Networx transition delays alter cloud computing plans

Networx, the federal government's largest and newest telecommunications program, offers agencies an array of cloud computing services such as remote storage, remote access and hosting applications.

But nextgov.com reports that agencies are holding back on taking advantage of these services because of delays in switching from the older network. This word comes from Networx contractor Verizon Business. Susan Zeleniak, group president of Verizon Federal, said a lot of agencies "don't want to make the decisions about cloud computing" until they are at least halfway through the Networx transition.

Senate Homeland Security and Governmental Affairs Committee Chairman Joseph Lieberman (I-Conn.), and ranking member Susan Collins (R-Me.) recently wrote a letter to federal Chief Performance Officer Jeffrey Zients, complaining about the delays in the switchover. They said this is costing taxpayers millions of dollars.

"Specifically, every month that agencies delay transitioning to the new program, an estimated $18 million of savings are lost," wrote the two senators.

They said the General Services Administration has been seeking to speed up the transition. However, the lawmakers said stronger leadership is needed from Zients and his colleagues at the Office of Management and Budget (OMB). Over the course of its 10-year lifetime, the new telecommunications program is estimated to be worth $68 billion. The GSA established Networx and provides tools to help agencies make the transition.

Last month, GSA's Networx program director, Karl Krumbholz, said many agencies still have yet to decide which carriers they'll switch to when the old telecommunications contract, FTS 2001, expires in June 2011. He said this delay is costly because the new contract offers lower rates on an array of voice and data services.

For more on Networx:
- see this nextgov.com article

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Agencies look to Networx for cloud computing