Cloud computing is revolutionizing the world, bringing huge economies of scope and scale to information capture, storage, communications and analysis. Networks and trading communities that used to be local are increasingly global. Applications that used to be designed for tens of thousands of users can now be used at extremely low cost by hundreds of millions or more.
For governments to realize the benefits, however, they must take much of the work they have been doing for themselves and outsource it. True, this outsourcing may simply involve consolidation across the local, state or federal enterprise, keeping things within the government tent. But some of it will need to go to private-sector providers that can serve communities larger than any given government.