Picture credit: “Australian Flag”, by “Max Anderson”, used under CC BY / Modified from original

The latest draft of Australia’s federal cloud computing policy insists that agencies “must” adopt cloud so long as it’s fit for purpose, protects user data and represents value for money.

The 14 page paper, signed by minister for finance Mathias Cormann and minister for communications Malcolm Turnbull, aims to “reduce the cost of government ICT by eliminating duplication and fragmentation, and will lead by example in using cloud services to reduce costs, lift productivity and develop better services.”

Cloud services will have their value for money determined as per the Commonwealth Procurement Rules, and security of data assesses by the Protective Security Policy Framework. The government has issued a six step outline as a ‘high level approach to the process of evaluating cloud services’:

• Assess information against legislative and regulatory requirements
• Evaluate the market for cloud services including existing initiatives by other agencies
• Determine the suitability of the cloud service against the information requirements
• Procure and implement the cloud service
• Monitor the cloud service for performance and compliance
• Review the cloud service for ongoing benefits realisation

Adoption figures show a slow uptake, according to the report. Cloud procurements in AusTender – the centralised hub for business opportunities, cloud or otherwise – have only totalled $4.7m since July 2010. The Australian government spends approximately $6bn a year on IT.

As a result the report discusses key plans going forward, including evaluation of cloud services for new IT services, and the establishment of a Cloud Services Panel by January 2015. The key recommendation, however, is to move AusTender to a cloud based service, after an options analysis by the Department of Finance.

“Agencies have made limited progress in adopting cloud,” the report warns. “A significant opportunity exists for agencies to increase their use of cloud services through the Australian Government Cloud Computing Policy.”

Despite a few teething snags, the UK government’s G-Cloud programme is making steady progress, replacing the CloudStore with the Digital Marketplace for cloud procurements. Australia currently ranks third in the latest Asia Pacific cloud readiness survey, behind Japan and New Zealand, according to ACCA – an increase of four places from the previous year.

Read the full report here.