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Government Group

 

About this Government Industry Focused Group

Our IDC Government Insights community has been created to enable you to engage with our global government industry analysts, share your knowledge and best practices, and connect with your colleagues.

  • Participate in the government discussions in our Blogs or Forums
  • Learn about and share best practices, tips, tricks and tools related to business/technology alignment
  • Network with your colleagues within your industry
  • Provide feedback to IDC's industry analysts and your peers

We welcome your participation!

 

Analysts blogging about government

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Engage with IDC Industry Analysts

I recently discussed cloud on a Government Matters TV program that aired May 2. LaVerne Council/Former CIO, Department of Veterans Affairs and National Managing Principal for Enterprise Technology Strategy and Innovation, Grant Thornton and I addressed these issues. To view the segment, please visit https://govmatters.tv/aws/

We spend a lot of time “following the money” for government information technology. So, it’s intriguing to see occasional spending increases that target specific government IT solutions. Such changes hint at how priorities are shifting and how certain types of solutions are gaining precedence.

That’s why the growth we see for both government mobile solutions, and big data and analytics, caught our eye.

This is an opportune time to put a stake in the ground – to talk about the ongoing costs of operating the U.S. federal government's data centers.
Currently, agencies are working to comply with the Data Center Consolidation Initiative (DCOI), which requires them to count the number of datacenters they operate (the total number is in the thousands) and to also count servers, associated hardware and software, plus the types of IT solutions being supported. Agencies are required to track the amount being spent on various components within their datacenters, and they need to make plans to reduce those costs.
However, as we focus on potential cost reductions, IDC does not anticipate that many agencies will see an immediate decrease in data center spending. Here's why: It can cost money to migrate current solutions to new platforms, and it's not always easy to simply turn out the lights in a data center, even if it is slated for closure.
Also, the DCOI does not have any special funds set aside to help with the closures, so agencies will be tackling the effort as best they can with available budgets. Our experience has shown us that the government's legacy systems have a tendency to linger longer than anticipated when agencies work to move them to new platforms, especially when they lack the funds to make the change quickly.

This week, IDC Government Insights announced the results of its 2017 IDC Government Top 50 Vendor Rankings. These rankings use a standardized methodology to publish the estimated IT revenue of the top vendors serving the U.S. federal government. IDC examines thousands of different federal IT contracts, and then isolates the spending by fiscal year. We send our estimates to the companies for their consideration and potential feedback.

These numbers focus strictly on estimated revenue from the sale of hardware, software and IT services. The numbers do not include things like staffing costs, business process engineering, or other non-IT spending. This approach is unique to IDC. It makes our numbers lower than what can be seen on other government top IT vendor lists, but we believe this approach is a better measure of what is truly "addressable" IT spending by the federal government.

Some interesting long-term trends are taking shape within U.S. federal government IT spending. The changes are sure to have an impact on agencies’ ability to comply with requirements set forth by the Data Center Consolidation Initiative (DCOI), which came out of OMB a little over 13 months ago. A new set of deadlines for DCOI are slated to kick in this fall. But are they properly funded?

The transition to the digital economy and the advent of innovations, such as cognitive computing and robotics, are transforming nearly every aspect of individuals' and enterprises' lives. Governments that design the right strategy and governance can play and important role for their countries to embrace the benefits of digital transformation.

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