HM Revenue and Customs (HMRC) has adopted a cloud storage solution via the G-Cloud framework in a move designed to save it more than £1m a year in running costs.
According to the government department, it is the first major service contract to be awarded via G-Cloud by an organisation of its size.
Launched earlier this year, the G-Cloud framework is designed to enable public sector organisations to rapidly source and deploy low-cost cloud services.
HMRC has inked a contract with Skyscape Cloud Services for centralised data storage in the G-Cloud.
This will see it move data currently stored in local offices to cloud storage between autumn 2012 and spring 2013. It will be the first deployment of G-Cloud Services over the Public Services Network, which the government set up to bolster communication links.
HMRC's chief information officer Phil Pavitt said: "This change will save over £1m a year in running costs and will increase reliability and security of HMRC's internal IT services.
"The Skyscape contract is a major step for HMRC in moving away from traditional ways of working with large service providers. And it is a great example of how we are exploring smarter, more innovative solutions that make life simpler for us and help us provide a better deal for our customers."
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