It was a bit startling last month to hear that federal CIO Vivek Kundra will leave his post in August for a Harvard fellowship. But it's been entertaining and enlightening to hear his outspoken departing advice on federal IT, the essence of which appears to be: Throw away old ideas and start fresh.
Kundra didn't hold back criticism of his current employer. "The model in Washington, especially in the federal government, has been throwing bodies at the problem. It hasn't been about introducing game-changing technology," he told the panel.
Instead of looking at the best technology for a particular goal, Kundra said that something close to an "IT cartel" of contractors wins bids repeatedly. The same managers are shuffled from project to project. And the entire IT procurement process takes too long -- typically two years from the call for bids to implementation. This state of affairs shuts out innovative companies, universities, and people, Kundra said.
He expanded on the waste and inefficiency all this leads to, saying that, on his arrival in Washington, $27 billion worth of IT projects (out of an overall budget of $80 billion) were "hundreds of millions" of dollars over budget and years behind schedule. By calling all parties on the carpet and raking through the facts, Kundra says his team cut $3 billion in waste.
One wonders what happened to the other $24 billion. Kundra cited one DoD project that had to be canned after 12 years and $1 billion was sunk into it. He also cited costs such as $137 million over six years spent on simply piling up reports on cybersecurity that were filed in "metal boxes" in Washington.
But Kundra's most damning statistics surrounded the government's datacenter deployments. Since 1998, he said, the government had expanded its number of datacenters from 432 to 2,000. Average CPU utilization is 27 percent, and average storage utilization is under 40 percent.
Kundra has published a worthy 25-point plan to reform federal IT. And he has begun the process of consolidating and closing government datacenters (800 already have been closed, with 137 more planned for closure by the end of this year). Unless his plan becomes a lost opportunity after he leaves, progress should continue.
Kundra has already started his plan to replace much datacenter infrastructure with cloud services, which he says save money by delivering value "on day one," instead of requiring long periods of time to achieve payback. Various government agencies, he says, have already saved over $42 million just by using cloud services to support email.
IT professionals everywhere can learn from Kundra's assessments, even if their enterprise IT outfits are more efficient than the government's. And a central message seems to be to break out of traditional ways of thinking about procurement, project management, and vendor relations.
Now that Kundra is moving on out of the Washington fray, his words to the wise should resonate even more clearly.
Join the editors and moderators of Internet Evolution to discuss the federal CIO's outgoing advice on Monday, July 25, at 1:00 p.m. ET. Click here then to join the chat. See you
there!
It seems that he was hitting a nerve on a few high level people/lobbyists.
Getting a project off the ground two years after its given a green light is horrible. The government seems to do this with everything, they brute force their way through issues in hopes that it wil eventually work.
Its a shame they're loosing him, he seems to have started turning the government in the right direction.
Antonis, there is absolutely a huge market for "midmarket" or midsized firms (having 100 to 1,000 employees) in the US, as there is worldwide. And note that Internet Evolution has an entire clan devoted to the midmarket.
I apologize if it didn't seem as though I was addressing that segment in my blog.
Indeed, many startups could fit into the midmarket segment. But that said, many enterprise IT buyers are looking for big, big companies when buying technology. The idea seems to be that the longer a firm has been around, the more likely it is to survive as a proven entity. No one wants to think they'll be left holding onto unsupportable technology if a startup goes under.
Hi Mary, catching up with discussion and forthcoming chat, I wonder whether there is something like SMEs (Small Medium Enterprises) in US!! It seems that entrerpisies jump from tiny startups to M&A with Large Enterpsises? Could any SMEs ever compete for procurement or any IT contracts?
There's another side to this, which is that established companies are often considered better bets than startups. Who wants to be left in the lurch if/when a startup folds? Often, financial viability is a key element of the IT vetting process. At the very least, a lot of enterprise buyers want an endorsement by a big partner before hiring a newbie, no matter how innovative the startup may be.
There was a saying 25 years ago that "You were always safe using IBM". Now there are multiple "safe" companies, but it is a relatively small club, and it does not include small innovative companies . Federal jobs are pork. I'm surprised that Kundra lasted as long as he did.
Agreed...but doesnt' this happen in most major city centers? You don't have to stray too far off the Strip in Vegas to see this...or Wander about the side streets of Manhattan! The only difference is that an entire cottage industry has sprung up in support of the federal government and it's programs. And the more affluent workers have migrated to the suburbs and brought their governtment wealth with them. No where else in the country does a change in presidents cause so many people to be out of work like it does in the suburbs of DC. In fact, with the recent changing of the guards from Republicans to Democrats in the whitehouse, military spending was hard hit and dozens of companies that support military technology had massive layoffs or were shuttered completly in our area!
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