The Defense Department“™s best practices document on cloud adoption does not mention ways on how agencies can choose and compete contracts among accredited cloud service providers, Alex Rossino writes in a blog post for Deltek.
Rossino, a principal research analyst at Deltek, highlighted areas he believes the Best Practices Guide for Department of Defense Cloud Mission Owners does not highlight such as the release of a solicitation for industry proposals on FedBizOpps website and a requirement for agencies to find at least three cloud service providers to evaluate rates.
“The point in asking these questions is understanding exactly how the DoD can secure the best price for its mission needs when there doesn“™t appear to be a competition.“
He also notes DoD“™s tendency to treat cloud services as commodities.
“The result of it is that prices for cloud services are dropping, meaning profit margins are also falling. Vendors will need to make up for the reduction in margin by generating volume,” Rossino writes.