So, you'd rather we keep spending too much, using too little information, and putting too many innocent people at risk? I mean, it's not like we dropped more ordinance under Obama than every president before him combined, or that the trend didn't decrease by very much after him or anything.
Personally, I do think our foreign deployments and presence should absolutely be dramatically reduced. I also think most federal spending is bureaucratic fluff. That said, I have less problem when there are efforts to stabilize or reduce spending via technology. And I find that people who try to take an ethical stance over companies offering any kind of service to the government is short sighted at best, and dangerous or destructive at worst.
In the end, this will happen, and I'd rather it go to a company that is focused on the problem (technical infrastructure for computing resources) over the government trying to build a bureaucratic mess that costs a significant amount more.
Not that everything should be outsourced. For example, I think privatized prisons are far, far, far worse for society than providing a cloud network for the federal govt.