’s going to be used.  Heterogeneous environment calls for a lot of up-front research.

 more >>

Posted by brenda michelson at 5:55 pm in adoption, Blog, sustainability, virtualization | Permalink | Comments(0)
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David Berlind is our Evening in the Cloud host. David says the discussion shouldn’t be about cloud computing definition, it should be about cloud computing benefits. The benefits will lead to the ‘right’ definition. Panel Format, each panelist has 8 minutes to “pitch us” as though they were visiting our organization. more >>

Posted by brenda michelson at 7:13 pm in adoption, Blog, compliance, cyber risk, data, provider positions | Permalink | Comments(0)
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