Contracting Opportunities for Data Center Optimization and Mobility Expected to Remain Strong

The new Data Center Optimization Initiative (DCOI) launched by OMB in August 2016, is expected to give new life to federal data center efforts. Deltek research shows that prior to the launch of the new initiative, data center consolidation/optimization was falling lower on agency IT priority lists behind cybersecurity, cloud computing and mobility.

As of the end of September, agencies reported having already closed 2,443 non-tiered data centers which is 41% of all non-tiered and well on the way to reaching the goal of closing 60% of these data centers by the end of FY 2018. Agencies also reported having closed 86 tiered data centers which is only 4% of all tiered data centers and falling well short of the goal of closing 25% of tiered data centers by the end of FY 2018.

The DCOI effort emphasizes migration to cloud computing and shared services, which Deltek expects to lead to agency investments in those technology areas, as well as energy metering, automated infrastructure management, and virtualization. 

In the area of mobility, federal contract spending on mobile equipment and services is on the rise, with spending on equipment and products rising at a faster clip than that of services spending. However, Deltek’s analysis shows changes in contract spending varies by department. Defense agencies profiled experienced more growth than that of civilian agencies, with the exception of the Department of Justice.  Also, Deltek’s analysis of mobile spending trends showed a shift in device preference from Blackberry to Apple, but declines in Blackberry outweighed growth in spending on Apple.

Category management policy for mobile products and services is expected to drive cost savings for federal agencies. The goal is to reap cost savings from annual federal spending on mobile devices and service contracts via more than 1,200 separate agreements, which equate to approximately $1 billion in annual spending today. 

Federal agencies still lag behind the private sector in use and production of mobile apps and mobile-friendly websites for their employees and their customers. Mobile application brokers can offer agencies an innovative solution for the centralization of application management and development efforts by reducing application development timelines and helping to resolve issues around ownership and the availability of applications.

For more detailed information regarding federal data center consolidation and optimization efforts, and federal mobility initiatives and plans, please see Deltek’s recently release report Federal Priorities:  Cloud, Big Data, Mobility and Data Centers, 2016-2021.