State of Federal IT Spending: 2012 Data Center Changes and … · 2017-04-04 · Measureable ROI and mission value for IT investments Budget limits vs. investment drivers ... migration

State of Federal IT Spending: 2012 – Data

Center Changes and Enterprise Architecture

Classifications to Cast a Long Shadow

Shawn P. McCarthy, Research Director Web Conference, November 9, 2011

© IDC Government Insights. Reproduction is forbidden unless authorized. All rights reserved.

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Shawn P McCarthy Research Director [email protected]

2

Related Research: Perspective: U.S.

Federal Government

Line of Business Budget

Guide, FY10–FY12, with

Additional Program

Metrics and Activities;

Document # GI230284,

September 2011


Premier Global research and advisory firm providing analysis

for information technology trends and innovation specific to the

public sector

Staff of government specialized analysts, researchers and

consultants

Target coverage for government executives

– Special emphasis on developing and employing strategies that

leverage IT investments to maximize organizational performance

We leverage IDC’s worldwide network of analysts and

extensive data resources

About IDC Government Insights

3


What challenges do Federal IT Managers face?

An in-depth look at the Information Technology (IT) portion of the

U.S. federal budget

Assessment of key FY 2012 government IT market drivers

Transition opportunities for the coming year

OMB and CIO Council drivers and the new government IT market

How Federal Enterprise architecture Sub-functions are driving

government consolidation efforts

Overview of the IDC Government Insights US Federal Line of

Business LOB (FY12) Budget Guide

– Built-in pivot table tools allow for filtering, sorting, and analyzing the

allocation of agency and department-level LOB initiatives – in multiple

ways

Live Q&A

Today’s Agenda

4


Budget constraints

Data center consolidation (Phase 2) vs. Application

consolidation (side-effect)

The short-term and long-term role of systems integrators

Forced architecture standardization

Cloud pros and cons

Ongoing security concerns

Cross-agency data sharing

Virtual desktops and the future of client devices

Current Challenges Faced by Federal IT Managers

5


Long-term Data Center changes

Cloud adoption being driven by lower costs, faster deployment,

entry of "trusted brand" vendors, expanding portfolio of new

cloud-based solutions

Service Level Agreement challenges

The next frontier for virtualization

Compliance with the Federal Enterprise Architecture

Measureable ROI and mission value for IT investments

Budget limits vs. investment drivers

Congressional pressures and posturing

Key Gov Market Drivers For 2012

6


OMB and CIO Council Drivers: The New Government IT Market

Move toward commodity IT services when possible

Procurement reform and IT procurement specialization

Retraining and redistribution of workforce

Mobility improvements and device agnosticism

Business continuity and redundancy

Better understanding and standardization of service level

agreements

Enterprise everything

7


Growth (And Eventual Reduction) Of Federal Data Centers

Map & Chart Source: Office of the Federal CIO, 2010

Initially: counted all Data Centers over 500 square feet Initially: 800 Centers to close by spring, 2012 Likely that number will not be met Now counting data centers over 100 Sq Ft

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After some speed bumps, migration to cloud-based email

accelerates, followed by contact management and payments

processing

Enterprise content management becomes imperative

Small data centers decline, big data centers rule

Healthcare continues its transition to electronic health records

Energy consumption monitoring and reduction – hot topic

Infrastructure management and virtualized solutions continue

to grow

Opportunities

9


OMB Circular No. A-11 tells agencies how to prepare their

annual budget submissions

– Section 300 of the document outlines the planning, budgeting

acquisition, and management of capital investments

– Agencies prepare Exhibit 53 submissions each year, outlining

their e-government plans (their IT investments)

Submissions must be coded – each budget line item includes

– Agency

– Department

– Project or investment details

– Sub-function details (target issues that the spending addresses)

– LOB need that the project addresses (58 listings)

– Additional details

Agency IT Budgets Start with Very Specific OMB Requirements

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Basis for annual IT budgets

By keying each line item to a specific line of business, the data

can be used to identify common projects, overlapping solutions

and expensive legacy systems

Used to pressure agencies to develop detailed ROI analysis

for their proposed projects

Key to Long Term IT funding

Federal Enterprise Architecture Tracking

– Guides development of shared service centers

– Advocates standards for the long haul

Several OMB Decisions are Based on the Collected Data

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Long-Term Federal IT Spending Trend

Source: Data from the Office of the Federal CIO, 2011 Chart by IDC Government Insights Numbers = Millions US $

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FY2012 Spending by Civilian Agency

Total = $42.8 billion

Source: Data from the Office of the Federal CIO, 2011 Chart by IDC Government Insights Numbers = Millions US $

13


FY2011 Spending by DOD Services

Total = $38.4 billion

14


Federal Enterprise Architecture Business Reference Model

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Major FEA “Functions”

•Information and Technology

Management

•Community and Social

Services

•Health

•Transportation

•Homeland Security

•Financial Management

•Environmental Management

•General Science and

Innovation

•General Government [CA]

•Income Security

•Disaster Management

•Human Resource

Management

•Law Enforcement

•Planning and Budgeting

•Controls and Oversight

•Administrative Management

•Supply Chain Management

•Education

•Revenue Collection

•Natural Resources

•Economic Development

•Intelligence Operations

•Defense and National

Security

•Public Affairs

•Internal Risk Management

and Mitigation

•Correctional Activities

•Energy

•Workforce Management

•International Affairs and

Commerce

•Litigation and Judicial

Activities

•Regulatory Development

•Security Management

•Knowledge Management

•Supply Chain Management

•Investment Management

•Asset / Materials

Management

•Data Management

•Visualization

•Communication

•Management of Processes

•Development and Integration

•Human Capital / Workforce

Management

•Customer Relationship

Management

•Knowledge Discovery

•Business Intelligence

•Search

•Legislative Relations

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Sample FEA Functions and Sub-functions

Information & Technology Management $16.4 Billion

Health IT $3.8 Billion

Financial Management $1.7 Billion

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“Lines of Business” Migrating to FEA Sub-functions

These align to

common business

needs across all

agencies

166 total Sub-functions

Agencies must identify

a specific sub-function

for all budget line items

18


Top 15 FEA Sub-functions For DOD

Defense & National Security

19


Sample – Civilian Agency Sub-function IT Spending (Top 4)


The IDC Government Insights Line of Business Budget Guide

21


LOB Budget Guide Data Views and Sorting


LOB Guide Data Sorting

23


Multiple Data Views

Review dates and Ratings – 3,100 + lines

Exhibit 300 major IT project details – 7,250 + lines

Downgraded programs list – 230 lines

24


Conclusions: What You Need to Know Federal government continues to moderately increase its IT budget

Growth for FY11 was projected at under 1% and ended up being - 2%

Growth for FY12 is projected at 3%. We predict that much of that growth will be related to data center closures and cloud migration

Government is increasingly using FEA coding as part of its decision-making process

As systems consolidate, it will bring savings to the government and fewer winners for contractors

Government IT managers should focus on systems that are core to their mission – other common solutions may be outsourced in the coming years

Vendors should understand the FEA coding initiatives to enable easy identification of all targets for your solutions

The LOB Budget Guide brings together in one place IT spending data and analysis and allows users to “slice and dice” and “compare and contrast” the federal IT budget in

multiple ways (Document # GI230284)

25


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Predictions 2012 Web Conferences from IDC Insights Research: Free Web Conferences begin December 5 and run through January 2012.

Our 10th consecutive year! View all available web conferences here:

http://www.idc.com/IDCInsightsPredictionsWebcasts

Shawn P McCarthy Research Director [email protected] 508-988-6956

Related Research: Perspective: U.S. Federal

Government Line of Business

Budget Guide, FY10–FY12, with

Additional Program Metrics and

Activities;

Document # GI230284

26


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Documents

State of Federal IT Spending: 2012 Data Center Changes and … · 2017-04-04 · Measureable ROI and mission value for IT investments Budget limits vs. investment drivers ... migration