Several departments are also looking closely at customer relationship management (CRM) solutions as a service, with Salesforce.com and competing providers making a convincing case in favour of a Cloud offering.

South Australian CIO, Andrew Mills, told that talks with providers had ramped up in the past year.

"I've had a revolving door of Cloud providers, as probably every other CIO has," he said.

Following a successful implementation of Microsoft's cloud-based Live@Edu platform for South Australian TAFE colleges in November 2009, Mills said the state's Department of Education and Children's Services was looking for a similar solution for students and staff at other institutions.

Though Mills said he was keeping an eye on the situation, he said he did not have a complete view of what Cloud services were currently being considered by all state government agencies.