A Cloud on the Horizon?

According to a recent post on the official website of the U.S. Air Force, Defense Department officials are looking to move away from the Department’s decentralized network of computer servers and data centers and transition into cloud computing. Robert J. Carey (Deputy Assistant Secretary of Defense for Information Management, Integration and Technology) reportedly said that budget restrictions and the need for better efficiency is driving the department and military services toward cloud computing. He further stated that “stovepipe solutions…..cannot be afforded any more.”
While initial efforts might focus on more day-to-day type computing activities, does this suggest there may be a cloud on the horizon for the DOD High Performance Computing Centers, which typically support the large-scale engineering simulation capabilities of the defense community? Looking further, what are the implications for the multitude of in-house codes that may need to adapt to this change in thinking?