“Two months after leaving Amazon Web Services, Teresa Carlson still has her eyes on the cloud — and how selling it to government customers is changing.
Now the chief growth officer at Splunk Inc. (NASDAQ: SPLK), the former vice president for AWS’s public sector business said Monday that that while cloud adoption is still growing for the federal government, those contracts may not all come in the same multi-billion-dollar-package they once did.
‘You look at the new models, governments are not always paying for what they are building [to establish cloud services]. They’re paying for usage,’ Carlson said during a virtual media roundtable Monday. ‘If you really are only paying for cloud usage, you don’t pay for building out data centers. Because the days of the $2 billion were, we bought a bunch of servers, we’ve paid for a data center to be built, we waited for it to be locked down and secure based on the controls, and that’s not the model.’…”
“Rather, she said that federal contracts — as well as those with other international government customers, like the United Kingdom — are pivoting towards cloud contracts based on services and are managed by commercial data centers.
Such procurements, what Carlson called zero-based or dollar-based contracts, provide government customers with more flexibility to select services and more bang for the buck.
’Government should have the opportunity to scale or to experiment, they should never overbuy stuff,’ she said. ‘They should get huge value out of what they are buying and they should be able to cut that contract off at any point if it’s not working properly.’…” Read the full article here.
Source: Fresh out of AWS, Teresa Carlson forecasts changing winds for the government cloud – By Carten Cordell, June 29, 2021. Washington Business Journal.