Responding to increasing Government demand for outsourced cloud and hybrid data center solutions, QTS Realty Trust has announced deployment of the nation’s first multi-tenant unemployment insurance and single state tax system in the cloud.

The Mississippi Department of Employment Security (MDES), a consortium of Mississippi, Rhode Island, Maine, and Connecticut, are the first states to go live on the system that supports the U.S. Department of Labor’s mandate to identify and develop promising repeatable practices that reduce costs throughout the workforce system.

QTS was chosen to develop and host a compliant, cloud-based solution that could accommodate multiple states with the expectation of achieving high levels of commonality. QTS provided a VMware-centric, hybrid IT solution that integrates QTS’ FedRAMP-compliant Government cloud and colocation services from QTS’ Dulles, VA, and Phoenix data centers.

“We are one step closer to creating the future for delivery of unemployment solutions in a cost-effective manner, while being conscientious stewards of our state workforce funds,” said Dale Smith, chief operating officer, MDES. “QTS has been a trusted partner in developing the innovative multi-tenant hybrid IT solution that will be utilized by many states for years to come.”

The new system is expected to attract the attention of states that may be struggling to meet their obligations to pay unemployment benefits to their customers. In Mississippi, the expected cost of operating the consortium system over the on-premise single state system will be reduced by approximately 40%, leaving much needed funding to meet the needs of Mississippi’s unemployed.

“We are pleased to support MDES and the U.S. Department of Labor in their mission to transform State and Local government processes,” said David McOmber, executive vice president, public sector & federal, QTS. “QTS’ Government Solutions is committed to providing the Federal marketplace with innovative and highly secure hybrid data center solutions.”