U.S. to Close 800 Computer Data Centers

The federal government plans to shut 40 percent of its computer centers over the next four years to reduce its hefty technology budget and modernize the way it uses computers to manage data and provide services to citizens according to The NY Times

In an interview, Vivek Kundra, chief information officer for the federal government, explained that the data center consolidation was part of a broader strategy to embrace more efficient, Internet-era computing. In particular, the government is shifting to cloud computing, in which users use online applications like e-mail remotely, over the Internet. These cloud services can be provided by the government to many agencies or by outside technology companies.

Tapping cloud computing services, Mr. Kundra said, could save the government an additional $5 billion a year, reducing the need for individual government agencies to buy their own software and hardware.