Looks like Microsoft is stepping up its game to ease government minds about the safety and security of cloud computing - see the article at Federal Computer Week about their recently announced government only cloud facility.

In my view, it's going to take a long while before we see large shifts of government computing into the cloud.  And vendors are going to have to do more to articulate meaningful cost and efficiency benefits of such moves to government decision-makers.  But this is an interesting big step by Redmond.  We'll be evaluating the Online Federal versions of Sharepoint and other applications.