CGI Gets DISA Defense Cloud Certification - Analyst Blog

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CGI Group, Inc .'s ( GIB ) wholly owned subsidiary, CGI Federal Inc., recently announced that it has secured a "Provisional Authority to Operate" (P-ATO) certification from the Defense Information Systems Agency (DISA), which acts as the cloud service agent for the U.S. Department of Defense (DoD).

DISA, a combat support agency for the DoD, operates an enterprise information infrastructure including information technology (IT), network defense and network operations in direct support of the military. In order to meet the challenges of a complex information environment, DISA is evolving its infrastructure by migrating to cloud computing.

CGI Federal is a highly competent provider of cloud computing solutions, offering on-demand capacity, automated service management and enterprise strength cloud security.

Demand at DoD

The grant comes amid a massive demand for cloud services at the DoD. With the rapid evolution and influx of new technologies, the defense sector's need for information superiority across the entire spectrum of operations has expanded as well. According to industry experts, military spending on cloud services could reach $2.6 billion by fiscal 2018, up from $414 million in fiscal 2013.

This transition to cloud computing solutions is purported to improve mission effectiveness through better access and information sharing, more efficient communication and improved action response time.

CGI's Faculties

CGI Federal has been providing logistic and intelligence services to the military for over 36 years, helping them deliver mission-critical results in complex environments. As a full-service cloud provider with global operations, CGI Federal's expertise, solutions and governance are likely to help the DoD navigate the smooth transition and seamless integration of cloud management facilities.

Last year, CGI Federal was awarded a P-ATO to operate cloud services by the Joint Authorization Board (JAB) of the Federal Risk and Authorization Management Program (FedRAMP). The FedRAMP is a U.S. program that aims to standardize the approach to security assessment, authorization, and continuous monitoring of cloud products and services across the government under a single authorization. It involves a "do once, use many times" framework in order to achieve cost and time efficiencies in cloud management services. The authorization also sanctions CGI Federal to provide security services on virtual "cloud" machines.

CGI Group currently holds a Zacks Rank #3 (Hold). Other notable stocks in the industry include Ciber, Inc. ( CBR ), LogMeIn, Inc. ( LOGM ) and Syntel, Inc. ( SYNT ), each holding a Zacks Rank #2 (Buy).



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: IT , CBR , GIB , LOGM , SYNT

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