Consolidate IT infrastructure, save $1 trillion, CEOs say

Green buildings, anti-fraud software and supply chain efficiencies can cut the federal deficit by $1 trillion, CEO Council asserts

A group of technology chief executive officers recommends more strategic use of technology by federal agencies to improve productivity, increase competition and reduce budget deficits.

The Technology CEO Council, led by IBM Corp. CEO Samuel Palmisano, claimed the federal government can save more that $1 trillion in 10 years by implementing its recommendations for streamlining supply chains, consolidating data centers, automating paper processes and applying anti-fraud analytic tools, among others.

The council outlined its strategy in a 10-page report released on Oct. 6. “Our report contains straightforward, proven ways to pare back $1 trillion from the deficit while increasing productivity and enabling sustainable competitiveness,” Michael Dell, council member and CEO of Dell, said in a statement.


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Other council member chief executives include Steven Appleton of Micron Technology Inc., Greg Brown of Motorola Inc., Paul Otellini of Intel Corp., Michael Splinter of Applied Materials, Inc. and Joseph Tucci of EMC Corp.

The council''s recommendations and estimated savings or revenues to be generated by 2020 included:

  • Streamlining federal supply chains and making service delivery more efficient to save $500 billion
  • Using advanced business analytics to reduce improper federal payments to save $200 billion
  • Consolidating data centers and other IT infrastructure and shift to cloud computing to save $150 billion to $200 billion
  • Monetizing federal assets to generate $150 billion in revenues
  • Expanding the use of shared services for agency administration to save $50 billion
  • Reducing field operations and shift to electronic self-service for citizens and telework for federal employees to save $50 billion and
  • Reducing energy use through facility consolidation and improved building management, advanced fleet management, and reductions in personnel travel expenses made possible by Web 2.0 collaboration tools to save $20 billion.

About the Author

Alice Lipowicz is a staff writer covering government 2.0, homeland security and other IT policies for Federal Computer Week.

Reader Comments

Mon, Oct 11, 2010

These recommendations are very logical and no doubt will generate the estimated $1 trillion savings. The reality is there really isn't one person in control to make the types of executive decisions required to achieve consolidated infrastructures. Add to that the necessity to get collaboration and general buy-in by the government and in-place contractors with conflicting agendas..throw in political administrative turnovers and annualized funding with changing objectives and all you'll hear are the sounds of brakes. Sorry to rain on the well-intended parade but it takes a dictatorship & continuity of stakeholders over an extended period of time (i.e., more than a couple of years) with guaranteed long-term funding to make it happen (or wait until all the agendas retire or die). An industry story that comes to mind is a Fortune 100 product company who needed to consolidate some 40+ HR systems across the world. There was a great deal of push back and insistence 'We have unique HR needs in my country'. What the non-cooperatives were told was 'Ok it's been nice knowing you...' said by he who was/is in charge. And this was just one component of everyone's IT infrastructures. It's really the toughest nut to crack.

Fri, Oct 8, 2010 SensorGuy CTO NC

You maybe can save a trillion (but not guaranteed i a contract I bet) but you first have to give Sam Palmisano and his political cohorts a few billion to start with and of course, he will keep the keys to your kingdom forever.

Fri, Oct 8, 2010

Imagine if the the Fed government adopted SaaS cloud computing faster than it is. How much more the savings could be, how much faster it could obtain this figure, and how government employees could be more productive using modern current capabilities. Merely trying to consolidate on premise systems takes years, lots of money, and the government still has to buy an exhorbitant amount of h/w and s/w with several tech refreshes along the way. "Cheap utility supplied computing will ultimately change as profoundly as cheap electricity did our society. The current environment is ideal for suppliers of technology. They reap the benefit of overinvestment, but it is not sustainable." Nicholas Carr, The Big Switch

Fri, Oct 8, 2010

This sounds so grand in the grand scheme of a perfect world. When you have Judges and administrators that require so many different things for there specific locations. Until they standarize it accross the board you are still going to see excess spending in some of those areas. It is just like going paperless, seems like we are using more paper then we were before. What will it take to implement what they are telling us another trillion dollars. Need to be careful for what you stream line. Just like anything, do not put all your eggs in one basket cause that might be all you get. When that system goes down or that back up in the same place goes down then you have half of that business down if not all of it. Multiply that times the peope and the production that should be going out. You can streamline somethings but careful you do not put yourself in a vunerable position.

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