Federal cloud total cost reduction model

Maximized cloud savings and efficiency through a disciplined approach

Download CGI's applying the cloud for rapid savings white paper.

When applied intelligently, cloud technology can help federal organizations improve security and service while also reducing costs in the short- and long-term.

The Office of Management and Budget (OMB) has estimated that cloud computing offers the ability to provision IT services on demand at up to 50% lower per unit cost. CGI's disciplined federal cloud approach reduces total cost of ownership (TCO) based on a combination of:

  • CGI's economies of scale in computer equipment and pooled IT infrastructure expertise, offering initial savings of 10-20%
  • Pay-as-you-go model offering the potential for savings of 20-30% more
  • Automated service management that embeds standards, policies and frameworks  to maximize efficiency gains
  • Time and cost avoidance of infrastructure-specific security certifications by leveraging the Federal Risk Authorization Management Program (FedRAMP)

In addition, since the pay-as-you-go pricing eliminates upfront capital expenditures, agencies avoid being locked into long-term contracts and can free up capital for more strategic investments. CGI's federal cloud services can also help agencies achieve soft savings through better alignment of resources to business needs and control of IT sprawl through a disciplined governance approach.

For transition planning, CGI can also work with clients to leverage the inherent savings of the cloud to spread transition costs over the life of the service to further reduce TCO and eliminate upfront expenditures.

At CGI, we also understand that savings on infrastructure is not the only place for cloud economies.  We architected our cloud to add reusable services and engineer new applications – including software – to save additional monies.