Capturing value from IT infrastructure modernization in the public sector
Government agencies have struggled to match the private sector in modernizing IT infrastructure. By reimagining the business case and executing more effectively, they can unlock value through greater efficiency and improved performance.
IT infrastructure modernization—particularly improvements in networks and the hosting of compute and storage through the cloud—has been a major driver of value in private-sector industry. While total IT costs continue to rise, most industries are keeping growth of IT infrastructure costs lower than all other IT expenses, even as services are expanding and becoming more flexible and agile.
The public sector, however, has struggled to modernize its infrastructure and has not realized the same cost savings and improved quality of service. The number of federal data centers in the United States has swelled from 1,100 in 20091 to more than 12,000 in 2017. Efforts to consolidate through the Data Center Optimization Initiative (DCOI) have had only mixed success. The estimated cost saving to date is $1.6 billion—41 percent below the goal of $2.7 billion.2
Public-sector organizations face different challenges than private-sector companies do when it comes to modernizing IT infrastructure, but these challenges can be overcome by understanding and communicating the benefits, which can range from simple cost savings to enabling the mission and enhancing security. Government agencies can also boost the chances of success by taking a disciplined approach to execution, understanding when to source talent from within and when to hire outside experts and vendors
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