Agencies also must accelerate cloud computing, virtualization, and infrastructure diversification deployments to drive savings. While respondents agree additional vendor competition would reduce IT acquisition, service, and maintenance costs, very few agencies – just 15 percent – are fully diversified. In addition, just 14 percent of agencies have completed virtualization initiatives, thus missing out on another $2.7 billion in possible savings. Federal agencies have the most to gain with cloud computing, as only nine percent of respondents are fully deployed – leaving a collective $3.2 billion up for grabs.
"The U.S. Federal Government has the potential to drive an additional $11.2 billion in annual savings by fully leveraging consolidation, virtualization, cloud computing, remote access, and infrastructure diversification," said Anthony Robbins, vice president Federal, Brocade. "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."
MeriTalk, a public-private partnership focused on improving the outcomes of government IT, recently announced the results of its new report, "Show Me the Money: The Key to Doubling Agency Savings." The study, underwritten by Brocade, reveals that Federal agencies are making progress on a series of key IT initiatives – consolidation, virtualization, cloud computing, remote access, and infrastructure diversification – but are leaving a significant amount of money on the table. According to the report, by fully leveraging all five initiatives, network managers believe they could save 24 percent of their IT budgets – or approximately a combined $19.7 billion annually – more than double their current savings.