Published on the 06/08/2014 | Written by Newsdesk

The Department of Finance has released a discussion paper which sets out the framework for the Australian Government’s cloud computing panel expected to be live by Christmas…

When the National Commission of Audit handed its recommendations to the Federal Government earlier this year, it recommended a move to a “cloud-first” approach for the public sector’s low risk computing systems, noting that there were savings of 20-30 percent to be had from this approach.

An important step toward encouraging more uptake of cloud will be the release of a cloud computing panel in December this year.

Although use of the panel is voluntary – meaning government departments and agencies can still buy cloud services from vendors not on the list – getting onto the panel will help smaller cloud providers raise their profile, and also deliver a modicum of comfort to smaller agencies which might not feel entirely comfortable confirming the bona fides of cloud vendors on their own.

A discussion paper outlining the way that the panel might be constructed was released today by the Department of Finance which notes that the primary intent of the panel was not to save money but to encourage government migration to cloud services.

The precursor to the cloud panel was the data-center-as-a-service (DCaaS) multi-use list for contracts up to $80,000. So far 34 contracts worth a total $1.4 million have been awarded through the list. In all 104 organisations were on that multi-use list which comes to an end shortly.

Unlike the DCaaS multi-use list the cloud computing panel will have no limits on the value of contracts which can be awarded.

To qualify as an eligible cloud service for that panel, vendors will have to fulfil the definition provided by the National Institute of Science and Technology which says cloud services must offer on-demand self-service, broad network access, resource pooling, rapid elasticity and measured service.

Some services calling themselves cloud may be challenged to fulfil all of those characteristics particularly the self-service capability.

The discussion paper acknowledges the relative youth of the cloud market noting that “the maturity of the market is insufficient to treat cloud services as a commodity,” recommending a more careful analysis of the cloud services on offer.

Successful vendors will be accepted to the cloud panel for two years with the option of four additional year-long extensions. The Government also plans to approach the market every 12-18 months to invite additional companies to bid for a position on the panel while companies already on the panel will be allowed to regularly refresh their service offerings.

In a bid to encourage smaller companies to participate, the discussion paper also flags the idea of capping liability at twice the contract value or an amount equivalent to the amount paid to the supplier under all contracts under the head agreement in the previous 12 months.

Comment on the discussion paper, which can be accessed here, is sought until 19th August.