The  the Virtual Computing Environment Company, a joint venture by Cisco, EMC and VMware announced the release of  TechAmerica Federal CLOUD2 Commission report in the National Press Club.  The TechAmerica CLOUD2 Commission is a group of over 70 industry veterans from both the private and public sectors that aim to accelerate cloud adoption in the government. It is  co-chaired by Michael Capellas, Chairman and CEO of VCE, and Mark Benioff, who serves the same roles at Salesforce.com.

The newly released report focuses on the four T’s of cloud adoption according to the company: Trust, Transnational Data Flows, Transparency and Transformation.

“Over the last several months the commission conducted various interviews, analyzed past reports and identified a set of recommendations for each area including why the action is needed, how it should be implemented, who should implement it and what benefits should be expected.”

Cloud adoption is growing at an incredible rate throughout the private sector, and the public sector is also starting to rapidly realize the huge potential that lies in this trend. Citrix certainly sees potential in this area, as it also supports the Cloud2 initiative. Government agencies, however, reduced spending in this area over the past few quarters, which resulted in declining sales for many tech companies.

Cisco for example, one of the main backers behind VCE, has attributed a part of its in the past year or so to less public sector contracts. This decline has been driving the company to do some serious damage control or “restructuring,” which includes a massive wave of layoffs.

The networking giant recently confirmed analysts’ estimates that it will fire some 6,500 employees or 9 percent of its total workforce, and about a third of these individuals received early retirement.   The company is also selling its set-top box plant in Juarez, Mexico to Foxconn, meaning that another 5,000 will leave the company’s ranks.

EMC has been forced to do some damage control of its own: the company had to spend   $66 million to compensate customers for the RSA breech, through which cybercriminals obtained data about its SecurID system, which was then used to hack a number of organizations.