The Federal Government’s First Foray into Cloud Computing, Circa 1965

There’s really nothing new about federal cloud computing — other than a few zeros added to the costs.

Some 47 years ago, the US federal government was considering a secretive plan to consolidate its data centers into a single mega-center, thereby eliminating all the agency silos that were springing up.

The price tag for the new center would have been $2 million a year to start — a real bargain compared to today’s $80 billion-a-year IT budget. Details of the plan, first formulated in 1965, are offered in a paper recently presented by Rebecca S. Kraus, Ph.D. of the US Census Bureau…


Here’s the gist of the plan, culled from The Lewiston Daily, June 14, 1966:

“WASHINGTON — A special White House Task Force is recommending the creation of a federal data center which would eventually have a comprehensive file on every man, woman and child in the country. Now under study in inner administration circles, the still-secret report advocates the gradual transfer of all government records and statistics to magnetic computer tape, which would be turned over to a newly created agency that would function as a general data center. The computerized information would be available, at the touch of a button, to a wide range of government authorities. Estimated cost of the proposed center (which would have to be approved by Congress before becoming a reality) is $2 million the first few years, around $12 million when in full operation.

“A vast accumulation of government records already is on computer tape and could be turned over to the proposed general data center immediately. Listed among those available files are [records maintained by the Internal Revenue Service, Defense Department, Civil Service Commission, FBI, Social Security Administration, Census Bureau, Labor and Agricultural Departments, Office of Education].”

Proponents of the plan cited the cross-agency sharing of information that could help things run more efficiently — for example, states could share data on suspended drivers’ licenses. However, the article also raises privacy alarms about the government using computers to keep tabs on all citizens, from cradle to grave and everything in between.

In fact, the public outcry against such a national data center eventually stopped the project in its tracks, Krauss says. “Fears of ‘Big Brother’ and secret government dossiers swirled around discussions of the national data center, and the issue became identified with other concerns about invasions of privacy ranging from psychological testing to illegal wire tapping, culminating in the passage of the Privacy Act of 1974.”