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Feds aim to cut IT costs through consolidation

By: Patrick Thibodeau, Computerworld (US) (05/08/06)

The Bush administration believes it can cut the US government's annual IT infrastructure costs, proposed at US$22.4 billion for fiscal 2007, by 16 percent to 27 percent through increased consolidation, standardization and interoperability.

Karen Evans, who heads the White House's IT office at the Office of Management and Budget, said in an e-mail that "potential government-wide cost savings are between $3.7 billion and $6.0 billion per year if the Federal Government operates as one enterprise similar to private industry corporations."

IT vendors and federal agencies were due to confidentially submit ideas on how to accomplish that goal by last Friday, and by next month, the White House wants to have a framework in place for guiding the proposed changes. A final plan is expected to be ready by year's end, according to the White House, which set the cost-reduction goal in March.

The government's overall priorities include reducing total cost of ownership, promoting a modular approach to system design and ensuring that installations of proprietary technology don't affect interoperability.

Seeking a Standard

The White House isn't necessarily moving toward a purge of legacy systems. But Tom Berti, data center manager at the U.S. Census Bureau, said last week that he thinks he can move as much as 80 percent of his IT environment to blade servers running a combination of Linux and Windows over the next three or four years.

Berti manages about 50,000 square feet of raised-floor data center space, with more than 1,000 pieces of hardware running a laundry list of operating systems, such as Tru64, OpenVMS, HP-UX, AIX, Solaris, Linux, Windows and others. But now the Census Bureau is starting to shift applications to blades from IBM and Marlboro, Mass.-based Egenera Inc.

"More than anything, I would like to have a standard configuration," Berti said. "How can you have a [workable] patch management strategy if all the operating systems are different?" He

declined to forecast the cost savings that the Census Bureau could see as a result of the planned shift. But, Berti said, "there are a lot of economies to [having] two manufacturers and two operating systems -- that's what it comes down to."

For example, maintenance and training costs should be reduced, he said. He also expects to save money by centralizing systems management and buying his operating system software in bulk. In addition, the agency is adopting more of a utility computing approach that should simplify and speed the provisioning of system resources, according to Berti.

There will be some exceptions to the blade server switch-over, such as the continued use of larger servers for applications that require symmetrical multiprocessing capabilities. Berti has installed about 170 blades thus far and has just begun putting them into production use after an initial testing phase. The blade servers shouldn't cause power or cooling problems in his data center, which is a relatively new facility, Berti said.

Ray Bjorklund, an analyst at Federal Sources Inc. in McLean, Va., said that some defense agencies have been aggressive about pursuing IT consolidation and modernization initiatives. But that isn't the case at most federal agencies, he added.

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