Navy: Cloud, Consolidation To Cut IT Costs 25% - InformationWeek
12:26 PM

Navy: Cloud, Consolidation To Cut IT Costs 25%

Consolidating more than 80 data centers and moving software to the cloud as part of its multibillion-dollar next-generation IT network.

50 Most Influential Government CIOs
Slideshow: 50 Most Influential Government CIOs
(click image for larger view and for slideshow)
The Navy has sketched out data center and cloud computing plans for a multibillion dollar, next-generation network it's building for both naval forces and the Marine Corps.

The Navy aims to reduce its non-tactical IT budget by 25% through the deployment of the Next Generation Enterprise Network (NGEN), and to do that will consolidate the more than 80 data centers it currently has and move on-premises software to the cloud, according to two separate requests for information (RFIs) posted on

NGEN is a network the Navy is building to be a modern replacement for the Navy Marines Corps Intranet (NMCI), which is no longer flexible nor scalable enough to suit the military's needs. HP last June won a potentially more than $3 billion award to build NGEN, which is expected to cost $50 billion through 2025.

Earlier this year a Government Accountability Office report cautioned the Navy to review its plans for NGEN before spending any more money on the project. The new RFIs reflect the special attention the Navy is paying to NGEN's cost-savings goals.

On the data center front, the Navy is eyeing a mix of public and private data centers to handle a significant downsizing of 1,600 IT systems it currently has. The military arm said it considers only 4% of them to be mission-critical, according to the RFI, and so is seeking ways to use only necessary systems in NGEN to reduce costs and achieve greater efficiency.

The military arm also plans to shore up existing IT resources in public and private data centers to "be adequately protected by an improved cybersecurity posture," it said in the RFI.

To leverage cloud computing, the Navy plans to assess all of its applications and, for its NGEN plans, will continue only to maintain, use, and procure those that can be hosted in in the cloud, according to the RFI.

The current raft of in-house applications for command and control, legal, administrative, and other functions that the Navy uses have a very high total ownership costs (TOCs), and do not fit into the reduced costs the military expects to achieve with NGEN, the Navy said.

"Given today's fiscally constrained environment and under the department's current consolidation and efficiency guidance, inefficient software solutions with high TOC are neither desired nor sustainable," according to the RFI.

The Navy is not the only military arm that aims to leverage the cloud to cut back on in-house systems and reduce costs. The Army is in the midst of consolidating a network of disparate emails systems to a cloud hosted by the Defense Information Systems Agency (DISA).

Former Army CIO Lt. Gen Jeffrey Sorenson, who initiated the move, said it will save the military $100 million annually. Sorenson retired in November and was replaced as Army CIO by Lt. Gen. Susan Lawrence.

What industry can teach government about IT innovation and efficiency. Also in the new, all-digital issue of InformationWeek Government: Federal agencies have to shift from annual IT security assessments to continuous monitoring of their risks. Download it now. (Free registration required.)

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
2017 State of IT Report
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends for 2018
As we enter a new year of technology planning, find out about the hot technologies organizations are using to advance their businesses and where the experts say IT is heading.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll