A five-year government effort to cut down on IT costs seems to be paying off. A report issued by GAO indicates IT consolidation efforts have shaved off $3.6 billion from agencies’ IT costs this year. This number is deducted from an estimated annual IT budget of $80 billion.
In 2010, government agencies began an effort to trim IT spending by emphasizing cloud computing and data center consolidation. The amount of savings varied between agencies, but the agencies with the largest amounts were the Treasury Department, Department of Homeland Security, the Department of Defense and the Social Security Administration.
More than half of the reported savings resulted from data center consolidations in the form of reduced hardware needs and purchases. Moving from a hardware-centric strategy to a cloud-centric strategy reduced costs substantially.
The new government IT spending approach serves as an example to companies everywhere who
who are thinking of switching to a data center or a new data center approach. Reevaluating data storage methods not only cuts down on cost, but may also preserve large amounts of energy.
When evaluating this year’s IT budget, companies everywhere should consider the benefits of data center consolidation. Less hardware is not less efficient. An emphasis on cloud computing can save funds in the form of hardware costs and energy consumption.