Public Sector Cloud Economics

I always believed that technology empowers people to do more and frees them up from the mundane and repetitive to focus on higher value activities. And as adoption of cloud computing increases, Local and State Governments looking to go to the cloud can do so not just to cut cost but also to empower and grow their local IT economy.

A case in point is an event which occurred less than 5 years ago. I was invited to deliver a seminar in Malaysia about the potential impact of cloud computing on the local economy. If you are in technical sales, or pre-sales, and trying to get in front of the Government official decision maker, this post is certainly for you as I share an approach you just cannot go wrong with.
Having worked for Microsoft for almost 10 years, I witnessed and participated in the transition from selling products to selling services, or Software as a Service (SaaS) and experienced all the difficulties every time in history we face a paradigm shift.

One of the approaches I recommended to the Malaysian Government is to encourage cloud vendors to team up with a local entity in some kind of subcontracting agreement. The entity could be the local startup community, the local University IT incubation program, or even a Government agency with in-house IT capabilities with a charge-back model in place.
If you pursue this strategy, your solution will beat the competition. Why? Because you have just reinvigorated the local IT Services economy with funds from the local government which will reinvested locally and generate tax revenue and so on. Chances are there is some form of a self-organized or Corporate-sponsored IT startup or small business community where you are trying to engage your potential customers. We have a great and thriving one here in Tampa. The agreement could be expanded to form some type of a public-private partnership making it an all win situation.

Bash Badawi has over 24 years of technology experience ranging from an internship at NASA to providing IT advisory services in over 30 countries around the globe in Europe, Africa, Asia and the Americas. Mr. Badawi can be reached on his LinkedIn profile or over email at techonomist@hotmail.com and welcomes all feedback as he is an avid reader and learner.

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