Trade publication Federal Computer Week has reported that the [CIA] will pay the online retail pioneer up to $600 million to develop its own private cloud over the next decade.Amazon is well-known for providing cloud-computing services to the private sector, and government agencies dealing with classified information are pushing to adopt cloud services as a way of consolidating thousands of network “enclaves” that are hard to defend.
Technology plays a growing role in national power. We’ve already seen how Silicon Valley is rediscovering the importance of American power for the success of its business models. This story is another window into a deepening world of collaboration between the high tech corporate sector and the US government.This collaboration is going to grow. High-tech companies will look to the government for contracts, especially as defense and intel spending continue to shift up the tech curve, and as rival tech complexes lining up behind rival governments (as in China) pose simultaneous business and security challenges to American firms.Far from making the nation-state obsolete, high-tech capitalism may be about to give states, and the competition between states, another major boost.[Cloud computing image courtesy of Shutterstock.]