Amazon Web Services (AWS) Targeting the Fed Opportunity

In the last post we explored how SAP was using AWS, but looks AWS has its sights set on an opportunity that is a lot bigger. Which by itself could change the revenue mix of Amazon, from being primarily driven by e-Retail to being a mix of AWS & Retail. No longer will AWS be bundled in the Other Revenue category.

According to the Seattle Business Journal,

Amazon’s ability to sell cloud services to the federal government could open up a huge new market for the company. The online retailer was an early leader in cloud computing — selling computing power from its data centers on an as-needed basis via the internet. Such services were an early hit with startups and individual web developers, and now Amazon and its competitors are targeting government institutions, which have much bigger computing needs and deeper pockets.

Here is another excerpts from an earlier piece interviewing Vivek Kundra ( Federal CIO )

but his prime focus is on reducing the number of federal data centers and shifting applications like email, document sharing and video chatting from government servers to outsourced cloud computing services.

The Potential -  The federal government will spend $76 billion this year on IT. That includes $20 billion to pay for infrastructure.

How Serious are they?

"In a sign of Amazon's interest in the federal cloud market, the company last year teamed with Apptis, the Chantilly, Va.-based government IT services company, to respond to a request for quotes (RFQ) put out by the General Services Administration. The GSA was seeking information on "Infrastructure-as-a-Service" offerings for the government, including cloud storage, virtual machines and cloud web hosting. 

(Note – That RFP was canceled and a new RFP is to be released)

Source: 1,2

Prashanth Rai

Technorati Tags: cloud,aws,amazon,cloud+computing,federal,vivek+kundra,amazon+web+services

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