HP Brings EDS Division into it's cloud plans

The Street reported earlier this week that Hewlett Packard's EDS division has won a $111 million contract with the Department of Defense (DoD) that could eventually support the U.S. military's cloud-computing efforts. EDS confirmed it will work with DISA officials to conduct security reviews on DoD networks, databases, systems and applications. It will also evaluate DoD security policies, which could further boost the department's cloud strategy. Even though security is universally seen as a key barriers for cloud adoption, this move seems to indicate a willingness on DISA's part to work through the issues that can support eventual widespread cloud deployments. Since EDS also has the Navy-Marine Corps Internet (NMCI) contract through 2010, the hard won experience that EDS has gained from that painful chapter could possibly be leveraged to accelerate cloud services to the desktop. It could also give HP a leg up on the upcoming Navy Consolidated Afloat Networks and Enterprise Services (CANES) and Next Generation Enterprise Networks (NGEN) competitive bids.