Late last month, the U.S. Army came to an agreement with the Defense Information Security Agency to procure cloud-based email services. At the recent AUSA conference, Lieutenant General Jeffrey Sorenson said the move to cloud computing comes in an effort to cut costs and redistribute money throughout the defense budget, FederalNewsRadio reports.

Sorenson said the U.S. Army has been spending $100 for each seat in its email service. By deploying the DISA cloud-based email solution, the cost drops to $39 for each license.

"As we put more people in the cloud, the identify management helps fill out the global access list, so that the enterprise email truly becomes an enterprise," Sorenson said.

The increased level of efficiency is possible because the army has removed its Exchange servers and tapped into DISA's Exchange, making it easy for the defense organization to manage all accounts and taking responsibilities away from the Army.

Switching to the cloud is going to happen in stages, with the Army CIO and headquarters making the transition in January and February 2011. Eventually, 1.4 million employees will switch to a cloud computing solution. The process is expected to finish by September 2011.

The entire federal government has been busily adapting to the cloud computing movement. Recently, the government announced a new SaaS application store similar to what consumers might find in the Apple App Store. For the federal government, the store acts as a base for agencies to acquire the software they need as it becomes necessary, maximizing cost efficiency.