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Report: Agency IT efforts leaving billions on the table

Apr. 28, 2014 - 06:00AM   |  
By ANDY MEDICI   |   Comments
Making full use of consolidation, virtualization, cloud computing, remote access, and infrastructure diversification could save billions, study finds.
Making full use of consolidation, virtualization, cloud computing, remote access, and infrastructure diversification could save billions, study finds. (Staff)

Agencies could save billions of dollars above current efforts though five of their IT initiatives, according to a new study released April 28.

By making the most of consolidation, virtualization, cloud computing, remote access, and infrastructure diversification, federal network managers believe they could save about 24 percent of their IT budgets, or $19.7 billion annually. That’s more than double current savings estimates.

The report is based on a survey of 300 federal network managers. Public-private IT partnership MeriTalk and networking company Brocade co-sponsored it.

“Agencies should focus on the network to improve capacity, connections, reliability, and security, and consider moving systems and applications to the cloud to generate additional savings,” said Anthony Robbins, vice president of Brocade’s federal division.

While agencies identify consolidating systems as their greatest savings opportunity, they are only capturing about 40 percent of potential savings, according to the survey.

In order to fully capture IT savings agencies must increase their network capacity by 26 percent, according to the report.

“The network is the yellow brick road,” said Stephen O’Keeffe, founder, MeriTalk. “It’s in disrepair – pot holes and puddles. If Uncle Sam doesn’t make repairs, we’ll never get to Oz – or realize the savings potential of IT transformation.”

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