Saturday, May 7, 2011

Federal Agencies looking to save $18.8B with Data Center Consolidation.

In a recent study by MeriTalk and sponsored by NetApp it was estimated that the Federal Government could save up to $18.8B, about 24% of their total IT budget, if they meet the data center consolidation targets established by the OMB ( Office of Management and Budgets). The goal is a reduction of 800 data centers, about 35%, by 2015.

However challenge number one is apparently reaching a consensus within the Feds of what constitutes a data center. Should be easy you may think but remember it is the Feds!! Agencies are using at least three different definitions to qualify a data center; just 2 in 5 agencies apparently have any idea of consolidation costs and while 98% of the agencies have a set of criteria to identify consolidation opportunities they are in disagreement with what metrics to use. Sounds like government business as usual.

However, these disconnects are not stopping all progress, about half of the agencies reported success with a data center reduction of 31% and budget savings of 20%.

So in today’s contentious federal fiscal environment let us hope that the federal agencies strike a home run and realize the estimated $18.8B. The question is, what will the do with the savings?

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