Traditional OEM service level agreements are not meeting the rapid and changing needs of most businesses. In a recent Forrester study, over 70 percent of IT managers acknowledge being attracted to third-party maintenance arrangements because of exorbitant OEM pricing and contract entitlement issues. But, despite the growing shift away from traditional OEM service level agreements, many companies still remain leery of third party service contracts for three reasons.
A recently conducted survey suggests the possibility that total federal IT spending will be stagnant over the next 5 years. This survey goes on to point out that new federal budgetary cuts and austerity legislation are partly to blame for the stagnation. This news leads some to worry that the recent uptick in government contracting IT activity will be further strangled as a result, and may force a currently booming economic sector into a state of torpidity. If these survey results hold true, it may severely impact private sector business relations with DOD agencies. However, this necessity to stay at a familiar spending level may increase the amount of research and development that civilian agencies put in to finding technologies that “both cut costs, and improve operations” to deal with the current situation.
When GSA issued Refresh #23 to the IT Schedule 70 on March 31st, 2009 it incorporated several changes including - The title and scope of SIN 132-8 was changed to Purchase of New Equipment to accommodate the addition of new SIN 132-9, Purchase of Used or Refurbished Equipment.
On August 18th, 2011, President Obama asked government agencies to identify cuts of 5 and 10 percent in their 2013 budget proposals.
(This is part 1 of a complete series on Budget Planning in 2011 and beyond)
With a new calendar year comes a new fiscal year, a new set of goals and budget challenges for every department in your organization. While CTOs, CIOs, CFOs, and other c-level executives are working together to maintain or improve vital business services, many of the executives focusing on IT budgets make the understandable mistake of limiting their analysis to capital investments and purchasing decisions. However, more progressive professionals, those looking to get more control over their costs in the long term, are looking to other expenses to keep matters under control.
IT operating budgets continue to stagnate or shrink, decisions makers in the IT world are looking at independent IT dealers as a way to cut both investment and maintenance costs. They’re continuing to find that OEM solutions, while robust, are often cumbersome and expensive. But, as purchasers and managers begin to survey the independent IT dealer market, their commitment to third party or alternative vendors can begin to waver. Letting go of brand loyalties can be difficult, even if you know that it is holding your organization back. There are excellent alternatives for the more expensive brands including: IBM, HP, Sun, SGi, Cisco equipment and others.
As value-conscious IT professionals in every market continue to control and minimize operating expenses in a tough economic climate, many examine the option of refurbishing or buying refurbished IT hardware. But, while most IT buyers are aware of refurbishment as a real way to control costs, Forrester research says that most do not actively pursue refurbishment options. One of the major contributing factors is that Cisco, with 70% market penetration in IT hardware and 90% of the support market for that hardware, does not support legacy equipment. However, whether it is a part of a “green” initiative, or is a simply way to cut operating costs due to board pressure, there are several reasons that refurbishing and buying refurbished IT hardware is a safe, secure, effective, and above all value-driven solution for any IT department.
Unlike most senior management groups, IT Executives and CIOs have a variety of options when it comes to bringing cost savings and innovations to their company’s technology departments. While many focus on reductions and/or changes in personnel to get this done, technology teams that take a closer look at improvements to an organization’s hardware and software can actually bring about millions of dollars in cost savings while maintaining a competitive edge. To help those that are putting together 2011 IT department budget plans, below are three areas to consider in that planning process ---data center consolidation, relocation and upgrades.