The New Normal for Federal IT Spending?

Tomas OKeefe_65x85by Tomas O’Keefe, Senior Analyst

For the past few years we’ve been saying we’re in the dawn of a new budget environment — where the days of significant year-over-year growth for IT spending are over. At the TechAmerica Vision Conference, which wrapped-up yesterday, speakers referenced conversations they had with top government IT leaders, confirming flat and declining budgets are the “new normal” in government. Most notably, the days of 7% overall IT budget growth are done.

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Opportunities on the Horizon within DISA Part 1

Lloyd McCoy_65x85by Lloyd McCoy Jr., Consultant

This week DISA’s Director of Strategic Planning and Information, Tony Montemarano, met with industry partners to give an update on DISA’s major initiatives in the pipeline. As I pointed out in a Webinar earlier this year, DISA is at the heart of major enterprise wide initiatives for DOD; in addition to legacy roles like command and control, hosting, and telecommunications, newer initiatives like DOD Enterprise Portal Service, Defense Enterprise Mobility (classified and unclassified), Enterprise Directory Services, Unified Communications, and Global Network Services provide a wealth of opportunities for COTS vendors. Today I’ll be diving into Mr. Montemarano’s update on how DISA is faring in this fiscal environment and what the agency is doing in the areas of cloud procurement.

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The Government’s Buying Season is Over…Now What?

Photo of Allan RubinAs we turned the corner on a new government fiscal year, the editors of FedPulse asked me to share some thoughts on what technology companies will face in the year ahead — and how they should prepare.

This led me to a few questions. What happens next? Will a busy September (actually, a couple of very strong months for many of us) lead to continued strength in the year ahead? Or should we expect an immediate drop-off now that the September rush has passed?

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Federal Cloud in FY15: Old Roadblocks, 3 New Opportunities

Photo of Chris Wiedemannby Chris Wiedemann, Senior Analyst

The Government Accountability Office Here is A Snapshot of Cloud in FY15(GAO) recently released a report tracking the progress of seven agencies’ in achieving their cloud computing implementation goals; unfortunately parts of it made for quite a nostalgic reading. The report profiled seven agencies – including HHS, Treasury, and USDA – and noted while each of these agencies increased their cloud spending between FY12 and FY14, the grand total of agency-reported cloud investments was only $529 million (averaging 2% of evaluated IT budgets). In other words, despite the 25 Point Plan instituting a Cloud First policy in 2011, federal agencies appear to have made very little progress in meeting their cloud goals; some reasons cited for slow adoption sound awfully familiar as well – with security concerns and cultural resistance to cloud computing coming up yet again.

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FY15 Defense IT Budget Forecast: Cloudy with No Chance of Sequestration

Lloyd McCoy_65x85by Lloyd McCoy Jr., Consultant

The FY15 base DOD budget request came in at $495.6 billion, (about even with FY14) but more importantly, it’s under OMB’s budgetary caps, meaning sequestration isn’t in the cards for this year. Diving into the DOD IT budget, we see a 6% drop from FY14 to about $36.4 billion; fortunately, much of this decline has to do with a shrinking workforce and cost-savings generated by earlier IT investments.

Soldier with Flag Draped in BackgroundYes the budget is down 6% from last year, but before you go running for the hills, it’s important to remember the following: while the IT budget is reduced from FY14, agencies that purchased software are continuing to purchase software— and with no sequestration and government shutdown in sight, we’re positioned to see a better FY15 than we did FY13.

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How to Sell Your Products to the Army in FY15

Stephanie Headshot 65x85by Stephanie Meloni, Senior Analyst

Despite declining budgets, the Army remains one of the largest IT organizations in the world, and it still has the largest IT budget of all the services. Army’s FY15 budget request represents about a 10 percent reduction in funding US Army Logofrom FY14 enacted levels. Many of the IT initiatives the Army is implementing to modernize their systems and networks deal with consolidation, simplification, and standardization – and this accounts for some of the reduced funding levels, since there aren’t as many costly legacy systems to maintain. So, for the COTS community, this reduction in funding isn’t all bad news, especially if your products can help the government operate more efficiently. In FY15, many of the IT modernization efforts will focus on making systems interoperable as well.

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Continuing Resolution On The Horizon for FY15

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

FY14 is quickly coming to a close, and vendors and customers are both scrambling to get the ball rolling on September deals. With all that’s slated to happen in the next few months, and some industry analysts predicting a record-setting Q4 this year, it can be tempting to write off FY15 until October in favor of focusing all your attention on last-minute FY14 sales opportunities. However, it’s always important to keep the big picture in mind. If you don’t spare some thought for the beginning of next fiscal year, especially what the overall appropriations situation looks like, you run the risk of getting left out – or at least failing to properly plan for the first half of the year, when you should be targeting enterprise sales opportunities.

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