There is a huge potential savings for the U.S. government in adopting SaaS technologies, cloud computing infrastructure and open source software.Last week President Obama requested Scott McNealy, ex-CEO and co-founder of Sun Microsystems, to produce a report on potential benefits of such a move.The current U.S. government IT budget is approximately $70 billion per year.
According to a recent study by MeriTalk, Red Hat, and DLT Solutions, the U.S. government could save $3.7 billion by using open source software, $13.3 billion by using virtualization, and $6.6 billion from using SaaS applications. This assumes an integrated model combining the three technologies.
The U.K. government recently announced its plans to accelerate deployment of open source software.According to Simon Phipps, Chief Open Source Officer for Sun Microsystems, "We waste a fortune on proprietary computer software because of paying for licenses and promises up front and not demanding value."
In any economic environment this makes sense, but with the current economic climate the adoption of an integrated SaaS, cloud computing, and open source model appears necessary.
Alerding Castor's SaaS law / Entrepreneurial law practice partners with several SaaS, cloud computing and virtualization businesses. We help these clients through their strategic business growth, including negotiating licensing transactions, providing legal technology consulting, offering direction on capitalization and private equity, and counseling on general business law matters. See our Partners in Success page to see a listing of a few of these companies.
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