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This article in InformationWeek says the U.S. Navy plans to spend $50 billion to create its “Next Generation Enterprise Network”, which will save 25% of its its non-tactical IT budget by consolidating datacenters, outsourcing, and moving on-premises software to the cloud.

HP has won the first $3 billion contract to create the network.

The Navy estimates that only 4% of the 1,400 IT systems it runs for the Navy and Marines are mission critical. Many of the rest can be consolidated on a much smaller number of private or public datacenters. The Navy currently runs 80 datacenters.

According to the article, “the Navy plans to assess all of its applications  and, for its NGEN plans, will continue only to maintain, use, and  procure those that can be hosted in in the cloud.”

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