This year has brought big news, significant changes and increased awareness of the adoption of cloud computing in Government. In fact Cloud computing may be the biggest and most overhyped term in Government information technology today. It is also the most discussed topic in agency strategy, cyber security forums and mission / program reviews. While lots of conversation has been devoted to technology and the benefits that government customers can derive from Cloud, in the end the biggest challenge may be the acquisition of cloud services. Cloud computing presents a different set of acquisition challenges to the federal government and this shift requires a rethinking the agency acquisition process. Smart purchasing decisions require an understanding of security requirements, service models and service level agreements.