Spending Increases at Commerce to Drum-Up Opportunity for COTS Vendors

Christopher Wiedemann_headshot-65 x 85by Chris Wiedemann, Senior Analyst

Although Learn More About the Department of Commercethe agency often flies under the radar, the Department of Commerce (DOC) has one of the largest IT budgets in the civilian space and we’re seeing it continue to increase.  Moreover, the department is seeing dramatic annual increases in its Development, Modernization, and Enhancement (DME) budgets, which is both rare and a great sign for the COTS community. Between complete overhauls of patent and trademark systems, building out infrastructures to support the 2020 Census, and even supercomputing to support weather prediction and analytics, the mission areas and opportunities for COTS vendors are broad and deep.

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4 Areas Air Force Looks to COTS Vendors to Fuel Innovation

Stephanie Headshot 65x85by Stephanie Meloni, Senior Analyst

With the 20163D Wire Plane DOD Budget Request kicking around Congress, we’ll have to wait and see how the budget ultimately shakes out. We are also still waiting to receive the FY16 Information Technology budget requests for the Services. But, with an overall increase in the DOD request, we have reason to hope that when the final spending bill does pass, it will still include more funding than FY15 enacted budgets.

The Air Force’s total budget base (or “blue”) request for FY16 is 122.2 Billion dollars, which represents about a 12% increase from FY15. Operations and Maintenance, which has long been an area targeted for cuts, along with Procurement, will surprisingly see the biggest increases in the FY16 request. Also interestingly, RDT&E Research Development Test and Evaluation (RDT&E) shows an increase of about 13% from last year. The Air Force is an organization that is very committed to the idea of innovation. They spend more on RDT&E than the rest of the Services.

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7 FAA Programs Seeing Growth in DME Funding: Part 1

Kevin Shaker_65 x 85by Kevin Shaker, Analyst, Market Intelligence

The Plane Taking OffFederal Aviation Administration (FAA) continues to be a great entry point for the COTS community. In FY15, the president requested roughly $2.9B for FAA FY16 IT operations ($160M more than what was enacted for FY15). The entirety of this IT budget increase will go to Development, Modernization, & Enhancement (DME) funding (money dedicated to investing in new tools and capabilities). While the new numbers aren’t guaranteed, they offer insight into which FAA programs are going to be the focal points in FY16.

Here are 7 programs that will likely experience a substantial increase in DME funding, along with the suggested DME dollar increase, and the primary solutions the programs are in need of:

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Digital Service Teams a Boon to COTS Vendors

Tomas OKeefe_65x85Tomas O’Keefe, Consultant, Market Intelligence

This pastDigital Services week, when President Obama released his FY16 budget, there was something in the request that piqued my interest. Chris Wiedemann did a great job breaking down some of the top takeaways of the Exhibit 53 in his last blog post, but I thought I’d share an additional nugget that was buried in agency budget requests: the creation of Digital Service teams at nearly all of the major federal departments and independent agencies. The establishment of these teams, signals new avenues of opportunity for COTS manufacturers who sell to the federal government.

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Deal Registration Programs Back on Agenda

Steve Headshot 65 x 85

by Steve Charles, Co-founder and Executive Vice President

OEMs and channel partnersGovernment Channel Leadership Council are constantly asking questions about what passes muster in federal as acceptable practice for rewarding partners who help OEM’s make sales.The issue invariably leads to detailed conversations about what constitutes anything of value to induce a sale under the Anti-Kickback Act, or what constitutes price fixing under the Sherman Anti-trust Act, and finally what constitutes unequal treatment of similarly situated partners under the Robinson-Patman Act.

The good thing for OEMs is that they get to structure their channel programs as they see fit, and increasingly in all sectors, deal registration is the way to reward partners for performing programmatic activities needed by the OEM to address certain market segments. This is especially true at the Enterprise sales level and conversely, is practically irrelevant in the commoditized SMB channel.

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Demystifying Exhibit 53: 5 Things Every COTS Vendor Should Know

What You Should Know

Christopher Wiedemann_headshot-65 x 85by Chris Wiedemann, Senior Analyst

The FY16 budget request is in and it brought a valuable piece of information for COTS vendors, the Exhibit 53.

In case you didn’t know, the Exhibit 53 is the single source for next year’s IT budget across government, broken down at the program level. Programs are where the rubber hits the road in federal IT, so knowing which programs your customers are focusing on for the rest of FY15 and into FY16 is not just a good idea, it’s critical to your success as a COTS salesperson in the federal market.

Obviously, the FY16 numbers in this document aren’t set in stone. They’re based on requested values, so there’s no guarantee agency IT budgets will reflect these numbers. However, knowing what your customers are prioritizing is still useful information and there are 5 major takeaways I’d like to share with you from this year’s Exhibit 53:

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Is Public Sector Deal Registration REALLY Working? Take Our Survey and Find Out

Bob Laclede 100x135by Bob Laclede, Vice President, Channels

There seems to be a growing Government Channel Leadership Councilconsensus these days, among the public sector IT manufacturer and the channel partner community, that deal registration programs just aren’t working and often lead to a great deal of frustration on both ends; this is why we’ve created the Government Channel Leadership Council (GCLC) Survey.

GCLC’s anonymous survey aims to help IT manufacturers and channel partners improve deal or opportunity registration programs within the public sector IT marketplace. The tabulation of results will be available this spring as a formal report.

Survey participants will not only be entered to win $100 but will also be the first to receive exclusive access to this comprehensive report.

I urge you to take or survey by Friday, February 13 (it will take you less than 10 minutes!)

• If you’re an IT manufacturer or distributor, click here to begin the survey
• If you’re a value-added reseller, solution provider or systems integrator click here to begin the survey

About GCLC
The Government Channel Leadership Council (GCLC), was created to provide a forum for sharing best practices, information, and ideas about the public sector IT market. Today the council is jointly chaired by Skip Liesegang, Director Distribution Sales, Americas at NetApp and Bob Laclede, Vice President, Channels at immixGroup. GCLC members include channel management executives


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