Colorado OIT tells lawmakers overhaul cut cloud costs, found $6 million in savings

OIT leaders said the agency has shifted to a product-based model and identified savings, but lawmakers asked for documentation and agency feedback.

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Server racks and network cables in a data center.
Server racks and network cables in a data center.
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Colorado’s Office of Information Technology told lawmakers Monday that an internal overhaul has already changed how the agency operates, with leaders citing about $6 million in platform savings and a 10% cut in Google Cloud costs.

At a Joint Technology Committee hearing, OIT leaders Sarah Tuneberg and Jill Frazier said the agency is reorganizing around cross-functional delivery pods, enterprise standards and stronger governance after what they described as years of delivery problems and low trust from customer agencies.

Tuneberg said the first month of the transition included reviewing active work with agency partners, ranking priorities, submitting 34 due audit findings to the state auditor and identifying the savings and cloud-cost reduction. She also said OIT received about 1,300 applicants for new roles, made 24 offers and is still recruiting for technical leadership and governance positions.

Lawmakers questioned whether OIT had documented those results. Rep. Tisha Mauro and other committee members asked for agency-by-agency feedback, written evidence of consultation and clearer billing detail. Tuneberg said OIT held monthly deputy meetings, biweekly customer-user-group meetings and hundreds of one-on-one conversations, but acknowledged the agency did not ask other agencies for feedback on the layoff itself.

The hearing record documents OIT’s description of the reorganization, but not independent verification of the claimed savings or service improvements. That leaves an open oversight question for lawmakers: whether the new operating model is measurably improving service, reducing duplication and fixing audit problems, or whether those results have yet to be shown publicly.