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Data Center Consolidation & Cloud To Be Main Focus of Federal IT Spending

Friday, August 5th, 2011

Posted by: Darren Bonawitz, principal of 1102 GRAND

There are have recently been numerous changes in the federal government, including Steven VanRoekel being named the new chief information officer. In the midst of those changes the federal government has decided to make data center consolidation, cloud and security the main focus of its information technology spending. Here is an article from itworld.com about the government’s IT spending decision.

Report: Fed IT spending to focus on cloud, data center consolidation, security

Federal IT spending will be sluggish over the next five years, with the exception of spending on some emerging technologies, a new research report predicts.

“Federal Information Technology Market, 2011-2016”, by enterprise software vendor Deltek predicts “moderate growth in a limited number of high-priority areas,” with overall federal IT expenditures expected to grow less than 2 percent annually through 2016.

Deltek predicts “demand for vendor-furnished information systems and services by the U.S. government” will go to $91.3 billion in 2016 from $84.1 billion this year, an annual growth rate of just 1.7 percent.

Deniece Peterson, Deltek’s senior manager of federal industry analysis and co-author of the report, said, “While the administration is still focused on key cost-saving measures such as cloud computing and data center consolidation, agencies will be under pressure to execute those plans under strict budgets. This means opportunities may be rescoped or restructured as agencies struggle with funding and managing these projects.”

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