Transcending The Cloud: Cloud Computing – The Key Risks and Rewards for Federal Government Contractors

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Whether or not you believe cloud computing represents a revolutionary change in the provision of software and data processing services, the cloud and its lexicon have become firm fixtures in corporate enterprise management and, more recently, in doing business with the federal government. As discussed further below, contractors should recognize the legal risks and rewards of both assisting federal agencies in implementing clouds, and in employing cloud service providers to perform federal government contracts.

President Obama’s Federal Cloud Computing Initiative

With the release of President Obama’s budget for fiscal year 2011,1 cloud computing also became an essential aspect of the nation’s information technology strategy.2 In fact, the administration has had its eyes on the clouds for some time, and while the 2011 budget represents its strongest commitment toward cloud computing, efforts to implement the concept have been ongoing since at least the roll-out of the 2010 budget.3

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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