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

Blockchain has landed – in a very solid way at government agencies. Both national and local governments are realizing Blockchain holds significant potential to disrupt current best practices for asset management, supply chain security and smart contracts.
But one of the most far-reaching functions may be “Self-sovereign Identity.”

Unlike a few years ago, U.S. federal civilian agencies are not seeing double-digit annual growth in information technology spending. But moderate growth is still underway. Some of these spending increases are happening because agencies face significant ongoing expenses related to maintaining legacy systems.

This week IDC issues a new civilian agency IT spending forecast, which predicts that annual civilian agency spending will reach $52.0 billion by the time the 2018 fiscal year ends on September 30. Surprisingly, we expect just 21.1% of those funds will go into new systems development, while 78.9% will go toward improving and maintaining legacy systems. (Maintenance and Operations.)

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.

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